NEWTOWN, Pa., May 5 /PRNewswire/ -- CollaGenex Pharmaceuticals, Inc.
(Nasdaq: CGPI), which is using proprietary technology to develop the first
orally administered drug indicated for the treatment of periodontal disease,
announced a net loss of $1.4 million, or $0.19 per share, for the first
quarter of 1997 compared to a net loss of $1.3 million, or $0.24 per share,
for the first quarter of 1996. The lower loss per share was due primarily to
a greater weighted average number of shares outstanding in the first quarter
of 1997 resulting from the Company's initial public offering of
2,000,000 shares of common stock in June 1996.
There were no revenues in either quarter. Total operating expenses were
$1.7 million for the first quarter of 1997 compared to $1.4 million for the
corresponding year-earlier period. The increase in operating expenses was due
primarily to higher general and administrative expenses relating to the
ongoing development of a commercial infrastructure for the Company.
Cash and short-term investments at March 31, 1997 were $17.0 million
compared to $18.2 million at December 31, 1996. On April 8, 1997, the Company
completed a follow-on offering of 1,000,000 shares of common stock at
$12.50 per share. The net proceeds of $11.6 million from this offering,
combined with existing cash and short-term investments, totaled approximately
$28.6 million.
CollaGenex Pharmaceuticals, Inc. is engaged in the development and
commercialization of innovative proprietary medical therapies for the
treatment of periodontal disease and other pathologies. The Company's lead
drug, Periostat(R), completed three pivotal Phase III clinical trials
demonstrating statistically significant improvements in a number of clinically
important endpoints for treatments of periodontal disease. A new drug
application for Periostat was filed with the FDA in August 1996. The
Company's core technology involves inhibiting the activity of certain enzymes
that destroy the connective tissues of the body. In addition to periodontal
disease, the company and its collaborators are researching and developing
other potential applications of the core technology, including cancer
metastasis, wound healing, osteoarthritis, osteoporosis, rheumatoid arthritis
and diabetic nephropathy.
This news release contains forward-looking statements and therefore it
necessarily involves risks and uncertainties. Factors that could cause actual
events to differ from these forward-looking statements are set forth under the
caption "Risk Factors" in the company's prospectus dated June 20, 1996, which
is part of its registration statement on file with the Securities and Exchange
Commission. There can be no assurance that the company will receive
regulatory approval to market any product or, if such approval is received,
that the product will be commercially successful.
COLLAGENEX PHARMACEUTICALS, INC.
SUMMARY FINANCIAL DATA
Three Months Ended March 31,
1997 1996
(in thousands, except share amounts)
STATEMENT OF OPERATIONS DATA:
Revenues $ -- $ --
Operating Expenses:
Research and Development 693 976
General and Administrative 968 418
Total 1,661 1,394
Interest Income 236 61
Net Loss $(1,425) $(1,333)
Accretion of Undeclared Dividends
Attributable to Mandatorily Redeemable
Convertible Preferred Stock $ -- $ 383
Net Loss Allocable to Common
Stockholders $(1,425) $(1,716)
Pro Forma Net Loss per Share $ (0.19) $ (0.24)
Shares Used in Computing Pro
Forma Net Loss per Share 7,538,572 5,545,896
March 31, December 31,
1997 1996
BALANCE SHEET DATA:
Cash and Short-term
Investments $ 16,963 $ 18,215
Total Assets $ 17,396 $ 18,437
Total Stockholders' Equity $ 16,195 $ 17,592
SOURCE CollaGenex Pharmaceuticals, Inc.
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CONTACT:
Nancy C. Broadbent, Chief Financial Officer
of CollaGenex Pharmaceuticals, 215-579-7388; or General -- Jerry
Meyer, Analyst -- Brian Gill, or Media -- Gil Faggen, of The
Financial Relations Board, 212-661-8030
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