RALEIGH, N.C., Feb. 2 /PRNewswire/ -- CLOSURE Medical Corporation
(Nasdaq: CLSR), a medical tissue cohesive products company, today announced
that total revenues for the three months ended December 31, 1997 were $612,000
compared to $198,000 in the 1996 comparable period. The net loss for the 1997
quarter was $2.0 million, or ($.15) per share, compared to a net loss of
$1.6 million, or ($.13) per share in the corresponding 1996 period.
Revenues for the year ended December 31, 1997, were $1,551,000 compared to
$4.0 million in the corresponding 1996 period. The 1996 revenues reflect the
receipt of $3.5 million in license and product development revenues under the
Supply and Distribution Agreement for Dermabond* the Company's topical
cohesive product, entered into with Ethicon, Inc., a division of Johnson &
Johnson, in March 1996. For the year ended December 31, 1997, the Company
reported a net loss of $6.8 million, or ($.53) per share, compared to a net
loss of $16.8 million or ($1.59) per share for the same period of 1996. The
1996 operating loss includes a one time non-cash charge of $14.2 million or
($1.34) per share. Excluding this charge, the operating loss was $2.6 million
or ($.25) per share.
Cash and cash equivalents and total investments were $24.5 million at
December 31, 1997 compared to $18.1 million at December 31, 1996.
CLOSURE Medical develops, commercializes and manufactures medical tissue
cohesive products based on its proprietary cyanoacrylate technology.
CLOSURE's nonabsorbable tissue cohesive products may be used to replace
sutures and staples for certain topical wound closure applications, while its
absorbable tissue cohesive products can potentially be used as surgical
sealants and tissue cohesives for internal wound closure and management.
Currently marketed tissue cohesive products include Octyldent(R), used as an
adjunct in the treatment of adult periodontal disease, Nexaband(R), a line of
topical tissue cohesives used in veterinary wound closure and management and
Dermabond* a nonabsorbable cohesive used for certain topical wound closure
applications.
* Dermabond is a trademark of Ethicon, Inc., a subsidiary of Johnson &
Johnson.
To receive CLOSURE's latest news release and other corporate documents via
FAX -- at no cost -- dial 1-800-PRO-INFO. Use Company's ticker-CLSR.
This release contains certain forward-looking statements which involve
known and unknown risks, delays, uncertainties or other factors not under the
Company's control which may cause actual results, performance or achievements
of the Company to be materially different from the results, performance, or
other expectations implied by these forward-looking statements. These factors
include, but are not limited to the early stage of commercialization of the
Company products; the need for regulatory approval and effects of governmental
regulation; technological uncertainties; dependence on marketing partners; and
dependence on patents and trade secrets, as well as those detailed in the
Company's Annual Report on Form 10-K for the year ended December 31, 1996
filed with the Securities and Exchange Commission.
CLOSURE Medical Corporation
Balance Sheet
(In thousands, except per share data)
December 31,
1996 1997
Assets
Current assets:
Cash and cash equivalents $13,024 $ 7,277
Short-term investments 4,627 14,417
Accounts receivable 67 1,226
Inventories 112 347
Prepaid expenses 388 367
Total current assets 18,218 23,634
Furniture, fixtures and equipment, net 672 3,694
Restricted investments -- 1,517
Long-term investments 409 1,298
Intangible assets, net 213 276
Total assets $19,512 $30,419
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 566 $ 478
Accrued expenses 396 2,598
Deferred revenue 2,069 2,019
Capital lease obligations 12 155
Current portion of long-term debt -- 350
Total current liabilities 3,043 5,600
Capital lease obligations 14 1,250
Long-term debt less current portion -- 1,150
Total liabilities 3,057 8,000
Stockholders' equity:
Preferred Stock, $.01 par value.
Authorized 2,000,000 shares; none issued
or outstanding. -- --
Common Stock, $.01 par value.
Authorized 35,000,000 shares;
issued and outstanding 12,150,000
and 13,242,530 shares, respectively 122 132
Additional paid-in capital 33,579 46,058
Accumulated deficit (16,246) (23,075)
Deferred compensation on stock options (1,000) (696)
Total stockholders' equity 16,455 22,419
Total liabilities and stockholders'
equity $19,512 $30,419
CLOSURE Medical Corporation
Statement of Operations
(In thousands, except per share data)
Year Ended Fourth Quarter Ended
December 31, December 31,
Revenues: 1996 1997 1996 1997
Product sales $ 496 $ 1,551 $ 198 $ 612
License and product
development revenues 3,500 -- -- --
Total revenues 3,996 1,551 198 612
Cost of products sold 460 1,398 168 515
Gross profit and license
and product development
revenues 3,536 153 30 97
Operating expenses:
Research, development and regulatory
affairs expenses 3,167 3,594 1,011 1,228
Selling and administrative
expenses 2,879 4,752 899 1,204
Charges related to Partnership
capital changes 14,210(A) -- -- --
Payments to
Caratec, L.L.C. 293 -- -- --
Total operating
expenses 20,549 8,346 1,910 2,432
Loss from operations (17,013) (8,193) (1,880) (2,335)
Interest expense -- (72) -- (46)
Investment and interest
income 337 1,436 268 374
Interest expense to Sharpoint
Development Corporation (138) -- -- --
Net loss $(16,814) $ (6,829) $ (1,612) $ (2,007)
Shares used in computation
of net loss per common
share 10,545 12,966 12,150 13,242
Net loss per common share
- basic and diluted $ (1.59) $ (0.53) $ (0.13) $ (0.15)
(A) Represents a non-cash one time charge of $14.2 million, or $1.35 per
share, representing the fair market value for shares of common stock issued to
a former limited partner of the Company's predecessor, Tri-Point Medical L.P.,
in exchange for its limited partnership interest and rights to receive various
future payments.
SOURCE CLOSURE Medical Corporation
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CONTACT:
Robert V. Toni, President & CEO, or J. Blount
Swain, CFO of CLOSURE Medical Corporation, 919-876-7800; General
- Paul G. Henning, Analyst - Brian Gill, or Media - Deanne Eagle
of The Financial Relations Board, 212-661-8030
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