NEWTOWN, Pa., Feb. 24 /PRNewswire/ --CollaGenex Pharmaceuticals, Inc.
(Nasdaq: CGPI), which is using proprietary technology to develop the first
orally administered drug for the treatment of periodontal disease, today
announced a net loss of $2.1 million, or $0.25 per basic share, for the fourth
quarter of 1997.  This compares with a net loss of $1.4 million, or $0.19 per
basic share, for the fourth quarter of 1996.
    For 1997 as a whole, the Company reported a net loss of $8.6 million, or
$1.04 per basic share, compared to a net loss of $5.9 million, or $0.90 per
basic share ($0.89 per diluted share), in 1996.  The 1997 basic per-share
results were based on 8,291,167 average shares outstanding compared to
6,572,104 average shares outstanding for 1996.
    The 1997 results included revenues of $300,000 in milestone payments under
an agreement with Boehringer Mannheim Italia ("BMI"), which will market the
Company's lead product, Periostatr, in Italy following regulatory approval and
provide a European manufacturing base.  The 1996 results included license
revenues of $400,000 under such agreement.  The higher net loss in 1997
resulted primarily from higher marketing, general and administrative expenses
associated with the expansion of the Company's commercial infrastructure.
    The Company's cash and short-term investments were $22.8 million at
December 31, 1997 compared to $18.2 million at December 31, 1996.  The 1997
balances include $11.6 million in net proceeds from a public offering of
common stock in April 1997.
    CollaGenex Pharmaceuticals is an emerging pharmaceutical company which is
developing and commercializing innovative proprietary medical therapies for
the treatment of periodontal disease and other pathologies.  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.

    To receive additional information on CollaGenex, via fax, at no charge,
dial 1-800-PRO-INFO and enter code CGPI, or visit the Company's web site at
http://www.collagenex.com.

    This news release contains certain forward-looking statements within the
meaning of Section 21E of the Securities and Exchange Act of 1934, as amended.
Investors are cautioned that forward-looking statements involve risks and
uncertainties which may affect the Company's business and prospects, including
without limitation the requirement for regulatory approval of products by
the FDA, the uncertainty in obtaining such approval and uncertainties relating
to clinical trials, all as discussed in the Company's periodic filings with
the U.S. Securities and Exchange Commission.

                       COLLAGENEX PHARMACEUTICALS, INC.
                            SUMMARY FINANCIAL DATA

                             Three Months Ended      Twelve Months Ended
                                December 31,              December 31,
                              1997        1996         1997         1996
                              (in thousands, except share amounts)

    Statement of Operations Data:
    Revenues:
     Licensing fees            $25          --         $325         $400
     Contract revenues           9          --            9           --
       Total revenues           34          --          334          400

    Operating expenses:
     Research and
      Development              692         872        4,319        4,436
     General and
      Administrative         1,821         786        5,977        2,527
       Total operating
        expenses             2,513       1,658       10,296        6,963
    Other income
     Interest income           362         259        1,338          645

    Net Loss               $(2,117)    $(1,399)     $(8,624)     $(5,918)

    Accretion of undeclared
     dividends                $ --        $ --         $ --         $720

    Net loss allocable to
     common stockholders   $(2,117)    $(1,399)     $(8,624)     $(6,638)

    Net loss per share
     Basic                   (0.25)      (0.19)       (1.04)       (0.90)
     Diluted                $(0.25)     $(0.19)      $(1.04)      $(0.89)

    Shares used in computing
     net loss per share
      Basic              8,546,970   7,526,158    8,291,167    6,572,104
      Diluted            8,546,970   7,526,158    8,291,167    6,627,104

    Balance Sheet Data:                            December 31, 1997
    Cash, cash equivalents and short-term
     investments                                         $22,771
    Total assets                                         $23,165
    Total stockholders' equity                           $20,708

Link to this page: