RALEIGH, N.C., Aug. 11 /PRNewswire/ -- CLOSURE Medical Corporation
(Nasdaq: CLSR), a medical tissue cohesive products company, today announced
that total revenues for the three months ended June 30, 1997 were $140,000
compared to $30,000 in the 1996 comparable period. The net loss for the 1997
quarter was $1.7 million, or ($.13) per share, compared to a net loss of
$1.0 million, or ($.10) per share in the corresponding 1996 period.
Revenues for the six months ended June 30, 1997, were $348,000, compared
to $3,693,000 in the corresponding 1996 period. The 1996 revenues reflect the
receipt of $3,500,000 in license and product development revenues under the
Supply and Distribution Agreement for Dermabond, the Company's topical
adhesive product, entered into with Ethicon, Inc., a division of Johnson &
Johnson, in March 1996. For the six months ended June 30, 1997, the Company
reported a net loss of $3.2 million, or ($.25) per share, compared to net
income of $785,000 or $.08 per share for the same period of 1996.
Cash and cash equivalents and total investments were $27,125,000 at
June 30, 1997 compared to $18,060,000 at December 31, 1996.
On April 2, 1997, the Company completed a follow-on public offering of
1,725,000 shares of its Common Stock. Of these shares, 1,025,000 were sold by
the Company, and 700,000 by a stockholder of the Company. The Company expects
to use the net proceeds, approximately $12.0 million, from the offering to
fund research and development, clinical trials and capital expenditures and
for working capital and general purposes.
CLOSURE Medical was also recently added to the Russell 2000 Index upon the
reconstitution of the Index, effective July 1, 1997.
CLOSURE Medical develops, commercializes and manufactures medical cohesive
products based on its proprietary cyanoacrylate technology. CLOSURE's
nonabsorbable products may be used to replace sutures and staples for certain
topical wound closure applications, while its absorbable products can
potentially be used as surgical sealants and adhesives for internal wound
closure and management. Currently marketed products include Octyldent, used
in conjunction with antibiotics to treat adult periodontal disease, and
Nexaband, a line of topical adhesives used in veterinary wound closure and
management.
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
Statement of Operations
(Unaudited)
(In thousands, except per share data)
Three Months Six Months
Ended June 30, Ended June 30,
1997 1996 1997 1996
Product Sales $140 $30 $348 $193
License and Product
development revenues -- -- -- 3,500
Total revenues 140 30 348 3,693
Cost of products sold 271 37 422 173
Gross profit and license
and product development
revenues (131) (7) (74) 3,520
Research, development and
regulatory affairs
expenses 746 688 1,496 1,339
Selling and administrative
expenses 1,220 388 2,282 1,014
Payments to Caratec, L.L.C. -- -- -- 288
Total operating
expenses 1,966 1,076 3,778 2,641
Income (loss) from
operations (2,097) (1,083) (3,852) 879
Interest expense (7) (1) (8) (140)
Investment and interest
income 405 41 665 46
Net income (loss) $(1,699) $(1,043) $(3,195) $785
Shares used in computation
of net income
(loss) per share 13,186 10,150 12,701 10,150
Net income (loss) per
share $(0.13) $(0.10) $(0.25) $0.08
The accompanying notes are an integral part of these financial statements.
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
CLOSURE Medical Corporation
Balance Sheet
(In thousands, except for share data)
June 30, December 31,
1997 1996
Assets
(Unaudited)
Current assets:
Cash and cash equivalents $14,866 $13,024
Short-term investments 10,772 4,627
Accounts receivable 87 67
Inventories 129 112
Prepaid expenses 336 388
Total current assets 26,190 18,218
Furniture, fixtures and equipment1,456 851
Less-accumulated depreciation and
amortization (245) (179)
Total 1,211 672
Long-term investments 1,487 409
Intangible assets, net of
accumulated amortization 282 213
Total assets $29,170 $19,512
Liabilities and Stockholders'
Equity
Current liabilities:
Accounts payable $744 $566
Accrued expenses 378 396
Deferred revenue 2,054 2,069
Capital lease obligations 36 12
Total current liabilities 3,212 3,043
Capital lease obligations 448 14
Total liabilities 3,660 3,057
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 13,190,577
shares 132 122
Additional paid-in capital 45,667 33,579
Accumulated deficit (19,441) (16,246)
Deferred compensation on stock
options (848) (1,000)
Total stockholders' equity 25,510 16,455
Total liabilities and
stockholders' equity $29,170 $19,512
The accompanying notes are an integral part of these financial statements.
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; or
General: Paul G. Henning, Analyst: Brian Gill, or Media:
Deanne Eagle, all of the Financial Relations Board, 212-661-8030
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