MINNEAPOLIS, Oct. 23 /PRNewswire/ -- Urologix, Inc. (Nasdaq: ULGX), a
developer and marketer of minimally invasive medical devices for the treatment
of urological diseases, today announced results for the first quarter of
fiscal 1998 ended September 30, 1997.
    "This has been a particularly satisfying quarter for Urologix," said Jack
Meyer, president and chief executive officer.  "A significant achievement was
realized when we received FDA approval to market the Targis System in August.
With this approval, the company is approved to market the Targis System
throughout the world's largest healthcare markets, which include the United
States, the European Union countries, Japan and Canada.  The relatively quick
FDA review process was gratifying, and we believe is a further indication of
the strength and integrity of the Targis System's clinical results.  We
currently have two year follow-up data on 146 patients and three year
follow-up on 46 patients treated in our controlled clinical studies, which
demonstrate the durability of the Targis procedure."
    Sales for the fiscal 1998 first quarter were $2.6 million compared with
$586,000 in the same quarter last year.  The company incurred a net loss of
$2.0 million, or $0.22 per share, for the fiscal 1998 first three months
compared with a net loss of $1.8 million, or $0.20 per share, a year ago.
Higher operating expenses in this year's first quarter are attributable
primarily to the company's increased marketing efforts in supporting its
international distributors and in preparation for the U.S. launch of the
Targis System.  The U.S. launch will be implemented through a direct sales
force and is expected to commence in the fiscal 1998 second quarter.

    Active Preparations Underway for U.S. Launch
    To accelerate commercialization efforts worldwide, the company has
dramatically increased its sales and marketing staff, which now includes 20
professionals.  In addition, Urologix has hired and trained three field
representatives for its U.S. sales team.  The company is also finalizing
marketing and promotional materials, establishing three training sites at
leading U.S. hospitals to instruct urologists on the use of the Targis System,
and developing a clinical data registry.  In early October, the company
shipped its first commercial unit in the U.S.

    Progress Toward Reimbursement Encouraging
    Internationally, Urologix and its distribution partner, Boston Scientific,
continue to pursue third-party reimbursement for the Targis procedure on a
country-by-country basis throughout Western Europe.  In late September,
Urologix announced that the United Kingdom's largest private health insurer,
British United Provident Association (BUPA), will begin reimbursing physicians
using thermotherapies, such as the Targis System, for treating BPH.  BUPA
currently provides health insurance for approximately 50% of U.K. patients who
maintain private coverage. Reimbursement approval has been obtained in Japan
through Nihon Kohden, the company's Japanese distribution partner.
    Additionally, the company is concentrating on obtaining reimbursement in
the U.S. and was actively involved in pursuing that objective during the first
quarter.  Based on communications with various Medicare carriers, the company
believes that carriers representing more than 30 states will cover
transurethral microwave therapies for BPH.  As well, the American Medical
Association (AMA) has approved the addition of a Current Procedural
Terminology (CPT) code, which is used by physicians when submitting claims,
and as a reimbursement measure by payors.  The code is expected to be
published in the 1998 CPT book.  The company believes that this code will make
it easier for physicians to adopt its Targis procedure.

    Urologix, Inc., based in Minneapolis, develops, manufactures and markets
minimally invasive medical devices for the treatment of urological diseases.
The company has developed the Targis System, a non-surgical, anesthesia-free,
catheter-based therapy that uses a proprietary microwave technology for the
treatment of benign prostatic hyperplasia (BPH), a disease that affects over
23 million men worldwide.  The Targis System has been approved for marketing
in the United States, the European Union, Japan and Canada.
    Certain statements in this press release that relate to future performance
of the company are "forward-looking" and are subject to risks and
uncertainties inherent in the company's business.  These risks and
uncertainties include: competition from other BPH treatments; the ability of
the company's distributors and representatives to successfully market and sell
the Targis System; the company's ability to manufacture the Targis Systems in
sufficient quantities; and the extent to which the physicians performing the
Targis System procedures are able to obtain third-party reimbursement.
    To receive Urologix, Inc.'s latest news release and other corporate
documents, free of charge via fax, simply dial 1-800-PRO-INFO.  Use company
ticker ULGX.


                                UROLOGIX, INC.
                      CONDENSED STATEMENTS OF OPERATIONS
                                 (Unaudited)


                                         Three Months Ended
                                            September 30,
                                        1997            1996

    Sales                            $2,599,135       $586,125
    Cost of goods sold                1,738,301        721,553
          Gross profit (loss)           860,834       (135,428)

    Costs and expenses:
      Research and development        1,374,165      1,239,224
      Sales and marketing             1,332,966        485,044
      General and administrative        500,805        450,743
         Total costs and expenses     3,207,936      2,175,011

    Operating loss                   (2,347,102)    (2,310,439)
    Interest income, net                331,442        520,754
    Net loss                        ($2,015,660)   ($1,789,685)

    Net loss per common share            ($0.22)        ($0.20)

    Weighted average number of
      common shares outstanding       9,309,896      9,128,765


                         SELECTED BALANCE SHEET DATA
                                 (Unaudited)

                                  September 30,             June 30,
                                      1997                    1997
    Cash and marketable
     securities                   $22,534,611             $26,100,809
    Current assets                 27,786,330              30,160,769
    Total assets                   33,121,648              35,582,087
    Current liabilities             2,535,970               3,147,319
    Long-term obligations              31,737                  37,725
    Shareholders' equity           30,553,941              32,397,043

Link to this page: