RALEIGH, N.C., Feb. 24 /PRNewswire/ -- Cardiovascular Diagnostics, Inc.
(Nasdaq: CVDI) today reported results for its fourth quarter and year ended
December 31, 1997.
    During 1997, CVDI's principal focus evolved towards the development of
specialty tests which enable new, innovative drugs to be effectively
administered.  CVDI was selected in April 1997 by Eli Lilly and Company
(NYSE: LLY) to collaborate on a diagnostic test for a marker to be used with
Lilly's new drug for treating sepsis.  Later in the year, CVDI proved
feasibility for the test.  In addition, during the year, CVDI began a second
collaboration with Knoll AG to develop a fibrinogen test to be used with a new
thrombin inhibitor to treat strokes.  CVDI's first collaboration with Knoll,
developing an Ecarin Clotting Time (ECT) test for Knoll's new thrombin
inhibitor, PEG-Hirudin, resulted in a $2.1 million order for CVDI's
Thrombolytic Assessment System (TAS(TM)) analyzers and test cards in early
1998.  The Lilly drug is currently completing Phase II trials, and both Knoll
drugs will be in Phase III clinical trials in the second quarter of 1998.
    Marketing of CVDI's tests for routine anticoagulants by Dade Behring,
CVDI's North American distributor, was delayed while the dry chemistry tests
were calibrated to conform to Dade's wet chemistry reagents.  Meanwhile, the
Company increased the number of commercial tests and controls to 13 from
seven, and commenced a multi-site trial in Europe of its tests throughout a
patient's hospital stay.  Agreements to distribute the routine tests in niche
markets were signed with Avecor Cardiovascular (Nasdaq: AVEC) and with Johnson
& Johnson's Ortho Clinical Diagnostics.  Toward the end of the year, CVDI
entered into discussions with several firms about long-term arrangements for
accelerating these tests' market penetration.
    With its routine tests in the early stages of commercialization and its
specialty tests in field and clinical trials, the Company's financial strategy
is to supplement revenues from the sale of TAS analyzers and cards with cash
flow from sales of manifolds and syringes by its Coeur Labs subsidiary, as
well as through development collaborations.  Reflecting a 60 percent increase
in sales of analyzers and test cards, CVDI's total revenues for 1997 were
$7,618,000, compared with $6,412,000 a year ago, an increase of 19 percent.
The Company's net loss for the year narrowed to $4,679,000, or $0.70 per
share, from $5,121,000, or $0.78 per share in 1996.  Compared to the same
quarter in 1996, revenues for the fourth quarter of 1997 rose 17 percent to
$1,898,000, which included a 40 percent increase in sales by Coeur Labs.  The
net loss for the quarter was $1,805,000, or $0.27 per share, compared with
$1,371,000, or $0.21 per share in the fourth quarter of 1996.  At year end,
cash and equivalents totaled $5,885,000, which included proceeds from a
$3,000,000 equipment-based financing.
    "Highlighting CVDI's year was the formation of two additional
collaborations, with Lilly and Knoll, for tests to be used with new drugs
currently in clinical trials, and the subsequent successful development of
those tests," commented John Funkhouser, President and Chief Executive
Officer.  "As these drugs progress through clinical trials, CVDI test cards
and analyzers may be supplied to trial participants, and if and when the drugs
receive marketing clearance, become part of best practices in the use of the
drugs.  Subsequently, as the installed base of analyzers expands throughout
the clinical community, we believe the benefits of the TAS technology will
fuel further demand for analyzers and test cards for both specialty and
routine anticoagulant tests."
    Mr. Funkhouser continued, "While the commercialization of our TAS tests
for routine anticoagulants is taking longer than planned, our belief in their
potential to provide hospitals with superior point-of-care diagnostics has
never been stronger.  Accordingly, we have entered into discussions with
several firms with the resources to successfully complete the
commercialization, and explore a number of possible arrangements, including a
joint venture and/or the sale of manufacturing rights.
    "By focusing on specialty tests which enable specific new drugs to be
effectively administered," Mr. Funkhouser concluded, "CVDI is positioning its
TAS(TM) analyzers and test cards to benefit from pull-through demand from the
sale of the related drugs, and is targeting markets which offer opportunities
for direct distribution and attractive margins."
    Cardiovascular Diagnostics, Inc. develops, manufactures and markets rapid
turnaround, point-of-care diagnostics to assess blood clot formation and
dissolution.  CVDI develops tests based on its proprietary, dry chemistry
Thrombolytic Assessment System (TAS(TM)) for powerful new therapeutics with
narrow ranges between over- and under-dosage, which represent CVDI's principal
target market, as well as for monitoring routine anticoagulants.  CVDI is
collaborating on diagnostics for drugs in clinical trials with Eli Lilly for a
sepsis marker, and with Knoll AG for PEG-Hirudin and ancrod.  CVDI's
therapeutic diagnostics are used in the treatment of angina, myocardial
infarction (heart attack), stroke, deep venous thrombosis, and pulmonary and
arterial emboli.

 To receive CVDI's latest news release and other corporate documents via FAX-
   no cost- dial 1-800-PRO-INFO.  Use company's ticker, CVDI.  Or visit The
        Financial Relations Board's web site at http://www.frbinc.com.

    This press release contains forward-looking statements regarding future
events and the future performance of Cardiovascular Diagnostics that involve
risks and uncertainties that could cause actual results to differ materially
from those projected in the forward-looking statements.  Information
concerning factors that could cause actual results to materially differ from
those in the forward-looking statements is contained in the Company's SEC
filings, including Form 10-K, Form 10-Q and Form 8-K reports.

                       CARDIOVASCULAR DIAGNOSTICS, INC.
                          Selected Financial Summary

    CONSOLIDATED INCOME STATEMENTS

                           Three Months Ended         Twelve Months Ended
                              December 31,                December 31,
                          1997           1996         1997           1996

    Total sales    $ 1,898,318    $ 1,615,976  $ 7,618,473     $ 6,411,519
    Cost of goods
      sold           1,735,355      1,509,250    6,169,112       5,257,044
    Gross profit       162,963        106,726    1,449,361       1,154,475

    Operating
      expenses       2,028,343      1,857,319    7,514,116       7,128,970

    Operating loss  (1,865,380)    (1,750,593)  (6,064,755)     (5,974,495)

    Other income
      (expense)         99,441        373,685    1,467,627         905,711

    Net loss before
      taxes         (1,765,939)    (1,376,908)  (4,597,128)     (5,068,784)

    Provision for
      income taxes     (39,264)         5,683      (82,083)        (51,860)
    Net loss        (1,805,203)    (1,371,225)  (4,679,211)     (5,120,644)

    Net loss per
      share             ($0.27)        ($0.21)      ($0.70)         ($0.78)
    Average weighted
      shares         6,741,872      6,667,732    6,722,491       6,566,134

    CONSOLIDATED BALANCE SHEETS

                               December 31, 1997          December 31, 1996

    Current assets               $ 10,987,094                $ 12,198,120

    Total assets                 $ 17,684,503                $ 18,351,355

    Current liabilities          $  2,140,620                $    616,030
    Total liabilities            $  4,491,795                $    683,017
    Total shareholders' equity   $ 13,192,708                $ 17,668,338
    Total liabilities and
      equity                     $ 17,684,503                $ 18,351,355

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