Hopkinton, MA, February 26, 1997--Creative BioMolecules, Inc. (Nasdaq: CBMI) today announced financial results for the year ended December 31, 1996. The Company reported revenues of $22,352,000 and expenses of $24,592,000, resulting in a net loss of $2,240,000, or $.07 per share. The comparable figures for the year ended September 30, 1995 were revenues of $13,229,000, and expenses of $20,851,000 resulting in a net loss of $7,622,000, or $.37 per share. The Company changed its fiscal year end from September 30 to December 31, effective with the three months ended December 31, 1995.
For the three months ended December 31, 1996, the Company reported revenues of $12,738,000, and expenses of $7,210,000 compared to revenues of $2,004,000 and expenses of $5,224,000 for the three months ended December 1995. Net income for the three month period ended December 31, 1996 was $5,528,000 or $.16 per share, compared to a net loss of $3,220,000 or $.11 per share for the three months ended December 1995.
The Company closed fiscal 1996 with $50,075,000 in cash and marketable securities. Revenue for the quarter ended December 31, 1996 included a $10,000,000, one-time license fee received as part of an agreement with Biogen, Inc. for the development of novel therapeutics for renal disease. Also during the quarter, the Company received $18,000,000 of equity investment from Biogen as part of the transaction.
Michael M. Tarnow, President and Chief Executive Officer, said, "1996 was a year of marked success for Creative BioMolecules. Our partner, Stryker Corporation, completed a pivotal trial with our lead product, an OP-1 based bone graft, and is moving forward toward application for regulatory approval from the FDA. We established a second major partnership with Biogen for the development of our technology in renal diseases. The preclinical results in this important area are very encouraging and we are progressing with several other exciting research programs. Our strengthened financial position enabled us to begin 1997 with more than $50 million in cash and marketable securities."
The statements in this news release that are not historical facts include forward-looking statements that involve risks and uncertainties. Factors which could cause actual results to differ from the Company's expectations include, without limitation, the achievement of product development milestones by the Company, the impact of competitive products, the timely receipt of regulatory clearances required for clinical testing, manufacturing and marketing of products and the other risks and uncertainties detailed from time to time in the Company's periodic reports.
Creative BioMolecules is a discovery and development company focused on proprietary protein-based therapeutics for human tissue regeneration and restoration. The Company's therapeutics are based on proteins that act as signals in initiating and regulating the cellular events involved in cell and tissue formation.
Creative BioMolecules, Inc., and Subsidiary
Consolidated Statements of Operations
| Three Months Ended | Twelve Months Ended | |||
| Dec. 31, 1996 | Dec. 31, 1995 | Dec. 31, 1996 | Dec. 31, 1995 | |
| REVENUE: | ||||
| Research and development contracts | $1,613,386 | $970,806 | $5,547,976 | $5,824,344 |
| Manufacturing contracts | 271,617 | 770,133 | 4,485,531 | 6,158,574 |
| License fees and royalties | 10,500,000 | 2,157 | 11,122,584 | 544,000 |
| Interest | 353,377 | 260,953 | 1,174,219 | 648,602 |
| Other | 0 | 349 | 21,900 | 53,470 |
| Total revenues | 12,738,380 | 2,004,398 | 22,352,210 | 13,228,990 |
| COSTS AND EXPENSES: | ||||
| Research and development | 4,831,790 | 3,193,979 | 15,650,986 | 11,687,847 |
| Cost of manufacturing contracts | 432,552 | 715,171 | 3,823,442 | 5,329,779 |
| Marketing, general and administrative | 1,891,753 | 1,254,566 | 4,900,823 | 3,603,954 |
| Interest | 53,792 | 60,784 | 216,906 | 229,477 |
| Total costs and expenses | 7,209,887 | 5,224,500 | 24,592,157 | 20,851,057 |
| NET INCOME (LOSS) | $5,528,493 | ($3,220,102) | ($2,239,947) | ($7,622,067) |
| NET INCOME (LOSS) PER COMMON SHARE | $0.16 | ($0.11) | ($0.07) | ($0.37) |
| WEIGHTED AVERAGE NUMBER OF COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING | 34,361,821 | 28,120,190 | 30,062,334 | 20,430,900 |
Balance Sheet Data
Dec. 31, 1996 |
|
| Cash, Cash Equivalents and Marketable Securities | $50,075,254 |
| Total Assets | $73,818,874 |
| Total Stockholders' Equity | $67,261,075 |
| Common Shares Outstanding | 32,769,553 |
NOTE: Creative BioMolecules’ latest press releases are available on the Internet at http://www.prnewswire.com or they may be requested by fax by calling 800-758-5804, extension 212213.
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For additional information on this news release, please contact the Company.