smlogo.gif (2728 bytes)


Creative BioMolecules, Inc. Reports First Quarter Results and Devlopment Progress 

Hopkinton, MA, May 14, 1998-Creative BioMolecules Inc. (Nasdaq: CBMI) today announced financial results for the first quarter of fiscal 1998, ended March 31, 1998. Revenues were $3,418,000 and expenses were $8,337,000, resulting in a net loss of $4,919,000 or $0.15 per share. Comparable numbers for the quarter ending March 31, 1997 were revenues of $3,647,000, expenses of $7,396,000 and a net loss of $3,749,000, or $0.11 per share.

Revenues generated during the first quarter result from research contracts and product supply to Stryker Corporation and Biogen, Inc. for the orthopaedic and renal programs, respectively. The increase in expenses during the first quarter of 1998 is attributed to the preparation of the Company’s manufacturing facilities and completion of the manufacturing documentation required for the planned filing by Stryker of the Pre-Market Approval (PMA) application for the OP-1 bone graft device. Additionally, the Company expanded its research of OP-1 and other proprietary morphogenic proteins for the development of therapies for the treatment of stroke and other neurological disorders.

In March, Stryker presented data from a 122 patient pivotal trial of the OP-1 bone graft device at the American Academy of Orthopaedic Surgeons. The data demonstrated that the device was clinically comparable to autograft in healing non-union fractures of the tibia while eliminating the autograft harvest procedure. Eliminating this second invasive procedure results in less blood loss, shorter surgical time, less pain, and reduced infections.

Creative BioMolecules, Inc. has established a substantial proprietary position in the field of morphogenic proteins, including OP-1. The Company’s morphogenic protein programs include a late stage development effort in orthopaedic reconstruction with Stryker Corporation, ongoing research to develop treatments for renal disease with Biogen, Inc., and the development of proprietary new therapies for stroke and other neurological disorders.

Consolidated Statements of Operations

Three Months Ended

March 31,

March 31,

1998

1997

REVENUE:
Research and development contracts

$3,002,859

$2,751,473

Manufacturing contracts

232,239

Interest and other

415,259

663,225

Total revenues

3,418,118

3,646,937

COSTS AND EXPENSES:
Research and development

6,297,867

5,579,053

Cost of manufacturing contracts

161,038

General and administrative

1,966,609

1,602,916

Interest

72,510

52,472

Total costs and expenses

8,336,986

7,395,479

NET LOSS

($4,918,868)

($3,748,542)

BASIC AND DILUTED LOSS PER SHARE

($0.15)

($0.11)

SHARES FOR BASIC AND DILUTED

33,442,341

32,853,617

Balance Sheet Data

March 31,

1998

Cash, Cash Equivalents and Marketable Securities

$26,222,115

Total Assets

$55,509,708

Total Stockholders' Equity

$48,117,841

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.

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.

###

For additional information on this news release, please contact the Company.


map | resources
Copyright 1998 Creative BioMolecules, Inc. All Rights Reserved
Last modified: October 26, 1998
Important Legal Information