Creative BioMolecules, Inc. Reports Second Quarter Results and Deveopment Progress 

Hopkinton, Massachusetts, August 8, 1997--Creative BioMolecules Inc. (Nasdaq:CBMI) today announced financial results for the second quarter of fiscal 1997, ended June 30, 1997. Revenues for the three month period were $3,916,000 and expenses were $8,139,000, resulting in a net loss of $4,223,000 or $0.13 per share. Comparable numbers for the quarter ending June 30, 1996 were revenues of $3,460,000, expenses of $5,852,000 and a net loss of $2,392,000, or $0.08 per share. For the six months ended June 30, 1997, the Company reported revenues of $7,563,000 compared to $5,500,000 for the same period in 1996. Net loss for the six month period ended June 30, 1997 was $7,972,000 or $0.24 per share, compared to $5,833,000 or $0.20 per share in 1996.

The increase in revenues during the second quarter of 1997, as compared to the second quarter of 1996, reflects additional research funding from the renal disease therapy partnership established in late 1996 with Biogen, Inc. The Company also recognized research revenues from the orthopaedic reconstruction partnership with Stryker Corporation.

The increased expenses during the second quarter of 1997, and the subsequent increase in net loss versus the comparable period in 1996, result primarily from expanded research and development activities. These activities include work in preparation for the planned filing of a Pre-Market Approval Application (PMA) by Stryker for the NOVOS™ bone graft substitute product, renal disease therapy research, and research into neurological disease therapies and other indications proprietary to Creative BioMolecules. Creative BioMolecules’ activities in preparation of the NOVOS™ PMA filing relate to the Company’s role as supplier of the product for Stryker. In this regard, attention and funds were directed this quarter toward the successful completion of manufacturing audits by European regulatory authorities of the Company’s facilities in Hopkinton, MA, and West Lebanon, NH.

In commenting on the quarterly results, Michael M. Tarnow, President and Chief Executive Officer, said, "During the second quarter, both Creative BioMolecules and Stryker have worked diligently to prepare for the planned bone graft PMA submission. With Biogen, we have moved aggressively to accelerate development of our renal disease therapy and are pleased that Biogen is proceeding toward the filing of an Investigational New Drug Application (IND) and the start of clinical trials in this program. In addition to working with our partners on orthopaedic and renal products, we are dedicated to creating a pipeline of new therapies that will bring value to our shareholders by building on our proprietary technology."

CREATIVE BIOMOLECULES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

June 30,

June 30,

1997

1996

1997

1996

REVENUE:

 

 

 

 

Research and development contracts $

3,137,593

$

1,112,000

$

5,889,065

$

2,167,704

Manufacturing contracts

161,687

1,713,029

393,926

2,325,094

License fees

0

420,000

0

521,584

Interest

616,951

214,994

1,280,142

465,435

Other

0

141

35

20,141

Total revenues

3,916,231

3,460,164

7,563,168

5,499,958

 

 

 

 

COSTS AND EXPENSES:

 

 

 

 

Research and development

6,437,127

3,594,998

12,016,180

7,427,751

Manufacturing contracts

112,720

1,350,519

273,758

1,828,051

General and administrative

1,536,937

851,065

3,139,853

1,966,638

Interest

52,882

55,455

105,354

110,247

Total costs and expenses

8,139,666

5,852,037

15,535,145

11,332,687

 

 

 

 

NET LOSS $

(4,223,435)

$

(2,391,873)

$

(7,971,977)

$

(5,832,729)

 

 

 

 

NET LOSS PER COMMON SHARE $

(0.13)

$

(0.08)

$

(0.24)

$

(0.20)

 

 

 

 

WEIGHTED AVERAGE NUMBER
OF COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING

33,016,188

29,072,074

32,934,903

29,049,580

 

 

 

Balance Sheet Data

(Unaudited)

June 30,

1997

Cash and Marketable Securities $

38,730,102

Total Assets $

66,180,496

Total Stockholders' Equity $

60,418,946

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.


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