Creative BioMolecules, Inc. Reports Second Quarter Results

Hopkinton, MA, August 15, 1996--Creative BioMolecules Inc. (Nasdaq: CBMI) today announced financial results for the second quarter of fiscal 1996, ended June 30, 1996. Revenues for the three month period were $3,460,164 and expenses were $5,852,037, resulting in a net loss of $2,391,873 or $.08 per share. Comparable numbers for the quarter ending June 30, 1995 were revenues of $3,185,427, expenses of $4,917,494 and a net loss of $1,732,067, or $.09 per share.

Compared to the first quarter of fiscal 1996, second quarter revenues increased 70%. Sources of the increase were the partnership with Stryker Corporation on OP-1 for orthopedic reconstruction, manufacturing income from the Company's collaboration with Biogen and technology license fees. The agreement with Stryker was renewed on April 30 with approximately $12 million of new funding over two years, a 40% higher rate than the prior agreement.

Michael M. Tarnow, President and Chief Executive Officer, said, "The second quarter was one of major accomplishment for the Company. We improved our financial position through renewal of the Stryker agreement and successfully completed an equity financing raising $14 million in early July. Our current cash position of almost $30 million provides the resources to complete planned activities leading to 1997 submission to the FDA for regulatory approval of our lead product in orthopedic reconstruction with Stryker. These resources also provide funds for advancing our promising renal program. Further, our recently announced cross-licensing agreement with Stryker and Genetics Institute resolved potential disputes involving over 100 patents, allowing us to move forward on our orthopedic and other programs with confidence in our intellectual property position."

Creative BioMolecules is a discovery and development company focused on proprietary 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. 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 Company expectations include, without limitation, the achievement of product development milestones by the Company's collaborative partner, 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, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

  Three Months Ended
  June 30, 1996 June 30, 1995
REVENUE:    
Research and development contracts $1,112,000 $1,016,900
Manufacturing contracts 1,713,029 1,962,316
License fees 420,000 4,000
Interest and other 215,135 202,211
Total revenues 3,460,164 3,185,427
     
COSTS AND EXPENSES:    
Research and development 3,594,998 2,375,397
Cost of manufacturing contracts 1,350,519 1,655,295
Marketing, general and administrative 851,065   835,110
Interest 55,455 51,692
Total costs and expenses 5,852,037 4,917,494
     
NET LOSS $(2,391,873) $(1,732,067)
NET LOSS PER COMMON SHARE $(.08)   $(.09)
WEIGHTED AVERAGE NUMBER OF COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING 29,072,074 20,129,522

 

 

Six Months Ended

  June 30, 1996 June 30, 1995
REVENUE:    
Research and development contracts $2,167,704 $2,506,375
Manufacturing contracts 2,325,094 4,083,572
License fees   521,584 4,000
Interest and other 485,576 418,605
Total revenues 5,499,958   7,012,552
     
COSTS AND EXPENSES:    
Research and development 7,427,751 5,152,955
Cost of manufacturing contracts 1,828,051 3,363,400
Marketing, general and administrative 1,966,638 1,756,145
Interest 110,247 102,281
Total costs and expenses 11,332,687 10,374,781
     
NET LOSS $(5,832,729) $(3,362,229)
NET LOSS PER COMMON SHARE $(.20) $(.17)
WEIGHTED AVERAGE NUMBER OF COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING 29,049,580 19,948,039


Balance Sheet Data
(Unaudited)

 

June 30, 1996

Cash and Marketable Securities (A)  $16,033,696
Total Assets    $37,275,887
Total Stockholders' Equity $32,554,017

NOTE (A): Cash does not include proceeds of the public offering completed in July 1996 which raised $12.6 million, net of fees and expenses.


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, Inc. makes available its latest news releases on the Internet at http://www.prnewswire.com or by facsimile by calling Fax On Demand at 1-800-758-5804, extension 212213.

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


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Last modified: October 26, 1998
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