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.