Hopkinton, MA, November 12, 1996--Creative BioMolecules, Inc. (Nasdaq: CBMI) today announced financial results for the third quarter of fiscal 1996, ended September 30, 1996. Revenues for the three month period were $4,114,000 and expenses were $6,050,000, resulting in a net loss of $1,936,000 or $.06 per share. Comparable numbers for the quarter ending September 30, 1995 were revenues of $2,688,000, expenses of $5,134,000 and a net loss of $2,446,000, or $0.11 per share.
The increase in revenue and reduced loss were attributed to a higher funding level from the Company's collaboration with Stryker Corporation on OP-1 for orthopedic reconstruction, income from manufacturing for Biogen in the Company's New Hampshire plant and interest from increased cash assets after raising $12.6 million in a July public offering. The Company had $24.2 million in cash and cash equivalents at the end of the quarter.
In commenting on the quarterly results, Michael M. Tarnow, President and Chief Executive Officer, said, "Our financial position provides us with resources to pursue two critical programs for the Company: our lead program in orthopedic reconstruction and the kidney disorders program. In orthopedics, we are continuing to support Stryker's pivotal trial, toward a PMA submission targeted for late 1997. The program's momentum is increasing and there are several important presentations over the next six months." Mr. Tarnow added, "This quarter has seen some significant visibility for our renal program. Our research was published in Proceedings of the National Academy of Sciences (PNAS), showing that OP-1 is a critical signaling molecule in embryonic kidney development. Last week, the Company and its academic collaborators presented results from four separate preclinical studies at the American Society of Nephrology Annual Meeting, demonstrating that OP-1 can protect the kidney against damage in acute and chronic renal failure and that it plays a role in natural kidney tissue survival. The accumulated results of these studies have encouraged us to devote additional resources to this important program."
Creative BioMolecules, Inc. and Subsidiary
Consolidated Statements of Operations
(Unaudited)
| Three Months Ended | Nine Months Ended | |||
| Sept. 30, 1996 | Sept. 30, 1995 | Sept. 30, 1996 | Sept. 30, 1995 | |
| REVENUE: | ||||
| Research and development contracts | $1,766,887 | $944,776 | $3,934,590 | $3,451,150 |
| Manufacturing contracts | 1,888,820 | 1,516,326 | 4,213,914 | 5,599,898 |
| License fees and royalties | 101,000 | 40,000 | 622,584 | 44,000 |
| Interest and Other | 357,164 | 186,826 | 842,742 | 605,432 |
| Total revenues | 4,113,871 | 2,687,928 | 9,613,830 | 9,700,480 |
| COSTS AND EXPENSES: | ||||
| Research and development | 3,391,444 | 2,711,979 | 10,819,196 | 7,864,935 |
| Cost of manufacturing contracts | 1,562,839 | 1,429,414 | 3,390,890 | 4,792,814 |
| Marketing, general and administrative | 1,041,528 | 918,062 | 3,009,070 | 2,674,206 |
| Interest | 53,771 | 74,780 | 163,114 | 177,062 |
| Total costs and expenses | 6,049,582 | 5,134,235 | 17,382,270 | 15,509,017 |
| NET LOSS | ($1,935,711) | ($2,446,307) | ($7,768,440) | ($5,808,537) |
| NET LOSS PER COMMON SHARE | ($0.06) | ($0.11) | ($0.26) | ($0.28) |
| WEIGHTED AVERAGE NUMBER OF COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING |
30,932,154 | 22,245,031 | 29,681,685 | 20,717,357 |
Balance Sheet Data
(Unaudited)
Sept.30, 1996 |
|
| Cash, Cash Equivalents and Marketable Securities | $24,219,347 |
| Total Assets | $48,042,380 |
| Total Stockholders' Equity | $43,380,871 |
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.