NEWS RELEASE for November 20, 2003 at 7:35 AM EST

Contact:            Allen & Caron Inc                                                                       CLOSURE Medical Corp        

Joe Allen (investors)                   Len Hall (media)                         Benny Ward, CFO

212-691-8087                             949-474-4300                             919-876-7800

                        joe@allencaron.com                   len@allencaron.com      

 

 

CLOSURE MEDICAL PROVIDES 2004 FINANCIAL GUIDANCE

 

RALEIGH, NC (November 20, 2003) … CLOSURE Medical Corporation (Nasdaq:CLSR), a global leader in biomaterial-based medical devices, today reported its financial guidance for fiscal year 2004. 

 

The Company expects 2004 total revenues in the range of  $45.0 to $47.0 million.  Assuming the upper end of the guidance range for 2004 and the previously provided 2003 estimates, the increase in revenue represents year-over-year growth of approximately 34 percent.  The key revenue drivers for 2004 are expected to be from the Company’s topical wound closure platform.  The Company is projecting increased adoption and acceptance of the DERMABOND products, including the High Viscosity and ProPen versions introduced in 2003, as well as increasing penetration and contribution from international markets.  The Liquid Bandage products are expected to contribute significant growth as well in 2004 with the complement of line extension introductions planned for late 2003 or early 2004.

 

Net income is expected to be approximately $9.7 million to $10.5 million, or between $0.65 and $0.70 per share. Consistent with 2003 expectations, forecasted net income for 2004 represents approximately 22 percent of projected total revenues and approximately 27 to 37 percent year-over-year earnings growth. 

 

While the 2004 guidance does not include any revenue associated with the potential approval of the Company’s vascular sealant product in Europe which is anticipated for late 2004, forecasted net income does take into account development and regulatory costs associated with a potential approval.

 

Daniel A. Pelak, President & Chief Executive Officer, commented, “We are positioned to close on an exceptional year and very much look forward to carrying that momentum into 2004.  As we continue to execute our strategic plan, we are seeking to maximize the potential of our current products in the near-term, while, at the same time, investing in the longer-term product pipeline through our dedicated research and development efforts.”

 

Guidance Conference Call

CLOSURE Medical will conduct a live webcast today, November 20, 2003, at 11:00 a.m. EST to discuss the Company’s expectations for fiscal year 2004.  To access the live webcast go to the Company’s website, www.closuremed.com, or PrecisionIR’s webcast site, http://www.vcall.com/.

About CLOSURE Medical

CLOSURE Medical Corporation is a global leader in the development and manufacture of innovative biomaterial-based medical devices that fulfill the needs of healthcare practitioners, patients and consumers.

For additional information on CLOSURE Medical visit its website at www.closuremed.com or visit the “Clients” section of the Allen & Caron website at www.allencaron.com. 

This release contains certain forward-looking statements relating to our future results of operations and product revenues and product development efforts which involve known and unknown risks, delays, uncertainties or other factors not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance, or other expectations implied by these forward-looking statements. These factors include, but are not limited to a decline in the level of demand for our products; developments by competitors; our inability to obtain regulatory clearances; general economic conditions and specifically, conditions in the health care industry; our ability to protect our proprietary products, know-how and manufacturing processes; the success of our pilot study for the vascular sealant product and future clinical studies; the development, manufacture and approval of new products and line extensions of our existing products; the failure to maintain or renew existing marketing agreements, in particular our agreement with Ethicon, Inc. relating to our DERMABOND products, and to enter into new marketing agreements; unanticipated cash requirements to support current operations or research and development; as well as those detailed in the Company's Annual Report on Form 10-K for the year ended December 31, 2002, filed with the Securities and Exchange Commission.  Although the Company believes that the expectations in the forward-looking statements are reasonable, the Company cannot guarantee such results.  The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

 

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