|CONTACTS AT THE COMPANY||AT THE FINANCIAL RELATIONS BOARD|
|Robert V. Toni, President & CEO
J. Blount Swain, CFO
CLOSURE Medical Corporation
|For General Info: Paul G. Henning
For Analyst Info: Brian Gill (212) 661-8030
For Media Info: Deanne Eagle (212) 661-8030
FOR IMMEDIATE RELEASE: July 15, 1999
CLOSURE MEDICAL CORPORATION REPORTS SECOND QUARTER RESULTS
Raleigh, NC, July 15, 1999-- CLOSURE Medical Corporation (Nasdaq: CLSR), a medical tissue cohesive products company, today announced that total revenues for the three months ended June 30, 1999 were $4,277,000 compared to $1,342,000 in the 1998 corresponding period. Net income for the 1999 quarter was $15,000 or $0.00 per basic and diluted share, compared to a net loss of $2,320,000 or ($0.17) per basic and diluted share in the corresponding 1998 period.
Revenues for the six months ended June 30, 1999 were $8,094,000 compared to $2,112,000 in the corresponding 1998 period. For the six months ended June 30, 1999, the Company reported a net loss of $550,000 or ($0.04) per basic and diluted share, compared to a net loss of $4,300,000 or ($0.32) per share for the same time period of 1998.
Cash and cash equivalents and total investments were $13.0 million at June 30, 1999 compared to $16.7 million at December 31, 1998.
The Company also announced that it has received notification from Ethicon, Inc., a unit of Johnson & Johnson (NYSE: JNJ) with exclusive worldwide distribution rights for DERMABOND Topical Skin Adhesive*, that due to excess inventory levels, Ethicon has reduced the volume of its orders for the remainder of 1999. Accordingly, revenue and earnings for the second half of 1999 will be below analysts' expectations.
"Since its introduction, we have been encouraged by the strong and positive market acceptance of DERMABOND within the professional medical community," said Robert V. Toni, President and Chief Executive Officer of CLOSURE Medical. "However, the adoption of an innovative product that transforms the accepted method of treatment is a dynamic process. This is especially true with DERMABOND, which is marketed by exclusive arrangement into multiple venues -- each of which has specific complexities which require varying degrees of training time and emphasis."
"DERMABOND has demonstrated its unique effectiveness and is well positioned as a leader in the revolution of wound closure treatment. The product has had broad acceptance in the emergency room, a trend we expect to continue, since the summer tends to be the busiest time for lacerations in the Emergency Department. Ethicon plans to accelerate training programs as the DERMABOND launch is initiated in the operating room and plastic surgery centers," said Mr. Toni.
As a result of the expected decrease in revenues and earnings, the Company said it expects to make certain reductions in operating expenses, but expects to continue new product development at current levels.
CLOSURE Medical Corporation, headquartered in Raleigh, North Carolina, develops, manufactures and commercializes medical tissue cohesive products based on its proprietary cyanoacrylate technology. CLOSURE's nonabsorbable tissue cohesive products may be used to replace sutures and staples for certain topical wound closure applications, while its absorbable tissue cohesive products can potentially be used as tissue cohesives for internal wound closure and management. Currently marketed nonabsorbable tissue cohesive products include DERMABOND topical skin adhesive, which is used to replace sutures and staples for closure of certain lacerations and incisions, OCTYLDENT® cohesive, which is used as an adjunct in the treatment of adult periodontal disease; and NEXABAND® topical cohesives, a family of products used in veterinary wound closure and management.
* DERMABOND is a trademark of Ethicon, Inc.; SOOTHE-N-SEAL, OCTYLDENT and NEXABAND are all trademarks of CLOSURE Medical Corporation.
To receive CLOSURE’s latest news release and other corporate documents via fax, at no cost, call 1-800-PRO-INFO. Use the Company’s ticker, CLSR. Or visit the Financial Relations Board's website at www.frbinc.com www.frbinc.com.
This release contains certain forward-looking statements 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 the early stage of commercialization of the Company products; the progress of its research and deveopment programs for future nonabsorbable and absorbable products; the need for regulatory approval and effects of governmental regulation; technological uncertainties; dependence on marketing partners, and dependence on patents and trade secrets, as well as those detailed in the Company's Annual Report on Form 10-K for the year ended December 31, 1998 filed with the Securities and Exchange Commission.