|AT THE COMPANY||AT THE FINANCIAL RELATIONS BOARD|
|Robert V. Toni, President & CEO
Benny Ward, CFO
CLOSURE Medical Corporation (919) 876-7800
|For General Info: Stuart Levine (212) 661-8030
For Analyst Info: Cecelia Heer (212) 661-8030
For Media Info: Deanne Eagle (212) 661-8030
FOR IMMEDIATE RELEASE: July 25, 2000
CLOSURE MEDICAL CORPORATION REPORTS SECOND QUARTER RESULTS
Raleigh, NC, July 25, 2000 -- CLOSURE Medical Corporation (Nasdaq: CLSR), a medical device company engaged in developing, manufacturing and commercializing tissue adhesive products, today announced financial results for the second quarter and six months ended June 30, 2000.
Revenues for the second quarter of 2000 were $3,072,000, down from $4,277,000 in second quarter of 1999, albeit up from $2,666,000 previously reported for the first quarter of this year. Correspondingly, revenues for the first six months of 2000 were $5,738,000 compared to $8,094,000 in the first half of 1999.
The net loss for the second quarter of 2000 was $644,000, or ($0.05) per basic and diluted common share, compared to a net income of $15,000, or $0.00 per basic and diluted common share in the second quarter of 1999. For the first six months of 2000, the net loss was $1,263,000, or ($0.09) per basic and diluted share, compared to a net loss of $550,000, or ($0.04) per basic and diluted share for the same period of 1999.
As of June 30, 2000, cash, cash equivalents, and total investments were to $11.2 million compared to $12.6 million at December 31, 1999.
The Company said the year-to-year decline in second-quarter and first-half 2000 revenues reflected pipeline fill in the comparable periods of 1999 of its DERMABOND® Topical Skin Adhesive by its marketing partner, Ethicon Inc. The Company also noted that additional progress was made by Ethicon during the second quarter of this year with regard to working down DERMABOND® adhesive inventory. Moreover, supported by the detailing efforts of the Ethicon field reps, the market adoption rate for DERMABOND® adhesive continues to increase.
“Several important and positive developments were realized during the second quarter of this year,” commented Robert V. Toni, Closure's President and Chief Executive Officer. “We completed ahead of schedule both patient enrollment and follow-up studies for LIQUIDERM™ liquid adhesive bandage, and expect to file the 510(k) premarket notification with the Food and Drug Administration in the near term. All of us at Closure are excited about LIQUIDERM™ adhesive's prospects given its unique characteristics and comparatively large market for adhesive bandages.”
He concluded by saying, “We have remained highly focused and committed to the efficiency of our operations. To this end, we held operating expenses down and our cash position remained strong and essentially unchanged at the end of the second quarter of 2000. This was accomplished concurrently with continued support of research and product development plus funding the LIQUIDERM™ adhesive clinical trial.”
CLOSURE Medical Corporation, headquartered in Raleigh, North Carolina, develops, manufactures and commercializes medical tissue adhesive products based on its proprietary cyanoacrylate technology. CLOSURE's nonabsorbable tissue adhesive products may be used to replace sutures and staples for certain topical wound closure applications, while its internal tissue adhesive products can potentially be used for internal wound closure and management. Currently marketed nonabsorbable tissue adhesive products include DERMABOND®* Topical Skin Adhesive, which is used to replace sutures and staples for closure of certain lacerations and incisions, OCTYLDENT®* adhesive, which is used as an adjunct in the treatment of adult periodontal disease; and the NEXABAND®* line of topical adhesives, which are used in veterinary wound closure and management.
* DERMABOND® adhesive is a trademark of Ethicon, Inc.; SOOTHE-N-SEAL™ canker sore relief and LIQUIDERM™ adhesive are trademarks of CLOSURE Medical Corporation. OCTYLDENT® adhesive and NEXABAND® adhsives are federally registered 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 symbol CLSR. Or visit the Financial Relations Board's website at 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 development programs for future 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, 1999 filed with the Securities and Exchange Commission.