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This company supplies chromatographic media to biotech companies that
is used to make drugs. They have yet to be profitable but recent
developments combined with continued sales growth has set the stage
for quite a year IMO. Most recently their sales increased 21% over the
same quarter last year.
Take a look at the below press release for 1st quarter '97 and this will give
you more background. The bad news is all behind this company and it
can only get better from here. I have gotten into this stock in a fairly
big way ever since they won their lawsuit with Perseptive Biosystems.
The play here is that this is a low-risk way to basically buy into the
whole biotech industry. These guys are not the ones that are shooting
for the 10-fold returns that a drug discovery company is shooting for.
Instead, these guys are just selling the supplies to those companies.
With the stock market having been so high for so long in recent years there
there is tons of cash sitting in all the publicly held biotech companies
bank accounts that is just waiting to be spent on stuff like what BioSepra
sells.
This seems like just the kind of stock that a Peter Lynch would love.
Low-risk way to play into a big demand.
Would appreciate your thoughts and comments. Especially interested in
anyone who may work in the biotech industry and is familiar with BioSepra's
Hyper D media.
Here's the press release:
MARLBOROUGH, Mass.--(BW HealthWire)--April 24, 1997--BioSepra
Inc. (Nasdaq: BSEP) reported today that first quarter 1997 sales
increased by 21 percent over prior year levels to $3.4 million.
Excluding the unfavorable impact of foreign currency exchange rate
comparisons, the sales increase over the prior year's period would
have been 28 percent. Net losses were reduced to $469,000, or $0.06
per share, compared to $1.2 million, or $0.17 per share in the first
quarter of 1996.
"The most significant recent event is the United States District
Court of Massachusetts' ruling on April 3, 1997 in BioSepra's favor
in the lawsuit brought by PerSeptive Biosystems, Inc. (Nasdaq: PBIO)
claiming infringement of their perfusion patents," said Jean-Marie
Vogel, President and Chief Executive Officer. The effect of this
ruling is that PerSeptive's claims that BioSepra infringed three
chromatography patents have been rejected.
Added Vogel, "We believe that PerSeptive knowingly engaged in
unfair competition by suing us three and a half years ago, and this
created a lot of confusion in the marketplace, as our
biopharmaceutical customers need to rely on long-term suppliers such
as BioSepra for their purification processes. We are, therefore,
very pleased with the April 3rd ruling. We believe that this ruling
will also comfort the increasing number of biopharmaceutical
companies that want to use HyperD(R) media--our patented high speed
and high capacity media--for the purification of biopharmaceuticals,
including monoclonal antibody-based drugs."
BioSepra supplies its process chromatography media and other
proprietary products to drug manufacturers for use in the commercial
production of a wide range of biopharmaceuticals. Among these are
interferons, insulin, human growth hormone, special enzymes and
vaccines. The Company expects customer demand for these products to
increase as more biopharmaceuticals are approved and the
manufacturers begin commercial production. In particular, BioSepra
is aggressively introducing new products for the purification of
monoclonal antibodies. With more monoclonal antibody-based drugs
currently in Phase II and Phase III clinical trials than any other
class of biopharmaceuticals, they comprise the largest single
category of drugs in the near-term biotechnology pipeline. A vast
majority of these therapeutics are being developed for patients with
the most serious and poorly managed human diseases, e.g., cancer,
AIDS, other immune-system disorders such, as multiple sclerosis and
rheumatoid arthritis, and heart disease.
This press release contains forward-looking statements that
involve risks and uncertainties. Among the important factors that
could cause actual events to differ materially from those indicated
by forward looking statements in this release are the delays and
cancellations of product orders, the delays in the development of
biopharmaceuticals, competitive pressures, general economic
conditions, that, upon PerSeptive's appeal to the United States Court
of Appeal for the Federal Circuit, this court may either adopt an
assertion or argument advanced by PerSeptive or reject a ruling or
decision made by the U.S. District Court, and risk factors detailed
in the periodic reports filed with the Securities and Exchange
Commission.
Condensed consolidated statements of operations and financial
statements follow.
-0-
*T
BIOSEPRA INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE-MONTH PERIODS ENDED
MARCH 31, 1997 AND 1996
(Unaudited)
Three months ended
March 31,
(In thousands, except per share amounts) 1997 1996
Net revenues $ 3,388 $ 2,806
Costs and expenses:
Cost of sales 1,932 1,183
Selling, general and administrative 1,255 1,843
Research and development 558 596
Amortization expense 232 319
------- -------
Total costs and expenses 3,977 3,941
------- -------
Income (loss) from operations (589) (1,135)
Other income (expenses), net 120 (58)
------- -------
Net income (loss) $ (469) $ (1,193)
Net income (loss) per share $ (0.06) $ (0.17)
Weighted average number of common
and common equivalent shares
outstanding 8,416 7,022
-0-
BIOSEPRA INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
Mar. 31, Dec. 31,
1997 1996
ASSETS
Cash and cash equivalents $ 4,392 $ 4,309
Marketable securities -- 360
Accounts receivable 3,212 3,030
Inventory 3,084 3,481
Property, plant and equipment, net 2,174 2,168
Excess of investment over net assets
acquired, net 9,094 9,254
Other assets 670 567
------- -------
Total assets $ 22,626 $ 23,169
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses $ 3,377 $ 3,443
Deferred contract revenue 3,600 3,646
Notes payable and long-term debt 1,874 1,638
------- --------
Total liabilities 8,851 8,727
------- --------
Total stockholders' equity 13,775 14,442
------- --------
Total liabilities and stockholders'
equity $ 22,626 $ 23,169
*T
CONTACT:
BioSepra Inc.
Jean-Marie Vogel
(508) 481-6802
or
Jean M. Devine
(508) 481-6700
KEYWORD: MASSACHUSETTS
INDUSTRY KEYWORD: PHARMACEUTICAL MEDICINE BIOTECHNOLOGY EARNINGS
BW1021 APR 24,1997
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