Biomatrix Reports Third Quarter Financial Results; Product Sales Increased 57% Percent Compared to Third Quarter 1998
RIDGEFIELD, N.J., Oct. 19 /PRNewswire/ -- Biomatrix, Inc. (NYSE: BXM - news) today reported financial results for the three and nine months ended September 30, 1999, marking the company's eleventh consecutive quarter of profitability.
During the third quarter of 1999, the company reported net income of $3.3 million or $0.14 per diluted share on revenues of $18.3 million. During the comparable quarter in 1998, the company reported net income of $2.7 million or $0.11 per diluted share on revenues of $11.6 million. The 1998 results included a one-time tax benefit of approximately $1.0 million or $0.04 per diluted share as a result of recognizing certain deferred tax assets, partially offset by certain foreign-related items. Net income in the third quarter of 1998 excluding this one-time, non-recurring benefit was $0.07 per share. Biomatrix ended the third quarter of 1999 with $27.7 million in cash and shareholders' equity of $66.7 million.
Product sales recorded in the third quarter of 1999 increased to $18.1 million compared with product sales of $11.5 million recorded during the third quarter of 1998. This 57% increase was due primarily to increased U.S. and European sales of Synvisc©, Biomatrix' innovative treatment for osteoarthritis of the knee. During the third quarter, the company's U.S. marketing partner, Wyeth-Ayerst Laboratories (division of American Home Products, NYSE: AHP), embarked upon a series of marketing programs that significantly increased sales and brand awareness of Synvisc as a new, non- drug therapy for osteoarthritis of the knee.
For the nine months ended September 30, 1999, Biomatrix reported net income of $14.3 million or $0.59 per diluted share on revenues of $60.1 million. This compares with net income of $4.7 million or $0.20 per diluted share on revenues of $28.8 million posted in the comparable nine-month period of 1998. The company generated $52.7 million in product sales during the nine months ended September 30, 1999, compared with product sales of $25.2 million recorded during the comparable period in 1998, and far exceeding the $37.8 million in product sales recorded for the full year of 1998.
Dr. Endre A. Balazs, Biomatrix' chief executive officer and chief scientific officer, commented, ``Third quarter 1999 marked yet another outstanding quarter for our company. In addition to recording our eleventh consecutive quarter of profitability, third quarter 1999 witnessed significant progress in a number of important areas:
-- Synvisc sales by U.S. marketing partner, Wyeth-Ayerst, increased
significantly with over 40% sequential quarter-to-quarter net growth
and 37% year-to-date net growth compared with 1998 year to date;
-- Twelve month clinical and cost effectiveness data reaffirming Synvisc
as an important therapy in the treatment of osteoarthritis of the knee
was presented at the annual Osteoarthritis Research Society
International (OARSI) Congress held in Vienna;
-- An IDE supplement was submitted to the FDA for Hylagel©-Nuro, the
company's resorbable, viscoelastic gel device for the prevention of
surgical scarring and adhesions following laminectomy surgery;
-- Initiated a European clinical trial of Synvisc for the treatment of
osteoarthritis of the hip; and
-- Achieved substantial year-over-year increases in cash balances and
shareholders' equity.
Dr. Balazs discussed the ongoing progress of Synvisc in the US, ``We are pleased and encouraged by the success of Wyeth-Ayerst's marketing programs in the US which resulted in an over 40% increase in Synvisc net sales compared with second quarter 1999, and a 27% increase compared with net sales in the third quarter of 1998. These results clearly demonstrate Synvisc's ability to respond positively to promotion. With nearly 76% of U.S. sales during the third quarter 1999 made directly to physicians or hospitals, we continue to see increased adoption of our advanced technology by the U.S. medical community.'
Looking forward, Dr. Balazs stated, ``We anticipate increased demand for Synvisc from U.S. and foreign markets. During the balance of 1999, we will continue to expand the development of our clinical programs and to maintain our leadership position in the viscoelastics market.'
Synvisc is marketed in the United States, most countries of the European Economic Area, and certain countries in Latin America and Asia. Biomatrix has contracts to market Synvisc in over 90 countries through marketing and distribution agreements with a number of large multi-national healthcare companies, and through its wholly-owned subsidiaries. Wyeth-Ayerst Laboratories has distribution rights and markets Synvisc in the US and certain European and Middle Eastern countries; Boehringer-Ingelheim in France; Rhone- Poulenc Rorer in Canada; F. Hoffmann-La Roche Ltd. in Sweden and South Africa; Novartis Pharma AG throughout Latin America; and Bayer AG in Australia, New Zealand and certain countries in Asia.
Biomatrix developed and manufactures several other viscoelastic medical therapeutics. Hylaform© is an injectable viscoelastic hylan gel treatment for the correction of facial wrinkles and depressed scars. It is marketed in 23 countries by Collagen Aesthetics, Inc. (now Inamed Corp., OTC Bulletin Board: IMDC). Gelvisc© Vet is an elastoviscous hylan product for the treatment of arthritis in veterinary medicine that is distributed by Equinord in France and Sweden. Biomatrix' Hylashield© products are viscoelastic therapeutics for the protection of the surface of the eye from noxious environmental conditions and are distributed in Canada by I-MED Pharma Inc. Biomatrix also manufactures nine patented elastoviscous intermediates for the skin care industry.
Biomatrix, Inc., headquartered in Ridgefield, New Jersey is an international biomedical company that develops, manufactures and commercializes elastoviscous products made from proprietary biological polymers called hylans, used in therapeutic medical applications and in skin care products.
Certain statements in this press release are forward-looking statements that involve risks and uncertainties including, but not limited to, the regulatory approval process, obtaining and enforcing patents, reimbursement by private health care providers, manufacturing capabilities, projected earnings and financial results, growing product demand, product liability, inventory levels of our marketing partners, future product development, and other risks detailed in Biomatrix' reports filed under the Securities Exchange Act, including Forms 10-Q and Biomatrix' annual report on Form 10-K for the year ended December 31, 1998. For more information on Biomatrix, please visit the Company's web site at biomatrix.com.
A copy of the condensed consolidated statement of operations of Biomatrix, Inc. and subsidiaries for selected periods indicated is attached.
Editor's note: Synvisc©, Hylaform©, Gelvisc© Vet and Hylashield© are registered trademarks of Biomatrix, Inc.
BIOMATRIX, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(in millions, except share and per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
Revenues:
Net product sales $18.1 $ 11.5 $ 52.7 $ 25.2
Income from licenses,
royalties and research
contracts 0.2 0.1 7.4 3.6
Total revenues 18.3 11.6 60.1 28.8
Costs and expenses:
Cost of goods sold 5.5 2.7 15.6 6.3
Research and development
expenses 2.4 2.7 6.6 7.5
Selling, general and
administrative expenses 4.8 4.1 13.3 10.5
Total costs and
expenses 12.7 9.5 35.5 24.3
Income from operations 5.6 2.1 24.6 4.5
Interest expense (0.3) (0.3) (1.2) (0.5)
Interest and
miscellaneous income 0.5 0.5 1.1 1.2
Income before taxes 5.8 2.3 24.5 5.2
Provision for
(benefit from)
income taxes 2.5 (0.4) 10.2 0.5
Net income $ 3.3 $ 2.7 $ 14.3 $ 4.7
Net income per share:
Basic $ 0.14 $ 0.12 $ 0.63 $ 0.21
Weighted average
shares outstanding 22,977,604 22,728,686 22,901,096 22,350,856
Diluted $ 0.14 $ 0.11 $ 0.59 $ 0.20
Weighted average
shares
outstanding 24,211,895 24,188,600 24,387,890 23,568,338
SOURCE: Biomatrix, Inc. |
