Aloha, don't think this one is a good short...
I'm long, very long.
Lousy report card still stock goes up...
----------
Wednesday March 1, 8:30 am Eastern Time
Company Press Release
Creative BioMolecules Reports 1999 Year-end Results
On February 15, 2000, Creative BioMolecules, Inc. announced a merger
with Ontogeny, Inc. and Reprogenesis, Inc. to Form Curis, Inc.
HOPKINTON, Mass.--(BW HealthWire)--March 1, 2000-- Creative BioMolecules, Inc. (Nasdaq: CBMI - news) today
announced financial results for the year ended December 31, 1999. The Company reported revenues of $5,138,000 and
expenses of $17,248,000 for the full year, resulting in a net loss of $12,110,000, or $0.40 per share to common shareholders.
The comparable figures for the year ended December 31, 1998 were revenues of $12,625,000 and expenses of $34,020,000
resulting in a net loss of $21,395,000, or $0.66 per share. For the fourth quarter 1999, the net loss per share was $0.10 as
compared with $0.15 per share for the fourth quarter 1998. Creative BioMolecules ended 1999 with approximately $21.4
million in cash and marketable securities.
On February 15, 2000, Creative BioMolecules announced that it will merge with Ontogeny, Inc. and Reprogenesis, Inc. to
form a new public company named Curis, Inc. The combination of these companies will create a leader in the emerging field of
regenerative medicine. Under the terms of the merger, which is subject to shareholder and regulatory approval, Creative
BioMolecules' shareholders will receive three Curis shares for every ten shares of Creative BioMolecules. Following
completion of the transaction, Creative BioMolecules' shareholders will hold approximately 43%, Ontogeny's shareholders will
hold approximately 38% and Reprogenesis' shareholders will hold approximately 19% of Curis. The merger is expected to
close in June 2000.
Curis, Inc. will be a leader in the emerging field of regenerative medicine. Formed by the merger of three Boston area
biotechnology companies, Creative BioMolecules, Inc., Ontogeny, Inc. and Reprogenesis, Inc., Curis will combine insight
gained through the study of developmental biology with high-throughput screening capabilities, proteins, cells and biocompatible
materials to enable the development of new regenerative medicine therapies. Curis' pipeline will include: 1) a product which is
currently under regulatory review in the United States, Europe and Australia; 2) multiple products in late-stage clinical
development; 3) numerous early clinical and late-stage preclinical products; and 4) a discovery engine that combines functional
genomics and developmental biology across multiple medical indications. These products have the potential to change the way
degenerative disease, cancer and other disorders associated with loss of function are treated. Curis will be a publicly held
company located in Cambridge, Massachusetts. For more information, please visit the Curis web site at
curisinc.com.
Discussion of Creative BioMolecules, Inc.'s Year-End Results
Revenues generated during the fourth quarter of 1999 resulted primarily from research funding in support of the development of
a therapy to treat renal failure and from interest income. The Company's research and development expenses during this period
included costs associated with the development of therapies to treat renal failure, stroke and other indications. The decrease in
revenues and expenses during 1999 as compared with 1998 result primarily from the November 1998 sale of certain of the
Company's OP-1 manufacturing rights and assets to Stryker Corporation for increased royalties on commercial product sales.
During 1998, Creative BioMolecules operated a commercial-scale manufacturing facility and received revenue from Stryker for
supply of OP-1. Costs associated with the manufacturing facility were recorded as research and development expenses.
Creative BioMolecules, Inc. is a biopharmaceutical company focused on the development of therapies for human tissue
regeneration. The Company's core technologies are based on our understanding of the role that morphogenic proteins play in
human biology. These proteins are involved in the initiation and regulation of the cellular events responsible for the formation of
human tissues and organs. The first product resulting from Creative BioMolecules' technology, the OP-1 Implant(tm) for
orthopaedic reconstruction, is licensed to Stryker Corporation and has been submitted for marketing approval in the United
States, Europe and Australia. For more information on Creative BioMolecules, please visit our web site at
creativebio.com.
The statements in this press release that are not historical facts are forward-looking statements that involve risks and
uncertainties including, without limitation, risks associated with the inherent uncertainty of pharmaceutical research, product
development, regulatory approval and commercialization, the impact of competitive products, patents, patent litigation, product
liability, third party reimbursement, required stockholder approvals and other risks and uncertainties associated with the
biotechnology industry and merger transactions generally. For additional factors that could cause actual results to differ
materially, please refer to the risk factors section of Creative BioMolecules, Inc.'s Form 10K for the year ended 1998.
Investors and security holders are advised to read the joint proxy statement/prospectus regarding the business combination
transaction referenced in the foregoing information, when it becomes available, because it will contain important information.
Such joint proxy statement/prospectus will be filed with the Securities and Exchange Commission by Curis, Inc. Investors and
security holders may obtain a free copy of the joint proxy statement/prospectus (when available) and other documents filed by
Curis, Inc. at the Commission's web site at www.sec.gov. The joint proxy statement/prospectus and such other documents may
also be obtained directly from Creative BioMolecules, Inc., Ontogeny, Inc. and Reprogenesis, Inc.
-0-
PAGE 3
Creative BioMolecules, Inc. and Subsidiary
Consolidated Statements of Operations
Three Months Ended Twelve Months Ended
12/31/99 12/31/98 12/31/99 12/31/98
REVENUE:
Research and
development
contracts $ 753,700 $ 3,418,118 $ 3,159,460 $ 10,419,071
License fees
and royalties 38,800 10,000 52,400 10,000
Interest 322,113 658,710 1,924,313 2,183,472
Other 0 12,391 1,777 12,391
Total revenues 1,114,613 4,099,219 5,137,950 12,624,934
COSTS AND EXPENSES:
Research and
development 2,403,277 5,921,284 10,434,560 24,856,147
General and
administrative 1,887,143 1,439,582 6,396,094 7,474,372
1999 Reorganization
and 1998 sale of
manufacturing
operations 255,701 1,362,249 255,701 1,362,249
Interest 46,605 67,911 161,385 327,304
Total costs
and expenses 4,592,726 8,791,026 17,247,740 34,020,072
NET LOSS (3,478,113) (4,691,807) (12,109,790) (21,395,138)
ACCRETION AND
REPURCHASE COSTS
ON SERIES 1998/A 0 (412,331) (2,395,559) (986,587)
PREFERRED STOCK
NET LOSS APPLICABLE
TO COMMON
STOCKHOLDERS ($ 3,478,113)($ 5,104,138)($14,505,349)($22,381,725)
BASIC AND DILUTED
LOSS PER COMMON
SHARE ($ 0.10)($ 0.15)($ 0.40)($ 0.66)
SHARES FOR BASIC
AND DILUTED 36,226,839 34,111,389 36,665,115 33,672,105
Balance Sheet Data
12/31/99
Cash, Cash Equivalents and
Marketable Securities $21,370,585
Total Assets $28,892,291
Total Stockholders' Equity $23,421,586
biz.yahoo.com |
