Matritech Reports First-Quarter Results; Bladder Cancer Test Sales
More Than Double
Company Announces Commencement of Pre-Clinical Cervical Cancer Trials
NEWTON, Mass., May 5 /PRNewswire/ -- Matritech, Inc., (Nasdaq:NMPS)
today reported a net loss of 1,523,000, or $.09 per share for the
quarter ended March 31. In the first quarter of 1996, the Company
reported a loss of $1,407,000 or $.09 share.
Revenues from product sales were $165,000 compared with $132,000 in
the corresponding quarter of 1996 due to increased sales of the
Company's NMP22(TM) Test Kit for Bladder Cancer which more than
doubled.
Revenues from product sales and collaborative research and development
programs for the first quarter of 1997 were $225,000 compared with
$179,000 in the corresponding quarter of 1996.
``Based upon the adoption rate of our bladder cancer test by leading
urologists during the first quarter, we are on a sales growth curve
similar to PSA, the largest selling cancer test,'' commented David L.
Corbet, Matritech's President. ``We believe that PSA sales were
approximately $150,000 in the 10 months following approval in 1986,
and that our sales since the NMP22 approval in July 1996 have been
well ahead of that pace,'' he added.
NMP22 User List of prestigious Clinics and Labs Expands
``During the quarter, we achieved several significant marketing
milestones which include working to integrate our NMP22 Test Kit into
the management of bladder cancer patients with leading clinics and
some of the most prestigious cancer institutions in the world,'' said
Corbet. These marketing successes include use of our test by the
following organizations: LabCorp., Quest Laboratories, Urocor,
Specialty Labs, Columbia-Presbyterian Medical Center, The Cleveland
Clinic, and the Boston Medical Center.
Cervical Cancer Cells identified by NMP Antibodies
In June 1995, Matritech and Bayer Corporation, a leading developer and
supplier of clinical laboratory instruments, signed a $6 million joint
development and marketing agreement to develop a nuclear matrix
protein (NMP) based instrument system to automate and improve the
accuracy of detecting cervical cancer. Revenues in the first quarter
of 1997 included $60,000 for having achieved a milestone in the funded
development agreement for cervical cancer with Bayer.
Matritech has retained rights to non-automated Pap smear testing using
cervical cancer specific NMPs as targets. During the first quarter,
the company's scientists tested antibodies which reacted intensely
with the NMPs in cervical cancer cell lines and they believe will
improve the sensitivity of the Pap smear. Matritech has commenced
pre-clinical cervical cancer trials with several leading cancer
centers including Brigham and Women's Hospital. Cervical cancer is the
second most common cancer among women throughout the world. The
present method of screening women for the disease, the Pap smear, can
miss as many as 30% of positive cancer cases due to the inability of
the clinician to recognize the malignant cells.
During the first quarter, the Company also announced that it began
selling its NuMA(R) Test Kit for colon cancer outside the United
States and that in addition to the ongoing FDA clinical trials, it was
beginning additional evaluations at other leading cancer centers
throughout the world. The Company plans to file for FDA approval for
this product in 1997. Revenues for 1996 also included $47,000 in SBIR
funding. The Company also reported $84,000 of interest income during
the quarter ended March 31, 1997 compared to $153,000 in the first
quarter of 1996.
As of March 31, 1997, the Company had cash and cash equivalents of
$5,797,000 and working capital of $5,688,000. Research and development
expenses decreased slightly to $896,000 for the quarter ended March
31, 1997 from $933,000 for the quarter ended March 31, 1996. The
decrease is primarily related to the suspension of the Company's
cancer therapy feasibility study and costs associated with that
project.
Selling, general and administrative expenses increased 16% to $935,000
for the quarter ended March 31, 1997 from $806,000 for the quarter
ended March 31, 1996. The increase was primarily related to increased
selling expenses from hiring a U.S. sales force and the costs
associated with their recruitment, payroll and travel in their
respective territories in conjunction with sales activities for the
NMP22 Test Kit.
Except for historical information contained herein, the matters
discussed in this news release are forward-looking statements that are
subject to risks and uncertainties. Potential risks and uncertainties
include, without limitation, risks related to the Company's ability
to: successfully develop, test, produce and market its products;
obtain necessary governmental approvals in a timely manner; attract
and keep key employees; raise capital for future operations and
growth; and successfully respond to technological changes in the
marketplace. Specifically, completion of product development and
commencement of clinical trials of the Company's products are subject
to technical uncertainties and other factors beyond the Company's
control, and there can be no assurance that development will be
completed as presently anticipated or that regulatory approvals will
not be delayed or ultimately denied. Additional information on
potential factors which could affect the Company's financial results
are included in the Company's public filings with the Securities and
Exchange Commission.
Matritech, Inc., based in Newton, Mass., is using its proprietary
nuclear matrix protein (NMP) technology, discovered at the
Massachusetts Institute of Technology (MIT) and licensed exclusively
to Matritech, to develop and commercialize innovative serum-, cell-
and urine-based NMP diagnostics that enable physicians to reliably
detect and monitor the presence of bladder, colorectal, cervical,
breast and prostate cancers.
Matritech, Inc. Financial Highlights
Three Months Ended
March 31
1997 1996
Revenues $308,958 $332,286
Research & 896,391 933,141
Development Expenses
Selling, General and 935,166 805,970
Administrative Expenses
Net income (Loss) (1,522,599) (1,406,825)
Net Income (Loss) $(.09) $(.09)
Per Share
Weighted Average Shares 16,041,146 15,665,045
SOURCE: Matritech, Inc. |
