Creative BioMolecules Reports First Quarter Financial Results
HOPKINTON, Mass.--(BW HealthWire)--May 4, 2000--
On February 15, 2000, Creative BioMolecules, Inc. announced a merger
with Ontogeny, Inc. and Reprogenesis, Inc. to form Curis, Inc.
Creative BioMolecules, Inc. (Nasdaq:CBMI) today announced
financial results for the first quarter of fiscal 2000, ended March
31, 2000. Revenues during the quarter were $670,000 and expenses were
$6,767,000, resulting in a net loss of $5,842,000 or $0.16 per share
to common shareholders, which included a one-time, non-cash charge of
$3,139,000. The net loss to common shareholders for the first quarter
of 2000 excluding the one-time charge was $0.07 per share compared to
a loss of $.09 per share for the first quarter of 1999. For the
quarter ending March 31, 1999, Creative BioMolecules had revenues of
$825,000, expenses of $4,259,000 and a net loss of $2,711,000.
Creative BioMolecules ended the first quarter 2000 with approximately
$20 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 curis.com.
Discussion of Creative BioMolecules, Inc.'s First Quarter Results
Total revenues for the three month period ended March 31, 2000 and
for the three month period ended March 31, 1999 consisted entirely of
research and development revenues. Research and development contract
revenues decreased from $825,000 for the three month period ended
March 31, 1999 to $670,000 for the three month period ended March 31,
2000. General and administrative expenses increased from $1,530,000
for the three month period ended March 31, 1999 to $4,732,000 for the
three month period ended March 31, 2000. The increase is due to a
one-time, non-cash charge of $3,139,000 related to the amendment of
certain stock options held by the Company's executive officers and
outside directors.
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 news 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 1999.
Investors and security holders are advised to read the joint proxy
statement/prospectus regarding the business combination transaction
referenced in the foregoing information, because it will contain
important information. Such joint proxy statement/prospectus was filed
with the Securities and Exchange Commission by Curis, Inc. on March
14, 2000, as amended. Investors and security holders may obtain a free
copy of the joint proxy statement/prospectus 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.
Creative BioMolecules, Inc. and Subsidiary
Consolidated Statements of Operations
Three Months Ended March 31,
2000 1999
REVENUES:
Research and development contracts $ 670,387 $ 824,645
Total revenues 670,387 824,645
COSTS AND EXPENSES:
Research and development 2,073,338 2,728,917
General and administrative 4,732,249(a) 1,529,638
1999 reorganization
expense adjustment (38,391) --
Total costs and expenses 6,767,196 4,258,555
NET OPERATING LOSS (6,096,809) (3,433,910)
OTHER INCOME/(EXPENSES)
Interest and other 298,896 755,733
Interest expense (43,635) (32,661)
Total other income/(expenses) 255,261 723,072
NET LOSS (5,841,548) (2,710,838)
ACCRETION ON SERIES 1998/A
PREFERRED STOCK -- (389,168)
NET LOSS APPLICABLE TO
COMMON STOCKHOLDERS $ (5,841,548) $ (3,100,006)
BASIC AND DILUTED LOSS
PER COMMON SHARE $ (0.16)(a) $ (0.09)
COMMON SHARES FOR BASIC AND
DILUTED LOSS COMPUTATION 37,556,903 34,666,296
(a) General and Administrative expenses in the first quarter of 2000
include a one-time, non-cash charge of $3,139,000. The net loss per
share without this charge would have been $(0.07) per share.
Balance Sheet Data
March 31, 2000
Cash, Cash Equivalents and Marketable Securities $19,937,338
Total Assets $29,370,062
Total Stockholders' Equity $24,820,100
CONTACT:
Creative BioMolecules, Inc.
Karla MacDonald, (617) 912-2953
Manager, Corporate Communications
or
Creative BioMolecules, Inc.
Steven L. Basta, (617) 912-2950
V.P., Finance and Business Development |
