Matritech Reports Second Quarter Results; Colon and Cervical Cancer
Products On Schedule, Breast Cancer Serum Feasibility Demonstrated
NEWTON, Mass., Aug. 1 /PRNewswire/ -- Matritech Inc. (Nasdaq: NMPS;
BSE: MPS) today reported a net loss of $2,087,000 or $.12 per share
for the quarter ended June 3O. In the second quarter of l996, the
Company reported a loss of $1,425,000 or $.09 per share. For the first
six months of 1997, Matritech reported a loss of $3,610,000 or $.22
per share as compared with $2,832,000 or $.18 per share in the first
six months of 1996.
Collaborative research and development revenues, license fees and
product sales, decreased to $151,000 for the quarter ended June 30,
1997 from $502,000 for the quarter ended June 30, 1996. Revenue from
product sales decreased to $151,000 for the quarter ended June 30,
1997 as compared to $406,000 in the second quarter of 1996 due to
decreased sales of the NMP22 Test Kit(R) and research use only
products. The Company's 1996 product revenue included initial
product stocking orders which were not repeated in the 1997 period.
Revenue for subsequent reporting periods is subject to fluctuation
depending upon the timing of distributor's orders. The Company
recorded $60,000 in milestone revenue relating to a funded development
agreement with Bayer Corporation (``Bayer'') and $36,000 in SBIR
funding for its cancer therapy development project during the second
quarter of 1996.
``Matritech's primary bladder cancer sales objective for 1997 has been
to convert the country's leading urology centers to the use of the
NMP22 Test Kit,'' commented David L. Corbet, Matritech's President.
``The adoption of our test by Kaiser Permanente, The Cleveland Clinic,
the University of Miami, the University of West Virginia and the
Brooklyn Veterans Administration, during the first half of the year
confirms the clinical utility and cost effectiveness of the product,''
he continued. ``Urologists have stated that its quantitative ability
as well as its non-reactivity with blood in urine specimens, make it
the product of choice for the management of their patients,'' he
concluded.
Clinical trials for Matritech's NuMA(TM) Test Kit for colon cancer
progressed during the quarter and the Company plans to submit data to
the FDA in 1997. The preclinical evaluation of antibodies reactive
with cervical cancer cells began in the second quarter. Preliminary
results are consistent with previous findings: intense staining of
cancer cells and virtually no reactivity with normal cells.
The Company also reported that during the second quarter Matritech's
research scientists performed initial evaluations of antibodies which
recognize NMPs in the serum of breast cancer patients.
Except for historical information contained herein, the matters
discussed in this news release are forwarded-looking statements that
are subject to risks and uncertainties. Potential risks and
uncertainties include, without limitation, potential fluctuations in
the Company's sales due to the timing of customer orders and other
market conditions beyond the Company's control and risk 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 or 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 Six Months Ended
June 30 June 30
1997 1996 1997 1996
Revenues $254,373 $634,841 $563,331 $967,127
Research &
Development Expenses 965,878 928,294 1,862,269 1,861,435
Selling, General and
Administrative
Expenses 1,375,678 1,131,385 2,310,844 1,937,355
Net Income (Loss) $(2,087,183) $(1,424,838) $(3,609,782) $(2,831,663)
Net Income (Loss)
Per Share $(.12) $(.09) $(.22) $(.18)
Weighted Average
Shares 16,899,740 15,954,031 16,470,442 15,809,538
12/31/96 6/30/97
Cash $6,770,336 $14,826,514
Working Capital 7,165,462 14,411,786
Total Assets 8,669,861 16,479,097
Stockholders' Equity $7,783,984 $15,229,159
SOURCE: Matritech, Inc.
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