Bill,
AccuMed stated in their management's discussion and analsis of finacial conditiona and results of operations for the quarter ended June 30, 1997 that:
"During the six months ended June 30, 1997, the Company has expended substantial funds for research and product development, scale-up of manufacturing capacity, sales and marketing efforts and other general corporate purposes. Management believes that existing cash balances and internally generated funds may not be sufficient to finance the Company's projected operations through at least the next 12 months. In order to obtain the additional financing needed, management is seeking to raise additional funds through various means, including private financings, collaborative relationships and other arrangements."
The discussion goes on and says: "The Company currently has no commitments with respect to sources of additional financing, and there can be no assurance that any such financing sources will be available to the Company or that adequate funds for the Company's operations, whether from the Company's revenues, financial markets, collaborative or other arrangements with corporate partners or from other sources, will be available when needed or on terms satisfactory to management. The failure to obtain adequate additional financing may require management to delay, curtail or scale back some or all of its studies and regulatory activities and, potentially, to cease all operations. Any additional equity financing may involve substantial dilution to the Company's then existing stockholders."
It appears to me that the one major road block to this company getting their new FDA approval to market has just been removed and in the most favorable way. Therefore I look at the financing arrangement as good news. It should also be noted that this section of the above discussion was written prior to FDA approval!
The most recent S&P tear sheets on AccuMed states that:
"AccuMed expects revenues to continue to grow significantly in 1997 and believes that it could reach break-even or be profitable by the 1997 fourth quarter. During the 1997 first quarter, ACMI completed the qcquisition of the ESP Culture System II product line, which it anticipates will be a key profit and revenue contributor to the Microbiology division. Additionally, AccuMed recently integrated its two divisions into one and expanded its current manufacturing capabilities to accommodate growing demand for its product lines."
It should be noted that this section of the S&P report was last updated June 3, 1997. Again prior to FDA approval.
Bill, I had always expected ACMI to expend a great deal of money to get their product to market. My main concern was whether they would have the funds to do it without delay and aggressively. This press release relieves that concern.
As to the press release, I have no idea why it didn't show up on the search engines. I did not see it reported on any news service. Perhaps the company didn't want this information widely distrubted until after they announces 3rd quarter earnings?
Cisco |
