I love these results - BIOX earnings
Tuesday October 21 8:33 AM EDT
Company Press Release
Biomatrix Reports Third Consecutive Quarter of Profitability Net Profit of $0.85 Per Share
Product Sales Increase 57 Percent Compared to Third Quarter of 1996
RIDGEFIELD, N.J., Oct. 21 /PRNewswire/ -- BIOMATRIX, INC. (Nasdaq:BIOX) today reported financial results for the third quarter and nine months ended September 30, 1997. This marks the Company's third consecutive quarter of profitability.
Net income for the third quarter ended September 30, 1997 was $9,788,338 or $0.85 per share, on revenues of $13,867,297. This compared with a net loss of $574,486 or $0.05 per share on revenues of $2,465,339 recorded during the third quarter of 1996. Third quarter 1997 revenues included a 57% product sales increase compared with the same quarter a year ago, and a $12 million milestone payment from marketing partner, Wyeth-Ayerst Laboratories (a division of American Home Products), associated with the approval by the Food and Drug Administration (FDA) to market Synvisc(R), Biomatrix' innovative product for the treatment of osteoarthritis of the knee. Biomatrix ended the third quarter of 1997 with $22,696,747 in cash and investments and $33,110,512 in shareholders' equity.
Products sales for the third quarter of 1997 increased $633,927 or 57% from the year ago quarter due to new sales of Synvisc in France and Germany, and to the growing market acceptance and European sales of Hylaform(R), the Company's product for viscoaugmentation of dermal tissue to correct facial wrinkles and depressed scars. Total costs and expenses for the third quarter increased $853,956 or 27% from last year's quarter due primarily to higher expenses associated with preparation for the US product launch, additional staffing, as well as expenses related to the expansion of production capacity at the Company's manufacturing facility in Canada.
For the nine months ended September 30, 1997, Biomatrix reported net income of $13,589,089 or $1.21 per common share, on revenues of $24,894,954. This compared favorably with net income of $3,380,827 or $0.33 per common share, on revenues of $12,746,926 recorded during the comparable period in 1996.
In commenting on the Company's third quarter activities, Dr. Endre A. Balazs, Biomatrix' chief executive officer and chief scientific officer, stated, ''We were extremely pleased to receive FDA approval to market Synvisc in the US. In addition to opening up the very lucrative US market for our product, and providing us with a $12 million milestone payment from our US marketing partner, this approval validates the new technology upon which our continuing pipeline of products is based.''
''Increased sales of Synvisc are a testimony to its growing presence in the European medical market. Hylaform sales in Europe through our marketing partner, Collagen Corp., also continue to gain market share and contributed to the increase in product sales during the third quarter.''
Dr. Balazs continued, ''We are encouraged by the overwhelmingly positive response we have received from both the US medical community and the general public regarding Synvisc's upcoming product launch. Wyeth-Ayerst, our US marketing partner, expects to launch Synvisc during the fourth quarter, and we are confident that Synvisc will revolutionize the treatment of osteoarthritis of the knee.''
Rory B. Riggs, Biomatrix' president and acting chief financial officer, commented, ''The third quarter was a strong quarter for the Company as evidenced by solid increases in our product sales, cash position, and shareholder equity. As we continue to grow, we are investing in building a strong infrastructure, have added key personnel at several levels, and have made significant progress on the expansion of our manufacturing capabilities. These initiatives, combined with increased product sales in current markets and entry into new markets globally, are important steps toward attaining Biomatrix' goal to become a leading, multi-national biomedical company.''
In addition to Synvisc and Hylaform, Biomatrix manufactures, and sells through distributors, three other elastoviscous therapeutic products: Gelvisc(R) Vet for the treatment of osteoarthritis in animals, and two Hylashield(R) products for the protection of the surface of the eye from noxious environmental conditions.
Certain statements in this press release are forward-looking statements that involve risks and uncertainties including, but not limited to, the regulatory approval process, obtaining and enforcing patents, product liability, and other risks detailed in Biomatrix' reports filed under the Securities Exchange Act, including Forms 10-Q and Biomatrix' annual report on Form 10-K for the year ended December 31, 1996.
Biomatrix, Inc., headquartered in Ridgefield, New Jersey is an international biomedical company that develops, manufactures and commercializes viscoelastic products made from proprietary biological polymers called hylans, used in therapeutic medical applications and in skin care products. For more information on Biomatrix, please visit the Company's web site at www.biomatrix.com.
NOTE: Synvisc(R), Hylaform(R), Hylashield(R), and Gelvisc(R) Vet are registered trademarks of Biomatrix, Inc. |
