ALAMEDA, Calif.--(BW HealthWire)--Oct. 30, 1997--InSite Vision
Incorporated (NASDAQ:INSV) today announced its financial results for
the third quarter and nine months ended September 30, 1997.
For the quarter ended September 30, 1997, InSite Vision recorded
revenues of $11,000 and a net loss of $3.6 million ($0.28 per share),
including $1.1 million in non-cash preferred dividends deemed
distributed during the quarter in anticipation of the conversion of
the Company's redeemable preferred stock into common shares. These
results compare with revenues of $507,000 and a net loss of $1.3
million ($0.10 per share) for the quarter ended September 30, 1996.
The 1996 revenues included a $500,000 license fee from Bausch & Lomb
Incorporated for one of the Company's DuraSite(R)-based product
candidates.
For the nine months ended September 30, 1997, InSite Vision had
revenues of $40,000 and a net loss of $8.6 million ($0.66 per share),
compared with revenues of $534,000 and a net loss of $6.8 million
($0.57 per share) in the first three quarters of 1996.
At September 30, 1997, InSite Vision had cash and equivalents of
$11.0 million, compared with $10.5 million at December 31, 1996. The
1997 cash balance includes net proceeds of $6.5 million from the sale
of convertible preferred stock to a group of institutional investors
and $1.0 million from the sale of common stock to Bausch & Lomb
during the third quarter.
"Developments during the quarter have advanced all three of
InSite Vision's technology platforms and added to the depth of the
Company's leadership," said Kumar Chandrasekaran, Ph.D., InSite
Vision's chairman and chief executive officer.
"First, the licensing of a patented retinal drug delivery device
from the University of Rochester has added an important new
technology to InSite Vision's ophthalmic portfolio," Dr.
Chandrasekaran said. Sight-threatening conditions that involve
retinal damage include macular degeneration, which affects 10 million
or more people in the U.S., mostly age 50 and over, and diabetic
retinopathy, a common complication of diabetes. Approximately 9
million people in the U.S. are diabetic. The device is designed to
provide the controlled, non-surgical delivery of ophthalmic drugs,
such as InSite Vision's anti-oxidant ISV-600, to the rear of the eye.
"Second, we exercised an option to obtain an exclusive worldwide
license from the University of Connecticut Health Center(UCHC) for a
newly discovered gene for primary congenital glaucoma,"
Dr. Chandrasekaran continued. The Company and scientists at UCHC
are developing a diagnostic kit for the disease based on this new
genetic information. This technology adds to InSite Vision's ongoing
collaboration with scientists at the University of California, San
Francisco for the development of products based on genes involved in
primary open-angle glaucoma, the principal non-hereditary form of the
disease.
"Third, during the quarter a new Phase II clinical study began
using our DuraSite-based ISV-120 product candidate for the prevention
of recurrent pterygia," said Dr. Chandrasekaran. Pterygia are
abnormal tissue growths across the front of the eye which affect
approximately 4 million people a year worldwide.
"Finally, we were pleased to announce that John L. Mattana, who
recently retired from the New York Life Insurance Company, has joined
InSite Vision's Board of Directors," Dr. Chandrasekaran said. "With
his extensive experience in the capital markets and in the
evaluation of health care companies, he brings to the Board unique
perspectives that will contribute to our corporate development."
InSite Vision is an ophthalmic product development company with
programs based on three platforms: genetic research for diagnosis and
prognosis of glaucoma; the development of new and improved ophthalmic
drugs using the proprietary DuraSite eyedrop-based delivery system;
and the non-surgical delivery of drugs to the back of the eye.
This press release contains, among other things, certain
statements of a forward-looking nature relating to future events or
the future business performance of InSite Vision. Such statements
involve a number of risks and uncertainties including the results of
preclinical and clinical studies and determinations by the U.S. Food
and Drug Administration, as well as the Risk Factors listed from time
to time in the company's SEC filings including but not limited to its
Form 10Q for the quarter ended June 30, 1997.
*T
InSite Vision Incorporated
Condensed Consolidated Statements of Operations
For the Three and Nine Months Ended September 30, 1997 and 1996
(in thousands, except per share amounts; unaudited)
Three months ended Nine months ended
Sept. 30, Sept. 30,
1997 1996 1997 1996
Revenue:
License fee $ -- $ 500 $ -- $ 500
Royalty revenue 11 7 40 34
Total 11 507 40 534
Operating expenses:
Research and development 1,943 1,293 5,394 4,060
Loss on vacated facilities -- -- -- 1,412
General and administrative 702 700 2,412 2,185
Total 2,645 1,993 7,806 7,657
Loss from operations (2,634) (1,486) (7,766) (7,123)
Interest and other income, net 63 141 248 324
Net loss (2,571) (1,345) (7,518) (6,799)
Non-cash preferred dividends 1,073 -- 1,073 --
Net loss applicable to common
shareholders $ (3,644) $ (1,345) $ (8,591) $ (6,799)
Net loss per share applicable
to common shareholders $ (0.28) $ (0.10) $ (0.66) $ (0.57)
Shares used to calculate
net loss per share 13,098 12,833 12,992 11,865
Condensed Consolidated Balance Sheets
At Sept. 30, 1997 and Dec. 31, 1996
(in thousands; unaudited)
Sept. 30, Dec. 31,
1997 1996
Assets:
Cash and cash equivalents $ 10,957 $ 10,518
Property and equipment, net 1,773 2,107
Prepaid expenses and other assets 157 195
Total assets $ 12,887 $ 12,820
Liabilities and stockholders' equity:
Current liabilities $ 1,057 $ 1,201
Redeemable preferred stock 7,607 --
Stockholders' equity 4,223 11,619
Total liabilities and stockholders'
equity $ 12,887 $ 12,820
*T
CONTACT: InSite Vision, Alameda
Michael D. Baer, 510/865-8800
or
Investor Awareness, Inc. (Investor Relations)
Tony Schor, 847/945-2222
or
Russell-Welsh, Inc. (Press Relations)
Barbara T. Heineback, 650/312-0700 ext. 21
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: BIOTECHNOLOGY PHARMACEUTICAL EARNINGS
MANAGEMENT CHANGES
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