Message from Udo W. Perkuhn on Nov 2 1996 12:03PM EST
Anyone have a copy of an income statement? Would be curious to see how sales
are doing in real numbers. Company has alot of potential and at current price is very
attractive investment. I may consider buying back in for more but need the sales/net
income and cash per share (prior to settlement with IMNX) before doing so. Please
post a copy if you have it. Thanks.
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Here it is, but God knows what it's going to look like. :-)
I *really* think that you should get the 10-K and look at this table in context.
It looks like sales decreased from about 700K in fiscal '95 to about 600K in fiscal '96. The company had obviously sunk everything into its battle with Immunex, and I presume that also meant most of the operating budget and marketing. I sent the press release to my old boss at PharMingen, and he responded saying that they had switched to Cistron for IL-1beta. I presume that Cistron will now either OEM IL-1beta or receive royalties for that manufactured by others. With the assignment of the patents, I presume that a few letters will soon leave the desk of Cistron's attorney(s), headed for those companies that are selling IL-1beta. This presumption may be naive, but I have rarely seen a 10-K prepared with such care.
The 10-K is fun. They have five full-time employees (President, V.P. Operations and Product Devpt., Admin. Asst., a senior scientist, and a scientist), and they made Immunex role over and play dead. The Chairman/CEO took no salary '94-'96. Even without the diagnostics and therapeutics efforts, I haven't found anything wrong yet. Compare it to BioSource International (BIOI, a competitor, get the 10-K, look at cash and at market cap).
I've dug up abstracts relating to the molecule (PAI-2) that was the subject of the cross-license with Biotech Australia Pty. Ltd. (according to the 10-K, a "jointly owned subsidiary of Hoechst A.G. and Hoechst Australia Ltd."), and I'll post some of them (for those who know how to do such, try a Medline search on PAI-2 and inflammation). It is apparent that the molecule must have been of at least research interest to GNE, AMGN and GENZ, in that it relates to the function of TPA, side effects of GM-CSF, and peritoneal adhesions. I've got every friend that I can find working on independent evaluations. More later. Hope this helps.
Disclaimer: I bought shares of CIST on Friday, 11/1/96. I am not qualified to make recommendations. Investments in biotech may involve above-average risk. Do your own homework, and consult a qualified investment advisor. I know biotech, but I sometimes make mistakes.
Rick
CISTRON BIOTECHNOLOGY, INC.
---------------------------
STATEMENTS OF CASH FLOWS
<TABLE> ------------------------
<S> <C> <C> <C> <C>
February 2, 1982
Year ended June 30, (commencement of
----------------------------------------- operations) to
1994 1995 1996 June 30, 1996
---------- ---------- ---------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES: <C> <C> <C> <C>
Cash received from customers $ 1,028,603 $ 721,413 $ 614,226 $ 10,127,111
Cash paid to suppliers and employees (1,267,188) (1,081,010) (1,678,666) (20,025,211)
Interest received 908 8,565 26,919 76,960
Acquisition expenses paid - - - (429,620)
Royalties, research funding,
license fees received 179,985 1,055,000 405,000 2,067,568
Other receipts 3,094 32,914 106,538 184,151
---------- ---------- ----------- ----------
Net cash provided by (used in)
operating activities (54,598) 736,882 (525,983) (7,999,041)
---------- ---------- ----------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Collection of note receivable - - - 15,097
Purchase of property and equipment - - (5,569) (729,383)
---------- ---------- ----------- ----------
Net cash used in investing activities - - (5,569) (714,286)
---------- ----------- ----------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of capital stock
and additional contributions - - - 9,943,165
Principal payments on notes payable - - - (870,238)
---------- ---------- ----------- ----------
Net cash provided by financing activities - - - 9,072,927
---------- ---------- ----------- ----------
Net change in cash and cash equivalents (54,598) 736,882 (531,552) 359,600
CASH AND CASH EQUIVALENTS,
beginning of period 208,868 154,270 891,152 -
---------- ---------- ----------- ----------
CASH AND CASH EQUIVALENTS, end of period $ 154,270 $ 891,152 $ 359,600 $ 359,600
============ ============ =========== ============
RECONCILIATION OF NET INCOME (LOSS) TO NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Net income (loss) $ (273,852) $ 279,276 $(1,106,166) $(10,984,828)
Adjustments to reconcile net income
(loss) to net cash provided by (used in)
operating activities:
Depreciation and amortization 37,106 23,109 12,777 729,237
Loss on disposal of property
and equipment - - - 3,979
Other expense - - - 22,100
Amortization of deferred financing costs - - - 173,079
Decrease (increase) in assets:
Accounts receivable 6,409 51,375 40,603 (28,939)
Inventory 1,928 (1,536) 1,071 (6,337)
Prepaid expenses (23,538) 23,538 (500) (500)
Notes and other receivables 200,475 (68,392) (123,784) (222,310)
Security deposit (318) - - (23,938)
Intangible assets (1,105) - - (37,105)
Increase (decrease) in liabilities:
Accounts payable and accrued expenses 38,206 429,512 650,016 2,376,521
Unearned revenues (39,909) - - -
---------- ---------- ----------- ----------
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES: $ (54,598) $ 736,882 $ (525,983) $ (7,999,041)
============= ============= ============ ============= |
