*** UroMed Corporation Announces Third-Quarter Results ***
Wednesday October 14, 8:31 am Eastern Time
Company Press Release
UroMed Corporation Announces Third-Quarter Results
NEEDHAM, Mass.--(BW HealthWire)--Oct. 14, 1998--UroMed Corporation (NASDAQ:URMD - news) today reported revenues of $0.27 million for the third quarter ended September 30, 1998, compared with $0.04 million for the same period of 1997. UroMed reported net income of $1.5 million, or $0.29 per share, for the third-quarter of 1998 compared with a net loss of $8.6 million, or $1.61 per share, for the same period of 1997. For the third quarter ended September 30, 1998, net income included a loss before extraordinary gain of $3.4 million and an extraordinary gain of $4.9 million resulting from the company's repurchase of a portion of its outstanding convertible subordinated notes. The company ended the third quarter of 1998 with cash, cash equivalents and short-term investments totaling $46.7 million.
For the nine months ended September 30, 1998, UroMed reported revenues of $0.5 million, compared with revenues of $0.5 million for the same period of 1997. Net loss for the first nine months of 1998 was $10.1 million, or $1.90 per share, compared with $26.2 million, or $4.94 per share, for the same period in the prior year. Net loss for the nine months ended September 30, 1998 included the previously mentioned extraordinary gain.
John G. Simon, UroMed's chairman of the board and chief executive officer, commented, ''Our operating financial performance was in line with expectations for the quarter as we continue to make strides to accomplish our milestones. We have taken important steps to transition the company's primary mission to treating prostate cancer. Our early CaverMap(TM) Surgical Aid experience continues to go well. Our first Canadian investigators reported promising initial clinical results in the GOLD Journal of Urology this month, and certain patients appear to be seeking out physicians with access to the CaverMap technology. On the brachytherapy front, we continue to proceed towards establishing the company as a player in the brachytherapy market by the first quarter of 1999, assuming our joint development efforts with BEBIG GmbH proceed according to current schedules. In addition, this quarter we made progress in partnering distribution of our incontinence technology with the signing of a definitive distribution agreement with Johnson & Johnson Medical K.K., a subsidiary of Johnson & Johnson, to distribute UroMed's INTROL(R) Bladder Neck Support Prosthesis in Japan. We will continue to pursue distribution or licensing arrangements such as this for our non-surgical incontinence technology where they make sense.''
Simon continued, ''Acknowledging that the company's capital structure does not reflect the company's current business model and stage of development, we announced a tender offer for $40 million in principal of our 6% Convertible Subordinated Notes due October 15, 2003. The tender offer commenced on September 23, 1998 and is scheduled to expire on October 21, 1998. As mentioned in our prior news releases, the company is currently not in compliance with NASDAQ's listing requirements based on market capitalization and, as a result, we are waiting to hear from NASDAQ about the company's continued listing on the Nasdaq National Market. At present, it is unclear whether the company will remain on the Nasdaq National Market, move to the Nasdaq SmallCap Market, or move to the Over the Counter Bulletin Board.''
''Over the remainder of the year, we hope to continue to make progress and lay the foundation for growth in 1999 and beyond,'' concluded Simon.
UroMed, founded in October 1990, is dedicated to establishing itself as a leader in the development of male and female healthcare products. UroMed has developed or acquired technology in three core areas: prostate cancer, urinary incontinence, and breast cancer. UroMed's direct hospital-based business lines include its CaverMap Surgical Aid, intended to aid physicians in preserving vital nerves during prostate cancer surgery, its Iodine125 prostate cancer brachytherapy seeds (not yet commercially available), its brachytherapy introducer needles, and AlloSling and BEACON Technology System, minimally invasive incontinence surgical lines. UroMed's office-based continuum of continence care product lines include the Reliance(R) Insert, the INTROL(R) Bladder Neck Support Prosthesis, and the Impress Softpatch, for which the company is seeking marketing partnership(s). In breast cancer screening, UroMed, through its Assurance Medical group, is developing its investigational BreastExam(TM), BreastCheck(TM) and BreastView(TM) electronic palpation technology in order to aid physicians and patients in the important mission of finding suspicious breast lumps earlier. UroMed also continues to dedicate resources to the development and/or acquisition of product lines that fit into UroMed's strategic platform.
A copy of the condensed statement of operations and balance sheet of UroMed Corporation are attached.
The company recognizes that the previous paragraphs contain forward-looking statements relating to the company is future activities, including development and commercialization of the company's CaverMap Surgical Aid and brachytherapy technology, the company's expectations regarding its NASDAQ listing and future growth. These forward-looking statements are based largely on the company is expectations and are subject to a number of risks and uncertainties beyond the company is control. Actual results could differ materially from these forward-looking statements as the result of certain risks, including the risk that physicians will not prescribe or use its products in significant numbers, the risk that patients or physicians using its products will not develop into long-term users, the company's ability to successfully reduce costs, the uncertainty of securing a marketing partner(s), the uncertainty of receiving required regulatory clearance, the uncertainty of manufacturing scale-up and general market acceptance of the BreastCheck, BreastExam, BreastView, the company's brachytherapy technology, the CaverMap Surgical Aid and the company's incontinence product lines, as well as the company is dependence on these products going forward, the risk that the company will not be able to successfully develop any new products and the risk of the de-listing of the company's common stock from the Nasdaq National Market which would have a material and adverse effect on the market for and the price of the common stock. There can be no assurance that these risks would not have a material adverse effect on the company. Other relevant risks are described in the company is Annual Report on Form 10-K for the year ended December 31, 1997, under the headings iForward-Looking Statements and Associated Risksi and iRisk Factors,i which are incorporated herein by reference.
INTROL(R) Bladder Neck Support Prosthesis and Reliance(R) Urinary Control Insert are registered trademarks of UroMed Corporation. Impress(TM)Softpatch, PelvicFlex(TM) Personal Trainer Video, BEACON Technology System(TM), BreastCheck(TM) BreastExam(TM) BreastView(TM), CaverMap(TM) Surgical Aid and AlloSling(TM) Fascia are trademarks of UroMed Corporation.
CONDENSED STATEMENT OF OPERATIONS: biz.yahoo.com
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