good news re ISV900
InSite Vision Reports 1998 Fourth Quarter and Year End Results
ALAMEDA, Calif.--(BW HealthWire)--Feb. 11, 1999--InSite Vision
Incorporated (AMEX:ISV) today announced its financial results for the
fourth quarter, and the year ended December 31, 1998.
For the fourth quarter ended December 31, 1998, InSite Vision
recorded a net loss of $1.7 million, or $0.10 per common share. For
the corresponding period last year--the fourth quarter ended December
31, 1997--InSite recorded a loss of $2.6 million, or $0.19 per common
share. The decrease in the net loss is primarily related to reduced
research and development expenditures.
Revenues for the year ended December 31, 1998 amounted to
$16,000, with a net loss of $9.1 million, or $0.60 per common share.
For the year ended December 31, 1997, revenues were $50,000 with a net
loss of $11.1 million, or $0.85 per common share. InSite Vision's
revenues are principally derived from royalties on the sales of
AquaSite(R) by CIBA Vision. The decrease in the net loss is primarily
related to reduced research and development expenditures and lower
non-cash preferred dividends.
Research and development (R&D) expenditures for the fourth
quarter of 1998 were $1.0 million, compared with $1.8 million in the
fourth quarter of 1997. This decrease reflects the cost savings
realized from the Company's reduction in its R&D staff and consulting
costs as a result of its decision to focus its research on ISV-205 and
ISV-900 and the reimbursement of certain research costs by Pharmacia &
Upjohn AB (PNU). Additionally, R&D expenses in the fourth quarter of
1997 included patent costs related to filings for ISV-014, the retinal
drug delivery system, and ISV-900 which were not incurred in 1998.
R&D spending for the year ended December 31, 1998 decreased 14%,
to $6.2 million, compared to $7.2 million during 1997. The cost
savings were mainly in the areas of outside services, consultants, and
compensation related costs due to an overall reduction in R&D
headcount. The reduction in outside services mainly reflects the
completion of the development activities related to ISV-208 and the
transfer of the project to Bausch & Lomb Pharmaceuticals, Inc., the
Company's joint development partner on this project. It also reflects
the cost savings incurred by focusing R&D activities on ISV-205 and
ISV-900 in the fourth quarter of 1998.
In the fourth quarter of 1998 and 1997, general and
administrative (G&A) expenses were $651,000 and $622,000,
respectively. The change primarily reflects the increased expense for
options granted to consultants. For the year ended December 31, 1998
there was an overall decrease of 10% in G&A expenses, from $3.0
million in 1997, to $2.7 million in 1998.
As of December 31, 1998, InSite Vision had cash and cash
equivalents of $1.0 million, compared to $8.7 million at December 31,
1997. In September of 1997, InSite Vision completed a private
placement that netted the Company $6.5 million. The Company did not
close a financing during 1998. The decrease in the cash and cash
equivalents reflects the use of cash for operations.
Subsequent to the end of 1998, the Company completed a
transaction with PNU that provided the Company with operating capital
through license and stock purchase agreements. "Last year, and
especially in the fourth quarter, the stage was set for InSite Vision
to license our glaucoma treatment product ISV-205. With the licensing
of ISV-205 now completed, InSite's technology enjoys the validation of
one of the world's major pharmaceutical companies, PNU, which will
complete ISV-205's development and commercialization upon proof of
concept," said Dr. S. Kumar Chandrasekaran, Chairman and Chief
Executive Officer of InSite Vision.
"This agreement has bolstered our financial position, and has
paved the way for the company to pursue our other products, especially
ISV-900," Dr. Chandrasekaran said. "I am pleased to report that we are
in discussion with a number of pharmaceutical companies, including
PNU, which may be interested in licensing our ISV-900 products. We
believe that ISV-900 could dramatically change conventional protocols
covering the care and treatment of glaucoma."
InSite Vision is an ophthalmic product development company
focused on genetic research for diagnosis and prognosis of glaucoma
and a novel glaucoma treatment using its proprietary DuraSite(R)
technology.
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
entail a number of risks and uncertainties involving 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 September 30, 1998.
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InSite Vision Incorporated
Condensed Consolidated Statements of Operations
For the Three Months and Year Ended December 31, 1998 and 1997
(in thousands, except per share amounts; unaudited)
Three months ended Year ended
December 31, December 31,
1998 1997 1998 1997
Royalty revenue $ (5) $ 10 $ 16 $ 50
Operating expenses:
Research and development 1,034 1,830 6,227 7,224
General and
administrative 651 622 2,656 3,034
Total 1,685 2,452 8,883 10,258
Loss from operations (1,690) (2,442) (8,867) (10,208)
Interest and other income,
net 42 142 299 390
Net loss (1,648) (2,300) (8,568) (9,818)
Non-cash preferred
dividends 35 253 514 1,326
Net loss applicable to
common stockholders $ (1,683) $(2,553) $ (9,082) $(11,144)
=========== ========= =========== =========
Net loss per share
applicable to common
stockholders $ (0.10) $ (0.19) $ (0.60) $ (0.85)
Shares used to calculate
net loss per share basic
and diluted 16,468 13,098 15,079 13,053
Condensed Consolidated Balance Sheets
At December 31, 1998 and 1997
(in thousands; unaudited)
----------------------------------------------------------------------
Assets:
Cash and cash equivalents $ 1,037 $ 8,660
Property and equipment, net 859 1,583
Prepaid expenses and other assets 190 303
Total assets $ 2,086 $ 10,546
Liabilities and stockholders'
equity (deficit):
Current liabilities $ 683 $ 982
Redeemable preferred stock 1,511 7,533
Stockholders' equity (deficit) (108) 2,031
Total liabilities and stockholders'
equity (deficit) $ 2,086 $ 10,546
*T
--30--ac/sf* cmf/sf
CONTACT:
Insite Vision
Sandra Heine, 510/865-8800 (Company Contact)
or
Core Communications Group, Inc.
Robert Ferri, 415/331-7003 (SF)(Investor Contact)
rferri@nextwavestocks.com
Joshua Z. Levine, 516/487-8322 (NY) (Investor Contact)
jzlavine@nextwavestocks.com |
