Looks like earning were pretty much in line with expectations.
NEWTON, Mass., Feb. 10 /PRNewswire/ -- Matritech, Inc. (Nasdaq: NMPS; Boston: MPS) today reported a net loss of $5,165,000, or $.32 per share,
for the year ended December 31, 1996, compared with a net loss of $4,083,000, or $.38 per share, in 1995.
Revenues for the year ended December 31, 1996, were $2,410,000 compared with $1,240,000 for 1995. Revenue from product sales increased 389% to
1,678,000 for the year ended December 31, 1996 compared to $343,000 in 1995. This increase was due primarily to worldwide sales of the Company's
NMP22(R) Test Kit for bladder cancer which was approved for sale in the United States by the U.S. Food and Drug Administration ("FDA") in July 1996.
Revenue generated from collaborative research and development and license fees in the year ended December 31, 1996 consisted of $120,000 in milestone
payments from a funded development agreement with Bayer Corporation, and $84,000 in SBIR funding for the Company's drug screening assay project.
Collaborative research and development revenue and license fees in the year ended December 31, 1995 consisted of $280,000 in license fees from a
marketing agreement, which was terminated in June, 1996, with Boehringer Ingelheim International, $210,000 from a funded development agreement with
Bayer Corporation and $190,000 in SBIR funding for the Company's prostate, colon and drug screening assay projects. Interest and other income was
$528,000 for the year ended December 31, 1996 and $217,000 for the year ended December 31, 1995. The increase was due to significantly higher
average cash balances available for investment throughout 1996 compared to 1995 resulting from financings during the third and fourth quarters of 1995.
As of December 31, 1996, the Company had cash and cash equivalents of $6,770,000 and working capital of $7,165,000.
Research and development expenses increased 30% to $3,910,000 for the year ended December 31, 1996 from $3,014,000 for the year ended December
31, 1995. The increase is due primarily to the scale-up of product manufacturing for the Company's NMP22 Test Kit for bladder cancer, and to a lesser
extent, increased personnel costs in the research department, and costs associated with the initial stages of clinical trials for the Company's colorectal cancer
test which began in October 1996.
Selling, general and administrative expenses increased 59% to $3,665,000 for the year ended December 31, 1996 from $2,309,000 for the year ended
December 31, 1995. During the second half of 1996, the Company expensed approximately $209,000 of costs associated with a proposed public offering
which the Company elected not to complete. Excluding these expenses, selling, general and administrative expenses increased 50%, primarily from increased
sales and marketing personnel costs, the termination of the Company's former distributor in Europe and the establishment of marketing programs to promote
the Company's product worldwide. The balance of the increase is related primarily to increased salaries, professional fees and expenses associated with
termination of the Company's former lease for its Cambridge facility.
For the quarter ended December 31, 1996, the Company reported a net loss of $1,206,000 or $.08 per share, compared with a net loss of $887,000, or
$.07 per share for the same period in 1995.
Revenues for the fourth quarter of 1996 were $772,000, compared with $586,000 in the corresponding quarter of 1995. The increase was due primarily to
an increase in product sales worldwide for the Company's NMP22 Test Kit for bladder cancer.
Research and development expenses for the fourth quarter of 1996 increased to $1,038,000, compared with $719,000 in the same quarter a year ago. The
increase is related equally to the scale-up of product manufacturing for the NMP22 Test Kit, increased personnel costs in the research department, and new
clinical trials costs for the Company's colorectal cancer test which began in October 1996.
Selling, general and administrative expenses increased to $939,000 in the fourth quarter of 1996 from $754,000 for the same quarter last year. The increase
is attributable primarily to increased sales and marketing personnel costs and the establishment of marketing programs to promote the Company's products
worldwide.
"1996 was a productive year for Matritech during which we obtained FDA approval for the bladder cancer test and commenced clinical trials for the colon
test," commented Stephen D. Chubb, Chairman and Chief Executive Officer. "We look forward to continuing this progress during 1997."
Except for historical information contained herein, the matters discussed in this news release are forward-looking statements that are subject to risks and
uncertainties. Potential risks and uncertainties include, without limitation, risks related to the Company's ability to: successfully develop, test, produce and
market its products; obtain necessary governmental approvals in a timely manner; attract and keep key employees; raise capital for future operations and
growth; and successfully respond to technological changes in the marketplace. Specifically, regulatory approvals of the Company's products are subject to
factors beyond the Company's control, and there can be no assurance that such approvals will not be delayed or ultimately denied. Additional information on
potential factors which could affect the Company's financial results are included in the Company's public filings with the Securities and Exchange Commission.
Matritech, Inc., based in Newton, Mass., is using its proprietary nuclear matrix protein (NMP) technology, discovered at the Massachusetts Institute of
Technology (MIT) and licensed exclusively to Matritech, to develop and commercialize innovative serum-, cell- and urine-based NMP diagnostics that
enable physicians to reliably detect and monitor the presence of bladder, colorectal, cervical, breast and prostate cancers.
Matritech, Inc. Financial Highlights
Three Months Ended Year Ended
December 31 December 31
1996 1995 1996 1995
Revenues $771,628 $586,143 $2,410,416 $1,240,303
Research & Development
Expenses 1,038,494 719,148 3,909,793 3,014,125
Selling, General and
Administrative Expenses 938,636 754,381 3,665,298 2,308,773
Net Income (Loss) (1,205,502) (887,386) (5,164,675) (4,082,595)
Net Income (Loss) Per Share $(0.08) $(0.07) $(0.32) $(0.38)
Weighted Average Shares 16,004,485 13,473,387 15,900,467 10,733,769
SOURCE Matritech, Inc. |
