Matritech Reports Fourth-Quarter and Year-End Results
FDA Approves the Sale of NMP22 in July 1996; 1996 Product Sales Exceed
$1.6 MM
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. |
