Tic Toc, Tic Toc... goes the clock, better not fire the watchman... better guard those patents!
DAK
Monday August 16, 11:41 am Eastern Time
Company Press Release
CytoTherapeutics Reports Second Quarter Results
LINCOLN, R.I.--(BW HealthWire)--Aug.16, 1999--CytoTherapeutics, Inc. (NASDAQ:CTII
- news) today reported a net loss for its second quarter ended June 30, 1999, of $1,840,000, or $0.10 per share, compared to a
net loss of $4,048,000, or $0.22 per share, in the second quarter of 1998. Revenues from collaborative arrangements for the
second quarter of 1999 totaled $2,521,000, compared to $1,907,000 in the corresponding quarter of 1998. The increase in
revenues of $614,000, or 32%, resulted from increased funding for the quarter from AstraZeneca Group plc related to research
and development of the encapsulated cell program for chronic pain. However, on June 24, 1999, AstraZeneca terminated its
collaboration agreement with the Company. As a result of termination of the AstraZeneca agreement, the Company expects to
incur substantial wind down costs in the second half of 1999. The results for the first six months will not be indicative of results for
the balance of the year.
The net loss for the first six months of 1999 was $3,773,000, or $0.20 per share, compared with a net loss of $7,567,000, or
$0.42 per share, for the same period in 1998. Revenues from collaborative arrangements for the six months ended June 30, 1999
and 1998 were $5,022,000, and $3,750,000, respectively, substantially all of which were obtained from the terminated Astra
relationship. Cash, cash equivalents and marketable securities totaled $11,788,000 on a consolidated basis at June 30, 1999.
CytoTherapeutics, Inc. is a biotechnology company focused on the discovery, development and commercialization of cell-based
therapies. For additional information, visit the Company's Internet web site at cyto.com.
Statements in this press release other than statements of historical facts constitute forward looking comments regarding, among
other things, future business operations and results. The company's actual results may vary materially from those forward looking
statements due to risks and uncertainties to which the company is subject, such as failure to achieve required product development,
delays in obtaining, or failure to satisfy conditions imposed for, regulatory approval, the need to raise additional capital, regulatory
requirements, risks of third-party intellectual property, adverse clinical developments, and other risks, which are described in
Exhibit 99 to the company's Annual Report on Form 10-K entitled ''Cautionary Factors Relevant to Forward Looking
Statements.''
CytoTherapeutics, Inc.
Selected Consolidated Financial Information (unaudited)
Condensed Consolidated Three Months Ended Six Months Ended
Statements of Operations June, 30, June 30, June, 30, June 30,
1999 1998 1999 1998
Revenue from collaborative
arrangements $2,520,672 $1,906,588 $5,021,707 $3,749,563
Operating expenses:
Research and development 3,280,826 4,917,357 6,847,383 9,417,019
General and
administrative 1,172,856 1,264,249 2,168,315 2,411,255
4,453,682 6,181,606 9,015,698 11,828,274
Operating loss (1,933,010)(4,275,018)(3,993,991)(8,078,711)
Other income, net 92,991 226,645 221,277 511,801
Net loss ($1,840,019)($4,048,373)($3,772,714)($7,566,910)
Basic and diluted net
loss per share ($0.10) ($0.22) ($0.20) ($0.42)
Shares used in computing
basic and diluted net
loss per share 18,514,236 18,199,870 18,483,437 18,192,212
Condensed Consolidated Balance Sheets
June 30, December 31,
1999 1998
Cash, cash equivalents and marketable
securities $11,788,284 $17,385,727
Prepaids and other current assets 724,363 1,048,283
Property, plant and equipment, net 7,588,565 8,356,009
Other assets 6,070,157 6,075,663
Total assets $26,171,369 $32,865,682
Total current liabilities $2,867,334 $5,547,824
Long-term obligations and other
long-term liabilities 3,464,426 3,984,340
Redeemable common stock 5,248,610 5,248,610
Common stock to be issued 187,500 187,500
Total stockholders' equity 14,403,499 17,897,408
Total liabilities and stockholders'
equity $26,171,369 $32,865,682
DAK |
