InSite Vision Reports Second Quarter Results
ALAMEDA, Calif.--(BW HealthWire)--Aug. 12, 1999--InSite Vision
Incorporated (AMEX:ISV) today announced its financial results for the
second quarter ended June 30, 1999.
At the close of the quarter, InSite Vision posted a net loss of
$1.0 million, or $0.05 per common share. This compares to a net loss
of $2.5 million, or $0.17 per common share, for the second quarter of
1998. The Company also reported a decrease in net loss to $2.1
million, $0.11 per common share, from $4.7 million, $0.33 per common
share, for the six months ended June 30, 1999 compared to June 30,
1998.
The decrease in net loss is primarily due to payments from
Pharmacia & Upjohn (P&U), of $900,000 in each of the first two
quarters of 1999. The payments are for product development expenses
applicable to the January 1999 licensing of InSite's gene-based
glaucoma treatment, ISV-205, the first therapeutic directed at the
cause of this debilitating disease rather than its symptoms.
Net research and development expenditures for the second quarter
of 1999 were $496,000, compared with $1.7 million in the second
quarter of 1998. The decrease reflects not only the payments from P&U,
but also a reduction in personnel, which occurred in the fourth
quarter of 1998, to concentrate on bringing ISV-205 and the ISV-900
genetic diagnostic test to the point they could be marketed.
As of June 30, 1999, InSite Vision had cash and cash equivalents
of $1.6 million, compared to $1.0 million at the end of the 1998. The
primary contributor to this increase was the $2.0 million purchase of
InSite common shares by P&U as part of the January 1999 agreement.
This was partially offset by cash used in operating activities.
"Towards the end of the second quarter InSite Vision reported
positive results on the Phase II trial of ISV-205. We anticipate that
P&U will begin an additional Phase II trial in the fourth quarter of
1999," said Dr. S. Kumar Chandrasekaran, Chairman and Chief Executive
Officer of InSite Vision.
"We look forward to the completion of this trial and the
initiation of the next phase. In the meantime we are pressing ahead
with serious negotiations on ISV-900, our genetic based system for the
prognosis, diagnosis and management of glaucoma.
"We are also progressing with our efforts to take InSite Vision's
products into new markets. We recently announced a licensing agreement
for the Japanese rights to AquaSite(R) our proprietary, sustained
release dry eye treatment to SSP Co., Ltd. of Tokyo, Japan. This has
come on the heels of manufacturing and distribution agreements for the
product in Korea.
"Even though these are only initial moves, we believe that they
will be important in positioning InSite Vision's lead products in the
enormous Asian market and elsewhere."
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 10-Q for the quarter ended March 31, 1999.
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InSite Vision Incorporated
Condensed Consolidated Statements of Operations
For the Three and Six Months Ended June 30, 1999 and 1998
(in thousands, except per share amounts; unaudited)
Three months ended Six months ended
June 30, June 30,
1999 1998 1999 1998
Royalty revenue $ 1 $ 3 $ 8 $ 18
Operating expenses:
Research and
development,net 496 1,710 951 3,253
General and administrative 549 718 1,187 1,289
Total 1,045 2,428 2,138 4,542
Loss from operations (1,044) (2,425) (2,130) (4,524)
Interest and other
income, net 22 83 34 182
Net loss (1,022) (2,342) (2,096) (4,342)
Non-cash preferred
dividends 8 185 20 375
Net loss applicable to
common stockholders $ (1,030) $ (2,527) $ (2,116) $ (4,717)
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Net loss per share
applicable to common
stockholders $ (0.05) $ (0.17) $ (0.11) $ (0.33)
Shares used to calculate
net loss per share
basic and diluted 18,886 14,465 18,574 14,438
Condensed Consolidated Balance Sheets
At June 30, 1999 and December 31, 1998
(in thousands; unaudited)
June 30, December 31,
1999 1998
Assets:
Cash and cash equivalents $ 1,604 $ 1,037
Property and equipment, net 686 859
Prepaid expenses and other assets 123 190
Total assets $ 2,413 $ 2,086
Liabilities and stockholders'
equity (deficit):
Current liabilities $ 1,027 $ 683
Redeemable preferred stock 444 1,511
Stockholders'equity (deficit) 942 (108)
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Total liabilities and
stockholders' equity (deficit) $ 2,413 $ 2,086
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CONTACT:
InSite Vision
Sandra Heine, 510/865-8800
or
Investor Contacts: Core Communications Group, Inc.
SF, Robert Ferri, 415/331-7003
rferri@nextwavestocks.com
or
NY, Joshua Z. Levine, 516/487-8322
jzlevine@nextwavestocks.com |
