ALAMEDA, Calif.--(BW HealthWire)--Jan. 30, 1998--InSite Vision
Incorporated (NASDAQ:INSV) today announced financial results for the
three months and year ended December 31, 1997.
For the quarter ended December 31, 1997, InSite recorded
revenues of $10,000 and a net loss applicable to common shareholders
of $2.6 million ($0.28 per common share), including $253,000 in
non-cash preferred dividends deemed distributed during the quarter
upon conversion of the Company's preferred stock into common shares.
These results compared with revenues of $10,000 and a net loss of
$2.0 million ($0.15 per share) for the quarter ended December 31,
1996.
For the twelve months ended December 31, 1997, InSite had
revenues of $50,000 and a net loss of $11.1 million ($0.85 per
share), compared with revenues of $544,000 and a net loss of $8.8
million ($0.72 per share) in 1996. The increase in 1997 was
primarily due to increased expenditures related to ISV-208, ISV-900
and the acquisition of the retinal drug delivery device. The 1996
loss includes a one-time, non-cash charge of $1.4 million related to
a vacated facility.
At December 31, 1997 InSite had cash and cash equivalents of $8.7
million, compared with $10.5 million at December 31, 1996. The 1997
cash balance reflects the September 1997 sale of $7.0 million in
redeemable preferred stock to a group of institutional investors and
the sale of $1.0 million of common stock to Bausch & Lomb
Incorporated in August 1997.
"The past year has been significant for InSite," said Kumar
Chandrasekaran, Ph.D., InSite's Chairman and Chief Executive
Officer. "The technology of our genetically-based tools for the
diagnosis and prognosis of open-angle and primary congenital
glaucoma matured, and we are discussing commercialization of the
products with several potential partners.
"We also added a new technology platform," Dr. Chandrasekaran
said, "which is designed to permit ophthalmologists to deliver drugs
directly to the back of the eye. We hope this will permit effective
treatment for millions of people afflicted with macular
degeneration, diabetic retinopathy and other diseases of the
posterior chamber."
InSite is an ophthalmic product development company with programs
based on three platforms: genetic research for diagnosis and
prognosis of glaucoma; the development of new and improved ophthalmic
drugs using the proprietary DuraSite(R) eyedrop-based delivery
system; and the non-surgical delivery of drugs to the back of the
eye.
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
involve a number of risks and uncertainties including 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 September 30, 1997.
*T
InSite Vision Incorporated
Condensed Consolidated Statements of Operations
For the Three Months and Year Ended December 31, 1997 and 1996
(in thousands, except per share amounts; unaudited)
Three months ended Year ended
Dec. 31, Dec. 31,
1997 1996 1997 1996
Revenue:
License fee $ - $ - $ - $ 500
Royalty revenue 10 10 50 44
-------- -------- -------- --------
Total 10 10 50 544
Operating expenses:
Research and development 1,830 1,398 7,224 5,458
Loss on vacated facilities - - - 1,412
General and administrative 622 717 3,034 2,902
-------- -------- -------- --------
Total 2,452 2,115 10,258 9,772
Loss from operations (2,442) (2,105) (10,208) (9,228)
Interest and other income, net 142 142 390 466
-------- -------- -------- --------
Net loss (2,300) (1,963) ( 9,818) (8,762)
Non-cash preferred dividends 253 - 1,326 -
-------- -------- -------- --------
Net loss applicable to common
shareholders $ (2,553) $(1,963) $(11,144) $(8,762)
Net loss per share applicable
to common shareholders $ (0.28) $ (0.15) $ (0.85) $ (0.72)
Shares used to calculate net
loss per share 13,098 12,922 13,053 12,131
Condensed Consolidated Balance Sheets
At December 31, 1997 and 1996
(in thousands; unaudited)
Dec. 31
1997 1996
Assets:
Cash and cash equivalents $ 8,660 $ 10,518
Property and equipment, net 1,583 2,107
Prepaid expenses and other assets 303 195
-------- --------
Total assets $ 10,546 $ 12,820
Liabilities and stockholders' equity:
Current liabilities $ 982 $ 1,201
Redeemable preferred stock 7,533 -
Stockholders' equity 2,031 11,619
-------- --------
Total liabilities and stockholders' equity $ 10,546 $ 12,820
*T
CONTACT: InSite Vision
Michael D. Baer, 510/865-8800
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: MEDICINE BIOTECHNOLOGY PHARMACEUTICAL EARNINGS
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