Monday June 1, 12:59 pm Eastern Time
Company Press Release
Cypros Pharmaceutical Reports Third Quarter and Nine
Month Results
CARLSBAD, Calif.--(BUSINESS WIRE)--June 1, 1998--Cypros Pharmaceutical Corp.
(AMEX:CYP - news) reported sales for its third quarter and nine months ended April 30, 1998, of
$824,399 and $2,511,860, respectively, compared with $717,658 and $1,672,454 recorded in the
respective prior-year periods.
The gross profit on sales for the third quarter also increased to $621,648 from the $569,504
reported in the prior-year period. For the nine-month period ended, the gross profit on sales
increased to $1,933,391 from the $1,284,438 reported for the prior-year period. The company also
reported a net loss of $1,467,603 (or 9 cents per share) and $4,028,496 (or 27 cents per share) for
the third quarter and nine-month period ended April 30, 1998, respectively, compared with a net
loss of $1,471,014 (or 12 cents per share) and $5,247,711 (or 44 cents per share) for the
prior-year periods.
Commenting on the results, David W. Nassif, the company's chief financial officer, said, ''We have
surpassed last year's total sales with one quarter to go in the year and our gross profit margin remains
above 75 percent. It is important to note that the net cash expenditures on operations for the past
nine months were only $2.8 million. The company's balance sheet remains strong with cash, cash
equivalents and short-term investments of $14.5 million at quarter-end.''
Cypros Pharmaceutical is engaged in the development and marketing of drug products for the
hospital market. The company is pursuing a diversified strategy of marketing approved drugs and
developing small molecule therapeutics that protect cells from ischemic injury, the number one cause
of death in developed countries. The company currently has three products on the market, Glofil,
Inulin and Ethamolin(R), and is preparing to launch two proprietary extended release burn and
wound care products. The company's Cordox(TM) and Ceresine(TM) drugs are in late-stage clinical
development for a variety of ischemic disorders.
This news release contains forward looking statements which involve risks and uncertainties. Such
statements are subject to certain factors which may cause the company's plans to differ. Factors that
may cause such differences include, but are not limited to, the risks discussed in the company's Form
10-K for the fiscal year ended July 31, 1997, and the Risk Factors section of the company's
Registration Statement No. 333-25661.
Cypros Pharmaceutical
Statements of Operations
(Unaudited)
3 Months Ended April 30, 9 Months Ended April 30,
1998 1997 1998 1997
________________________ ________________________
Net sales $ 824,399 $ 717,658 $ 2,511,860 $ 1,672,454
Cost of sales 202,751 148,154 578,469 388,016
________________________ ________________________
Gross profit 621,648 569,504 1,933,391 1,284,438
Operating expenses:
Sales and
marketing 331,022 287,212 1,008,779 706,850
General and
administrative 736,978 599,111 2,229,854 1,920,045
Clinical testing
and regulatory 761,449 441,767 1,770,827 1,342,200
Research and
development 216,977 234,578 667,609 720,668
Depreciation and
amortization 293,568 293,989 904,706 772,029
________________________ ________________________
Total operating
expenses 2,339,994 1,856,657 6,581,775 5,461,792
________________________ ________________________
Loss from
operations (1,718,346) (1,287,153) (4,648,384) (4,177,354)
Research grant
income 46,193 - 118,701 79,490
Interest and other
income, net 234,867 138,486 757,194 523,199
Amortization of
discount and
costs on mandatorily
convertible notes (30,317) (322,347) (256,007) (1,673,046)
________________________ ________________________
Net loss $(1,467,603) $(1,471,014) $(4,028,496) $(5,247,711)
________________________ ________________________
________________________ ________________________
Net loss per
share:
Basic and
diluted $ (0.09) $ (0.12) $ (0.27) $ (0.44)
________________________ ________________________
________________________ ________________________
Weighted average
shares
outstanding:
Basic and
diluted 15,644,114 12,431,095 15,020,087 11,880,209
________________________ ________________________
________________________ ________________________
Contact:
Cypros Pharmaceutical Corp.
David W. Nassif, 760/929-9500 |
