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BioMimetic Therapeutics Reports Second Quarter 2006 Results; Orthopedic Clinical Trial Progress Highlights 2006 Second Quarter To download a printer-friendly version of this report, including financial tables, please click here. Franklin, Tenn. – August 9, 2006 - BioMimetic Therapeutics, Inc. (NASDAQ: BMTI) today reported its financial results for the three months and six months ended June 30, 2006. For the three months ended June 30, 2006, the Company reported a net loss attributable to common stockholders of $3.9 million or $0.42 per share compared to a net loss of $1.4 million, or $0.89 per share for the same period in 2005. In May 2006, the Company completed its initial public offering (IPO), raising $36.8 million in gross proceeds through the sale of 4.6 million shares. The Company ended the second quarter with $58.5 million in cash and cash equivalents. "The first half of 2006 was marked by a series of operational and clinical highlights for BioMimetic which we believe further strengthens our position as an emerging leader in the development and commercialization of products focused on the regeneration of musculoskeletal tissues," commented Dr. Samuel E. Lynch, president and CEO of BioMimetic Therapeutics. "We believe we have both the financial resources in place and a rapidly advancing product pipeline focused on one of the fastest growing segments in the orthopedics market." BioMimetic Recent Highlights
Financial Results For the three months ended June 30, 2006, the Company reported a net loss attributable to common stockholders of $3.9 million, or a net loss per share of $0.42. This loss reflects the ongoing investment the Company is making to advance its pipeline of product candidates for the healing of musculoskeletal injuries, including periodontal, orthopedic, spine and sports injury applications. This compares to a net loss of $1.4 million, or a net loss per share of $0.89, for the same period in 2005. For the six months ended June 30, 2006, the Company's net loss was $7.7 million, or $1.41 per share, compared to a net loss of $1.5 million, or $0.96 per share for the same period in 2005. For the three months ended June 30, 2006, the Company reported revenue of $1.1 million, which includes $0.7 million of product revenue from sales of GEM 21S to Osteohealth, and $0.2 million of sublicense fee income. This compares to revenue of $1.3 million for the three months ended June 30, 2005, all of which was paid by the Company's marketing partner to compensate the Company for the cost of research and development related to FDA approval of the Company's periodontal product. Since the Company did not receive FDA approval to market its product until November 2005, there was no product revenue for the three months ended June 30, 2005. For the six months ended June 30, 2006, revenues were $1.5 million compared to $2.6 million for the six months ended June 30, 2005. The decrease in 2006 revenue can be attributed to the recognition in 2005 of $2.6 million of collaborative research and development revenue, all of which was paid by the Company's marketing partner to compensate the Company for the cost of research and development related to FDA approval of the Company's periodontal product. During the six months ended June 30, 2006, the Company recognized research and development revenue of $0.2 million. Research and development expenses totaled $2.3 million for the three months ended June 30, 2006 compared to $1.9 million for the three months ended June 30, 2005. R&D expenses were primarily related to activities associated with pilot clinical trials for GEM OS1, as well as continuing expenses associated with pursuing GEM 21S marketing approval in the European Union. For the six months ended June 30, 2006, R&D expenses were $5.0 million compared to $2.8 million for the six months ended June 30, 2005. General and administrative expenses were $1.9 million for the three months ended June 30, 2006 compared to $0.8 million for the three months ended June 30, 2005. For the six months ended June 30, 2006, G&A expenses totaled $2.8 million compared to $1.2 million for the six months ended June 30, 2005. The increase in 2006 G&A expenses was primarily attributable to an increase in salaries as the Company continued to steadily grow its workforce, as well as costs related to becoming a public company and stock based compensation expenses. Financial Guidance for 2006 Year End Based on current operating plans, expected timing and cost of clinical trials and other product development programs, the Company expects its total product revenue to be approximately $2.5 million, year end net loss to range from $16.0 to $20.0 million, and its year end cash balance to range from $46.0 to $50.0 million. Conference Call and Webcast BioMimetic hosted a conference call and webcast today, August 9, 2006, at 5:00 p.m. EDT. A live webcast of the conference call is available on the Investor Relations section of this website. The webcast will be archived on the website for at least 30 days. About BioMimetic Therapeutics BioMimetic Therapeutics, Inc. is developing and commercializing bio-active drug-device combination products for the healing of musculoskeletal injuries and disease, including periodontal, orthopedic, spine and sports injury applications. BioMimetic received marketing approval from the FDA for its first product, GEM 21S®, as a grafting material for bone and periodontal regeneration following completion of human clinical trials, which demonstrated the safety and efficacy of its platform technology in this indication. The Company's product and product candidates all combine recombinant protein therapeutics with tissue specific scaffolds to actively stimulate tissue healing and regeneration. Forward-looking Statements This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the current intent and expectations of the management of BioMimetic. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. There are many important factors that could cause actual results to differ materially from those indicated in the forward-looking statements. BioMimetic's actual results and the timing and outcome of events may differ materially from those expressed in or implied by the forward- looking statements because of risks associated with the marketing of BioMimetic's product and product candidates, unproven preclinical and clinical development activities, regulatory oversight, and other risks detailed in the company's filings with the Securities and Exchange Commission, including the section entitled "Risk Factors" in its Prospectus dated May 12, 2006, filed with the Securities and Exchange Commission on May 12, 2006. Except as required by law, BioMimetic undertakes no responsibility for updating the information contained in this press release beyond the published date, whether as a result of new information, future events or otherwise, or for changes made to this document by wire services or Internet services. For further information, visit www.biomimetics.com or contact Kearstin Patterson, manager corporate communications, at 615-236-4419. |