Record Results Reflect Good Progress on Core Technology PORTLAND, Ore., Nov. 12 /PRNewswire/ -- Bioject Medical Technologies Inc. (Nasdaq: BJCT), the leading manufacturer of jet injection devices for needle-free subcutaneous and intramuscular injections, today announced record financial results for the fiscal 1998 second quarter ended September 30, 1997. Revenues for the fiscal second quarter increased approximately 25 percent to $770,000 from $614,000 in the comparable fiscal 1997 period. Of these total revenues, product sales represented $645,000, an 88 percent increase over $343,000 in the year-ago quarter. The Company reported a loss of $13.O million, or ($0.58) per share in the quarter, principally resulting from the effect of $12 million for its portion of a $15 million up-front licensing payment paid under the recently announced agreement with Elan Corporation, plc (NYSE: ELN) for certain manufacturing and marketing rights to Elan's glucose monitoring technology on an exclusive basis. The loss compares with a loss of $1.1 million, or ($0.07) per share for same year-ago quarter. For the first six months of fiscal 1998, the Company reported a loss of $14.0 million or ($0.66) per share, on revenues of $1.2 million compared with a loss of $2.3 million, or ($0.15) per share on revenues of $1.1 million. On September 30, 1997, Bioject established a joint venture with the Elan Corporation, plc, a leader in drug delivery, for the research, development and commercialization of a continuous glucose level monitoring system for diabetics. Under the agreement, Bioject owns 80.1 percent of the joint venture and Elan owns 19.9 percent. In a separate transaction, Elan made a $3 million equity investment in Bioject. Elan also agreed to make a $500,000 investment in the development of a pre-fill format for Bioject's needle-free technology, to create a unique delivery system for its own pipeline of injectable drugs. The pre-fill format will allow medicines with standardized dosage to be pre-packaged in needle-free applicators. "Our results and the new alliances with Elan underscore the strength of our core needle-free injection technology and the opportunities to broaden the range of applications," said Jim O'Shea, Bioject's chairman and chief executive officer. He continued: "To build on the momentum we've created in our existing business in the public health sector -- evidenced by a nearly two-fold increase in flu season sales from last year -- we are promoting year-round usage of the Biojector in immunization programs, such as Hepatitis B, Tetanus, and Pneumonia. We are also expanding the scope of our efforts to include a larger patient population, with an emphasis on high-volume segments, such as infant immunizations. Similar to the flu vaccination programs we successfully implemented with Wal-Mart and Safeway, we are aiming to increase alliances with non-traditional partners in the private sector, such as retail pharmacy chains, specialized clinics and hospitals, as well as exploring new distribution opportunities for home-use self-injection applications. "By partnering with Elan, we have opened a new chapter of growth and development. The joint venture provides us with a formidable platform to enter the enormous market for glucose testing. By investing in the development of a pre-fill format for our needle-free technology, Elan is endorsing our vision that the pre-fill concept will benefit a wide range of customers, including pharmaceutical companies, and end-users such as patients and caregivers. And finally, a $3 million equity investment is a clear indication that Elan believes in our ability to deliver." O'Shea concluded: "As illustrated by our results this quarter, we remain on track with our plans to increase sales and decrease losses on a quarter by quarter basis. Sales volume continues to increase as manufacturing expenses continue to decrease." Bioject develops, manufactures and markets jet injection systems for needle-free drug delivery. The Company's advanced injection management system, the Biojector 2000, has received the Seal of Acceptance from the Alliance of Children's Hospitals, Inc. and is being marketed to hospitals, public health clinics, and physician offices. The Company is also developing a system for Hoffmann-La Roche to market specifically with their products. The forward-looking statements contained in this release are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Readers of this press release are referred to the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended March 31, 1997 for further discussions of factors which could affect future results. BIOJECT MEDICAL TECHNOLOGIES INC. Consolidated Results (in thousands, except per share data) Three months ended Six months ended September 30, September 30, 1997 1996 1997 1996 RESULTS OF OPERATIONS: Revenue: Net sales of products $ 645 $343 $987 $520 Licensing/technology fees 125 271 250 585 770 614 1,237 1,105 Expenses: Manufacturing 593 537 1,052 1,044 R&D 218 350 472 833 Selling, general and administrative 979 825 1,733 1,572 Acquired R&D expense 15,000 -- 15,000 -- Other (income) (26) (28) (33) (50) 16,764 1,684 18,224 3,399 Loss before minority interest (15,994) (1,070) (16,987) (2,294) Minority interest allocation 2,985 -- 2,985 -- Net loss $(13,009) $(1,070) $(14,002) $(2,294) Net loss per share $ (0.58) $ (0.07) $ (0.66) $ (0.15) Weighted shares outstanding 22,350 15,617 21,076 15,601 BIOJECT MEDICAL TECHNOLOGIES INC. Selected Balance Sheet Data September 30, March 31, 1997 1997 ASSETS Current assets: Cash and marketable securities $1,218 $2,117 Accounts receivable 536 312 Inventories, net 1,359 1,706 Prepaids 64 45 3,177 4,180 Property and equipment, net 2,648 2,597 Other assets, net 330 311 $6,155 $7,088 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued liabilities $1,130 $1,072 Deferred revenue -- 250 1,130 1,322 Due to Elan 12,015 -- Shareholders' equity, net (6,990) 5,766 $6,155 $7,088 SOURCE Bioject Medical Technologies Inc. -0- 11/12/97 /CONTACT: Jim O'Shea, Chairman, President & CEO, or Peggy Miller, Vice President & CFO, 503-639-7221, both of Bioject Medical Technologies; or Bob Gonnelli, Chairman of Bioject-Elan Joint Venture, 201-818-1724/ (BJCT ELN) CO: Bioject Medical Technologies Inc.; Elan Corporation plc ST: Oregon IN: MTC SU: ERN -0- (PRN) Nov/12/97 23:43 EOS (PRN) Nov/12/97 23:43 ** â -0- (
BIOJECT REPORTS SECOND QUARTER RESULTS;
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