Bioject Reports Third-Quarter 2003 Results Revenues Increase 24%
Over 2002 BEDMINSTER, N.J., Oct 27 /PRNewswire-FirstCall/ --
Bioject Medical Technologies Inc. , a leading developer of
needle-free drug delivery systems, today announced financial
results for the third-quarter of 2003, which ended September 30,
2003. For the third quarter, Bioject reported revenues of $1.4
million, a 24% increase in revenues over the previous year's
third-quarter revenues of $1.2 million. The increased revenues were
primarily due to the sale of Vial Adapter products to Amgen which,
as expected, commenced shipments in August. Third-quarter product
sales were $1.3 million compared to $872,000 in the prior year. The
Company reported a third-quarter operating loss of $2.5 million and
net loss allocable to common shareholders of $2.4 million, compared
to an operating loss of $2.1 million and a net loss allocable to
common shareholders of $1.9 million in the comparable year-ago
quarter. The higher net loss reflects an increase of $0.4 million
in manufacturing expense primarily due to increased product sales
volume and expenses related to the start-up and validation of the
Vial Adapter line. Research and development expenses increased
$158,000 in the quarter due largely to costs associated with the
shipments of the Company's Iject(TM) product to potential customers
and clinical studies for the Iject(TM) product. Selling, general
and administrative expenses of $1.4 million were relatively flat in
the quarter compared to the prior year quarter. Non-operating other
income decreased by $94,000 from the third quarter of 2002 due to
lower interest rate returns on cash investments as well as lower
cash and investment balances. Basic and diluted net loss per common
share for the quarter were $0.22 per share on 10.7 million weighted
average shares outstanding, compared to a net loss of $0.18 per
share on 10.6 million weighted average shares outstanding for the
same period last year. For the nine months ended September 30,
2003, Bioject reported a net loss allocable to common shareholders
of $7.0 million on revenues of $4.0 million. This compares to a net
loss allocable to common shareholders of $5.5 million on revenues
of $4.7 million for the same period last year. Basic and diluted
net loss per share for the nine months ended September 30, 2003
were $0.65 per share on 10.7 million weighted average shares
outstanding compared to a net loss of $0.52 per share on 10.6
million weighted average shares outstanding for the comparable
period last year. "During the quarter, we started shipping vial
adapter products to Amgen under our previously announced March 11,
2003 agreement. In addition, in September, we began recognizing
some revenues from our NIH collaboration for the clinical trials
associated with their internally developed HIV vaccine. We've
continued to see positive results from our Merial collaboration
which will provide Bioject with milestone payments and recurring
product sales as we look forward to the future," stated Jim O'Shea,
Chairman, President and CEO. "On the business development side, we
are making significant strides with potential partners, although we
are disappointed with continuing unanticipated delays in the timing
of the closing of these transactions. These delays are primarily
the result of increased testing and analysis of potential partners
before entering into formal agreements. To date, our products have
performed well and we are encouraged with our continuing progress.
We've improved our business development process and are generating
more interest in our products than ever before and remain confident
we will be successful in our efforts," concluded O'Shea. The
Company believes it will be successful in its business development
efforts, however, due to the difficulties in determining the timing
of closing of new business development transactions, the Company
believes it is prudent to provide financial guidance on existing
partners only, without the financial impact of potential new
business development transactions. Accordingly, the Company
anticipates 2003 revenues of $6.0 million to $7.0 million from
existing collaborations and a loss per share of $0.78 to $0.85. For
2004, the Company anticipates revenues from existing partners of
$8.5 million to $10.0 million and a loss per share of $0.60 to
$0.70. The Company is committed to developing a successful,
profitable business model and believes the execution of its
business development strategy will have a positive impact on the
above figures. The Company will conduct a conference call to
discuss third-quarter results on Tuesday, October 28, 2003 at 10:00
a.m. Eastern Standard Time. The conference call will be webcast and
can be accessed through the Bioject website at
http://www.bioject.com/. Bioject Medical Technologies Inc., based
in Bedminster, New Jersey, and Portland, Oregon, is an innovative
developer and manufacturer of needle-free drug delivery systems.
Needle-free injection works by forcing medication at high speed
through a tiny orifice held against the skin. This creates a fine
stream of high-pressure fluid penetrating the skin and depositing
medication in the tissue beneath. The Company is focused on
developing mutually beneficial agreements with leading
pharmaceutical, biotechnology, and veterinary companies. This press
release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including
statements regarding Bioject's expectations with respect to future
revenues and earnings and additional agreements with strategic
partners. Such forward-looking statements involve known and unknown
risks, uncertainties and other factors that 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. Such risks, uncertainties and other
factors include, without limitation, the risk that the Company's
products, including the cool.click(TM) SeroJet(TM) and Vial
Adapter, will not be accepted by the market, the risk that the
Company will be unable to successfully develop and negotiate new
strategic relationships or maintain existing relationships, the
risk that Bioject's current or new strategic relationships will not
develop into long- term revenue producing relationships, the fact
that Bioject's business has never been profitable and may never be
profitable, uncertainties related to Bioject's dependence on the
continued performance of strategic partners and technology,
uncertainties related to the time required for the Company to
complete research and development, obtain necessary clinical data
and government clearances, the risk that the Company may be unable
to produce our products at a unit cost necessary for the products
to be competitive in the market and the risk that the Company may
be unable to comply with the extensive government regulations
applicable to Bioject's business. Readers of this press release are
referred to the Company's filings with the Securities and Exchange
Commission, including the Company's reports on Form 10-K and Forms
10-Q for further discussions of factors that could affect the
Company's business and its future results. Forward-looking
statements are based on the estimates and opinions of management on
the date the statements are made. The Company assumes no obligation
to update forward-looking statements if conditions or management's
estimates or opinions should change. For more information on
Bioject, visit http://www.bioject.com/. Bioject Medical
Technologies Inc. Condensed Consolidated Statements of Operations
(Unaudited) (In thousands, except share and per share data) Three
months ended Nine months ended September 30, September 30, 2003
2002 2003 2002 Revenue Net sales of products $1,336 $872 $3,275
$2,674 Licensing/technology fees 106 290 687 2,042 1,442 1,162
3,962 4,716 Expenses Manufacturing 1,378 975 3,498 3,805 R&D
1,157 999 3,587 2,816 Selling, general and administrative 1,371
1,275 4,103 4,054 Total operating expenses 3,906 3,249 11,188
10,675 Operating loss (2,464) (2,087) (7,226) (5,959) Other income
71 165 227 475 Net loss allocable to common shareholders $(2,393)
$(1,922) $(6,999) $(5,484) Basic and diluted net loss per common
share $(0.22) $(0.18) $(0.65) $(0.52) Shares used in per share
calculations 10,741,168 10,598,826 10,685,807 10,583,157 Bioject
Medical Technologies Inc. Condensed Consolidated Balance Sheets (In
thousands) (unaudited) September 30, December 31, 2003 2002 ASSETS
Current assets: Cash and cash equivalents $8,498 $8,896 Marketable
securities 2,590 8,404 Accounts receivable 1,027 562 Receivable
from related party, current portion 74 74 Inventories, net 1,463
1,303 Other current assets 519 163 Total current assets 14,171
19,402 Long-term marketable securities 3,102 5,077 Receivable from
related party 18 74 Property and equipment, net 4,198 2,898 Other
assets, net 949 783 Total assets $22,438 $28,234 LIABILITIES AND
SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and
accrued liabilities $1,644 $1,022 Deferred Revenue 67 67 Total
current liabilities 1,711 1,089 Long-term liabilities: Long-term
lease payable 89 26 Deferred revenue 503 252 Shareholders' equity:
Preferred stock 19,549 19,549 Common stock 88,623 88,356
Accumulated deficit (88,037) (81,038) Total shareholders' equity
20,135 26,867 Total liabilities and shareholders' equity $22,438
$28,234 DATASOURCE: Bioject Medical Technologies Inc CONTACT: John
Gandolfo, Chief Financial Officer, or Cecelia C. Heer, Investor
Relations Manager, +1-908-470-2800, ext. 5103, both of Bioject
Medical Technologies Inc. Web site: http://www.bioject.com/
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