Collagen Corporation Reports Third Fiscal Quarter Results; Company Reports Significant Progress With Trilucent Breast Implant; Receives FDA Clearance For Large Scale Trilucent Clinical Studies.PALO ALTO Palo Alto, city, California Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. , Calif.--(BUSINESS WIRE)--April 22, 1996--Collagen Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CGEN CGEN Convective Sigmet Generation ) today reported its financial results for the third quarter of fiscal 1996, ended March 31, 1996. The company also reported on the achievement of a significant clinical milestone in the development of the Trilucent breast implant breast implant, saline- or silicone-filled prosthesis used after mastectomy as a part of the breast reconstruction process or used cosmetically to augment small breasts. and announced a corporate reorganization designed to maximize both the effectiveness of Collagen's organization as well as stockholder value. Fiscal third quarter total corporate revenues were $16.6 million, down 2% compared to the prior-year third quarter. Revenues for the third quarter included a 16 percent increase in worldwide product sales from Zyderm and Zyplast collagen collagen (kŏl`əjən), any of a group of proteins found in skin, ligaments, tendons, bone and cartilage, and other connective tissue. Cells called fibroblasts form the various fibers in connective tissue in the body. implant products for soft tissue augmentation AUGMENTATION, old English law. The name of a court erected by Henry VIII., which was invested with the power of determining suits and controversies relating to monasteries and abbey lands. and the Trilucent breast implant ("Trilucent implant"), a newly introduced triglyceride-filled mammary mammary /mam·ma·ry/ (mam´ah-re) pertaining to the mammary gland, or breast. mam·ma·ry adj. Of or relating to a breast or mamma. mammary pertaining to the mammary gland. implant. Revenues from the Company's international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. rose 30% for the quarter, reflecting the launch of the Trilucent Implant and the continued robust growth of Collagen's injectable in·ject·a·ble adj. Capable of being injected. Used of a drug. n. A drug or medicine that can be injected. collagen products outside the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The Company reported net income of $19.4 million, or $2.14 per share, for the fiscal quarter ended March 31, 1996, compared to $2.5 million, or $0.26 per share from the prior-year period. The primary reason for the increase in net income was a significant increase in net pre-tax investment gains from the sale of a portion of the Company's holdings of Target Therapeutics therapeutics Treatment and care to combat disease or alleviate pain or injury. Its tools include drugs, surgery, radiation therapy, mechanical devices, diet, and psychiatry. , Inc. common stock. Selling, general and administrative expenses increased primarily from the costs of launching the Trilucent implant internationally and from the addition of administrative and goodwill amortization expenses from the acquisition of LipoMatrix, Incorporated, manufacturer of the Trilucent implant. Worldwide revenues from Zyderm and Zyplast collagen implant products and the Trilucent breast implant increased 16 percent to $14.2 million during the third quarter of fiscal 1996, compared with $12.3 million in the prior-year period. Revenues for the third quarter were favorably impacted by approximately $100,000 of favorable foreign exchange rate movements compared with the prior-year period. Demand for the Company's injectable collagen products continues to be strong and sales and market acceptance of the Trilucent implant in Europe have exceeded expectations, especially in the United Kingdom. Trilucent Breast Implant Update During the quarter, the Trilucent implant was launched in The Netherlands and Belgium. The Trilucent implant is now available to physicians and patients in the U.K., Germany, Spain, Belgium, Austria, The Netherlands and Switzerland. Over the next few months, as manufacturing capacity expands for the Trilucent implant, Collagen anticipates the continued roll-out of this product in the European Economic Community European Economic Community (EEC), organization established (1958) by a treaty signed in 1957 by Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany (now Germany); it was known informally as the Common Market. . Collagen believes that the Trilucent implant offers a significant advantage in the breast implant marketplace as a radiolucent radiolucent /ra·dio·lu·cent/ (ra?de-o-loo´sent) permitting the passage of radiant energy, such as x-rays, with little attenuation, the representative areas appearing dark on the exposed film. product designed with a favorable safety profile compared to existing silicone silicone, polymer in which atoms of silicon and oxygen alternate in a chain; various organic radicals, such as the methyl group, CH3, are bound to the silicon atoms. gel and saline-filled implants. Collagen recently received U.S. Food and Drug Administration approval to commence a 400-patient trial at 30 centers nationwide in an expanded study of the efficacy of the Trilucent implant in breast augmentation and reconstruction. Collagen expects the trial to commence within the next two quarters and expects to submit an application for approval in the U.S. in 2 - 4 years. Contigen Bard bard, in Wales, term originally used to refer to the order of minstrel-poets who composed and recited the poems that celebrated the feats of Celtic chieftains and warriors. collagen implant ("Contigen implant") revenues were $1.6 million for the fiscal 1996 third quarter, consisting mostly of revenue from sales to physician customers by C.R. Bard ("Bard"), Collagen's Contigen implant marketing partner. As previously disclosed, Collagen expects to ship little, if any, product to Bard during fiscal 1996 due to excess inventory at Bard. In the prior-year third quarter, revenues from Contigen implant totaled $4.1 million, comprised of $3.2 million in shipments to Bard and $924,000 in revenue from sales by Bard to physician customers. Combined third quarter revenues from sales of Collagraft bone graft bone graft Orthopedic surgery Sterilized bony tissue, often of cadaveric origin, used to fill and/or 'sculpt' bone defects Indications Spinal fusion, revision of failed articular prostheses, filling traumatic or malignant bone defects, or periodontal defects. matrix and Collagraft bone graft strip to Collagen's marketing partner Zimmer, Inc. were $664,000, compared with revenues of approximately $579,000 in the prior-year third quarter. During the third quarter of fiscal 1996, Collagen Corporation sold 740,000 shares of Target Therapeutics, Inc. ("Target") common stock as part of an ongoing program to redeploy re·de·ploy tr.v. re·de·ployed, re·de·ploy·ing, re·de·ploys 1. To move (military forces) from one combat zone to another. 2. this asset for investments in current or new affiliates, corporate development programs, share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. and other purposes. These sales contributed to a net pre-tax gain on investments for the quarter of $36.3 million. Collagen intends to continue selling Target stock as a source, in part, of funds for its ongoing technology, in-licensing, and partnering investments in Collagen Technologies, a new division discussed below. As of March 31, 1996, Collagen Corporation owned approximately 1.9 million shares of Target stock, or about 13 percent of the outstanding shares, recently worth over $100 million, or approximately $6 per Collagen Corporation Common share after taxes. The Company did not repurchase any shares of its own common stock during the fiscal third quarter. Since the inception of Collagen's stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program in February 1993, the Company has repurchased a total of 1,675,000 shares of common stock, or approximately 16 percent of the total number of shares outstanding at the commencement of the program. Corporate Reorganization Detailed During the quarter, Collagen Corporation was reorganized re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. into two operating divisions. This strategic decision allows the Company's organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. to better reflect the opportunities and challenges in the years ahead. At the same time, this reorganization should highlight for investors the value inherent in the company. The first division is Collagen Appearance Technologies, a profitable, growing business that capitalizes on the Company's long-time medical franchises in plastic surgery, dermatology dermatology (dûrmətŏl`əjē), branch of medicine concerned with diagnosis and treatment of diseases and disorders of the skin. and cosmetic medicine and which is focused on the development, manufacture and marketing of appearance-related medical technology products. The second, Collagen Technologies, is focused on the development (by the Company and its affiliates) of products and businesses utilizing innovative collagen-based medical technologies. The Appearance Technologies division initially will develop, manufacture and market Collagen's injectable collagen products: Zyderm and Zyplast collagen implants for soft tissue augmentation; the Trilucent implant for breast reconstruction Breast Reconstruction Definition Breast reconstruction is a series of surgical procedures performed to recreate a breast. Reconstructions are commonly done after one or both breasts are removed as a treatment for breast cancer. and augmentation. As well, the division will be responsible for supplying our marketing partner, C.R. Bard, Inc., with Contigen implants for the treatment of stress urinary incontinence stress urinary incontinence n. See stress incontinence. . Collagen Appearance Technologies encompasses approximately 80 percent of Collagen's employees, and includes Collagen's manufacturing, sales and marketing, general administration, and product development functions. Gary Petersmeyer, President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of the Company, will serve as General Manager of this division. "Globally, an aging population is showing increasing interest in improved appearance, as well as a strong demand for a better breast implant option," said Mr. Petersmeyer. He added, "These trends represent a tremendous opportunity for the Appearance Technologies division. This new division will focus on serving the needs of these patient groups and their attending physicians with high quality, proprietary products." The other division, Collagen Technologies, will focus on extending the medical and surgical uses of collagen and related materials and enhancing Collagen's core biomaterials technology through research and development efforts. In this regard, Collagen recently completed a $4.5 million equity investment in Pharming pharming (fär`mĭng), the use of genetically altered livestock, such as cows, goats, pigs, and chickens, to produce medically useful products. , N.V., a biotechnology company with whom it is collaborating on the production of recombinant human collagen in transgenic animals Transgenic animal Animals that have had genes from other species inserted into their genetic code. Mentioned in: Glycogen Storage Diseases . The Company intends to complete, in the near future, an investment in Cohesion Corporation, a tissue adhesive company, and bring its ownership level to about 80%. In addition, asset management of Collagen's equity positions in its seven affiliate companies, including Collagen's 13 percent interest in Target Therapeutics, Inc., will be performed by this division. Howard Palefsky, Chairman and Chief Executive Officer of the Company, will serve as General Manager of Collagen Technologies. This division's current research and development programs, encompassing the efforts of both Collagen and its affiliates, include ongoing programs in the areas of orthopedics, vascular medicine, general surgery and ophthalmology ophthalmology (ŏf'thălmŏl`əjē), branch of medicine specializing in the anatomy, function and diseases of the eye. Ophthalmologists specialize in the medical and surgical treatment of eye disorders, vision measurements for , as well as the development of products based on a polymer/collagen conjugate conjugate /con·ju·gate/ (kon´jdbobr-gat) 1. paired, or equally coupled; working in unison. 2. a conjugate diameter of the pelvic inlet; used alone usually to denote the true conjugate diameter; see and the development and production of recombinant human collagen. "Collagen Corporation has a stellar track record as an innovator of biomaterials technology," said Mr. Palefsky. He continued, "This reorganization gives Collagen Technologies an opportunity to build on those achievements in a systematic way, and should show investors that there is a thriving R&D program underway at Collagen Corporation. We look forward to reporting in the near future on the pre-clinical and clinical progress being made in our internal programs and by our affiliates." Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , the accuracy of which is necessarily subject to risks and uncertainties. Collagen's actual results may differ significantly from the results discussed in the forward-looking statements. Actual results may be affected by, among other things, uncertainties regarding timing of regulatory approvals, new product introductions and market acceptance of new products, product development cycles, potential unfavorable publicity regarding Collagen or its products, possible reversals of sales trends and introduction of competitive products, as well as those factors set forth under the heading "Factors That May Affect Future Results of Operations" in Collagen's Form 10-Q Form 10-Q See 10-Q. dated February 14, 1996 (the "Form 10-Q"), and those identified elsewhere under the heading "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations" in the Form 10-Q. Collagen Corporation is a technology-based company that develops, manufactures and markets biomedical bi·o·med·i·cal adj. 1. Of or relating to biomedicine. 2. Of, relating to, or involving biological, medical, and physical sciences. devices for the treatment of defective, diseased dis·eased adj. 1. Affected with disease. 2. Unsound or disordered. , traumatized or aging human tissues. -0-
COLLAGEN CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
March 31, March 31,
------------------ ----------------
1996 1995 1996 1995
------- ------- ------- -------
Revenues:
Product sales $16,587 $17,032 $50,410 $51,334
Other -- -- 2,000 1,000
------- ------- ------- -------
16,587 17,032 52,410 52,334
------- ------- ------- -------
Costs and expenses:
Cost of sales 5,207 4,451 14,278 13,667
Selling, general &
administrative 10,051 7,443 28,820 22,774
Research & development 3,424 2,233 8,928 7,271
Purchased in-process research
and development -- -- 14,800 --
------- ------- ------ ------
18,682 14,127 66,826 43,712
------- ------- ------ ------
Income (loss) from operations (2,095) 2,905 (14,416) 8,622
Other income (expense):
Gain on investments, net
principally Target
Therapeutics Inc. 36,285 2,569 67,672 3,344
Equity in earnings (losses)
of affiliates (690) (427) (783) (796)
Interest income 291 138 742 353
Interest expense (35) (28) (87) (83)
-------- -------- -------- --------
Income before income taxes 33,756 5,157 53,128 11,440
Provision for income taxes 14,356 2,649 32,809 5,380
------- -------- ------- -------
Net income $19,400 $2,508 $20,319 $ 6,060
======= ======== ======= =======
Net income per share $ 2.14 $ .26 $ 2.24 $ .64
======= ======== ======= =======
Shares used in calculating per
share information 9,084 9,556 9,086 9,530
======= ======== ======= =======
COLLAGEN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
(In thousands)
March 31, June 30,
1996 1995
---------------- ---------------
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $ 31,711 $ 9,384
Accounts receivable, net 10,265 13,402
Inventories 8,304 5,056
Other current assets 7,192 5,568
------------ -------------
Total current assets 57,472 33,410
Property and equipment, net 15,849 16,506
Intangible assets 2,658 2,727
Purchased intangibles and goodwill 7,971 --
Investments & other assets,
principally Target
Therapeutics Inc. 20,248 (a) 24,263
------------ -------------
$104,198 $76,906
============ =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,005 $ 2,250
Accrued liabilities 9,706 10,862
Note payable 5,000 --
Income taxes payable 9,950 5,902
------------ ------------
Total current liabilities 27,661 19,014
Long-term liabilities
Deferred income taxes 8,477 8,478
Other long-term liabilities 2,814 1,494
------------ ------------
Total long-term liabilities 11,291 9,972
Stockholders' equity:
Common stock 64,687 63,961
Retained earnings 36,303 16,669
Treasury stock (35,744) (32,710)
-------------- --------------
Total stockholders' equity 65,246 47,920
-------------- --------------
$104,198 $76,906
============== ==============
(a) Includes investment in Target Therapeutics Inc. at a cost of $9,064,000 and a market value at 3/31/96 of $118,727,273. CONTACT: Collagen Corporation David Foster This article or section resembles a .Please help [ improve this article] by removing excessive trivia, irrelevant praise and criticism, lists and collections of links that are of . , 415/856-0200 or Edelman Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most Jon Greer, 415/433-5381 |
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