OMRIX Biopharmaceuticals Announces Fourth Quarter and Full-Year 2006 Financial Results.NEW YORK New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- OMRIX Biopharmaceuticals Inc. ("OMRIX" or the "Company") (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 : OMRI), a fully-integrated biopharmaceutical company that develops and markets biosurgical and immunotherapy products, today announced financial results for the fourth quarter and full-year ended December 31, 2006.
* Full-year 2006 total revenues of $63.8 million, a 132% increase from $27.5 million for the full-year 2005. Full-year 2006 product sales of $56.9 million, include $21.2 million from a contract with the UK government for the purchase of Vaccinia vac·cin·i·a
1. See cowpox.
2. An infection induced in humans by inoculation with the vaccinia virus in order to confer resistance to smallpox; it is usually limited to the site of inoculation. Immunoglobulin, or VIG VIG Vaccine Immune Globulin
VIG Video Interface Group (Navy)
VIG Vision Interface Group (Massachusetts Institute of Technology)
VIG Video Gateway
VIG Vpn Internet Gateway
* Full-year 2006 diluted EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. of $1.65, compared to a loss of $2.45 for the full-year 2005
* Fourth Quarter 2006 product sales of $15.7 million, a 143% increased from $6.5 million for the fourth quarter of 2005. Fourth Quarter 2006 product sales of $15.7, include $6.0 million from a contract with the UK government for the purchase of Vaccinia Immunoglobulin, or VIG
* Fourth Quarter 2006 diluted EPS of $0.41, compared to $0.01 for the fourth quarter 2005
* Submitted today, March 8, 2006, an sBLA to market Evicel with a General Hemostasis hemostasis /he·mo·sta·sis/ (he?mo-sta´sis) (he-mos´tah-sis)
1. the arrest of bleeding by the physiological properties of vasoconstriction and coagulation or by surgical means.
2. in surgery indication
* Submitted BLA BLA
Bachelor of Liberal Arts for Thrombin thrombin: see blood clotting. product candidate on November 6, 2006
* Initiated Phase 1 clinical trial phase 1 clinical trial Phase 1 study. See Phase study. for Fibrin fibrin: see blood clotting. Patch in Israel
* Investigational New Drug, or IND, application accepted by FDA FDA
Food and Drug Administration
n.pr See Food and Drug Administration.
n.pr the abbreviation for the Food and Drug Administration. for Adhexil, an anti-adhesion product candidate, allowing the initiation of clinical trials
* Raised approximately $51 million in net proceeds Net Proceeds
The amount received after all costs are deducted from the sale of a piece of property or security.
In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from follow-on offering Follow-On Offering
An offering of additional shares after a company has had an initial public offering.
This sometimes means the company is strapped for cash. So they need to issue more shares to pay bills or finance a new project.
"In 2006, OMRIX began unlocking its true value and started translating it into financial performance," stated Robert Taub, President and Chief Executive Officer of OMRIX Biopharmaceuticals, Inc. "As pleased as we are with last year's achievements, we believe that OMRIX is at the dawn of a sound and steady expansion. In 2007, we shall focus on the continuous advancement of our platforms, products and financial growth."
Fourth Quarter 2006 Financial Results
Total revenues for the fourth quarter of 2006 increased to $18.0 million, a 117% increase from $8.3 million in the fourth quarter of 2005.
Product sales from biosurgery and immunotherapy product lines increased 143% to $15.7 million ($4.3 million from biosurgery products and $11.4 million from immunotherapy products) from $6.5 million ($1.9 million from biosurgery products and $4.5 million from immunotherapy products) in the comparable quarter in 2005, with biosurgery product sales increasing by 124%. These results are mainly attributable to an increase in unit sales unit sales
Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. of Evicel and Quixil, the Company's marketed fibrin sealant A Fibrin sealant (also called fibrin glue) is a type of surgical tissue adhesive that is used during surgery to control bleeding. It is derived from human and animal blood products like fibrin. It is a blood fraction. products, VIG sales in the amount of $6.0 million, and increased unit sales and price per unit of IVIG IVIG Intravenous immunoglobulin, see there .
Gross profit for the fourth quarter was $9.1 million, or 50% of total revenues, compared to $2.5 million, or 31% of total revenues, in the corresponding quarter of 2005. Gross profit on product sales was $8.8 million, or 56%, in the fourth quarter of 2006 compared to $2.0 million, or 31%, in the corresponding quarter of 2005.
Research and development expenses for the fourth quarter of 2006 were $807,000 compared to $1.1 million in the fourth quarter of 2005. Selling, marketing, general and administrative expenses increased to $2.8 million in the fourth quarter of 2006 compared to $797,000 in the fourth quarter of 2005 due to an increase in business development costs, new employee hires as well as an increase in legal, insurance and other expenses related to being a public company.
Net income for the fourth quarter of 2006 was $6.4 million, or $0.41 per share on a diluted basis, versus $93,000, or $0.01 per share on a diluted basis, in the fourth quarter of 2005.
Full-Year 2006 Financial Results
Total revenues for the full-year 2006 increased to $63.8 million, a 132% increase from $27.5 million for the full-year 2005.
Product sales from biosurgery and immunotherapy product lines increased 168% to $56.7 million ($13.4 million from biosurgery products and $43.3 million from immunotherapy products) from $21.2 million ($7.0 million from biosurgery products and $14.2 million from immunotherapy products) in the comparable year in 2005, with biosurgery product sales increasing by 93%. These results are mainly attributable to an increase in unit sales of Crosseal, Evicel and Quixil, the Company's marketed fibrin sealant products, VIG sales in the amount of $21.3 million, and an increase in unit sales and price per unit of IVIG.
Gross profit for the full-year 2006 was $34.2 million, or 54% of total revenues, compared to $6.2 million, or 22% of total revenues, in the comparable year in 2005. Gross profit on product sales was 57% for the full-year 2006 compared to 23% in the corresponding year in 2005.
Research and development expenses for the full-year 2006 were $3.4 million compared to $2.8 million for the full-year 2005. Selling, marketing, general and administrative expenses increased to $9.9 million for the full-year 2006 compared to $5.5 million for the full-year 2005 due to an increase in business development costs, new employee hires as well as an increase in legal, insurance and other expenses related to being a public company, and stock based compensation expenses in connection with our IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. .
Net income for the full-year 2006 was $23.1 million, or $1.65 per share on a diluted basis, versus a loss of $27.7 million, or a loss of $2.45 per share on a diluted basis, for the full-year 2005.
As of December 31, 2006, the Company had 16.6 million shares of outstanding common stock. Cash, cash equivalents and short-term investments totaled $80.8 million and total debt was approximately $1.2 million. Cash, cash equivalents and short-term investments include net proceeds from the Company's follow-on offering. In January 2007, the follow-on underwriters exercised their over-allotment option to purchase 235,109 shares from the Company resulting in additional net proceeds of $7.1 million.
Full Year 2007 Guidance and Upcoming Milestones
For the first time, OMRIX is providing financial guidance for the full-year 2007 of expected product sales ranging from $50.0 million to $55.0 million.
The Company's product sales guidance is based on the following key assumptions:
* Current agreements and customer indications and forecasts
* No product sales from VIG
* A late 2007 product launch of Thrombin
* No material effect from the General Hemostasis approval of Evicel
* No product or business acquisitions
We anticipate the following milestones in the first half of 2007:
* Approval of Evicel's sBLA for Peripheral Vascular, or PV, indication
* Completion of the Phase 1 Clinical Trial for Fibrin Patch in Israel
* Submission of the regulatory filing for HBIG HBIg Hepatitis B immunoglobulin A 3-5 ml preparation of antibodies against HBV, derived from donor pools and administered at the time of presumed exposure to HBV. See HBV. in one additional territory
Conference Call Information
OMRIX will host a conference call to discuss these financial results today, Thursday, March 8, 2007, at 5:00 p.m. Eastern time. To access the live telephonic broadcast, U.S. callers should dial (866) 271-5140; international callers may dial (617) 213-8893 and provide confirmation code 11886371. A live audio webcast of the call will be available via the Investor Relations Investor relations
The process by which the corporation communicates with its investors. section of the Company's website at www.omrix.com. Participants are urged to log on to the website 15 minutes prior to the scheduled start time to download and install any necessary software.
An audio replay of the conference call will be available from 7:00 p.m. ET on Thursday, March 8, 2007 through Thursday, March 15, 2007 by dialing (888) 286-8010 from the U.S. or
(617) 801-6888 when calling internationally, and entering confirmation code 60634473. The audio webcast will be available on the company's website, www.omrix.com, for 30 days. The financial results press release will also be accessible on the company's website at www.omrix.com.
About OMRIX Biopharmaceuticals, Inc.
OMRIX, a fully-integrated biopharmaceutical company, develops and markets innovative biosurgical and antibody-based products, utilizing its proprietary protein purification Protein purification is a series of processes intended to isolate a single type of protein from a complex mixture. Protein purification is vital for the characterisation of the function, structure and interactions of the protein of interest. technology and manufacturing know-how. As part of its business strategy, OMRIX commercializes certain biosurgical products through collaborations with companies whose marketing and sales expertise are a complement to OMRIX's own areas of specialty. OMRIX' novel and easy-to-use Fibrin Patch, a biological-device convergence product candidate, addresses unmet medical needs. For more information, please visit: www.omrix.com.
Safe Harbor Safe Harbor
1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated.
2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement
This press release contains forward-looking statements. Forward-looking statements provide the company's current expectations or forecasts of future events. Forward-looking statements include statements about the Company's expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. The company's actual results could differ materially from those anticipated in forward-looking statements for many reasons, including the factors described in the company's filings with the SEC, including sections entitled "Risk Factors" and "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 company's prospectus as filed with the Securities and Exchange Commission on December 15, 2006 and the company's most recent quarterly reports on Form 10-Q Form 10-Q
See 10-Q. and its current reports on Form 8-K Form 8-K
The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock.
See 8-K. . Unless required by law, the company undertakes no obligation to publicly update or revise any forward-looking statement to reflect circumstances or events after the date of this press release.
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