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 LYNBROOK, N.Y., Dec. 13 /PRNewswire/ -- BioSpecifics Technologies Corp., (NASDAQ: BSTC) today reported three and nine months revenues and income for the period ended Oct. 31, 1993.
 Edwin H. Wegman, Chairman and President of BioSpecifics, stated, "This October 1993 quarterly report is especially satisfying for us. Our stockholders may remember that shortly after we went public the concern was expressed in a business journal article that the 83% of our 1990 revenue which came from Knoll AG was going to disappear with the end of the contract in December 1992. At the time, we said that there might be some carry over beyond the end of the contract, but, much more important, our other sources of revenue would overcome and replace the loss of the business with Knoll AG.
 "Therefore we are delighted to report our Oct. 31, 1993 third quarter -- in which we had no revenue from Knoll AG -- produced a profit. Originally, we had thought that the first quarters of this year would be break-even at best and more likely show a small loss, until the U.S. business could catch up. This happened faster than expected, While the first two quarters also benefited from some carry over of Knoll AG orders, this is the first quarter in which there was no revenue from that source."
 Third quarter total revenues increased to $1,217,000 from $775,000 in the same period last year. Net income increased to $246,000 compared to $30,000 in 1992. Primary earnings per share rose to $.05 per share from $.01 in last year's third quarter.
 Mr. Wegman pointed out "Our investors should remember this is still a developmental company even though we're rather unusual in that we are profitable. The future of our drugs under development is becoming even more promising."
 For the nine months ended Oct. 31, 1993, revenues increased 7% to $4,144,000 from $3,875,000 in last year's nine month period. Net income for the current nine month period declined 12% to $ 1,081,000 or $.23 per share on 4,765,000 weighted average shares, compared to $1,224,000 or $.26 per share on 4,731,000 shares. The reason for the decline in the current year to date period is a much larger portion of United States earnings and the resultant income tax provision of $296,000 versus last year's provision of $129,000.
 Mr. Wegman continued, stating, "Our research and development efforts have been expanded this year. For the nine months ended Oct. 31, 1993 such expenditures were substantially higher than those for the prior year's nine months ($730,000 versus $450,000). This increase in R&D expenditures translates into an additional $0.06 per share. These efforts should contribute to both near and long term profits. As recently reported, our U.S. licensee has now agreed to cover all costs for the clinical work and the cost of a pilot plant to develop a high potency form of topical collagenase for the treatment of wounds requiring very rapid debridement, especially burn wounds.
 "The upward curve of our other business has more than overtaken the downward curve of the Knoll AG business. Now that the negative influence of the loss of this business has been removed, it seems reasonable to project an upward curve in profits as well. In the most recent quarter, earnings from operations were $341,000. In last year's third quarter, the earnings from operations were $17,000."
 BioSpecifics produces and licenses pharmaceutical products for domestic and international sales. The Company is also engaged in various stages of research, development, clinical testing and marketing of additional pharmaceutical products. The Company's current principal product is its FDA approved enzyme Collagenase ABC, used in topical applications for the treatment of dermal ulcers and severe burns.
 (Unaudited) (Unaudited)
 Period ended Three Months Nine Months
 Oct. 31, 1993 1992 1993 1992
 Revenues $1,217,000 $775,000 $4,144,000 $3,875,000
 Earnings from opers. 341,000 17,000 1,200,000 1,241,000
 Provision for inc. taxes 131,700 11,000 296,000 129,000
 Income before
 extraordinary credit 246,000 27,000 985,000 1,161,000
 Extraordinary credit
 - tax loss carry forward --- 3,000 96,000 63,000
 Net income $246,000 $30,000 $1,081,000 $1,224,000
 Earnings Per Common Share:
 Income before
 extraordinary credit $0.05 $0.01 $0.21 $0.25
 Extraordinary credit
 - tax loss carry forward 0.00 0.00 0.02 0.01
 Net income $0.05 $0.01 $0.23 $0.26
 Fully diluted:
 Income before
 extraordinary credit $0.05 $0.01 $0.20 $0.23
 Extraordinary credit
 - tax loss carry forward 0.00 0.00 0.02 0.01
 Net Income $0.05 $0.01 $0.22 $0.24
 Weighted average number
 of shares used in computing
 earnings per share:
 Primary 4,817,389 4,710,858 4,765,733 4,731,038
 Fully diluted 5,011,122 5,010,858 4,997,661 5,039,301
 -0- 12/13/93
 /CONTACT: Edwin H. Wegman of BioSpecifics, 516-593-7000, or Sam Witchel of Scharff, Witchel & Co., 212-983-1060/

CO: BioSpecifics Technologies Corp. ST: New York IN: MTC SU: ERN

SP-MP -- NY041 -- 3100 12/13/93 10:39 EST
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Publication:PR Newswire
Date:Dec 13, 1993

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