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PROCYTE REPORTS FOURTH QUARTER AND YEAR END RESULTS

 Company Reduces Net Loss Per Share for 1995


KIRKLAND, Wash., March 8 /PRNewswire/ -- ProCyte Corporation (Nasdaq- NNM: PRCY) today reported a net loss of $12,394,935 or $0.95 per share, for the year ended December 31, 1995, which includes a fourth quarter charge to earnings of $4,750,000, or $0.37 per share, for tentative settlement of the shareholder lawsuit filed against the company and certain of its officers and directors in October 1994.

Without the charge for the tentative settlement, the year-end losses were $7,644,935, or $0.58 per share, compared to $12,153,718, or $0.97 per share in 1994.

Losses for the fourth quarter, excluding the tentative settlement, were $3,390,590, or $0.25 per share, compared to $2,941,183, or $0.23 per share a year ago.

"ProCyte took definitive action through 1995 to control expenses while furthering its business plans," said Joseph Ashley, ProCyte's president and chief executive officer.

"ProCyte was successful in meeting three primary goals in 1995: (1) we moved several of the company's proprietary compounds forward in clinical testing; (2) we acquired rights to an exciting new wound care technology and related products that have been cleared for marketing by the FDA; (3) and we have begun to build our reputation for providing quality and service in contract manufacturing," said Ashley.

ProCyte ended the year with cash, cash equivalents and short-term investments of approximately $36.1 million.

Revenue for the fourth quarter and year-ended 1995 totaled $151,837 and $1,688,152 respectively from fees earned under the company's collaborative agreements. This compares to revenue of $817,816 and $2,773,154 for the like periods in 1994.

Interest income for the fourth quarter and year-ended 1995 was $733,375 and $2,631,904, respectively, compared to $429,183 and $1,699,829 for the same three and twelve-month periods in 1994. The increase in fourth quarter 1995 compared to the year-ago period was primarily due to higher interest rates.

Research and development expenses decreased approximately 46 percent to $7,235,298 in 1995 from $13,298,942 in 1994, primarily as a result of the earlier stage of drug candidates in clinical trials. During the year, ProCyte completed a Phase I study of its investigational hair growth compound, Tricomin(R) solution, and commenced Phase I/II study of its investigational Iamin-IB(R) solution for treatment of mild to moderate ulcerative colitis. The company also initiated a Phase II Tricomin(R) solution study in the fourth quarter.

General and administrative expenses increased as a percentage of total expenses (excluding tentative litigation settlement) to 40 percent in 1995 from 20 percent in 1994, primarily as a result of the company's defense of the October 1994 shareholder suit and legal fees incurred as a result of the company's acquisition efforts in 1995. For the fiscal years ended December 31, general and administrative expenses were $4,729,693 in 1995 and $3,327,759 in 1994.

The Company's results of operations may vary significantly from quarter to quarter and will depend among other factors, on the progress of the company's research and development efforts, the establishment of continuation of collaborative agreements, outcomes of clinical trials, product launch and market acceptance, and new or repeat manufacturing contracts.

ProCyte Corporation is a development-stage pharmaceutical company seeking to discover, develop and commercialize technology for tissue repair, hair loss, wound healing and other healthcare applications. In February 1996, the company received FDA clearance to market its wound care product, Iamin(R) gel, for chronic and acute wounds.
 PROCYTE CORPORATION
 SELECTED FINANCIALS
 Three months ended December 31,
 1995 1994


Statements of Operations Data:

REVENUES

Research & development revenues
 under collaborative agreements $ 151,837 $ 817,816
 Interest income 733,375 429,183
 Total revenues 885,212 1,246,999


COST AND EXPENSES
 Research & development 2,415,947 3,063,960
 Litigation Settlement 4,750,000
 General & administrative 1,859,855 1,124,222
 Total costs and expenses 9,025,802 4,188,182
 NET LOSS $(8,140,590) $(2,941,183)
 Net Loss per common share $ (0.62) $ (0.23)


Weighted average number of common

shares used in computing net loss
 per common share 13,121,645 12,920,145
 Twelve months ended December 31,
 1995 1994


Statements of Operations Data:

REVENUES

Research & development revenues
 under collaborative agreements $ 1,688,152 $ 2,773,154
 Interest income 2,631,904 1,699,829
 Total revenues 4,320,056 4,472,983


COSTS AND EXPENSES
 Research & development 7,235,298 13,298,942
 Litigation Settlement 4,750,000
 General & administrative 4,729,693 3,327,759
 Total costs and expenses 16,714,991 16,626,701
 NET LOSS $(12,394,935) $(12,153,718)
 Net Loss per common share $ (0.95) $ (0.97)


Weighted average number of common

shares used in computing net loss
 per common share 13,100,818 12,593,131
 Balance Sheet Data: December 31,
 1995 1994


Cash, cash equivalents and
 short-term investments $ 36,077,520 $ 43,014,137
 Insurance Claim Receivable 3,000,000
 Other current assets 477,116 460,223
 Property and equipment, net 5,181,863 5,963,308
 Patents, net 197,660 416,019
 Other assets 159,399 159,399
 Total assets $ 45,093,558 $ 50,013,086
 Current liabilities $ 1,366,150 $ 1,727,764


Payable to stockholders for
 settlement 7,750,000
 Long-term liabilities 92,854 135,547
 Common stock 131,311 129,203
 Additional paid-in-capital 82,350,862 82,292,913
 Accumulated deficit (46,513,220) (34,118,285)
 Unearned compensation (84,399) (154,056)


Total liabilities and
 stockholders' equity $ 45,093,558 $ 50,013,086
 -0- 3/8/96


/CONTACT: Karen L. Hedine, Vice President of ProCyte Corporation, 206-820-4548, or Tom Redington, Investor Relations, 203-222-7399/

(PRCY)

CO: ProCyte Corporation ST: Washington IN: MTC SU: ERN

JL-JF -- SEF004 -- 1477 03/08/96 08:30 EST
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Date:Mar 8, 1996
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