LYNBROOK, N.Y., Aug. 11 /PRNewswire-FirstCall/ -- BioSpecifics Technologies Corp. (OTC Bulletin Board: BSTC.OB), a biopharmaceutical company developing first in class collagenase-based products, today announced its financial results for the second quarter ended June 30, 2008.
The Company reported a net loss of $801,337 for the quarter ended June 30, 2008, or 14 cents per diluted common share, compared to a net loss of $478,000, or 9 cents per diluted common share, for the same period in 2007.
Revenue for the second quarter of 2008 was $434,000 compared to $370,000 for the same period in 2007. For the six months ended June 30, 2008, revenue was $836,000, compared to $730,000 for the same period in 2007. The increase in revenue for both periods was due to an increase in consulting fees.
"In the second quarter, successful pivotal Phase 3 results for XIAFLEX(TM) to treat Dupuytren's Contracture were announced by our partner Auxilium, Inc. We continue to expect a biologics license application (BLA) filing for this product with the U.S. Food and Drug Administration in early 2009. In addition, we expect Auxilium to initiate a Phase 2b trial for XIAFLEX in Peyronie's Disease later this quarter," commented Thomas Wegman, President of BioSpecifics Technologies Corp. "We were also pleased to announce that we strengthened our balance sheet through a private placement of equity at a premium."
Research and development expenses for the second quarter of 2008 were $94,000, compared to $72,000 for the same period in 2007. For the six months ended June 30, 2008, research and development expenses were $189,000, compared to $458,000 for the same period in 2007. The decrease in research and development expenses was primarily due to lower third-party development costs primarily offset by certain external study development costs.
General and administrative expenses for the second quarter of 2008 totaled $ 1.2 million, compared to $813,000 for the same period in 2007. For the six months ended June 30, 2008, general and administrative expenses were $2.0 million, compared to $1.9 million for the same period in 2007. This increase in general and administrative expenses was primarily due to stock based compensation expense partially offset by lower administrative personnel costs and legal fees.
As of June 30, 2008, BioSpecifics held cash, cash equivalents and accounts receivable, prepaid expenses and other current assets of $5.0 million, compared to $ 2.8 million on June 30, 2007.
Recent Corporate Developments
In June, the Company announced the sale of 100,000 unregistered shares of common stock with aggregate proceeds to BioSpecifics of $1.5 million. The shares were purchased by an investment group on May 30, 2008 and were sold in a company managed private placement transaction at a premium over the then-market price.
About BioSpecifics Technologies Corp.
BioSpecifics Technologies Corp. is a biopharmaceutical company that has developed and licensed injectable collagenase for three clinical indications. It has a development and licensing agreement with Auxilium Pharmaceuticals, Inc. for clinical indications in Dupuytren's disease, Peyronie's disease and frozen shoulder (adhesive capsulitis). More information about the company may be found on its website at http://www.biospecifics.com.
Forward Looking Statements
This press release contains forward-looking statements, which are
subject to change. The forward-looking statements are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995. All "forward-looking statements" relating to the business of
BioSpecifics Technologies Corp. and its subsidiary companies, which can be
identified by the use of forward-looking terminology such as "believes,"
"expects" or similar expressions, involve known and unknown risks and
uncertainties which could cause actual results to differ. Please refer to
our 10-KSB for specific details on our risk factors. Given these risks and
uncertainties, you are cautioned not to place undue reliance on
forward-looking statements. The Company's actual results could differ
materially from those contained in the forward-looking statements. The
Company undertakes no obligation to revise or update its forward-looking
statements in order to reflect events or circumstances that may arise after
the date of this release.
BIOSPECIFICS TECHNOLOGIES CORP.
Consolidated Balance Sheets
As of June 30, December 31,
Cash and cash equivalents $4,741,385 $68,564
Short-term investments-(1) - 975,000
Accounts receivable, net 102,180 108,809
Prepaid expenses and other current assets 101,946 73,158
Total current assets 4,945,511 1,225,531
Long-term investments-(1) 1,020,427 -
Property, plant and equipment, net 17,133 35,680
Total assets 5,983,071 1,261,211
Liabilities and Stockholders' Deficit
Accounts payable and accrued expenses 719,623 873,460
Accrued third-party development expenses 2,272,969 2,272,969
Accrued tax liability 453,553 453,553
Deferred revenue 1,345,125 1,437,116
Accrued tax and other accrued liabilities
of discontinued operations 78,138 78,138
Total current liabilities 4,869,408 5,115,236
Long-term deferred revenue 2,501,062 2,881,633
Series A Preferred stock, $.50 par
value, 700,000 shares authorized;
none outstanding - -
Common stock, $.001 par value; 10,000,000
shares authorized; 6,082,068 shares
and 5,480,768 shares issued and outstanding
at June 30, 2008 and December 31, 2007,
respectively 6,082 5,481
Additional paid-in capital 1,092,925 4,751,447
Accumulated deficit (11,437,876) (10,172,855)
Accumulated other comprehensive loss (354,573) -
Treasury stock, 131,267 shares at cost at
June 30, 2008 and December 31, 2007 (693,957) (693,957)
Notes receivable from former CEO and
Chairman and other related party - (625,774)
Total stockholders' deficit (1,387,399) (6,735,658)
Total liabilities and stockholders'
deficit $5,983,071 $1,261,211
(1) As discussed in note 2 to the consolidated financial statements, we
have classified all of our auction rates securities held as of June
30, 2008 as long-term investments as our ability to liquidate such
securities in the next 12 months is uncertain. We had classified all
of our auction rate securities held as of December 31, 2007 as short
BIOSPECIFICS TECHNOLOGIES CORP. AND SUBSIDIARIES
Consolidated Statements of Operations
Three Months Ended Six Months Ended
June 30 June 30,
2008 2007 2008 2007
Net sales $4,046 $10,832 $16,799 $11,932
Royalties 2,028 - 2,028 -
Licensing fees 266,282 289,279 532,563 578,558
Consulting fees 162,000 70,000 284,185 140,000
Total Revenues 434,356 370,111 835,575 730,490
Costs and expenses:
administrative 1,173,316 812,947 1,973,772 1,910,414
development 94,432 72,060 188,703 458,419
Total Cost and
Expenses 1,267,748 885,007 2,162,475 2,368,833
Operating loss from
continuing operations (833,392) (514,896) (1,326,900) (1,638,343)
Other income (expense):
Interest income 27,528 36,894 57,803 78,143
Interest expense - - (451) -
Other income 4,527 - 4,527 -
32,055 36,894 61,879 78,143
Loss from continuing
benefit (expense) for
income tax (801,337) (478,002) (1,265,021) (1,560,200)
Income tax benefit
(expense) - - - (3,600)
Net loss from continuing
operations $(801,337) $(478,002) $(1,265,021) $(1,563,800)
Basic and diluted net
loss per share $(0.14) $(0.09) $(0.22) $(0.30)
Shares used in computation
of basic and diluted net
loss per share 5,796,764 5,275,337 5,715,825 5,255,354
|SOURCE BioSpecifics Technologies Corp.|
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