PORTLAND, Ore., Nov. 1 /PRNewswire-FirstCall/ -- Bioject Medical Technologies Inc. , a leading developer of needle-free drug delivery systems, today announced financial results for the third quarter of 2006.
For the third quarter of 2006, Bioject reported revenues of $3.0 million, compared to $3.1 million reported in the comparable year ago quarter. Third-quarter product sales were $2.5 million compared to $2.7 million in the third quarter of the prior year. License and technology fees were $513,000 compared to $407,000 in the year ago period. The Company reported a third-quarter net loss allocable to common shareholders of $557,000, compared to net loss allocable to common shareholders of $1.2 million in the comparable year-ago quarter. The lower net loss was due to the change in the fair value of the derivative liabilities. At September 30, 2006, the Company reported cash, cash equivalents and marketable securities of $2.9 million.
Basic and diluted net loss per common share for the third quarter of 2006 were $0.04 per share on 14.3 million weighted average shares outstanding, compared to a net loss of $0.08 per share on 13.9 million weighted average shares outstanding for the same period last year.
For the nine months ended September 30, 2006, Bioject reported a net loss allocable to common shareholders of $6.2 million on revenues of $7.5 million. This compares to a net loss allocable to common shareholders of $4.5 million on revenues of $10.2 million for the same period last year.
Basic and diluted net loss per share for the nine months ended September 30, 2006 were $0.43 per share on 14.2 million weighted average shares outstanding compared to a net loss of $0.32 per share on 13.8 million weighted average shares outstanding for the comparable period last year.
"We are pleased with our results when compared to the year ago period and our business development direction," said Jim O'Shea, Bioject's President and CEO. "In the third quarter of 2006, we entered into a Small Business Innovative Research ("SBIR") agreement with the Centers for Disease Control and Prevention ("CDC"). This agreement allows us to further the development of the global immunization device. In addition, our technology has been presented at several medical conferences in the US and Europe validating the use of our needle-free technology."
"We also recently announced that we expanded our development agreement with our undisclosed European biotech partner for the continued development of a novel gas powered device. We are pleased to be working with our current partners and are excited about the future direction of our business development pipeline," said O'Shea. "In addition, today we received notice from Nasdaq that we are now in compliance with the minimum bid requirement."
Recent 2006 Events -- Signed SBIR Contract with CDC for further development of the global immunization device. -- Technology presented at two conferences showing improved immunogenicity of vaccines when used with the Biojector(R) 2000 in cancer and AIDS vaccines. -- Received notice from Nasdaq regarding non-compliance with the minimum bid price rule. On October 31, 2006, the Company met the 10-day minimum bid requirement and today received notice from Nasdaq that the Company is in compliance. -- Roche and Trimeris reported a delay in submission to the FDA for approval of Fuzeon(R) with the B2000. -- Signed further development agreement with European biotech partner for novel gas powered device. -- Jim O'Shea, President and CEO to retire at year-end.
The Company will conduct a conference call to discuss third-quarter results on Thursday, November 2, 2006 at 10:00 a.m. Eastern Standard Time. The conference call will be webcast and can be accessed through the Bioject website at www.bioject.com .
Bioject Medical Technologies Inc., based in Portland, Oregon, is an innovative developer and manufacturer of needle-free drug delivery systems. Needle-free injection works by forcing medication at high speed through a tiny orifice held against the skin. This creates a fine stream of high-pressure fluid penetrating the skin and depositing medication in the tissue beneath. The Company is focused on developing mutually beneficial agreements with leading pharmaceutical, biotechnology, and veterinary companies.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the development of our global immunization device and our business development pipeline. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors include, without limitation, the risk that the Company's products including cool.click(TM), SeroJet(TM), Vetjet(R) and Vial Adapter, will not be accepted by the market, the risk that the Company will be unable to successfully develop and negotiate new strategic relationships or maintain existing relationships, the risk that Bioject's current or new strategic relationships will not develop into long-term revenue producing relationships, the risk that the Company may not achieve the objectives necessary for it to receive the milestone payments under the recently entered development agreement, the fact that Bioject's business has never been profitable and may never be profitable, uncertainties related to Bioject's dependence on the continued performance of strategic partners and technology, uncertainties related to the time required for the Company to complete research and development, obtain necessary clinical data and government clearances, the risk that the Company may be unable to produce our products at a unit cost necessary for the products to be competitive in the market and the risk that the Company may be unable to comply with the extensive government regulations applicable to Bioject's business. Readers of this press release are referred to the Company's filings with the Securities and Exchange Commission, including the Company's reports on Form 10-K and Forms 10-Q for further discussions of factors that could affect the Company's business and its future results. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made. The Company assumes no obligation to update forward-looking statements if conditions or management's estimates or opinions should change.
For more information on Bioject, visit www.bioject.com . Bioject Medical Technologies Inc. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except share and per share data) Three Months Nine Months Ended Ended September 30, September 30, 2006 2005 2006 2005 Revenue: Net sales of products $2,491 $2,739 $5,871 $9,296 License and technology fees 513 407 1,586 857 3,004 3,146 7,457 10,153 Operating expenses: Manufacturing 2,150 2,145 6,090 7,022 Research and development 1,053 1,023 3,430 3,918 Selling, general and administrative 821 999 3,458 3,331 Total operating expenses 4,024 4,167 12,978 14,271 Operating loss (1,020) (1,021) (5,521) (4,118) Interest income 41 28 119 91 Interest expense (213) (169) (1,691) (438) Change in fair valued of derivative liabilities 729 -- 1,163 -- Loss from operations before preferred stock dividend and beneficial conversion (463) (1,162) (5,930) (4,465) Preferred stock dividend (94) -- (132) -- Beneficial conversion on issuance of preferred stock -- -- (109) -- Net loss allocable to common shareholders $(557) $(1,162) $(6,171) $(4,465) Basic and diluted net loss per common share $(0.04) $(0.08) $(0.43) $(0.32) Shares used in per share calculations 14,341,359 13,850,624 14,215,967 13,792,693 Bioject Medical Technologies Inc. Condensed Consolidated Balance Sheet Data (Unaudited) (In thousands, except share and per share data) September 30, December 31, 2006 2005 ASSETS Current assets: Cash and cash equivalents $796 $ 1,046 Short-term marketable securities 2,150 1,500 Accounts receivable, net of allowance for doubtful accounts of $17 and $12 1,704 2,390 Inventories 1,408 1,498 Assets held for sale -- 1,104 Other current assets 195 426 Total current assets 6,253 7,964 Property and equipment, net of accumulated depreciation of $5,043 and $4,519 3,245 4,559 Goodwill 94 94 Other assets, net 1,113 1,329 Total assets $10,705 $13,946 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term note payable $776 $961 Current portion of long-term debt 119 1,083 Accounts payable 808 1,258 Accrued payroll 545 404 Derivative liabilities 748 -- Other accrued liabilities 395 204 Deferred revenue 764 1,908 Total current liabilities 4,155 5,818 Long-term liabilities: Long-term debt -- 917 Deferred revenue 242 318 Other long-term liabilities 369 350 Shareholders' equity: Preferred stock, no par value, 10,000,000 shares authorized; issued and outstanding: Series D Convertible - 2,086,957 shares at September 30, 2006 and December 31, 2005, no stated value, liquidation preference of $1.15 per share 1,879 1,879 Series E Convertible - 3,308,394 shares at September 30, 2006 and zero at December 31, 2005, no stated value, liquidation preference of $1.37 per share 4,828 -- Common stock, no par, 100,000,000 shares authorized; issued and outstanding 14,347,527 shares and 13,968,563 shares at September 30, 2006 and December 31, 2005 111,443 110,704 Accumulated deficit (112,211) (106,040) Total shareholders' equity 5,939 6,543 Total liabilities and shareholders' equity $10,705 $13,946
Bioject Medical Technologies Inc.CONTACT: Jim O'Shea, Chief Executive Officer, +1-503-692-8001, ext. 4161,or Chris Farrell, Vice President of Finance, +1-503-692-8001, ext. 4132,both of Bioject Medical Technologies Inc.; or John Baldissera of BPCFinancial Marketing, 800-368-1217, for Bioject Medical Technologies Inc.
Web site: http://www.bioject.com/
