WAKEFIELD, MA, Aug. 8 /PRNewswire-FirstCall/ - NUCRYST Pharmaceuticals Corp. today announced for the quarter ended June 30, 2006 it recorded a net loss of $3.9 million, or 21 cents per share on revenues of $6.2 million, compared to a net loss of $1.4 million, or 14 cents per share on revenues of $4.6 million recorded in the same period last year. The higher net loss is attributable to the continuation into the second quarter of 2006 of the second Phase 2 dermatological clinical study that commenced in the third quarter of 2005, whereas there was no similar study underway in the second quarter of 2005. In addition, the company has higher general and administrative costs as the result of becoming a public company in December 2005.
At June 30, 2006, NUCRYST had $27.1 million in cash and short term investments. Further financial information follows at the end of the release.
“NUCRYST continued to build on our revenue-generating SILCRYST business,” said Scott H. Gillis, President & CEO, NUCRYST Pharmaceuticals. “In addition, we continued to advance our pharmaceutical programs. Specifically, in April we completed patient enrollment and in July we completed patient treatment in our atopic dermatitis Phase 2 clinical trial with our first pharmaceutical product candidate, a topical cream formulation of our nanocrystalline silver (NPI 32101). We expect results from this study by year end.”
NUCRYST Pharmaceuticals develops, manufactures and commercializes medical products that fight infection and inflammation using its patented atomically disordered nanocrystalline silver technology. Smith & Nephew plc sell a range of advanced wound care products under their Acticoat(TM) trade mark: Acticoat(TM) products incorporate NUCRYST’s SILCRYST(TM) coatings and are sold in over 30 countries. NUCRYST is also developing pharmaceutical products to address medical conditions that are characterized by both infection and inflammation. The company has developed its proprietary nanocrystalline silver in a powder form for use as an active pharmaceutical ingredient, referred to as NPI 32101.
A more detailed discussion of NUCRYST’s 2006 second quarter results can be found in our 10-Q filing which will be available at www.sec.gov/edgar.com and www.sedar.com. NUCRYST filings are also available at www.nucryst.com/Regulatory_Filings.htm.
All figures are in US dollars unless otherwise stated SILCRYST(TM) is a trademark of NUCRYST Pharmaceuticals Corp. Acticoat(TM) is a trademark of Smith & Nephew plc
Some of the statements above may constitute forward-looking statements within the meaning of securities legislation in the United States and Canada. In particular, statements regarding our future growth, product opportunities and the timing of the results of our Phase 2 clinical trial in 2006 may be forward-looking statements for purposes of the U.S. and Canada securities laws or otherwise. Factors that could cause our actual results to differ materially from those indicated in these statements include: the initiation, timing, progress and results of our preclinical and clinical trials, research and development programs; our relationship with Smith & Nephew; our reliance on sales of Acticoat(TM) products with our SILCRYST(TM) coatings; the implementation of our business model, strategic plans for our business, product candidates and technology; our ability to maintain and establish corporate collaborations; changes in general economic conditions; other risks and uncertainties unidentified at this time; management’s response to these factors; and other factors described in the cautionary statements contained under the heading “Forward-Looking Statements” in our Annual Report on Form 10-K for the year ended December 31, 2005 filed with the U.S. Securities & Exchange Commission. NUCRYST disclaims any intention or obligation to revise forward-looking statements whether as a result of new information, future developments or otherwise. All forward-looking statements are expressly qualified in their entirety by this cautionary statement.
NUCRYST PHARMACEUTICALS CORP. Financial Highlights (unaudited) (thousands of U.S. dollars except share and per share data) Condensed Consolidated Statements Three Months Ended June 30, Six Months Ended June 30, of Operations 2006 2005 2006 2005 ------------------------------------------------------------------------- Revenue $ 6,237 $ 4,589 $ 12,521 $ 8,645 Loss from operations (2,729) (552) (5,648) (1,175) Net loss (3,887) (1,367) (6,771) (2,742) Net loss per common share - basic and diluted (0.21) (0.14) (0.38) (0.28) Weighted average number of common shares outstanding - basic 18,247,003 9,727,500 17,630,811 9,727,500 - diluted 18,247,003 9,727,500 17,630,811 9,727,500 Condensed Consolidated June 30, December 31, Balance Sheets 2006 2005 --------------------------------------------- Cash and short-term investments $ 27,163 $ 35,901 Current assets 41,446 48,992 Total assets 53,705 59,460 Current liabilities 4,894 45,691 Shareholders’ equity 48,811 13,769 Three Months Ended June 30, Six Months Ended June 30, Other Data 2006 2005 2006 2005 ------------------------------------------------------------------------- Wound care product revenue $ 6,237 $ 4,589 $ 12,521 $ 8,645 Manufacturing costs $ 4,013 $ 2,343 $ 8,318 $ 4,347 Gross margin $ 2,224 $ 2,246 $ 4,203 $ 4,298 Gross margin percent excluding milestone revenue 35.7% 48.9% 33.6% 49.7%
NUCRYST Pharmaceuticals Corp.
CONTACT: David Wills, Investor Relations, NUCRYST Pharmaceuticals Corp.,(416) 504-8464, info@nucryst.com
