WAKEFIELD, Massachusetts, Feb. 14 /PRNewswire-FirstCall/ - NUCRYST Pharmaceuticals Corp. today announced results for the year ended December 31, 2007. Net loss narrowed to $4.0 million, or 22 cents per share, on revenues of $30.1 million. This compares to a net loss of $10.5 million, or 58 cents per share, on revenues of $24.4 million in the previous year. The lower net loss for 2007 is primarily attributable to the combined impact of the $5 million milestone earned from Smith & Nephew in the third quarter together with an additional $5 million milestone earned in the fourth quarter. The impact of these milestones was partially offset by the $4.5 million manufacturing cost rebate paid to Smith & Nephew in 2007 under our supply agreement. No milestone payments were earned in 2006.
For the three months ended December 31, 2007, the company posted net income of $3.2 million, or 17 cents per share, on revenues of $11.2 million. This compares to a net loss of $1.6 million in the fourth quarter of 2006, or 9 cents per share on revenues of $4.5 million.
At December 31, 2007, NUCRYST had $17.8 million in cash and cash equivalents.
“While the fourth quarter of 2007 saw us continue to explore opportunities to rebuild our new products pipeline, following the fourth quarter 2006 cancellation of our clinical program in atopic dermatitis, the principal focus of our Board and Management in late-2007 was on extracting value from our advanced wound care assets,” said Thomas E. Gardner, President, CEO and Chairman of NUCRYST. “I am pleased with the improved results generated in the fourth quarter of 2007, and believe they reflect in large part our reinvigorated relationship with Smith & Nephew plc following a September 30, 2007 revision of our basic agreements.”
NUCRYST continues to seek partners for its two development projects, use of NPI 32101 as an antimicrobial barrier cream and use of NPI 32101 in inflammatory bowel disease. The company has already received a 510(k)regulatory approval from the FDA for the antimicrobial barrier cream.
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, referred to as NPI 32101 for use in medical devices and as an active pharmaceutical ingredient.
A more detailed discussion of NUCRYST’s 2007 year end results can be found in the 2007 Consolidated Financial Statements and Management’s Discussion and Analysis, which will be available at www.sec.gov and www.sedar.com. NUCRYST filings are also available at www.nucryst.com/Regulatory_Filings.htm.
Eliot M. Lurier, Vice President, Finance and Administration and CFO NUCRYST Pharmaceuticals Corp., (781) 224-1444, info@nucryst.com, www.nucryst.com
The financial results in this news release are unaudited, and are not a complete disclosure of our quarterly or annual financial results.
Some of the statements above may constitute forward-looking statements within the meaning of securities legislation in the United States and Canada (collectively “forward looking statements”). The words “efforts”, “seek”, “explore” and “continue” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements in this news release include, but are not limited to, statements about: prospects and plans for the development of future products containing our nanocrystalline silver, plans for our gastrointestinal program, regulatory approval of our barrier cream, and plans and prospects for our barrier cream. With respect to the forward-looking statements contained in this news release, readers are cautioned that numerous risks, uncertainties and other factors could cause our actual results to differ materially from those indicated in these statements including, but not limited to: difficulties or delays in the initiation, timing, progress and results of our preclinical trials and research and development programs; we may not be able to obtain and retain regulatory approval for our barrier cream and any future products; our ability to maintain our collaboration with Smith & Nephew; our reliance on sales of Acticoat(TM) products with our SILCRYST(TM) coatings by Smith & Nephew; we may not be able to establish or maintain sales and marketing collaborations for our barrier cream and other new products; we may not be able to attract and retain collaborations relating to the development and commercialization of future products; our cost reduction plans may not be sufficient to conserve cash and control expenses; competition from other silver-based pharmaceutical or medical device companies; our ability to raise additional financing required to fund further research and development, clinical studies and obtain regulatory approvals, on commercially acceptable terms or at all; our ability to protect our intellectual property rights and to not infringe on the intellectual property rights of others; our ability to comply with governmental regulations and standards; changes in general economic conditions; other risks and uncertainties unidentified at this time; management’s response to these factors; and other factors described under “Risk Factors” in our Quarterly Report on 10-Q for the quarter ended September 30, 2007 and our Annual Report on Form 10-K for the year ended December 31, 2006, both of which have been filed with the U.S. Securities and Exchange Commission at www.sec.gov and with securities authorities in Canada at www.sedar.com. All forward-looking statements are expressly qualified in their entirety by this cautionary statement and NUCRYST disclaims any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future developments or otherwise after the date hereof.
CONTACT: Eliot M. Lurier, Vice President, Finance and Administration and
CFO NUCRYST Pharmaceuticals Corp., (781) 224-1444, info@nucryst.com,
www.nucryst.com
