NUCRYST announces 2009 third quarter financial results
13 Novembre 2009 - 10:47PM
PR Newswire (US)
PRINCETON, NJ, Nov. 13 /PRNewswire-FirstCall/ -- NUCRYST
Pharmaceuticals Corp., a developer and manufacturer of medical
products that fight infection and inflammation, today announced its
financial results for the third quarter of 2009. For the quarter
ended September 30, 2009, NUCRYST reported a net income of $0.5
million, or $0.03 cents per share, on revenues of $6.1 million.
This compares to a net loss of $0.1 million, or $0.00 cents per
share, on revenues of $5.3 million in the third quarter of 2008. At
September 30, 2009, NUCRYST had $13.4 million in cash and cash
equivalents, compared to $23.4 million at December 31, 2008. In the
first quarter of 2009, NUCRYST completed a $14.7 million, or $0.80
per share, cash distribution to NUCRYST shareholders. On November
10, 2009, NUCRYST announced that it had entered into a definitive
agreement to sell to subsidiaries of Smith & Nephew plc ("Smith
& Nephew") substantially all of NUCRYST's operations and assets
including all rights to its proprietary nanocrystalline silver
technology for cash consideration of $21 million plus the carrying
book value of working capital, subject to certain adjustments (the
"Sale Transaction"). NUCRYST also entered into an amalgamation
agreement with The Westaim Corporation ("Westaim"), which currently
owns approximately 75% of NUCRYST's outstanding common shares.
Under the amalgamation agreement, NUCRYST will amalgamate with a
newly formed subsidiary of Westaim to form Amalco, and NUCRYST
shareholders other than Westaim will receive for each NUCRYST share
one redeemable preferred share in the capital of Amalco, which
share will be redeemed for $1.77 in cash upon the closing of the
amalgamation (the "Amalgamation"). Both transactions are subject to
closing conditions, including the approval by NUCRYST shareholders.
The details regarding these transactions will be included in a
NUCRYST management information circular, which is expected to be
mailed to shareholders in late November 2009 for a shareholders
meeting to be held in December 2009. Third quarter financial
analysis NUCRYST's total revenue for the third quarter of 2009,
which consists of wound care product revenues less the
manufacturing cost rebate, increased to $6.1 million compared to
$5.3 million in the third quarter of 2008. The increase was due to
a higher level of product shipments in the current quarter which
was partially offset by slightly lower royalty revenues on
Acticoat(TM) sales reported by Smith & Nephew plc. Smith &
Nephew's reported Acticoat(TM) sales were negatively impacted by
the strengthening U.S. dollar. Gross margin on product revenues was
51% in the third quarter of 2009, compared to 47% in the third
quarter of 2008. The improvement was primarily due to reductions in
per unit manufacturing costs which were partially offset by a
decrease in manufacturing prices charged to Smith & Nephew.
NUCRYST recognizes manufacturing revenue when NUCRYST ships product
to Smith & Nephew and recognizes royalty income when Smith
& Nephew sells Acticoat(TM) products to its customers.
Consequently, NUCRYST's gross margin percent may vary from period
to period due to differences in the timing of product shipments to
Smith & Nephew and the sale of that product by Smith &
Nephew to its customers. Research and development spending in the
third quarter of 2009 totaled $0.5 million compared to $1.1 million
in third quarter of 2009. NUCRYST completed the closure of its
Wakefield, Massachusetts research operations in the fourth quarter
of 2008. NUCRYST has also eliminated spending on several
development programs in order to reduce costs. General and
administrative costs in the third quarter of 2009 totaled $1.6
million compared to $2.0 million in the third quarter of 2008. The
decrease was primarily due to cost reductions achieved following
the transfer of the Company's U.S. headquarters to Princeton, New
Jersey and a reduction in administrative staff. The decline in the
Canadian dollar relative to the U.S. dollar on a year- over year
basis also contributed to overall decrease in reported costs. Other
income and expenses, which includes foreign exchange gains and
losses and interest income, was a net loss of $0.5 million for the
third quarter of 2009 as compared to a net gain of $0.5 million in
the third quarter of 2009. Changes in the U.S. dollar and Canadian
dollar exchange rate during the third quarter of 2009 resulted in
unrealized currency losses on our U.S. dollar working capital
amounts held by our Canadian operations. All of our revenues from
Smith & Nephew are received in U.S. dollars. (Financial Table
Page Below) About NUCRYST Pharmaceuticals Corp. NUCRYST
Pharmaceuticals Corp. (NASDAQ: NCST; TSX: NCS) develops,
manufactures and commercializes medical products that fight
infection and inflammation using SILCRYST(TM), its patented
atomically disordered nanocrystalline silver technology. NUCRYST
licensed world-wide rights for SILCRYST(TM) wound care coating
products to Smith & Nephew plc, which markets these products in
over 30 countries under their Acticoat(TM) trademark. NUCRYST 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 2009 third quarter results will be available in our
Quarterly Report on Form 10-Q for the quarter ended September 30,
2009 which will be available at http://www.sec.gov/ and
http://www.sedar.com/ when filed. NUCRYST filings are also
available at http://www.nucryst.com/Regulatory_Filings.htm. All
amounts in U.S. dollars SILCRYST(TM) is a trademark of NUCRYST
Pharmaceuticals Corp. Acticoat(TM) is a trademark of Smith &
Nephew plc The financial results in this news release are
unaudited, and are not a complete disclosure of our quarterly or
results. This news release contains forward-looking statements
within the meaning of securities legislation in the United States
and Canada (collectively "forward-looking statements").
Forward-looking statements in this news release include, but are
not limited to, statements about: our strategy, future operations,
prospects and plans of management and our ability to achieve
operating efficiencies and cost reductions. 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: future
shareholder actions with respect to the proposed Sale Transaction,
the Amalgamation, our capitalization or strategic direction; the
failure to satisfy or waive any conditions to closing of the Sale
Transaction or the Amalgamation; the intervention of other events
that result in any delay in completing or the failure to complete
the Sale Transaction or the Amalgamation; the performance of the
stock markets generally; our ability to satisfy regulatory and
stock exchange standards and requirements to complete the Sale
Transaction or the Amalgamation; the uncertainty of our future
operating results, which are likely to fluctuate and could under
certain conditions prevent the completion of the Sale Transaction
or the Amalgamation; our reliance on and ability to maintain our
collaboration with Smith & Nephew should the proposed Sale
Transaction not be completed; our reliance on sales of Acticoat(TM)
products with our SILCRYST(TM) coatings by Smith & Nephew;
changes in regulation or tax laws applicable to us; changes in
general economic and capital market conditions; other risks and
uncertainties that have not been identified at this time; and
management's response to these factors. Although we have attempted
to identify the important risks, uncertainties and other factors
that could cause actual results or events to differ materially from
those expressed or implied in the forward-looking statements in
this release, there may be other factors that cause actual results
or events to differ from those expressed or implied in forward
looking statements. For a more thorough discussion of the risks
associated with our business, see the "Risk Factors" section in our
Annual Report on Form 10-K for the year ended December 31, 2008 and
in our Quarterly Report on Form 10-Q for the quarter ended
September 30, 2009, once filed with the U.S. Securities and
Exchange Commission on EDGAR at http://www.sec.gov/ and with
securities authorities in Canada on SEDAR at http://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. Condensed
Consolidated Statements of Operations
----------------------------------------------- Three Months Ended
Nine Months Ended September 30 September 30 2009 2008 2009 2008
------------ ------------ ------------ ------------ Revenue $ 6,080
$ 5,253 $ 15,171 $ 15,150 ------------ ------------ ------------
------------ Operating expenses: Cost of goods sold 2,998 2,799
8,032 9,625 Research and development 475 1,073 1,823 4,023 General
and administrative 1,644 2,020 5,623 6,672 ------------
------------ ------------ ------------ Total operating expenses
5,117 5,892 15,478 20,320 ------------ ------------ ------------
------------ Income/(Loss) from operations 963 (639) (307) (5,170)
Other income/ (expenses) (470) 581 (689) 1,218 ------------
------------ ------------ ------------ Net pre-tax loss 493 (58)
(996) (3,952) Income tax expense - 9 - 11 ------------ ------------
------------ ------------ ------------ ------------ ------------
------------ Net loss $ 493 $ (67) $ (996) $ (3,963) ------------
------------ ------------ ------------ ------------ ------------
------------ ------------ Basic and diluted net loss per common
share $ 0.03 $ (0.00) $ (0.05) $ (0.22) ------------ ------------
------------ ------------ ------------ ------------ ------------
------------ Dilutive weighted average common shares outstanding
18,368,819 18,376,631 18,322,279 18,370,708 ------------
------------ ------------ ------------ ------------ ------------
------------ ------------ Selected Consolidated Balance Sheet Data
---------------------------------------- September 30 December 31
2009 2008 ------------ ------------ Cash and cash equivalents $
13,414 $ 23,388 Current assets 22,678 31,751 Total assets 33,186
41,800 Current liabilities 7,119 2,949 Non-current liabilities 488
495 Shareholders' equity 25,579 38,356 DATASOURCE: NUCRYST
Pharmaceuticals Corp. CONTACT: David Wills, Gillian McArdle,
Investor Relations, (416) 504-8464,
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