CABG Medical Announces First Quarter 2005 Results and the Completion of the Angiotech License for Paclitaxel
April 21 2005 - 11:25AM
PR Newswire (US)
CABG Medical Announces First Quarter 2005 Results and the
Completion of the Angiotech License for Paclitaxel MINNEAPOLIS,
April 21 /PRNewswire-FirstCall/ -- CABG Medical, Inc.
(NASDAQ:CABG), the developer of an innovative drug-eluting graft
(DEG) for coronary artery bypass surgery, today reported results
for the first quarter of fiscal 2005. Net loss for the first
quarter of 2005 was $5,656,000, or $0.34 per share, compared to
$679,000, or $0.07 per share, for the first quarter of 2004. The
2005 net loss included research and development expense of
$5,323,000 of which $4,363,000 was related to the Company's March
22, 2005 Paclitaxel license agreement with Angiotech
Pharmaceuticals, Inc (Angiotech). The license agreement expense
included a non-cash charge of $4,335,000 related to the issuance of
equity securities to Angiotech. The Company was required to expense
the license agreement equity consideration due to the development
stage of the Company's operations and its DEG. Excluding these
costs, the first quarter 2005 net loss would have been $1,293,000,
or $0.08 per share. (Logo:
http://www.newscom.com/cgi-bin/prnh/20050114/CGF013LOGO ) "During
the first quarter we continued to improve our strong balance sheet
by raising $9.1 million in capital through our underwriters'
exercise of an over-allotment option following our initial public
offering and the execution of an investment agreement with
Angiotech," commented Manny Villafana, Chairman & CEO.
"Furthermore, our agreement with Angiotech provides for an
additional investment of $5 million upon the attainment of revenue
milestones. Our collaboration with Angiotech demonstrates our
continued belief in the Paclitaxel franchise and the elimination of
potential licensing risk associated with our DEG." Mr. Villafana
continued, "Our first patient implanted in November 2004 continues
to experience life symptom free. During the first quarter we
received approval to initiate a 100 patient clinical trial, which
will be used for our CE Mark submission. The trial is approved at
international centers outside the United States and should begin
enrollment during the second quarter of 2005." CABG Medical
management will be discussing these topics as well as providing an
update on the clinical progress of its Holly Graft(TM) System at
the Company's annual meeting, which will be held at the Minneapolis
Club, 729 Second Avenue South, Minneapolis, Minnesota beginning at
3:30 p.m. (central daylight time) on Tuesday, May 3. All interested
parties are encouraged to attend the meeting or to participate in a
webcast through a link on the Company's website:
http://www.cabgmedical.com/ or
http://www.shareholder.com/cabg/MediaRegister.cfm?MediaID=15664 .
About CABG Medical CABG Medical, Inc. is a medical technology
company developing technologies and therapies to improve the
treatment of coronary heart disease by advancing conventional
bypass surgery. We have designed our first product, the Holly
Graft(TM) System, by leveraging our understanding of flow dynamics,
material sciences and drug combinations to create a drug-eluting
graft system. Safe Harbor Certain statements in this release that
are not historical facts, including, without limitation, those
relating to our expectation regarding the commencement of clinical
trials in 2005 in Australia and Europe, our belief in the
paclitaxel franchise as a drug combination capable of preventing
restenosis following the surgical implantation of devices such as
the Holly Graft(TM) System, our clinical and regulatory efforts,
and our anticipation that we will be able to present in 2005 the
first follow-up results from such clinical trials, are
forward-looking statements that involve risks and uncertainties.
Such statements are based upon the current beliefs and expectations
of our management. Actual results may vary materially from those
contained in such forward-looking statements based on a number of
factors including, without limitation, our need to obtain
regulatory approval in each relevant jurisdiction prior to the
initiation of any clinical trials or human cases in such
jurisdiction, the selection of clinical sites, the completion of
such trials and cases, and other factors disclosed from time to
time in our filings with the U.S. Securities and Exchange
Commission. Investors should take such risks into account when
making investment decisions. Shareholders and other readers are
cautioned not to place undue reliance on these forward- looking
statements, which speak only as of the date on which they are made.
We undertake no obligation to update any forward-looking
statements. CABG Medical, Inc. Statements of Operations (unaudited)
Three Months Ended March 31, 2004 2005 (In thousands, except share
and per share amounts) Revenue $--- $--- Expenses: Research and
development 519 5,323 Marketing, general and administrative 165 538
Total expenses 684 5,861 Interest income 5 205 Net loss $(679)
$(5,656) Basic and diluted net loss per share $(0.07) $(0.34)
Weighted average shares outstanding - basic and diluted 9,361,346
16,814,355 CABG Medical, Inc. Balance Sheets (unaudited) December
31, March 31, 2004 2005 (In thousands) Assets Current assets: Cash
and short term investments $28,936 $36,710 Other current assets 291
243 Total current assets 29,227 36,953 Property and equipment, net
199 235 Total assets $29,426 $37,188 Liabilities &
Stockholders' Equity Current liabilities: Accounts payable $841
$628 Accrued liabilities 19 64 Total current liabilities 860 692
Total stockholders' equity 28,566 36,496 Total liabilities and
stockholders' equity $29,426 $37,188 CABG Medical, Inc. Statements
of Operations Reconciliation of GAAP Results from Operations to
Proforma Results from Operations (unaudited) Three Months Ended
March 31, Proforma Adjustment Proforma 2004 2005 (1) 2005 (In
thousands, except share and per share amounts) Revenue $--- $---
$--- Expenses: Research and development 519 5,323 (4,363) 960
Marketing, general and administrative 165 538 538 Total expenses
684 5,861 (4,363) 1,498 Interest income 5 205 205 Net loss $(679)
$(5,656) (4,363) $(1,293) Basic and diluted net loss per share
$(0.07) $(0.34) $(0.08) Weighted average shares outstanding - basic
and diluted 9,361,346 16,814,355 16,814,355 (1) Proforma adjustment
is provided to illustrate the impact of the issuance of warrants to
Angiotech in exchange for an exclusive license to certain drug
eluting technologies. The proforma adjustment is comprised of a
$4,335,000 non-cash charge related to the fair value of the
warrants issued to Angiotech and $28,000 in related legal expenses.
http://www.newscom.com/cgi-bin/prnh/20050114/CGF013LOGO
http://photoarchive.ap.org/ DATASOURCE: CABG Medical, Inc. CONTACT:
Manny Villafana, Chairman & CEO, or John L. Babitt, President,
COO & CFO, both of CABG Medical, Inc., +1-763-258-8005, Fax
+1-763-258-8008 Web site: http://www.cabgmedical.com/
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