CYTOMEDIX ANNOUNCES SECOND
QUARTER 2006 FINANCIAL RESULTS
Shows Profit and Improved
Cash Position for the Quarter; Licensing Royalties Increase While
Operating Costs Decrease
ROCKVILLE, Md., Aug 9, 2006 – Cytomedix, Inc. (AMEX:
GTF)
today announced results for its second quarter ended June 30, 2006
which included an improved cash position and net income.
Revenues for the second quarter increased 35% to $411,000 compared
with $305,000 for the same period in 2005. Net income for the
quarter was $792,000, or $0.03 per basic share, compared with a net
loss of $1,289,000, or $0.05 per share for the second quarter of
2005. The net income was primarily due to a one-time net benefit of
$1,670,000 related to a settlement and licensing agreement with
Biomet Biologics, Inc. (Biomet) (NASDAQ: BMET). Weighted average
shares outstanding for these periods were 27.0 million and 23.7
million respectively.
Additional revenues in the second quarter resulted from several new
licensing agreements that were not in effect for the corresponding
period in 2005. Royalty income for the second quarter of 2006
increased 49% to $387,000, compared with $260,000 in the second
quarter of 2005.
In addition, operating expenses for the quarter declined 51% to
$1,104,000 due to completion of the Autologel™ clinical trial,
overall expense discipline, and improved management practices, which
lessened the Company’s need for outside consultants and professional
service providers.
Cytomedix ended the second quarter with $5.1 million cash on hand,
compared with $3.1 million at December 31, 2005, an increase of 65%.
The increase in cash on hand was attributable to the initial upfront
net cash provided from the Biomet agreement and $2.3 million from
the exercise of outstanding warrants related to the Class D Warrant
offer in the second quarter. In August 2006, the Company called
certain outstanding warrants which, if exercised by warrantholders,
could provide up to an additional $2.4 million for the Company.
“We are pleased with the growth of licensing royalties, which has
been a strategic component for providing cash flow while we seek
marketing clearance for our proprietary Autologel™ product for use
with chronic wounds,” stated Chairman and Chief Executive Officer
Kshitij Mohan. “We are especially pleased with our strengthened cash
position, which was achieved with minimal dilution and which, along
with an increased emphasis on managing costs and achieving new
efficiencies, will enable us to move aggressively to meet the
demands of the marketplace for our Autologel™ System, which is
currently under FDA review. We are scheduled to meet with the FDA in
early September to discuss our response to a request by the agency
for additional information and analysis.”
Through the first six months of 2006, revenues increased 56% to
$897,000, compared with $576,000 in the year-ago period. Net loss
for the first six months was $432,000 or $0.02 per share, compared
with a loss of $3,433,000 or $0.15 per share for the same period in
2005. Weighted average shares outstanding for these periods were
26.6 million and 23.0 million, respectively. Operating expenses for
the first six months of 2006 decreased 40% to $2,158,000, versus
$4,042,000 for the first half of 2005.
Complete financial statements will be available in the Company’s
10-Q expected to be filed later this week.
ABOUT CYTOMEDIX
Cytomedix, Inc. is a biotechnology company specializing in processes
and products derived from autologous platelet releasates for uses
with wounds and other applications. The current offering is
AutoloGel™System, a process that utilizes an autologous platelet gel
composed of multiple growth factors, other platelet releasates, and
fibrin matrix. The Company has announced favorable results from its
blinded, prospective, multi-center clinical trial on the use of its
technology with diabetic foot ulcers. Additional information
regarding Cytomedix is available at: http://www.cytomedix.com
SAFE HARBOR STATEMENT
Statements contained in this press release not relating to
historical facts are forward-looking statements that are intended to
fall within the safe harbor rule for such statements under the
Private Securities Litigation Reform Act of 1995. The information
contained in the forward-looking statements is inherently uncertain,
and Cytomedix's actual results may differ materially due to a number
of factors, many of which are beyond Cytomedix's ability to predict
or control, including among others, the success of new sales
initiatives, governmental regulation, acceptance by the medical
community and competition. There is no guarantee that the FDA will
complete its review of the Company’s 510(k) submission for a
specific wound healing indication within any estimated timeframe, or
that the FDA will fully agree with the Company in the interpretation
of the data or the regulatory pathway and provide marketing
clearance. Further, even assuming the FDA grants the Company’s
request for marketing clearance, there is no guarantee that the
Company will receive Medicare reimbursement for its product; the
Company’s marketing efforts will be successful; or that it will be
able to achieve its other strategic goals. There is also no
guarantee that the Company’s current capitalization will be
sufficient to attain its goals or that future funding will be
available to the Company on acceptable terms. These forward-looking
statements are subject to known and unknown risks and uncertainties
that could cause actual events to differ from the forward-looking
statements. More information about some of these risks and
uncertainties may be found in the reports filed with the Securities
and Exchange Commission by Cytomedix, Inc. Except as is expressly
required by the federal securities laws, Cytomedix undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, changed circumstances or
future events or for any other reason.
|
CYTOMEDIX,
INC. |
|
SELECTED
FINANCIAL INFORMATION |
|
(unaudited)
|
|
|
|
For the three
months ended |
|
|
For the six
months ended |
|
June 30, |
June 30, |
|
|
|
2006 |
|
2005 |
|
|
2006 |
|
2005 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues |
$ |
411,324 |
$ |
305,129 |
|
$ |
896,861 |
$ |
576,303 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
188,038 |
|
101,123 |
|
|
410,013 |
|
217,856 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating
Expenses |
|
1,103,758 |
|
2,250,517 |
|
|
2,568,411 |
|
4,260,161 |
|
|
|
|
|
|
|
|
|
|
|
|
Other (income)
Expenses |
|
(1,716,875) |
|
(879,880) |
|
|
(1,744,555) |
|
(676,062) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) to common stockholders |
|
791,821 |
|
(1,289,384) |
|
|
(432,327) |
|
(3,433,492) |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per basic common share |
$ |
0.03 |
$ |
(0.05) |
|
$ |
(0.02) |
$ |
(0.15) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding |
|
26,987,106 |
|
23,730,935 |
|
|
26,590,715 |
|
23,030,087 |
Contact:
Cytomedix, Inc.
Kshitij Mohan, Ph.D., Chairman and CEO
240-499-2680
The Wall Street Group, Inc.
Ron Stabiner
212-888-4848
Source: Cytomedix, Inc.
|
