TEMPE, Ariz., Nov. 5, 2007 (PRIME NEWSWIRE) -- OrthoLogic Corp. (Nasdaq:OLGC) today announced financial results for the third quarter 2007.
OrthoLogic reported a net loss of $2.4 million, or $0.06 per share, for the third quarter 2007, compared to a net loss of $5.8 million or $0.14 per share for the third quarter 2006. For the nine months ended September 30, 2007 the net loss was $7.7 million, or $0.18 per share, versus a net loss of $28.8 million, or $0.71 per share, for the nine months ended September 30, 2006.
The $21.1 million decrease in the net loss in the nine months ended September 30, 2007 compared to the same period in 2006, results primarily from $8.5 million purchased in-process research and development costs in 2006, a decrease of $1.7 million in non-cash stock compensation expense, reduced costs in 2007 reflecting management changes and staff reductions which occurred in the first half of 2006, a decline in clinical costs related to our fracture repair Phase 3 and Phase 2b clinical trials, which were substantially completed as of December 31, 2006, a Chrysalin product platform patent impairment loss of $2.1 million recorded in 2006, and the recognition in 2006 of income tax expense related to the recording of a valuation allowance of $1.1 million for a deferred tax asset related to a Alternative Minimum Tax credit carryover.
The Company began the third quarter 2007 with $64.3 million in cash and investments and ended the quarter with $62.6 million in cash and investments.
Conference Call Information
Management will host a conference call and webcast on Tuesday, November 6, 2007 at 6:30 am MST (8:30 am EST). The call may be accessed at 888-204-6674 (domestic), 913-981-5520 (international), or by logging onto the Investors section of the Company's website, http://investor.orthologic.com/.
A replay will be available beginning November 6, 2007, at 8:00 PM EDT until midnight November 9, 2007, and may be accessed at 888-203-1112 (domestic) or 719-457-0820 (international), with access code 6558554.
About OrthoLogic
OrthoLogic is a biotechnology company committed to developing a pipeline of novel therapeutic peptides and other molecules aimed at helping patients with under-served medical conditions. The Company is focused on the development and commercialization of two product platforms: Chrysalin(r) (TP508) and AZX100.
Chrysalin, the Company's novel synthetic 23-amino acid peptide, is being studied in several indications including fracture repair, diabetic foot ulcer healing and other disorders that may involve vascular endothelial dysfunction. The Company owns exclusive worldwide rights to Chrysalin.
AZX100 is a novel synthetic pre-clinical 24-amino acid peptide, one of a new class of compounds in the field of smooth muscle relaxation and fibrosis. AZX100 is currently being evaluated for commercially significant medical applications such as the treatment of pulmonary disease, the prevention of hypertrophic and keloid scarring and intimal hyperplasia. OrthoLogic has an exclusive worldwide license to AZX100.
OrthoLogic's corporate headquarters are in Tempe, Arizona. For more information, please visit the Company's Web site: www.orthologic.com.
Statements in this press release or otherwise attributable to OrthoLogic regarding our business that are not historical facts are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which include the timing and acceptability of FDA filings and the efficacy and marketability of potential products, involve risks and uncertainties that could cause actual results to differ materially from predicted results. These risks include: delays in obtaining or inability to obtain FDA, institutional review board or other regulatory approvals of pre-clinical or clinical testing; unfavorable outcomes in our pre-clinical and clinical testing; the development by others of competing technologies and therapeutics that may have greater efficacy or lower cost; delays in obtaining or inability to obtain FDA or other necessary regulatory approval of our products; our inability to successfully and cost effectively develop or outsource manufacturing and marketing of any products we are able to bring to market; changes in FDA or other regulations that affect our ability to obtain regulatory approval of our products, increase our manufacturing costs or limit our ability to market our products; our possible need for additional capital in the future to fund the continued development of our product candidates; and other factors discussed in our Form 10-K for the fiscal year ended December 31, 2006, and other documents we file with the Securities and Exchange Commission.
Editors' Note: This press release is also available under the Investors section of the Company's Web site at: www.orthologic.com.
ORTHOLOGIC CORP.
(A Development Stage Company)
CONDENSED BALANCE SHEETS
(in thousands, except share and per share data)
September 30, December 31,
2007 2006
---------------------------
ASSETS
Current assets
Cash and cash equivalents $ 18,183 $ 18,047
Short-term investments 17,157 35,977
Prepaids and other current assets 903 1,950
---------------------------
Total current assets 36,243 55,974
Furniture and equipment, net 360 409
Long-term investments 27,301 16,206
---------------------------
Total assets $ 63,904 $ 72,589
==========================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 608 $ 1,621
Accrued compensation 568 584
Accrued clinical 10 133
Accrued severance and other restructuring
costs 166 366
Other accrued liabilities 490 737
---------------------------
Total current liabilities 1,842 3,441
Stockholders' Equity
Common Stock $.0005 par value; 21 21
100,000,000 shares authorized; 41,670,650
and 41,564,291 shares issued and
outstanding
Additional paid-in capital 188,828 188,236
Accumulated deficit (126,787) (119,109)
---------------------------
Total stockholders' equity 62,062 69,148
---------------------------
Total liabilities and stockholders'
equity $ 63,904 $ 72,589
===========================
OrthoLogic Corp.
(A Development Stage Company)
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
As a
Development
Three months Nine months Stage
ended ended Company
September 30, September 30, 8/5/2004 -
2007 2006 2007 2006 9/30/2007
------------------------------------------------
OPERATING EXPENSES
General and
administrative $ 889 $ 1,414 $ 2,797 $ 5,567 $ 16,143
Research and
development 2,369 5,651 7,439 16,575 60,624
Purchased in-
process research
and development -- 2 -- 8,471 34,311
Other gains -- -- -- -- (375)
------------------------------------------------
Total operating
expenses 3,258 7,067 10,236 30,613 110,703
Interest and other
income, net (833) (1,250) (2,558) (2,879) (9,832)
------------------------------------------------
Loss from
continuing
operations before
taxes 2,425 5,817 7,678 27,734 100,871
Income tax expense -- -- -- 1,106 356
------------------------------------------------
Loss from
continuing
operations 2,425 5,817 7,678 28,840 101,227
Discontinued
operations - net
gain on sale of the
bone device
business, net of
taxes ($267) -- -- -- -- (2,202)
------------------------------------------------
NET LOSS $ 2,425 $ 5,817 $ 7,678 $ 28,840 $ 99,025
================================================
Per Share
Information:
Net loss, basic
and diluted $ 0.06 $ 0.14 $ 0.18 $ 0.71
======================================
Basic and diluted
shares outstanding 41,671 41,545 41,634 40,496
======================================