TEMPE, Ariz., May 7, 2007 (PRIME NEWSWIRE) -- OrthoLogic Corp. (Nasdaq:OLGC) today announced financial results for the first quarter of 2007.
OrthoLogic reported a net loss of $2.9 million, or $0.07 per share, for the first quarter of 2007, compared to a net loss of $16.5 million or $0.42 per share, for the first quarter of 2006. The $13.6 million decrease in net loss resulted primarily from $8.4 million in-process research and development costs related to the AzERx acquisition in 2006, a decrease of $900,000 in non-cash stock compensation expense and a $3.6 million decline in clinical costs related to the TP508 Phase 3 and Phase 2b fracture repair clinical trials, which were substantially completed as of December 31, 2006.
The Company began the quarter with $70.2 million in cash and investments and ended the quarter with $67.3 million in cash and investments.
The Company continues its asset optimization program for Chrysalin(r) (TP508) in fracture repair and diabetic foot ulcer healing indications. Preclinical development of AZX100 is fully engaged, with a targeted IND filing timeline of 4Q2007.
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 two lead indications, both of which represent areas of significant unmet medical need -- fracture repair and diabetic foot ulcer healing. Based on the Company's pioneering scientific research of the natural healing cascade, OrthoLogic has become a leading company focused on bone and tissue repair. 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 called Intracellular Actin Relaxing Molecules, or ICARMs(tm). AZX100 is currently being evaluated for commercially significant medical applications, such as the treatment of vasospasm associated with subarachnoid hemorrhage, the prevention of keloid scarring and the treatment of asthma. OrthoLogic has an exclusive worldwide license to AZX100.
OrthoLogic's corporate headquarters are in Tempe, Arizona. For more information, please visit the Company's website: 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 SHEET
(in thousands, except share and per share data)
March 31, December 31,
2007 2006
------------------------
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 19,896 $ 18,047
Short-term investments 24,266 35,977
Prepaids and other current assets 1,048 1,950
--------- ---------
Total current assets 45,210 55,974
Furniture and equipment, net 402 409
Long-term investments 23,107 16,206
--------- ---------
Total assets $68,719 $72,589
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 1,045 $ 1,621
Accrued compensation 441 584
Accrued clinical 94 133
Accrued severance and other
restructuring costs 298 366
Other accrued liabilities 574 737
--------- ---------
Total current liabilities 2,452 3,441
Stockholders' Equity
Common Stock $.0005 par value; 21 21
100,000,000 shares authorized;
41,594,491 and 41,564,291
shares issued and outstanding
Additional paid-in capital 188,268 188,236
Accumulated deficit (122,022) (119,109)
--------- ---------
Total stockholders' equity 66,267 69,148
--------- ---------
Total liabilities and
stockholders' equity $ 68,719 $ 72,589
========= =========
OrthoLogic Corp.
(A Development Stage Company)
CONDENSED Statements of Operations
(in thousands, except share and per share data)
(Unaudited)
As a Development
Three months ended Stage Company
March 31, August 5, 2004 -
----------------------
2007 2006 March 31, 2007
---------------------------------------
OPERATING EXPENSES
General and
administrative $ 979 $ 2,093 $ 14,325
Research and
development 2,818 6,716 56,003
Other divestiture
and related gains -- -- (375)
Purchased in-process
research and
development -- 8,434 34,311
------- ------- --------
Total operating
expenses 3,797 17,243 104,264
Interest and other
income, net (884) (762) (8,158)
------- ------- --------
Loss from continuing
operations before
taxes 2,913 16,481 96,106
Income tax expense -- -- 356
------- ------- --------
Loss from continuing
operations 2,913 16,481 96,462
Discontinued
operations - net gain
on sale of the
bone device business,
net of taxes ($267) -- -- (2,202)
------- ------- --------
NET LOSS $ 2,913 $ 6,481 $ 94,260
======= ======= ========
Per Share Information:
Net loss, basic
and diluted $ 0.07 $ 0.42
Basic and diluted
shares outstanding 41,594,491 39,250,851