Cabg Medical (NASDAQ:CABG)
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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.
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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/