Closure Medical (NASDAQ:CLSR)
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Closure Medical Revises 2004 Financial Outlook
RALEIGH, N.C., Sept. 29 /PRNewswire-FirstCall/ -- CLOSURE Medical Corporation
(NASDAQ:CLSR), a global leader in biomaterial-based medical devices, today
announced that it has revised its financial guidance for 2004 as a result of
lowered revenue expectations for its DERMABOND and BAND-AID(R) Brand Liquid
Bandage products. Total revenues for 2004 are currently expected to be in the
range of $40.0 to $41.0 million and earnings per share in the range of $0.59 to
$0.62, compared with previously forecasted revenues of $45.0 to $47.0 million
and $0.65 to $0.70 earnings per share. Included in these estimates, the
Company expects third quarter revenues of approximately $9.2 million and
earnings per share of $0.13 to $0.14.
The reduction in expected revenues attributable to DERMABOND products is
primarily due to a recent decision by the Company's marketing partner, ETHICON,
Inc., to reduce its inventory levels as a result of lower-than- expected unit
volume growth at the end-user level during the second half of 2004. The
Company expects inventories to reach ETHICON's targeted levels during the first
half of 2005, although this will depend on sales volumes. Overall the Company
expects DERMABOND revenue growth for 2004 to be approximately 17 percent, the
majority from the premium pricing and greater share of revenue received from
the DERMABOND ProPen products.
The domestic BAND-AID(R) Brand Liquid Bandage products continue, as previously
disclosed, to face pricing pressure from competitive products, including new
private label entrants. Retail price reduction initiatives instituted by the
Company's marketing partner to regain market share have experienced some
success, primarily with the BAND-AID(R) Brand Skin Crack product, although not
at the levels hoped for. As a result year-over-year Liquid Bandage revenues
are expected to be impacted through early 2005. Overall the Company expects
total Liquid Bandage revenue growth of approximately 16 percent for 2004.
Daniel A. Pelak, the Company's President and CEO, commented, "The fundamentals
of our business remain strong and well positioned for future growth. We are
pleased with the year-to-date adoption level of the higher priced DERMABOND
ProPen products; however, the sales force's concentration on introducing the
ProPen to current DERMABOND users consumed time that would otherwise have been
spent enlarging the total number of users of all products in the DERMABOND
product group."
Pelak continued, "The market for medical adhesives and sealants continues to
grow and attract the attention of the medical community. Closure is well
positioned to take advantage of the growth in this industry segment through its
market leader position in topical skin adhesives and the expected European
commercialization of our implantable surgical sealant during the first half of
2005."
About CLOSURE Medical Corporation
CLOSURE Medical Corporation is a global leader in the development and
manufacture of innovative biomaterial-based medical devices that fulfill the
needs of healthcare practitioners, patients and consumers.
For additional information on CLOSURE Medical visit its website at
http://www.closuremed.com/ or visit the "Clients" section of the Allen & Caron
website at http://www.allencaron.com/.
This release contains certain forward-looking statements which involve known
and unknown risks, delays, uncertainties or other factors not under the
Company's control which may cause actual results, performance or achievements
of the Company to be materially different from the results, performance, or
other expectations implied by these forward-looking statements. These factors
include, but are not limited to the early stage of commercialization of the
Company's products; the progress and success of its research and development
programs for future products; the success of its clinical study for its
vascular sealant product and future clinical studies; the successful enrollment
of current and future clinical studies; the need for regulatory approval and
effects of governmental regulation; technological uncertainties; the inventory
management policies adopted by the Company's marketing partners; end-user
growth for the products sold by the Company's marketing partners; the Company's
success in securing marketing partners for future products; the satisfactory
conclusion of negotiations with, and dependence on, marketing partners, and
dependence on patents and trade secrets, as well as those detailed in the
Company's Annual Report on Form 10-K for the year ended December 31, 2003,
filed with the Securities and Exchange Commission. Although the Company
believes that the expectations in the forward-looking statements are
reasonable, the Company cannot guarantee such results. The Company undertakes
no obligation to publicly revise these forward-looking statements to reflect
events or circumstances that arise after the date hereof.
DATASOURCE: CLOSURE Medical Corporation
CONTACT: investors, Joe Allen of Allen & Caron Inc, +1-212-691-8087,
, for CLOSURE Medical Corporation; or Benny Ward, CFO of
CLOSURE Medical Corporation, +1-919-876-7800
Web site: http://www.allencaron.com/
Web site: http://www.closuremed.com/