SAN DIEGO, CA--(Marketwire - May 9, 2012) - During the first quarter of 2012, Cytori Therapeutics (
Cytori has accomplished the following milestones year-to-date:
Pipeline
- Received approval from the FDA to begin the U.S. ATHENA IDE trial for chronic myocardial ischemia (CMI); all five centers have been identified and enrollment of the first patient is anticipated in the second quarter;
- Published clinical data from two company-sponsored European trials: the APOLLO cardiac cell therapy heart attack pilot trial and the RESTORE 2 post-marketing breast reconstruction trial;
- Completed multiple meetings with the European regulatory body to review clinical data, specifics on claims and negotiate details on potential patient registry toward CE Mark approval for no-option CMI; providing additional data upon the Notified Body's request; decision expected in 2012;
Commercial Business
- Continued to build market access for breast reconstruction in Europe; submitted a medical technology assessment application in the UK;
- Grew commercial business; product revenues increased by 9% compared to Q1 2011; reaffirm $9 million revenue guidance for 2012;
Operational and Financial Performance
- Reduced total operating expenses by 31% and the operating cash burn rate by 27% as compared to Q1 2011;
- Ended the quarter with $34.4 million in cash and cash equivalents, compared with $36.9 million as of year-end 2011;
- Received U.S. composition patent for soft tissue defects and U.S. device patent for accelerating healing of wounds, bringing the total number of issued patents worldwide to 46 with more than 75 applications under review;
- Continued to advance multiple near term partnerships, focused primarily on the two most advanced transactions;
"For our cardiac pipeline, we are placing greater emphasis on our chronic applications, which include the potential CE Mark approval and the U.S. ATHENA trial," said Christopher J. Calhoun, chief executive officer of Cytori. "We have improved operational efficiencies for the commercial business, including year-over-year revenue growth and reduced sales and marketing expenses. Lastly, we are advancing our partnership negotiations, strengthening our IP position and expanding country approvals."
Financial Results
Product revenues were $1.5 million in the first quarter of 2012, compared to $1.4 million in first quarter of 2011. Gross profits were $0.6 million for the first quarter of 2012, compared to $0.5 million for the same period in 2011. As stated in the 2011 year-end release, 2012 sales are expected to be weighted toward the second half of the year and based on internal quarterly projections. Cytori reaffirms guidance of $9 million in product revenue.
Total operating expenses were reduced by 31% to $9.0 million in the first quarter of 2012, compared to $13.0 million in the first quarter of 2011. Operating expenses include non cash costs associated with changes in the fair value of option and warrant liabilities. Net cash used in operating activities was reduced by 27% to $7.7 million in the first quarter of 2012 compared to $10.6 million in the first quarter of 2011. The improvement in total operating expenses and net cash used in operating activities for the first quarter of 2012 as compared to the first quarter of 2011 was due in part to reduced sales and marketing costs and slightly lower clinical trial expenditures.
Net loss was $9.3 million, or ($0.16) per share, for the first quarter of 2012 compared to $12.1 million, or ($0.23) per share, for the first quarter of 2011. At the end of the first quarter of 2012, Cytori had $34.4 million in cash and cash equivalents and $1.4 million in account receivable, net of reserves. This compares to ending 2011 with $36.9 million in cash and cash equivalents and $2.3 million in accounts receivable, net of reserves. Cytori recently terminated its financing agreement with Seaside 88, which raised a total of $18.2 million since we entered the agreement. The primary emphasis is to strengthen the balance sheet by executing one or more development and commercialization partnership agreement(s).
Conference Call, Shareholder Letter and Slide Presentation Information
Cytori will host a management conference call at 5:00 p.m. Eastern Time today to further discuss these results. The live webcast of the conference call may be accessed under "Webcasts" in the Investor Relations section (http://ir.cytori.com) of Cytori's website. The webcast will be available live and by replay two hours after the call. If you are unable to access the webcast, you may dial in to the call at +1.888.208.1815, Passcode: 6625514. More details on our business are contained in the 'May 2012 Shareholder Letter' posted on the homepage of our Investor Relations website.
About Cytori
Cytori Therapeutics is developing cell therapies based on autologous adipose-derived regenerative cells (ADRCs) to treat cardiovascular disease and repair soft tissue defects. Our scientific data suggest ADRCs improve blood flow, moderate the immune response and keep tissue at risk of dying alive. As a result, we believe these cells can be applied across multiple "ischemic" conditions. These therapies are made available to the physician and patient at the point-of-care by Cytori's proprietary technologies and products, including the Celution® system product family. www.cytori.com
Cautionary Statement Regarding Forward-Looking Statements
This press release includes forward-looking statements regarding events, trends and business prospects, which may affect our future operating results and financial position, such as the successful initiation of the ATHENA clinical trial of the Company's Celution® system for chronic myocardial ischemia, our efforts to expand our CE Mark, achieve our revenue projection for 2012, and execute a commercialization partnership agreement. Such statements are subject to risks and uncertainties that could cause our actual results and financial position to differ materially. Some of these risks include clinical and regulatory uncertainties, such as those associated with the ATHENA clinical trial, including risks in the collection and results of clinical data, final clinical outcomes, dependence on third party performance, performance and acceptance of our products in the marketplace, and other risks and uncertainties described under "Risk Factors" in Cytori's Securities and Exchange Commission Filings. We assume no responsibility to update or revise any forward-looking statements to reflect events, trends or circumstances after the date they are made.
| CYTORI THERAPEUTICS, INC. | ||||||||||
| CONSOLIDATED CONDENSED BALANCE SHEETS | ||||||||||
| (UNAUDITED) | ||||||||||
| As of March 31, 2012 | As of December 31, 2011 | |||||||||
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 34,399,000 | $ | 36,922,000 | ||||||
| Accounts receivable, net of reserves of $187,000 and of $474,000 in 2012 and 2011, respectively | 1,425,000 | 2,260,000 | ||||||||
| Inventories, net | 3,374,000 | 3,318,000 | ||||||||
| Other current assets | 1,135,000 | 837,000 | ||||||||
| Total current assets | 40,333,000 | 43,337,000 | ||||||||
| Property and equipment, net | 2,367,000 | 1,711,000 | ||||||||
| Restricted cash and cash equivalents | 350,000 | 350,000 | ||||||||
| Investment in joint venture | 200,000 | 250,000 | ||||||||
| Other assets | 1,794,000 | 1,772,000 | ||||||||
| Intangibles, net | 136,000 | 192,000 | ||||||||
| Goodwill | 3,922,000 | 3,922,000 | ||||||||
| Total assets | $ | 49,102,000 | $ | 51,534,000 | ||||||
| Liabilities and Stockholders' Equity (Deficit) | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable and accrued expenses | $ | 6,046,000 | $ | 5,334,000 | ||||||
| Current portion of long-term obligations | 4,911,000 | 2,487,000 | ||||||||
| Total current liabilities | 10,957,000 | 7,821,000 | ||||||||
| Deferred revenues, related party | 3,520,000 | 3,520,000 | ||||||||
| Deferred revenues | 5,176,000 | 5,244,000 | ||||||||
| Warrant liability | 757,000 | 627,000 | ||||||||
| Option liability | 1,640,000 | 1,910,000 | ||||||||
| Long-term deferred rent | 498,000 | 504,000 | ||||||||
| Long-term obligations, net of discount, less current portion | 19,704,000 | 21,962,000 | ||||||||
| Total liabilities | 42,252,000 | 41,588,000 | ||||||||
| Commitments and contingencies | ||||||||||
| Stockholders' equity: | ||||||||||
| Preferred stock, $0.001 par value; 5,000,000 shares authorized; -0- shares issued and outstanding in 2012 and 2011 | -- | -- | ||||||||
| Common stock, $0.001 par value; 95,000,000 shares authorized; 58,428,606 and 56,594,683 shares issued and outstanding in 2012 and 2011, respectively | 58,000 | 57,000 | ||||||||
| Additional paid-in capital | 258,566,000 | 252,338,000 | ||||||||
| Accumulated deficit | (251,774,000 | ) | (242,449,000 | ) | ||||||
| Total stockholders' equity | 6,850,000 | 9,946,000 | ||||||||
| Total liabilities and stockholders' equity | $ | 49,102,000 | $ | 51,534,000 | ||||||
| CYTORI THERAPEUTICS, INC. | ||||||||||
| CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||||
| (UNAUDITED) | ||||||||||
| For the Three Months Ended March 31, |
||||||||||
| 2012 | 2011 | |||||||||
| Product revenues | $ | 1,481,000 | $ | 1,362,000 | ||||||
| Cost of product revenues | 853,000 | 842,000 | ||||||||
| Gross profit | 628,000 | 520,000 | ||||||||
| Development revenues: | ||||||||||
| Development, related party | -- | 1,231,000 | ||||||||
| Research grants and other | 3,000 | 4,000 | ||||||||
| 3,000 | 1,235,000 | |||||||||
| Operating expenses: | ||||||||||
| Research and development | 2,836,000 | 3,047,000 | ||||||||
| Sales and marketing | 2,376,000 | 3,226,000 | ||||||||
| General and administrative | 3,924,000 | 3,544,000 | ||||||||
| Change in fair value of warrant liability | 130,000 | 3,471,000 | ||||||||
| Change in fair value of option liability | (270,000 | ) | (290,000 | ) | ||||||
| Total operating expenses | 8,996,000 | 12,998,000 | ||||||||
| Operating loss | (8,365,000 | ) | (11,243,000 | ) | ||||||
| Other income (expense): | ||||||||||
| Interest income | 2,000 | 2,000 | ||||||||
| Interest expense | (865,000 | ) | (738,000 | ) | ||||||
| Other expense, net | (47,000 | ) | (47,000 | ) | ||||||
| Equity loss from investment in joint venture | (50,000 | ) | (46,000 | ) | ||||||
| Total other expense | (960,000 | ) | (829,000 | ) | ||||||
| Net loss | $ | (9,325,000 | ) | $ | (12,072,000 | ) | ||||
| Basic and diluted net loss per common share | $ | (0.16 | ) | $ | (0.23 | ) | ||||
| Basic and diluted weighted average common shares | 57,484,990 | 51,994,708 | ||||||||
| CYTORI THERAPEUTICS, INC. | ||||||||||||
| CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||||
| (UNAUDITED) | ||||||||||||
| For the Three Months Ended March 31, | ||||||||||||
| 2012 | 2011 | |||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net loss | $ | (9,325,000 | ) | $ | (12,072,000 | ) | ||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
| Depreciation and amortization | 220,000 | 194,000 | ||||||||||
| Amortization of deferred financing costs and debt discount | 237,000 | 240,000 | ||||||||||
| Increase (decrease) in allowance for doubtful accounts | (24,000 | ) | 21,000 | |||||||||
| Change in fair value of warrant liability | 130,000 | 3,471,000 | ||||||||||
| Change in fair value of option liability | (270,000 | ) | (290,000 | ) | ||||||||
| Stock-based compensation | 942,000 | 881,000 | ||||||||||
| Equity loss from investment in joint venture | 50,000 | 46,000 | ||||||||||
| Increases (decreases) in cash caused by changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | 859,000 | 278,000 | ||||||||||
| Inventories | (56,000 | ) | (174,000 | ) | ||||||||
| Other current assets | (298,000 | ) | (130,000 | ) | ||||||||
| Other assets | (22,000 | ) | (922,000 | ) | ||||||||
| Accounts payable and accrued expenses | (83,000 | ) | (854,000 | ) | ||||||||
| Deferred revenues, related party | -- | (1,231,000 | ) | |||||||||
| Deferred revenues | (68,000 | ) | (10,000 | ) | ||||||||
| Long-term deferred rent | (6,000 | ) | (12,000 | ) | ||||||||
| Net cash used in operating activities | (7,714,000 | ) | (10,564,000 | ) | ||||||||
| Cash flows from investing activities: | ||||||||||||
| Purchases of property and equipment | (25,000 | ) | (131,000 | ) | ||||||||
| Net cash used in investing activities | (25,000 | ) | (131,000 | ) | ||||||||
| Cash flows from financing activities: | ||||||||||||
| Principal payments on long-term obligations | (71,000 | ) | -- | |||||||||
| Proceeds from exercise of employee stock options and warrants | 947,000 | 674,000 | ||||||||||
| Proceeds from sale of common stock | 4,396,000 | -- | ||||||||||
| Costs from sale of common stock | (56,000 | ) | -- | |||||||||
| Net cash provided by financing activities | 5,216,000 | 674,000 | ||||||||||
| Net decrease in cash and cash equivalents | (2,523,000 | ) | (10,021,000 | ) | ||||||||
| Cash and cash equivalents at beginning of period | 36,922,000 | 52,668,000 | ||||||||||
| Cash and cash equivalents at end of period | $ | 34,399,000 | $ | 42,647,000 | ||||||||
Contact Information:
Contact:
Investors
Tom Baker
tbaker@cytori.com
+1.858.875.5258
Media
Megan McCormick
mmccormick@cytori.com
+1.858.875.5279