TEMPE, Ariz., March 5, 2008 (PRIME NEWSWIRE) -- OrthoLogic Corp. (Nasdaq:OLGC) today announced operating results for the year ended December 31, 2007. The Company also announced that its Board of Directors has approved a stock repurchase program for up to five percent of its currently outstanding common shares. The shares may be repurchased from time to time in open market transactions or privately negotiated transactions at the Company's discretion, subject to market conditions and other factors. At February 29, 2008, there were approximately 41.8 million shares of common stock outstanding.
OrthoLogic reported a net loss for the year ended December 31, 2007 of $10.1 million, or $0.24 per share, compared to a net loss of $31.9 million, or $0.78 per share, for the year ended December 31, 2006. The $21.8 million decrease in net loss in 2007 compared to the same period in 2006 resulted primarily from the following: $8.5 million purchased in-process research and development costs in 2006; a decrease of $2.0 million in non-cash stock compensation expense; reduced costs in 2007 reflecting management changes and staff reductions occurring in the first half of 2006; a $5.5 million decline in clinical costs related to the Company's 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 an Alternative Minimum Tax credit carryover.
The Company began 2007 with $70.2 million in cash and investments and ended the year with $60.6 million in cash and investments, a net change of $9.6 million versus original guidance of $18.0 million to $19.0 million and revised guidance of $12.0 million. For 2008, the Company forecasts a cash burn of $16.0 million to $18.0 million.
Conference Call Information
Management will host a conference call and webcast on Wednesday, March 5, 2008 at 1:30 pm PST/2:30 pm MST/4:30 pm EST. The call may be accessed at 877-440-5784 (domestic), 719-325-4928 (international), or by logging onto the "Investors" section of the Company's website, www.orthologic.com. An accompanying slide set entitled "OLGC YE2007 Operating Results 05-Mar-2008.pdf" can be accessed via the "Corporate Presentation" tab in the "Investors" section of the website.
A replay will be available beginning March 5, 2008 at 7:30 PM EST until midnight March 7, 2008 and may be accessed at 888-203-1112 (domestic) or 719-457-0820 (international) with access code 4224965.
About OrthoLogic
OrthoLogic is a biotechnology company committed to developing a pipeline of novel therapeutic peptides aimed at helping patients with under-served medical conditions. The Company is focused on development and commercialization of two product platforms: AZX100 and Chrysalin(r) (TP508).
AZX100 is a novel synthetic clinical-stage 24-amino acid peptide, one of a new class of compounds in the field of smooth muscle relaxation and fibrosis. Based on its demonstrated effects in pre-clinical models, AZX100 is currently being evaluated for commercially significant medical applications such as the treatment of pulmonary disease, intimal hyperplasia and the prevention of hypertrophic and keloid scarring. OrthoLogic has an exclusive worldwide license to AZX100.
Chrysalin, the Company's novel synthetic 23-amino acid peptide, has been proven in multiple pre-clinical and clinical models to stimulate cellular events leading to angiogenesis, revascularization, and repair of dermal and musculoskeletal tissues. It is being studied in disorders that involve vascular endothelial dysfunction. The Company owns exclusive worldwide rights to Chrysalin.
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, 2007, 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)
BALANCE SHEETS
(in thousands, except share and per share data)
December 31,
--------------------
2007 2006
--------- ---------
ASSETS
Current assets
Cash and cash equivalents $ 20,943 $ 18,047
Short-term investments 18,236 35,977
Prepaids and other current assets 906 1,950
--------- ---------
Total current assets 40,085 55,974
Furniture and equipment, net 318 409
Long-term investments 21,459 16,206
--------- ---------
Total assets $ 61,862 $ 72,589
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 702 $ 1,621
Accrued compensation 658 584
Accrued clinical 1 133
Accrued severance and other restructuring costs 166 366
Other accrued liabilities 874 737
--------- ---------
Total current liabilities 2,401 3,441
Stockholders' Equity
Common Stock $.0005 par value; 21 21
100,000,000 shares authorized; 41,758,065
and 41,564,291 shares issued and outstanding
Additional paid-in capital 189,013 188,236
Accumulated deficit (129,573) (119,109)
--------- ---------
Total stockholders' equity 59,461 69,148
--------- ---------
Total liabilities and stockholders' equity $ 61,862 $ 72,589
========= =========
ORTHOLOGIC CORP.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
(in thousands, except per share data)
As a
Years Ended December 31, Development
------------------------- Stage Company
August 5, 2004 -
2007 2006 2005 December 31, 2007
------- ------- ------- -----------------
OPERATING EXPENSES
General and
administrative $ 3,738 $ 6,558 $ 4,910 $ 17,084
Research and
development 9,641 19,661 25,444 62,826
Purchased in-process
research and
development 8,471 -- 34,311
Other gains (250) (375)
------- ------- ------- -----------------
Total operating
expenses 13,379 34,690 30,104 113,846
Interest and other
income, net (3,278) (3,883) (2,640) (10,552)
------- ------- ------- -----------------
Loss from continuing
operations before
taxes 10,101 30,807 27,464 103,294
Income tax expense
(benefit) 1,106 (108) 356
------- ------- ------- -----------------
Loss from continuing
operations 10,101 31,913 27,356 103,650
Discontinued operations
- net gain on the sale
of the bone device
business, net of taxes
of $0, $0, $96, ($267)
respectively -- -- (154) (2,202)
------- ------- ------- -----------------
NET LOSS $10,101 $31,913 $27,202 $ 101,448
------- ------- ------- -----------------
Per Share Information:
Net loss, basic and
diluted $ 0.24 $ 0.78 $ 0.72
======= ======= =======
Basic and diluted
shares outstanding 41,644 40,764 38,032
------- ------- -------
ORTHOLOGIC CORP.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
(in thousands)
As a
Development
Stage Company
August 5,
2004 -
Years Ended December 31, December 31,
2007 2006 2005 2007
----------------------------------------------------------------------
OPERATING ACTIVITIES
Net loss $(10,101) $(31,913) $(27,202) $ (101,448)
Non Cash items:
Deferred tax expense -- 1,106 -- 770
Depreciation and
amortization 169 2,833 392 3,434
Non-cash stock
compensation 777 2,781 162 3,720
Gain on sale of bone
device business -- -- (250) (2,298)
In-process research
and development -- 8,471 -- 34,311
Change in other
operating items: --
Prepaids and other
current assets 1,044 (1,094) 424 803
Accounts payable (919) 334 203 (269)
Accrued liabilities (384) (1,422) (294) (1,317)
-------- -------- -------- -------------
Cash flows used in
operating
activities (9,414) (18,904) (26,565) (62,294)
-------- -------- -------- -------------
INVESTING ACTIVITIES
Expenditures for
furniture and
equipment, net (178) (196) (268) (693)
Proceeds from sale
of assets -- -- 7,000 7,000
Cash paid for assets
of AzERx/CBI -- (390) -- (4,058)
Cash paid for patent
assignment rights -- (250) (400) (650)
Purchases of
investments (51,395) (56,509) (48,823) (197,289)
Maturities of
investments 63,883 52,847 65,502 215,532
-------- -------- -------- -------------
Cash flows provided
by (used in)
investing
activities 12,310 (4,498) 23,011 19,842
-------- -------- -------- -------------
FINANCING ACTIVITIES
Net proceeds from stock
option exercises -- 2,962 288 4,612
Net proceeds from sale
of stock -- 3,376 -- 3,376
-------- -------- -------- -------------
Cash flows provided
by financing
activities -- 6,338 288 7,988
-------- -------- -------- -------------
NET INCREASE (DECREASE)
IN CASH AND CASH
EQUIVALENTS 2,896 (17,064) (3,266) (34,464)
CASH AND CASH
EQUIVALENTS,
BEGINNING OF PERIOD 18,047 35,111 38,377 55,407
-------- -------- -------- -------------
CASH AND CASH
EQUIVALENTS,
END OF PERIOD $ 20,943 $ 18,047 $ 35,111 $ 20,943
======== ======== ======== =============
Supplemental Disclosure
of Non-Cash Investing
Activities
AzERx / CBI Acquisitions
Current assets
acquired $ -- $ -- $ -- $ 29
Patents acquired -- -- -- 2,142
Liabilities acquired,
and accrued acquisition
costs -- (317) -- (457)
Original investment
reversal -- -- -- (750)
In-process research and
development acquired -- 8,471 -- 34,311
Common stock issued for
acquisitions -- (7,764) -- (31,217)
-------- -------- -------- -------------
Cash paid for
acquisitions $ -- $ 390 $ -- $ 4,058
======== ======== ======== =============