SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
OR
For the quarterly period ended September 30, 1996
Commission File No. 0-15360
BIOJECT MEDICAL TECHNOLOGIES INC.
(Exact name of registrant as specified in its charter)
Oregon 93-1099680
(State of other jurisdiction of (I.R.S. identification no.)
employer incorporation or organization)
7620 SW Bridgeport Road
Portland, Oregon 97224
(Address of principal executive offices) (Zip code)
(503) 639-7221
(Registrant's telephone number, including areas code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes [X] No [ ]
At September 30, 1996 there were 15,616,712 outstanding shares of common
stock of the registrant.
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The following unaudited consolidated financial statements of Bioject
Medical Technologies Inc. (BMT) and its subsidiaries, Bioject Medical Systems
Ltd. (BMSL) and Bioject Inc. (BI) (together, unless the context otherwise
requires, the "Company"), have been prepared pursuant to the rules and
regulations of the Securities and Exchange Commission. BMT, BMSL and BI were
formed for the purpose of developing, manufacturing and distributing a new
drug delivery system, capable of injecting medications through the skin
without the traditional needle puncture. The following 10-Q report reflects
the consolidated results of operations, cash flows and financial position for
the second quarter of the year ending March 31, 1997. The results of
operations for interim periods are not necessarily indicative of the results
to be expected for the year.
- Consolidated Statements of Operations for the quarters ended
September 30, 1996 and September 30, 1995
- Consolidated Statements of Operations for the six months ended
September 30, 1996 and September 30, 1995
- Consolidated Balance Sheets dated September 30, 1996 and
March 31, 1996
- Consolidated Statements of Cash Flows for the quarters ended
September 30, 1996 and September 30, 1995
- Consolidated Statements of Cash Flows for the six months ended
September 30, 1996 and September 30, 1995
Page 1
BIOJECT MEDICAL TECHNOLOGIES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three-Month Period Ended
September 30,
1996 1995
-------------------------
REVENUES:
Net sales of products $ 342,762 $ 930,575
Licensing/technology fees 270,600 225,000
----------- ---------
613,362 1,155,575
----------- -----------
EXPENSES:
Manufacturing 603,001 1,485,237
Research and development 284,112 360,202
Selling, general and administrative 824,637 811,055
Other (income) expense, net (28,440) (41,029)
----------- -----------
1,683,310 2,615,465
----------- -----------
INCOME (LOSS) BEFORE TAXES (1,069,948) (1,459,890)
PROVISION FOR INCOME TAXES - -
----------- -----------
NET INCOME (LOSS) $(1,069,948) $(1,459,890)
=========== ===========
EARNINGS (LOSS) PER SHARE $ (.07) $ (.11)
=========== ===========
SHARES USED IN PER SHARE CALCULATION 15,616,712 13,270,251
=========== ===========
The accompanying notes are an integral part
of these consolidated financial statements.
Page 2
BIOJECT MEDICAL TECHNOLOGIES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Six-Month Period Ended
September 30,
1996 1995
-------------------------
REVENUES:
Net sales of products $ 519,631 $ 1,634,019
Licensing/technology fees 585,500 450,000
----------- ---------
1,105,131 2,084,019
----------- -----------
EXPENSES:
Manufacturing 1,184,543 2,894,027
Research and development 692,480 728,008
Selling, general and administrative 1,572,064 1,677,364
Other (income) expense, net (50,112) (108,747)
----------- -----------
3,398,975 5,190,652
----------- -----------
INCOME (LOSS) BEFORE TAXES (2,293,844) (3,106,633)
PROVISION FOR INCOME TAXES - -
----------- -----------
NET INCOME (LOSS) $(2,293,844) $(3,106,633)
=========== ===========
EARNINGS (LOSS) PER SHARE $ (.15) $ (.23)
=========== ===========
SHARES USED IN PER SHARE CALCULATION 15,601,058 13,264,754
=========== ===========
The accompanying notes are an integral part
of these consolidated financial statements.
Page 3
BIOJECT MEDICAL TECHNOLOGIES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, March 31,
1996 1996
--------------------------
ASSETS (unaudited)
- ------------------------------------------
CURRENT ASSETS:
Cash and cash equivalents $ 1,501,373 $ 3,098,251
Securities available for sale - 993,056
Accounts receivable 269,586 424,859
Inventories 1,575,984 1,255,945
Prepaid and other current assets 43,850 45,714
----------- -----------
Total current assets 3,390,793 5,817,825
CASH - RESTRICTED 795,836 -
PROPERTY AND EQUIPMENT, at cost:
Machinery and equipment 1,435,738 1,428,001
Production molds 780,980 777,353
Furniture and fixtures 163,832 163,116
Leasehold improvements 73,854 73,854
Equipment and molds under
construction, pledged 604,164 -
Capitalized interest 30,908
----------- -----------
3,089,476 2,442,324
Less - Accumulated depreciation (1,337,838) (1,048,638)
----------- -----------
1,751,638 1,393,686
OTHER ASSETS 297,927 307,105
----------- -----------
$ 6,236,194 $ 7,518,616
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
- --------------------------------------------
CURRENT LIABILITIES:
Accounts payable $ 442,299 $ 550,174
Accrued payroll 184,932 158,225
Other accrued liabilities 286,166 216,924
Deferred revenue 30,000 566,000
----------- -----------
Total current liabilities 943,397 1,491,323
LONG-TERM DEBT 1,400,000 -
COMMITMENTS
SHAREHOLDERS' EQUITY:
Preferred stock, no par, 10,000,000
shares authorized; no shares issued
and outstanding -
Common stock, no par, 100,000,000
shares authorized; issued and
outstanding 15,616,712 shares at
September 30, 1996 and 15,585,232
at March 31, 1996 36,160,508 36,001,158
Accumulated deficit (32,267,711) (29,973,865)
----------- -----------
Total shareholders' equity 3,892,797 6,027,293
----------- -----------
$ 6,236,194 $ 7,518,616
=========== ===========
The accompanying notes are an integral part
of these consolidated financial statements.
Page 4
BIOJECT MEDICAL TECHNOLOGIES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
Three-Month Period Ended
September 30,
1996 1995
--------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(1,069,948) $(1,459,890)
Adjustments to net loss:
Depreciation and amortization 132,000 132,600
Common stock issued for services - -
Net changes in assets and liabilities:
Accounts receivable (196,876) 121,452
Inventories (58,804) 32,438
Prepaid and other current assets 3,932 11,418
Accounts payable 136,322 (96,197)
Accrued payroll 48,774 107,525
Other accrued liabilities 60,462 18,584
Deferred revenue (270,600) (25,000)
----------- -----------
Net Cash Used in Operating Activities (1,214,738) (1,157,070)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Transfers to restricted cash (622,673) -
Purchase of securities available for sale -
Sale of securities available for sale - 986,320
Capital expenditures (360,672) (23,645)
Other assets (4,033) (12,804)
----------- -----------
Net Cash Used in Investing Activities (987,378) 949,871
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of long-term debt 950,000 -
Cash proceeds from common stock - -
----------- -----------
Net Cash Provided by Financing Activities 950,000 -
----------- -----------
CASH AND CASH EQUIVALENTS:
Net increase (decrease) in cash and
cash equivalents (1,252,116) (207,199)
Cash and cash equivalents at beginning
of period 2,753,489 2,688,336
----------- -----------
Cash and cash equivalents at end
of period $ 1,501,373 $ 2,481,137
=========== ===========
The accompanying notes are an integral part
of these consolidated financial statements.
Page 5
BIOJECT MEDICAL TECHNOLOGIES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
Six-Month Period Ended
September 30,
1996 1995
--------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(2,293,844) $(3,106,633)
Adjustments to net loss:
Depreciation and amortization 304,200 265,200
Common stock issued for services 159,350 16,766
Net changes in assets and liabilities:
Accounts receivable 155,273 52,203
Inventories (320,039) (235,438)
Prepaid and other current assets 1,864 25,934
Accounts payable (107,875) (45,062)
Accrued payroll 26,707 57,717
Other accrued liabilities 69,240 32,900
Deferred revenue (536,000) (100,000)
----------- -----------
Net Cash Used in Operating Activities (2,541,124) (3,036,413)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Transfers to restricted cash (795,836) -
Purchase of securities available for sale - (986,320)
Sale of securities available for sale 993,056 4,975,788
Capital expenditures (647,152) (490,943)
Other assets (5,822) (38,359)
----------- -----------
Net Cash Used in Investing Activities (455,754) 3,460,166
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of long-term debt 1,400,000 -
Cash proceeds from common stock - -
----------- -----------
Net Cash Provided by Financing Activities 1,400,000 -
----------- -----------
CASH AND CASH EQUIVALENTS:
Net increase (decrease) in cash and
cash equivalents (1,596,878) 423,753
Cash and cash equivalents at beginning
of period 3,098,251 2,057,384
----------- -----------
Cash and cash equivalents at end
of period $ 1,501,373 $ 2,481,137
=========== ===========
The accompanying notes are an integral part
of these consolidated financial statements.
Page 6
BIOJECT MEDICAL TECHNOLOGIES INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. THE COMPANY:
The consolidated financial statements of Bioject Medical Technologies
Inc. and its subsidiaries (the "Company"), include the accounts of Bioject
Medical Technologies Inc. ("BMT") and its wholly owned subsidiaries, Bioject
Medical Systems Ltd. ("BMSL") and Bioject Inc. ("BI"). All significant
intercompany transactions have been eliminated. BMT was incorporated on
December 17, 1992 under the laws of the State of Oregon for the purpose of
acquiring all of the outstanding common shares of BMSL in exchange for an
equivalent number of common shares of BMT stock under a plan of U.S.
reincorporation approved by the Company's shareholders on November 20, 1992.
BMSL was incorporated on February 14, 1985, under the laws of British
Columbia, and BI was incorporated on February 8, 1985, under the laws of the
State of Oregon.
The Company commenced operations in 1985 for the purpose of developing,
manufacturing and distributing a new drug delivery system. Since its
formation, the Company has been engaged principally in organizational,
financing, research and development, and marketing activities. In the last
quarter of fiscal 1993, the Company launched U.S. distribution of its
Biojector 2000 system primarily to the hospital and large clinic market.
The Company's products and manufacturing operations are subject to extensive
government regulation, both in the U.S. and abroad. In the U.S., the
development, manufacture, marketing and promotion of medical devices is
regulated by the Food and Drug Administration ("FDA") under the Federal Food,
Drug, and Cosmetic Act ("FFDCA"). In 1987, the Company received clearance from
the FDA under Section 510(k) of the FFDCA to market a hand-held CO2-powered
jet injection system. In June 1994, the Company received clearance from the
FDA under 510(k) to market a version of its Biojector 2000 system in a
configuration targeted at high volume injection applications.
The Company's revenues to date have been derived primarily from licensing
and technology fees and more recently from sales of the Biojector 2000 system
and Biojector syringes to public health clinics and to Health Management Inc.
with whom the Company signed a two-year distribution agreement in fiscal
1995. Subsequent to year end this agreement was cancelled. Although not
obligated to do so, the Company agreed to repurchase a portion of the goods
sold. Future revenues will depend upon acceptance and use by healthcare
providers of the Company's jet injection technology. Uncertainties over
government regulation and competition in the healthcare industry may impact
healthcare provider expenditures and third party payer reimbursements and,
accordingly, the Company cannot predict what impact, if any, subsequent
healthcare reforms might have on its business. In the future the Company may
require additional financing. Failure to obtain such financing on favorable
terms could adversely affect the Company's business.
2. ACCOUNTING POLICIES:
INVENTORIES
Inventories are stated at the lower of cost or market. Cost is determined in a
manner which approximates the first-in, first out (FIFO) method. Costs
utilized for inventory valuation purposes include labor, materials and
manufacturing overhead. Net inventories consist of the following:
September 30, March 31,
1996 1996
---------- ----------
Raw Materials $ 739,004 $ 697,694
Work in Process 18,352 12,467
Finished Goods 818,628 545,784
---------- ----------
$1,575,984 $1,255,945
========== ==========
Page 7
During the first six months, although not obligated to do so, the Company
committed to repurchase certain inventories from one customer. The purchase
price totalled $660,000 of which $491,000 has been satisfied and the balance
is to be paid in October 1996.
PROPERTY AND EQUIPMENT AND LONG-TERM DEBT
In the first six months of fiscal 1997, the Company commenced acquiring
tooling and molds under a contract with Schering AG. Under the contract,
Schering has agreed to advance the Company up to $1.6 million on an agreed-
upon schedule to acquire this capital equipment which is pledged to Schering
subject to repayment of the loans. During the six month period, $1.4 million,
of these loans were received from Schering. Unexpended funds advanced to the
Company must be held in a separate account and are also pledged against
repayment of the debt. The loans bear interest at Wells Fargo Bank prime rate
plus 2 1/2%. Interest only is payable in annual installments until March 1998
at which time repayment of principal and interest will commence and be
amortized over a 24-36 month period.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
3. BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS
The accompanying, unaudited consolidated financial statements do not
include all information and footnote disclosures normally included in an
audited financial statement. However, in the opinion of management, all
adjustments (which include only normal, recurring adjustments except as
described below) necessary to present fairly the financial position, cash
flows, and results of operations have been made. It is suggested that these
statements be read in conjunction with the financial statements included in
the Company's Annual Report on Form 10-K for the year ended March 31, 1996.
On June 3, 1996, the British Columbia Securities Commission informed the
Company that its Executive Director (formerly the Superintendent of Brokers)
consented to the release of all shares originally held in escrow pursuant to
an escrow agreement dated May 30, 1986. This means that the 1.5 million
shares of common stock which had been held under this escrow arrangement since
the Company's initial public offering in July 1986 are now held by the owners
of the shares without risk of cancellation and may be sold. As previously
disclosed, a non-cash charge to compensation expense is required to be
recorded for certain of the shares being released from the escrow account and
transferred to certain former employees and consultants of the Company.
Accordingly, a non-cash charge totalling $120,000 has been recorded in the
financial statements in the first quarter of fiscal 1997.
Page 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The Company has been developing a self-injection system for Schering AG,
Germany, under a multi-year contract signed in March 1994. On June 26, 1996,
the Company and Schering entered into a Supply Agreement which specifies the
terms under which the Company will manufacture and sell the self-injection
systems to Schering. Subject to Schering's satisfaction with certain product
test results and receipt of regulatory approval in the United States and
certain foreign countries, Bioject will manufacture the self-injection systems
exclusively for Schering AG which will distribute the systems on a worldwide
basis to multiple sclerosis patients using Betaseron. The agreement extends
for an initial term of eight years and provides for minimum amounts which must
be produced by Bioject and which must be purchased by Schering AG in order for
both parties to maintain their rights under the agreement. The Company has
commenced preparation to manufacture the self-injection systems, and initial
shipments under the agreement are scheduled to commence in the first quarter
of fiscal 1998.
The Company's revenues to date have not been sufficient to cover
operating expenses. However, the Company believes that if its products
achieve market acceptance and the volume of sales increases, and its product
costs are reduced, its costs of goods as a percentage of sales will decrease
and eventually the Company will generate net income. (See "Forward Looking
Statements") The level of sales required to generate net income will be
affected by a number of factors including the pricing of the Company's
products, its ability to attain efficiencies that can be attained through
volume and automated manufacturing, and the impact of inflation on the
Company's manufacturing and other operating costs. There can be no assurance
that the Company will be able to successfully implement its manufacturing cost
reduction program or sell its products at prices or in volumes sufficient to
achieve profitability or offset increases in its costs should they occur.
Revenues and results of operations have fluctuated and can be expected to
continue to fluctuate significantly from quarter to quarter and from year to
year. Various factors may affect quarterly and yearly operating results
including (i) length of time to close product sales, (ii) customer budget
cycles, (iii) implementation of cost reduction measures, (iv) uncertainties
and changes in purchasing due to third party payor policies and proposals
relating to national healthcare reform, (v) timing and amount of payments
under technology development agreements and (vi) timing of new product
introductions by the Company and its competition.
On June 3, 1996, the British Columbia Securities Commission informed the
Company that its Executive Director (formerly the Superintendent of Brokers)
consented to the release of all shares originally held in escrow pursuant to
an escrow agreement dated May 30, 1986. This means that the 1.5 million
shares of common stock which had been held under this escrow arrangement since
the Company's initial public offering in July 1986 are now held by the owners
of the shares without risk of cancellation and may be sold. As previously
disclosed, a non-cash charge to compensation expense is required to be
recorded for certain of the shares being released from the escrow account and
transferred to certain former employees and consultants of the Company.
Accordingly, a non-cash charge totalling $120,000 has been recorded in the
financial statements during the first quarter.
During fiscal 1997, the Company will continue to focus its efforts on
expanding sales, reducing the cost of its products, developing injectors for
Schering and Hoffmann-La Roche, pursuing additional alliances with
pharmaceutical companies and conserving its fiscal resources. The Company
does not expect to report net income from options in fiscal 1997. (See
Forward Looking Statements).
Page 9
RESULTS OF OPERATIONS
QUARTER ENDED SEPTEMBER 30, 1996 COMPARED TO QUARTER ENDED SEPTEMBER 30, 1995.
Product sales decreased from $931,000 in the second quarter of fiscal
1996 to $343,000 in the second quarter of fiscal 1997. Sales in the second
quarter of fiscal 1996 consisted of approximately $650,000 of sales to Health
Management Inc., and the remainder to providers of flu season immunizations.
Product Sales in the second quarter of fiscal 1997 consisted primarily of
sales for flu season immunizations. The decrease in product sales was directly
attributable to the previously announced suspension of shipments to HMI.
License and technology fees increased from $225,000 in the second quarter
of fiscal 1996 to $271,000 in the second quarter of fiscal 1997. Both
quarters consisted of product development fees recognized for work performed
to develop a self injection device for the administration of Betaseron to
multiple sclerosis patients under an agreement with Schering, AG, and product
development fees for work to develop proprietary drug delivery systems under
an agreement with Hoffmann-La Roche. The increase in fees reflected an
variations in activity for the second quarter of fiscal 1997 compared to the
second quarter in the prior year.
Manufacturing expense decreased from the second quarter of fiscal 1996 to
the second quarter of fiscal 1997 by $882,000. This decrease was the result
of the decline in product sales and the elimination of certain excess
materials and labor costs incurred in connection with the installation and
validation of the automated syringe assembly equipment and testing of
Biojector unibody prototypes in the second quarter of the prior year.
Research and development expenses declined from $360,000 in the second
quarter of fiscal 1996 to $284,000 in the second quarter of fiscal 1997 due to
fluctuations in out-of-pocket expenses associated with the Schering and
Hoffmann-La Roche projects. Selling, general and administrative expense
remained constant at $811,000 in the second quarter of fiscal 1996 compared to
$825,000 in the second quarter of fiscal 1997. The slight increase was due
to normal variations in the timing of some expenses.
Other income consists of earnings on available cash balances. Other
income decreased from $41,000 in the second quarter of fiscal 1996 to $28,000
in the second quarter of fiscal 1997 as a result of decreases in cash
balances.
SIX MONTHS ENDED SEPTEMBER 30, 1996 COMPARED TO SIX MONTHS ENDED SEPTEMBER 30,
1995. Revenues for the six months ended September 30, 1996 consist of $520,000
in product sales and $586,000 in product development fees. This compares to
$1.6 million from product sales (81% of which were to HMI) and $450,000 in
product development fees earned in the comparable period in the prior year. The
decrease in product sales was directly attributable to the previously
announced suspension of shipments to HMI. Licensing and technology fees
consist entirely of product development fees recognized as revenue under the
Schering and Hoffmann-La Roche contracts.
Manufacturing costs decreased from $2.9 million in the first six months of the
prior year to $1.2 million in the comparable period in the current year. This
decrease was due to lower product sales and, therefore, corresponding
decreases in the costs of product sold. It was also due to the elimination of
excess labor and materials associated with qualifying the syringe automation
equipment for production and to costs associated with Biojector unibody
prototype testing and qualification. Research and product development expenses
decreased approximately $36,000 due to fluctuation in prototype and other
out-of-pocket expenses. Selling, general and administrative costs decreased
approximately $100,000 due primarily to reduced personnel expenses.
Other income consists of earnings on available cash balances. Other income
decreased in relation to the comparable periods the prior year as a result of
decreases in cash balances.
Page 10
LIQUIDITY AND CAPITAL RESOURCES
Since its inception in 1985, the Company has financed its operations,
working capital needs and capital expenditures primarily from private
placements of securities, exercises of stock options, proceeds received from
its initial public offering in 1986, proceeds received from a public offering
of Common Stock in November 1993, licensing and technology revenues and more
recently from sales of products and a private placement of common stock
completed in fiscal 1996 with net proceeds of approximately $3.5 million. Net
proceeds received upon issuance of securities from inception through
September 30, 1996 totalled approximately $36.0 million.
Cash, cash equivalents and marketable securities totalled, $1.5 million
at September 30, 1996 and $4.1 million at March 31, 1996. The decrease
resulted primarily from operating losses and from reductions in certain short
term liabilities.
Inventories increased from $1.3 million at March 31, 1996 to $1.6 million
at September 30, 1996, due to the repurchase of certain inventories from HMI.
The Company has committed to repurchase an additional $169,000 in inventories
in October 1996. The repurchase of these inventories was optional and was at a
substantial discount to the original selling price to HMI.
The Company expects to expend approximately $2.0 million for capital
equipment in fiscal 1997. Substantially all of these expenditures are related
to ramp-up of manufacturing for the Schering product launch. Based on its
contract with Schering, the Company believes that up to $1.6 million of these
expenditures will be funded by interest bearing loans to be provided by
Schering with repayment by Bioject over a period of 4 to 5.5 years. During the
first six months, a total of $1.4 million of these funds was advanced by
Schering to the Company. Of this total, $604,000 was used as deposits on
equipment and molds and $796,000 was held in a restricted cash account for
future equipment and mold expenditures.
The Company believes that its current cash position and loans from
Schering combined with revenues and other cash receipts will be adequate to
fund the Company's operations through fiscal 1997. (See "Forward Looking
Statements"). Thereafter, the Company will require additional financing.
However, unforeseen costs and expenses or lower than anticipated cash
receipts from product sales or research and development activities could
accelerate the financing requirement. The Company has been successful in
raising additional financing in the past and believes that sufficient funds
will be available to fund future operations. (See "Forward Looking
Statements"). However, there can be no assurance that such financing will be
available on favorable terms or at all. Failure to obtain additional financing
when required would significantly restrict the Company's operations and
ability to continue product development, and materially adversely affect the
Company's business. The Company has no banking line of credit or other
established source of borrowing.
FORWARD LOOKING STATEMENTS
Certain statements in this report constitute "forward looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
Such forward looking statements involve known and unknown risks, uncertainties
and other factors which may cause the actual results, performance or
achievements of the Company, or industry results, to be materially different
from any future results, performance, or achievements expressed or implied by
such forward-looking statements. Such risks, uncertainties and factors are
described in more detail in the Company's Annual Report on Form 10-K and other
S.E.C. filings.
Page 11
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
None during the quarter ended September 30, 1996.
Item 2. Changes in Securities
None during the quarter ended September 30, 1996.
Item 3. Defaults Upon Senior Securities
None during the quarter ended September 30, 1996.
Item 4. Submission of Matters to a Vote of Security Holders
None during the quarter ended September 30, 1996.
Item 5. Other Information
None during the quarter ended September 30, 1996.
Item 6. Exhibits and Reports on Form 8-K
EXHIBITS:
10.4.2 Lease Agreement dated September 10, 1996 between
Bridgeport Woods Business Park and Bioject Inc. for
the Portland, Oregon facility.
REPORTS ON FORM 8K:
None.
Page 12
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
BIOJECT MEDICAL TECHNOLOGIES INC.
(Registrant)
Date: November 14, 1996 /S/ James C. O'Shea
---------------------------------
James C. O'Shea
Chairman, Chief Executive Officer
and President
/S/ Peggy J. Miller
---------------------------------
Peggy J. Miller
Vice President and Chief Financial Officer
Page 13