UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[ x ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to .
------------------- -----------------
Commission File Number 0-24424
CIMA LABS INC.
(Exact name of registrant as specified in its charter)
Delaware 41-1569769
- -------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
10000 Valley View Road, Eden Prairie, Minnesota 55344-9361
(Address of principal executive offices including zip code)
(612) 947-8700
(Registrant's telephone number, including area code)
-----------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
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 periods 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
-------- --------
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practical date.
Common Stock, $.01 Par Value 9,610,394
------------------------------- ------------------------------
(Class) (Outstanding at April 30, 1998)
1
CIMA LABS INC.
TABLE OF CONTENTS
PAGE
NUMBER
------
COVER PAGE 1
TABLE OF CONTENTS 2
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
Condensed Balance Sheets as of March 31, 1998 and
December 31, 1997 3
Condensed Statements of Operations for the three-month
periods ended March 31, 1998 and 1997 4
Condensed Statements of Cash Flows for the three-month
periods ended March 31, 1998 and 1997 5
Notes to Condensed Financial Statements 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS 7
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET 10
RISK
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS 11
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS 11
ITEM 3. DEFAULTS UPON SENIOR SECURITIES 11
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 11
ITEM 5. OTHER INFORMATION 11
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 11
SIGNATURE 12
2
PART I.
ITEM 1. FINANCIAL STATEMENTS
CIMA LABS INC.
Condensed Balance Sheets
March 31, December 31,
1998 1997 (1)
-----------------------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $3,129,410 $1,145,760
Short-term investments 1,304,115 3,277,300
Accounts receivable:
Net of allowance for doubtful
accounts $32,150-1998; $32,150-1997 503,717 1,597,814
Inventories--Note B 413,246 630,619
Prepaid expenses 212,974 146,805
-----------------------------
Total current assets 5,563,462 6,798,298
Property, plant and equipment 14,712,251 14,149,345
Less accumulated depreciation (4,266,280) (3,891,167)
-----------------------------
10,445,971 10,258,178
Other assets:
Lease deposits 40,651 40,651
Patents and trademarks, net of amortization 226,106 230,889
-----------------------------
266,757 271,540
-----------------------------
Total assets $16,276,190 $17,328,016
-----------------------------
-----------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $178,871 $128,712
Accrued expenses 687,125 620,580
Advance royalties 726,405 741,405
-----------------------------
Total current liabilities 1,592,401 1,490,697
Long-term obligations:
Long-term obligations under capital leases 221,801 -
-----------------------------
Total liabilities and obligations 1,814,202 1,490,697
Commitments and contingencies
Stockholders' equity:
Convertible Preferred Stock, $.01 par value:
Authorized shares--5,000,000
Issued and outstanding shares - 0
Common Stock, $.01 par value:
Authorized shares--20,000,000
Issued and outstanding shares-
9,610,394-March 31, 1998; 9,608,394-
December 31, 1997 96,104 96,084
Additional paid-in capital 57,274,274 57,268,594
Retained earnings (deficit) (42,908,390) (41,527,359)
-----------------------------
Total stockholders' equity 14,461,988 15,837,319
Total liabilities and stockholders' equity $16,276,190 $17,328,016
-----------------------------
-----------------------------
- --------------------
(1) The balance sheet at December 31, 1997 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for
complete financial statements.
See notes to condensed financial statements.
3
CIMA LABS INC.
Condensed Statements of Income (Unaudited)
Three Months Ended
March 31,
-----------------------------
1998 1997
---- ----
Revenues:
Net sales $187,692 $191,708
Research and development
fees & licensing revenues 981,800 76,548
-----------------------------
1,169,492 268,256
Costs and expenses:
Cost of goods sold 370,622 580,874
Research and product development 1,478,500 1,230,499
Selling, general and administrative 760,848 889,679
-----------------------------
2,609,970 2,701,052
Other income (expense):
Interest income, net 59,167 128,291
Other income (expense) 283 1,193
-----------------------------
59,450 129,484
-----------------------------
Net loss
($1,381,028) ($(2,303,312)
-----------------------------
-----------------------------
Net loss per share:
Basic & diluted ($0.14) ($0.24)
Weighted average shares
outstanding:
Basic & diluted 9,609,216 9,446,235
See notes to condensed financial statements.
4
CIMA LABS INC.
Condensed Statements of Cash Flows (Unaudited)
Three Months Ended
March 31,
-----------------------------
1998 1997
---- ----
OPERATING ACTIVITIES
Net loss ($1,381,028) ($2,303,312)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 403,081 155,385
Changes in operating assets and liabilities:
Accounts receivable 1,053,809 (5,433)
Inventories 217,371 (136,340)
Other current assets (25,881) (161,240)
Accounts payable 50,159 93,921
Accrued expenses 4,515 (65,370)
-----------------------------
Net cash provided by (used in) operating
activities 322,026 (2,422,389)
-----------------------------
INVESTING ACTIVITIES
Purchase of and deposits on property, plant and
equipment (294,076) (132,450)
Proceeds of maturities of short-term investments 1,973,184 3,196,656
Patents and trademarks (23,184) (26,323)
-----------------------------
Net cash provided by investing activities 1,655,924 3,037,883
-----------------------------
FINANCING ACTIVITIES
Proceeds from issuance of common stock 5,700 152,812
Security deposits on leases - 250,000
-----------------------------
Net cash provided by financing activities 5,700 402,812
-----------------------------
Increase in cash and cash equivalents 1,983,650 1,018,306
Cash and cash equivalents at beginning of period 1,145,760 2,666,032
-----------------------------
Cash and cash equivalents at end of period $3,129,410 $3,684,338
-----------------------------
-----------------------------
See notes to condensed financial statements.
5
CIMA LABS INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONDENSED FINANCIAL STATEMENTS
MARCH 31, 1998 (UNAUDITED)
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited condensed financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management,
all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. Operating results for
the three-month period ended March 31, 1998 are not necessarily indicative of
the results that may be expected for the year ended December 31, 1998. For
further information, refer to the financial statements and footnotes thereto
included in the Company's annual report on Form 10-K for the year ended
December 31, 1997.
NOTE B - INVENTORIES
Inventories are stated at the lower of cost (first in, first out) or fair
market value.
March 31, December 31,
1998 1997
Raw materials $413,246 $484,582
Work in process - -
Finished products - 146,037
-----------------------------
$413,246 $630,619
NOTE C - NET LOSS PER SHARE
The Company has adopted Financial Accounting Standards Board Statement
No. 128, EARNINGS PER SHARE. This statement replaces previously reported
primary and fully diluted earnings per share with basic and diluted earnings
per share. Unlike primary EPS, basic EPS excludes any dilutive effect of
options, warrants and convertible securities. Diluted earnings per share is
very similar to previously reported fully diluted earnings per share. All
earnings per share amounts for all periods have been presented to conform
with Statement 128 requirements.
6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
EXCEPT FOR THE HISTORICAL INFORMATION CONTAINED HEREIN, THE FOLLOWING
DISCUSSION CONTAINS FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS AND
UNCERTAINTIES. WHEN USED HEREIN, THE WORDS "ANTICIPATE," "BELIEVE,"
"EXPECT," "ESTIMATE" AND SIMILAR EXPRESSIONS AS THEY RELATE TO THE COMPANY OR
ITS MANAGEMENT ARE INTENDED TO IDENTIFY SUCH FORWARD-LOOKING STATEMENTS. THE
COMPANY'S ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE DISCUSSED HEREIN.
FACTORS THAT COULD CAUSE OR CONTRIBUTE TO SUCH DIFFERENCES INCLUDE, BUT ARE
NOT LIMITED TO, THE SUCCESS OF THE COMPANY IN MANUFACTURING THE COMPANY'S
TECHNOLOGY, THE AVAILABILITY OF ADEQUATE FUNDS FOR THE COMPANY'S OPERATIONS,
THE SUCCESS OF THE COMPANY IN COMMERCIALIZING ITS NEW DRUG DELIVERY PROGRAMS,
AND THE COMPANY'S RELIANCE ON ITS KEY PERSONNEL AND COLLABORATIVE PARTNERS,
AS WELL AS THOSE DISCUSSED IN "BUSINESS RISKS" BELOW.
GENERAL
CIMA, founded in 1986, is a drug delivery company focused primarily on
the development and manufacture of pharmaceutical products based upon its
patented OraSolv-Registered Trademark- technology for marketing by
multinational pharmaceutical companies. OraSolv is an oral dosage
formulation incorporating microencapsulated active drug ingredients into a
tablet which dissolves quickly in the mouth without chewing or water and
which effectively masks the taste of the medication being delivered.
OraSolv's fast-dissolving capability may enable patients in certain age
groups or those with a variety of conditions that limit their ability to
swallow conventional tablets to receive medication in a more convenient oral
dosage form. The Company believes that OraSolv is more convenient than
traditional tablet-based oral dosages as it does not require water to be
ingested, thereby enabling immediate medication at the onset of symptoms. In
addition, OraSolv can provide more accurate administration of doses than
liquid or suspension formulations as no measuring is required. The Company
believes OraSolv's ease of use and effective taste-masking may foster greater
patient compliance with recommended dosage regiments, both for
over-the-counter ("OTC") and prescription products, thereby improving
therapeutic outcomes and reducing costs in the healthcare system.
CIMA's business strategy is to commercialize its OraSolv technology
through collaborations with multinational pharmaceutical companies with
emphasis on products which command a large market share and/or are in large
market segments. Product differentiation and brand name identity are critical
to the successful marketing of pharmaceutical products. The Company believes
that OraSolv affords pharmaceutical companies a means to significantly
differentiate their products in the competitive pharmaceutical marketplace.
Because it is a patented technology, OraSolv affords more enduring product
differentiation than the more traditional approaches of changing product
flavor or packaging innovations, which can be easily replicated. The Company
has entered into agreements with a number of pharmaceutical companies for
development, manufacture and commercialization of OraSolv products.
The Company is currently focusing on developing OraSolv products for
selected prescription drug applications. The Company believes that such
prescription OraSolv products should result in improved taste acceptance and
ease of administration, and so enhance patient compliance with the
recommended dosage regimen for such prescription pharmaceuticals. In the
third quarter of 1997, the Company signed its first two pharmaceutical
product development agreements with two major multinational pharmaceutical
companies. The Company is continuing working on both of these projects. The
development of new drug technologies has also been initiated. These
technologies include a new oral solid delivery system, DuraSolv-TM-; a unique
sustained-released delivery system, OraSolv-Registered Trademark- SR; and an
improved efficacy delivery system. One of the Company's recently signed
agreements utilizes the unique sustained-released technology. The goal of
the Company is to focus on drug delivery technologies that improve efficacy.
At March 31, 1998, the Company had accumulated losses of approximately
$42,900,000. The Company recorded its first commercial sales using the
Company's OraSolv technology in the three-month period ended March 31, 1997.
Prior to this the Company's revenues have been from sales using the Company's
AutoLution-Registered Trademark- (a liquid effervescent) technology, license
fees paid by corporate partners in consideration of the transfer of rights
under collaborative agreements, and research and development fees paid by
corporate partners to fund the Company's research and development efforts for
products developed under such agreements. Approximately 60% of the Company's
total revenues to date were generated from development work and sales for
AutoLution products. The Company is not currently manufacturing liquid
effervescent products, and has not recognized any revenues from such products
since 1995. Over the last three years, revenue has been generated, primarily
from research and development fees for work related to OraSolv products and
to a lesser extent sales and licensing revenue. In addition to revenues from
manufacturing, research and development and licensing, the Company has funded
operations from private and public sales of equity securities, realizing net
proceeds of approximately $26,000,000 from private sales of equity securities
and $16,400,00 and $12,000,000 from the Company's July 1994 initial public
offering and May 1996 public offering of its Common Stock, respectively. The
total shares outstanding at March 31, 1998 were 9,610,394.
7
The Company's ability to generate revenues is dependent upon its ability
to develop new, innovative drug delivery technologies and to enter into and
be successful in collaborative arrangements with pharmaceutical and other
healthcare companions for the development and manufacture of OraSolv products
and products based on such new technologies to be marketed by these corporate
partners. The Company is highly dependent upon the efforts of the corporate
partners to successfully market OraSolv products. Although the Company
believes these partners have and will have an economic motivation to market
these products vigorously, the amount and timing of resources to be devoted
to marketing are not within the control of the Company. These partners
independently could make material marketing and other commercialization
decisions which could adversely affect the Company's future revenues.
Moreover, certain of the Company's products are seasonal in nature and the
Company's revenues could vary materially from quarter to quarter depending on
which of such products, if any, are then being marketed.
The Company expects that losses will continue through at least 1998,
even though CIMA expects to continue generating sales revenue from
manufacturing OraSolv products in 1998. Research and development expenses
will increase as CIMA investigates new drug delivery technologies. In
addition, CIMA is investigating the possibility of utilizing
microencapsulation for the development of sustained released systems, as well
as sublingual systems which could deliver faster absorption of drug
ingredients. Personnel costs for research and development are expected to
remain relatively stable as the majority of the necessary personnel for this
function have already been hired. Personnel costs for administration may
decrease slightly in an effort to reduce corporate overhead. As CIMA
continues production, additional operations personnel may need to be added to
meet corporate partners' orders. Manufacturing infrastructure costs should
not need to increase materially as there is capacity to meet short-term
production needs.
In recent years, the Company has actively marketed its OraSolv
technology to the pharmaceutical industry. The Company is presently engaged
in product development and manufacturing scale-up efforts with several
different pharmaceutical companies regarding a variety of potential products.
In the first quarter of 1997, CIMA began commercial production for
Bristol-Myers Squibb of the first product in CIMA's OraSolv-Registered
Trademark- dosage form, which was officially launched in September 1997. In
the second quarter of 1997, the Company expanded its relationship with
Bristol-Myers Squibb and signed a global non-exclusive license agreement
which covers multiple products. In the third quarter of 1997, the first two
prescription product license and development agreements were signed. Each
agreement is for a product which is currently marketed by the Company's
partners, Schering-Plough and Zeneca. In the fourth quarter of 1997, a
development and license option agreement was signed with Novartis Consumer
Health, Inc. There can be no assurance that any of these activities or
discussions will result in the eventual marketing of products using
OraSolv-Registered Trademark- or the Company's other technologies.
RESULTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 1998 AND 1997
The Company's results of operations for the quarter ended March 31, 1998
reflect the continued emphasis of developing OraSolv products for our
corporate partners. Product sales decreased to $188,000 in the first quarter
of 1998 from $192,000 in the first quarter of 1997. The sales in the first
quarter for both years represent sales of the initial commercial product
using the OraSolv technology. Inventory levels at the customer were higher
than anticipated in the first quarter of 1998, which is reflected in the
first quarter 1998 sales figure. Research and development fees and licensing
revenues increased to $982,000 in the quarter ended March 31, 1998 from
$77,000 for the same period in 1997. This increase is attributable to
research funding from Zeneca and Schering-Plough for work on their respective
prescription product projects, and from Novartis Consumer Health for
development work performed on their OTC product. The 1997 revenues represent
product development fees for OTC products. So long as the Company has
relatively few agreements with corporate partners, research and development
fees and licensing revenues will tend to fluctuate on a quarter-to-quarter
basis.
Cost of goods sold decreased to $371,000 in the first quarter 1998 from
$581,000 for the same period in 1997. The decrease is attributable primarily
to certain non-reoccurring start-up costs that were incurred in 1997 due to
the initial commercial production of a product using OraSolv technology.
Research and development expenses increased 20% to $1,478,000 for the three
months ended March 31, 1998 from $1,230,000 in the corresponding prior year
period, as a direct result of the increased research and development efforts
being performed for our corporate partners. Selling, general and
administrative expenses decreased to $761,000 for the three-month period
ended March 31, 1998, from $890,000 for the three month period ended March
31, 1997. The decrease in selling, general and administrative expenses was
primarily due to the reduction in spending on consumer marketing research
studies to support OraSolv and reductions in legal and outside consulting
fees. Net interest income decreased from $128,000 to $59,000 for the three
month period ended March 31, 1997, and 1998, respectively. Net interest
income is dependent on the cash position of the Company.
8
LIQUIDITY AND CAPITAL RESOURCES
The Company has financed its operations to date primarily through
private and public sales of its equity securities and revenues from
manufacturing agreements. Through March 31, 1998, CIMA had received net
offering proceeds from such private and public sales of approximately
$57,268,000 and had net sales of approximately $16,600,000. Among other
things, these funds were used to purchase approximately $15,975,000 of
capital equipment, including approximately $7,500,000 in the last two
quarters of 1994 in connection with completing the Company's new
manufacturing facility.
Cash, cash equivalents and short-term investments were approximately
$4,434,000 at March 31, 1998, an increase of $11,000 from $4,423,000 at the
period ended December 31, 1997.
The Company's long-term capital requirements will depend upon numerous
factors, including the status of the Company's collaborative arrangements,
the progress of the Company's research and development programs, receipt of
revenues from the collaborative agreements, sales of the Company's products,
and the need to expand production capacity. The Company believes that its
currently available funds, together with any license fees, product
development fees, and sales revenue anticipated to be received in the future,
will meet its needs through 1998. Thereafter, or sooner if conditions make
it necessary, the Company will need to raise additional funds through
research and development relationships with suitable potential corporate
partners and/or through public or private financing, including equity
financing which may be dilutive to stockholders. There can be no assurance
that the Company will be able to raise additional funds if its capital
resources are exhausted, or that funds will be available on terms attractive
to the Company.
The Company has not generated taxable income through December 1997. At
December 31, 1997, the net operating losses available to offset taxable
income were approximately $42,259,000. Because the Company has experienced
ownership changes, pursuant to Internal Revenue Code regulations, future
utilization of the operating loss carryforwards will be limited in any one
fiscal year. The carryforwards expire beginning in 2001. As a result of the
annual limitation, a portion of these carryforwards may expire before
ultimately becoming available to reduce potential federal income tax
liabilities.
BUSINESS RISKS
The Company began commercial production of its first product in CIMA's
OraSolv dosage form only one year ago and must be evaluated in light of the
uncertainties and complications present for any company that has just
recently begun to derive product revenues and, in particular, a company in
the pharmaceutical industry. The Company has accumulated aggregate net
losses from inception through March 31, 1998 of $42,908,000. Losses have
resulted principally from costs incurred in research and development of the
Company's technologies and from general and administrative costs. These
costs have exceeded the Company's revenues, which historically had been
derived primarily from the manufacturing of AutoLution-Registered Trademark-
(a liquid effervescent) and other non-OraSolv products which the Company no
longer manufactures. In more recent years, the Company has received revenue
from its commercial partners for product development and licensing of OraSolv
and to a lesser extent commercial production of an OraSolv dosage form
product which commenced in the first quarter of 1997 for Bristol-Myers
Products. The Company expects to continue to incur losses at least through
1998. There can be no assurance that the Company will ever generate
substantial revenues or achieve profitability.
The Company is dependent upon its ability to enter into and perform
under collaborative arrangements with pharmaceutical companies for the
development and commercialization of its products. Failure of these partners
to market the Company's products successfully could have a materiel adverse
effect on the Company's financial condition and results of operations. The
Company's revenues are also dependent upon ultimate consumer acceptance of
the OraSolv drug delivery system and newly developed technologies as
alternatives to conventional oral dosage forms. The Company expects that
OraSolv products will be priced slightly higher than conventional swallow
tablets. Although the Company believes that consumer research has been
encouraging, there can be no assurance that market acceptance for the
Company's OraSolv products will ever develop or be sustained.
The company began manufacturing OraSolv products in commercial
quantities in February 1997. Commercial sales have been made and revenue has
been recognized from sales of OraSolv products. To achieve future desired
levels of production, the Company will be required to increase its
manufacturing capabilities. There can be no assurance that manufacturing can
be scaled-up in a timely manner to allow production in sufficient quantities
to meet the needs of the Company's corporate partners. Furthermore, the
Company has only one manufacturing line and one facility capable of
manufacturing OraSolv products. If this production line and/or facility
becomes damaged or becomes incapable of manufacturing products due to natural
disaster, governmental regulatory issues or otherwise, the Company would have
no other means of producing OraSolv products.
9
The Company intends to increase its research and development
expenditures to enhance its current technologies, and to pursue internal
proprietary drug delivery technologies. Even if these technologies appear
promising during various stages of development, they may not reach the
commercialization stage for a number of reasons. Such reasons include the
possibilities of not finding a partner to market the product, the product
being difficult to manufacture on a large scale or of being uneconomical to
market.
The quick dissolve drug delivery field is fairly new and rapidly
evolving and it is expected to continue to undergo improvements and rapid
technological changes. There can be no assurance that current or new
competitors will not succeed in developing technologies and products that are
more effective than any which are being developed by the Company or which
could render the Company's technology and products non-competitive or that
any technology developed by the Company will be preferred to any existing or
newly developed technologies.
The Company has conducted an initial review regarding the effect the
upcoming Year 2000 will have on its computer applications. This included key
financial, information and operational systems. A plan is being developed to
insure that the Company's systems and software infrastructure are Year 2000
compliant. Given the relatively small size of the Company's systems and the
predominantly new hardware, software and operating systems, the Company does
not anticipate the incremental costs, if any, of making the required systems
modifications will have a material impact on the Company's results of
operations or financial condition. However, the conversion is an uncertainty
and there can be no assurance that unforeseen problems will not arise in
connection with this issue. In addition, the Company is unable to control
whether its current and future partners are Year 2000 compliant.
The foregoing risks reflect the Company's stage of development and the
nature of the Company's industry. The Company is also subject to a range of
additional risks, including competition, uncertainties regarding the effects
of healthcare reform on the pharmaceutical industry, including pressures
exerted on the prices charged for pharmaceutical products and uncertainties
regarding protection of patents and proprietary rights all of which may have
a material adverse effect on the Company's business.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
Not Applicable
10
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company has instituted an opposition proceeding in the European Patent
Office, and has requested that the United States Patent and Trademark Office
declare an interference proceeding, each of which has been reported in the
Company's Annual Report on Form 10-K filed with the Securities and Exchange
Commission for the year ended December 31, 1997.
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
The Company filed no Current Reports on Form 8-K for the quarter ended
March 31, 1998.
EXHIBIT PAGE NUMBER
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10.2 Letter Agreement, dated January 28, 1998, between the Company and
Joseph R. Robinson, Ph.D.(1)
10.8 Real Property Lease, dated March 6, 1998, between Braun-Kaiser
and Company and the Company. (1)
10.20 Non-Employee Directors' Fee Option Grant Program.(1)
27 Financial Data Schedule 13
- ---------------------
(1) Incorporated herein by reference to the correspondingly numbered exhibit
to the Company's annual Report on Form 10-K for the fiscal year ended
December 31, 1997.
11
CIMA LABS INC.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CIMA LABS INC.
Date: May 14, 1998 By: /s/ John M. Siebert
------------ -------------------
John M. Siebert, Ph.D.
President & Chief Executive Officer
(Principal Executive Officer)
Date: May 14, 1998 By: /s/ Keith P. Salenger
------------ ---------------------
Keith P. Salenger
Vice President, Finance and
Chief Financial Officer
(Principal Financial and Accounting Officer)
12