IMMEDIATE RELEASE August 1, 2005
CONTACTS:
Brent Larson, Tim Ryan,
Vice President / CFO The Trout Group
614 793 7500 212 477 9007
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NEOPROBE ANNOUNCES SECOND QUARTER RESULTS
Second Quarter Device Sales Increase 26%
Business Update Provided and Conference Call Scheduled
DUBLIN, OHIO - August 1, 2005 -- Neoprobe Corporation (OTCBB:NEOP - News), a
diversified developer of innovative oncology and cardiovascular surgical and
diagnostic products, today announced consolidated operating results for the
second quarter of 2005. Second quarter results included net sales of devices of
$1.7 million compared to $1.3 million for the second quarter of 2004. In
addition, Neoprobe reported a net loss of $1.3 million or $0.02 per share
compared to a loss of $430,000 or $0.01 per share for the comparable period in
2004. Operating expenses increased to $2.1 million for the second quarter of
2005 from $1.4 million for the second quarter of 2004. The net loss for the
second quarter of 2005 included $322,000 in non-cash charges (consisting
primarily of amortization of intangible assets and amortization of warrant and
debt-issuance charges related to the financing that was completed in December
2004) compared to total non-cash charges of $243,000 for the second quarter of
2004.
Brent Larson, Neoprobe's Vice President, Finance and CFO, said, "Our second
quarter device sales improved compared to the second quarter of 2004 due to
continued strong gamma device prices and unit volumes as well as increased sales
of extended service contracts sold through our primary gamma device marketing
partner. Sales of our blood flow devices provided only a minor contribution to
the increase in sales due we believe to the time necessary to re-train our
current distributors coupled with normal medical device sales cycle times
following the launch of our redesigned Quantix/OR(TM) blood flow measurement
probe earlier this year. Distributor training will continue into the third
quarter and beyond as we add new distributors. We hope to reap the benefits of
an expanded distribution organization during the second half of 2005."
David Bupp, Neoprobe's President and CEO, said, "The increase in operating
expenses during the quarter was primarily due to non-clinical testing and drug
manufacturing validation and production activities associated with Lymphoseek
and is a consequence of the progress we are making on the development of this
important drug. We expect to complete the non-clinical testing in the next few
weeks and submit the data to FDA for review shortly thereafter. The
institutional review board process is also well underway at each of the five
pre-eminent sites that have agreed to participate in the Phase II trial. The
clinical sites that will be involved in the study include University of
California, San Francisco, The John Wayne Cancer Center, Cleveland Clinic,
University of Louisville and M. D. Anderson. As a result, we continue to expect
to announce the commencement of patient enrollment in the Phase II trial by the
end of the third quarter and our overall goal of filing a new drug application
for Lymphoseek remains unchanged at mid-2006."
"In addition to the activities associated with the development of Lymphoseek,
Neoprobe continued to prepare for the recommencement of clinical activities
associated with RIGScan(R) CR and the activated cellular therapy technology
associated with CIRA Biosciences, Inc. (CIRA Bio)," Bupp continued. "Regarding
RIGScan, our discussions with potential development partners are continuing and
we expect to complete the first of a series of regulatory submissions to FDA in
the near future that we believe will demonstrate additional value to a potential
partner. In addition, to support the commencement of clinical studies of CIRA
Bio, we have received a proposal from The Battelle Memorial Institute for
follow-on activities to the technology assessment that was completed earlier in
the second quarter. Following the completion of CIRA Bio's initial financing, we
plan to initiate these development activities."
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NEOPROBE CORPORATION
ADD - 2
Neoprobe's President and CEO, David Bupp, and Vice President and CFO, Brent
Larson, will provide a business update and discuss the company's second quarter
2005 results via a conference call scheduled for 11:00 AM ET tomorrow, Tuesday,
August 2, 2005.
The conference call can be accessed live as follows:
o U.S. Toll Free Dial-In number: 1-877-407-9205
o International Dial-In number 1-201-689-8054
A replay of the conference call will be available for 7 days following the call.
The replay dial-in number for the U.S. is 1-877-660-6853 and the dial-in number
for international callers is 1-201-612-7415. To access the call, enter the
Account number (286) and the Conference ID (163372).
About Neoprobe
Neoprobe is a biomedical company focused on enhancing patient care and improving
patient outcome by meeting the critical intraoperative diagnostic information
needs of physicians and therapeutic treatment needs of patients. Neoprobe
currently markets the neo2000(R) line of gamma detection systems that are widely
used by cancer surgeons and is commercializing the Quantix(R) line of blood flow
measurement products developed by its subsidiary, Cardiosonix Ltd. In addition,
Neoprobe holds significant interests in the development of related biomedical
systems and radiopharmaceutical agents including Lymphoseek(TM) and RIGScan(R)
CR. Neoprobe's recently formed subsidiary, CIRA Biosciences, Inc., is also
advancing a patient-specific cellular therapy technology platform called ACT.
Neoprobe's strategy is to deliver superior growth and shareholder return by
maximizing its strong position in gamma detection technologies and diversifying
into new, synergistic biomedical markets through continued investment and
selective acquisitions. www.neoprobe.com
Statements in this news release, which relate to other than strictly historical
facts, such as statements about the Company's plans and strategies, expectations
for future financial performance, new and existing products and technologies,
anticipated clinical and regulatory pathways, and markets for the Company's
products are forward-looking statements The words "believe," "expect,"
"anticipate," "estimate," "project," and similar expressions identify
forward-looking statements that speak only as of the date hereof. Investors are
cautioned that such statements involve risks and uncertainties that could cause
actual results to differ materially from historical or anticipated results due
to many factors including, but not limited to, the Company's continuing
operating losses, uncertainty of market acceptance of its products, reliance on
third party manufacturers, accumulated deficit, future capital needs,
uncertainty of capital funding, dependence on limited product line and
distribution channels, competition, limited marketing and manufacturing
experience, risks of development of new products, regulatory risks and other
risks detailed in the Company's most recent Annual Report on Form 10-KSB and
other Securities and Exchange Commission filings. The Company undertakes no
obligation to publicly update or revise any forward-looking statements.
NEOPROBE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2005 2004
(unaudited)
----------- -----------
Assets:
Cash and cash equivalents $ 4,574,985 $ 9,842,658
Available-for-sale securities 4,229,868 --
Other current assets 1,282,653 1,594,286
Intangible assets, net 2,315,121 2,519,109
Other non-current assets 1,277,009 1,409,842
----------- -----------
Total assets $13,679,636 $15,365,895
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Liabilities and stockholders' equity:
Current liabilities $ 1,253,377 $ 1,009,936
Notes payable, net of discounts 5,720,833 5,491,494
Warrant liability -- 2,560,307
Other liabilities 134,282 140,328
Stockholders' equity 6,571,144 6,163,830
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Total liabilities and stockholders' equity $13,679,636 $15,365,895
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2005 2004 2005 2004
(unaudited) (unaudited) (unaudited) (unaudited)
------------ ------------ ------------ ------------
Revenues:
Net sales $ 1,700,878 $ 1,347,928 $ 3,166,765 $ 2,573,545
License revenue and other -- 200,000 -- 400,000
------------ ------------ ------------ ------------
Total revenues 1,700,878 1,547,928 3,166,765 2,973,545
------------ ------------ ------------ ------------
Cost of goods sold 642,233 508,639 1,205,556 1,048,781
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Gross profit 1,058,645 1,039,289 1,961,209 1,924,764
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Operating expenses:
Research and development 1,303,369 594,730 1,941,814 1,177,830
Selling, general and administrative 827,832 853,149 1,663,947 1,666,542
------------ ------------ ------------ ------------
Total operating expenses 2,131,201 1,447,879 3,605,761 2,844,372
------------ ------------ ------------ ------------
Loss from operations (1,072,556) (408,590) (1,644,552) (919,608)
------------ ------------ ------------ ------------
Interest expense (333,905) (43,795) (661,478) (116,153)
Increase in warrant liability -- -- (142,427) --
Other income, net 62,050 22,512 101,275 17,311
------------ ------------ ------------ ------------
Net loss $ (1,344,411) $ (429,873) $ (2,347,182) $ (1,018,450)
============ ============ ============ ============
Loss per common share:
Basic $ (0.02) $ (0.01) $ (0.04) $ (0.02)
Diluted $ (0.02) $ (0.01) $ (0.04) $ (0.02)
Weighted average shares outstanding:
Basic 58,455,008 57,727,298 58,386,434 55,388,205
Diluted 58,455,008 57,727,298 58,386,434 55,388,205