Exhibit 99.1
IMMEDIATE RELEASE AUGUST 2, 2006
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
BUSINESS UPDATE PROVIDED AND CONFERENCE CALL SCHEDULED
DUBLIN, OHIO - August 2, 2006 - Neoprobe Corporation (OTCBB:NEOP - News), a
diversified developer of innovative oncology and cardiovascular surgical and
diagnostic products, today announced financial results for the second quarter of
2006 and for the six-month period ended June 30, 2006. For the second quarter of
2006, Neoprobe reported a net loss of $861,000 or $0.01 share compared to a net
loss of $1.3 million or $0.02 per share for the second quarter in 2005. For the
six months ended June 30, 2006, Neoprobe reported a net loss of $1.8 million or
$0.03 per share compared to a net loss of $2.3 million or $0.04 per share for
the same period in 2005. The net loss for the second quarter of 2006 included
$348,000 in non-cash charges compared to total non-cash charges of $322,000 for
the second quarter of 2005. The net loss for the six-month period ended June 30,
2006 included $745,000 in non-cash charges compared to total non-cash charges of
$775,000 for the same period in 2005.
For the second quarter of 2006, Neoprobe reported total revenues of $1.4 million
compared to $1.7 million for the second quarter in 2005. For the six-month
period ended June 30, 2006, Neoprobe reported total revenues of $3.2 million
compared to total revenues of $3.2 million for the same period in 2005.
For the second quarter of 2006, Neoprobe reported total operating expenses of
$1.4 million compared to $2.1 million for the second quarter of 2005. For the
six-month period ended June 30, 2006, Neoprobe reported total operating expenses
of $3.1 million compared to $3.6 million for the same period in 2005.
Brent Larson, Neoprobe's Vice President, Finance and CFO, said, "Results for the
quarter and year to date exemplify what we consider to be one of the strengths
of our business model. We are able to control our costs and generate positive
cash flow from our device product lines, allowing us to focus funds raised for
new product development on those activities that present the greatest
opportunities for upside to our shareholders."
Revenues for the first six months of 2006 remained consistent overall with 2005.
We saw a 128% increase in year-to-date blood flow revenues over the same period
in 2005. This increase offset the impacts of a roughly 5% price decline on
relatively consistent volumes for our gamma detection product line. Our gross
margins declined around 3% due primarily to the effects of selling the majority
of our blood flow devices on a wholesale basis to distributors as opposed to on
a retail basis directly to end customers. While winding down our arrangements
the independent sales organizations adversely impacted our second quarter sales
causing them to be below our original expectations, we are greatly encouraged by
the recent agreement we have signed with ESTECH for distribution of the
Quantix/OR(TM) here in the United States. We are confident that this refocusing
of our sales efforts in the United States with a high quality sales organization
such as ESTECH will yield much greater longer term rewards.
Operating expenses for the quarter and six-month period were down compared to
the prior year primarily due to lower drug development expenses for
Lymphoseek(R). Operating expenses for 2005 and into the first quarter of 2006
included significant expenses related to non-clinical testing and drug
manufacturing validation and production activities associated with Lymphoseek.
These activities were substantially completed by the first quarter of 2006 and
expenses decreased accordingly during the second quarter of 2006 while we waited
for regulatory and institutional clearances to commence the Phase 2 clinical
study.
NEOPROBE CORPORATION
ADD - 2
David Bupp, Neoprobe's President and CEO, said, "We are excited that the Phase 2
study is underway and we are looking forward to demonstrating the safety and
efficacy of Lymphoseek over the coming months." The clinical sites involved in
the Phase 2 study include University of California, San Francisco, The John
Wayne Cancer Center, University of Louisville, M. D. Anderson and University
Hospitals - Case Western Reserve.
Year-to-date development milestones achieved are:
O Received renewal of gamma device distribution agreement with Ethicon
Endo-Surgery through December 2008
O Completed Lymphoseek regulatory submission of CMC response
O Received FDA clearance to commence patient enrollment in Phase 2
clinical study
O Received first commercial production of Quantix(R) devices from U.S.
based contract manufacturer
O Completed Investigational New Drug amendment submission for
RIGScan(R) CR
O Reviewed Phase 2 Lymphoseek protocol and clinical program with
clinical investigators at Society of Surgical Oncology meeting
O Completed agreement with ESTECH, Inc. for distribution of the
Quantix/OR in the U.S.
O Commenced Phase 2 Lymphoseek clinical study with cGMP produced drug
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
2006 results via a conference call scheduled for 11:00 AM EDT today, Wednesday,
August 2, 2006. The conference call can be accessed as follows:
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CONFERENCE CALL INFORMATION
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TO PARTICIPATE LIVE: TO LISTEN TO A REPLAY:
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Date: August 2, 2006 Available until: August 9, 2006
Time: 11:00AM EDT Toll-free (U.S.) Dial in # : 877-660-6853
International Dial in # : 201-612-7415
Toll-free (U.S.) Dial in # : 877-407-8033 Replay passcodes (both
International Dial in # : 201-689-8033 required for playback):
Account # : 286
Conference ID # : 210085
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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(R) and RIGScan(R)
CR. Neoprobe's 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
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NEOPROBE CORPORATION
ADD - 3
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.
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NEOPROBE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2006 2005
(unaudited)
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Assets:
Cash and cash equivalents $ 4,726,719 $ 4,940,946
Available-for-sale securities - 1,529,259
Other current assets 1,966,174 1,978,268
Intangible assets, net 1,992,522 2,098,910
Other non-current assets 920,830 1,023,058
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Total assets $ 9,606,245 $ 11,570,441
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Liabilities and stockholders' equity:
Current liabilities $ 897,753 $ 1,501,683
Notes payable, net of discounts 6,252,997 5,973,853
Other liabilities 64,649 78,109
Stockholders' equity 2,390,846 4,016,796
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Total liabilities and stockholders' equity $ 9,606,245 $ 11,570,441
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
(unaudited) (unaudited) (unaudited) (unaudited)
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Net sales $ 1,433,991 $ 1,700,878 $ 3,221,909 $ 3,166,765
Cost of goods sold 600,762 642,233 1,337,982 1,205,556
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Gross profit 833,229 1,058,645 1,883,927 1,961,209
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Operating expenses:
Research and development 642,573 1,303,369 1,476,756 1,941,814
Selling, general and administrative 753,812 827,832 1,606,295 1,663,947
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Total operating expenses 1,396,385 2,131,201 3,083,051 3,605,761
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Loss from operations (563,156) (1,072,556) (1,199,124) (1,644,552)
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Interest expense (363,426) (333,905) (719,960) (661,478)
Increase in warrant liability - - - (142,427)
Other income, net 65,113 62,050 130,013 101,275
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Net loss $ (861,469) $ (1,344,411) $ (1,789,071) $ (2,347,182)
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Loss per common share:
Basic $ (0.01) $ (0.02) $ (0.03) $ (0.04)
Diluted $ (0.01) $ (0.02) $ (0.03) $ (0.04)
Weighted average shares outstanding:
Basic 58,560,046 58,455,008 58,535,631 58,386,434
Diluted 58,560,046 58,455,008 58,535,631 58,386,434