Closure Medical Revises 2004 Financial Outlook
September 29 2004 - 7:35PM
PR Newswire (US)
Closure Medical Revises 2004 Financial Outlook RALEIGH, N.C., Sept.
29 /PRNewswire-FirstCall/ -- CLOSURE Medical Corporation
(NASDAQ:CLSR), a global leader in biomaterial-based medical
devices, today announced that it has revised its financial guidance
for 2004 as a result of lowered revenue expectations for its
DERMABOND and BAND-AID(R) Brand Liquid Bandage products. Total
revenues for 2004 are currently expected to be in the range of
$40.0 to $41.0 million and earnings per share in the range of $0.59
to $0.62, compared with previously forecasted revenues of $45.0 to
$47.0 million and $0.65 to $0.70 earnings per share. Included in
these estimates, the Company expects third quarter revenues of
approximately $9.2 million and earnings per share of $0.13 to
$0.14. The reduction in expected revenues attributable to DERMABOND
products is primarily due to a recent decision by the Company's
marketing partner, ETHICON, Inc., to reduce its inventory levels as
a result of lower-than- expected unit volume growth at the end-user
level during the second half of 2004. The Company expects
inventories to reach ETHICON's targeted levels during the first
half of 2005, although this will depend on sales volumes. Overall
the Company expects DERMABOND revenue growth for 2004 to be
approximately 17 percent, the majority from the premium pricing and
greater share of revenue received from the DERMABOND ProPen
products. The domestic BAND-AID(R) Brand Liquid Bandage products
continue, as previously disclosed, to face pricing pressure from
competitive products, including new private label entrants. Retail
price reduction initiatives instituted by the Company's marketing
partner to regain market share have experienced some success,
primarily with the BAND-AID(R) Brand Skin Crack product, although
not at the levels hoped for. As a result year-over-year Liquid
Bandage revenues are expected to be impacted through early 2005.
Overall the Company expects total Liquid Bandage revenue growth of
approximately 16 percent for 2004. Daniel A. Pelak, the Company's
President and CEO, commented, "The fundamentals of our business
remain strong and well positioned for future growth. We are pleased
with the year-to-date adoption level of the higher priced DERMABOND
ProPen products; however, the sales force's concentration on
introducing the ProPen to current DERMABOND users consumed time
that would otherwise have been spent enlarging the total number of
users of all products in the DERMABOND product group." Pelak
continued, "The market for medical adhesives and sealants continues
to grow and attract the attention of the medical community. Closure
is well positioned to take advantage of the growth in this industry
segment through its market leader position in topical skin
adhesives and the expected European commercialization of our
implantable surgical sealant during the first half of 2005." About
CLOSURE Medical Corporation CLOSURE Medical Corporation is a global
leader in the development and manufacture of innovative
biomaterial-based medical devices that fulfill the needs of
healthcare practitioners, patients and consumers. For additional
information on CLOSURE Medical visit its website at
http://www.closuremed.com/ or visit the "Clients" section of the
Allen & Caron website at http://www.allencaron.com/. This
release contains certain forward-looking statements which involve
known and unknown risks, delays, uncertainties or other factors not
under the Company's control which may cause actual results,
performance or achievements of the Company to be materially
different from the results, performance, or other expectations
implied by these forward-looking statements. These factors include,
but are not limited to the early stage of commercialization of the
Company's products; the progress and success of its research and
development programs for future products; the success of its
clinical study for its vascular sealant product and future clinical
studies; the successful enrollment of current and future clinical
studies; the need for regulatory approval and effects of
governmental regulation; technological uncertainties; the inventory
management policies adopted by the Company's marketing partners;
end-user growth for the products sold by the Company's marketing
partners; the Company's success in securing marketing partners for
future products; the satisfactory conclusion of negotiations with,
and dependence on, marketing partners, and dependence on patents
and trade secrets, as well as those detailed in the Company's
Annual Report on Form 10-K for the year ended December 31, 2003,
filed with the Securities and Exchange Commission. Although the
Company believes that the expectations in the forward-looking
statements are reasonable, the Company cannot guarantee such
results. The Company undertakes no obligation to publicly revise
these forward-looking statements to reflect events or circumstances
that arise after the date hereof. DATASOURCE: CLOSURE Medical
Corporation CONTACT: investors, Joe Allen of Allen & Caron Inc,
+1-212-691-8087, , for CLOSURE Medical Corporation; or Benny Ward,
CFO of CLOSURE Medical Corporation, +1-919-876-7800 Web site:
http://www.allencaron.com/ Web site: http://www.closuremed.com/
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