Northfield Laboratories Reports Fiscal 2001 Third Quarter Results

Apr 17, 2001, 01:00 ET from Northfield Laboratories Inc.

    EVANSTON, Ill., April 17 /PRNewswire/ -- Northfield Laboratories Inc.
 (Nasdaq:   NFLD), a leading developer of an oxygen-carrying blood substitute for
 trauma and elective surgery situations, reported a loss, as anticipated, for
 its third fiscal quarter ended February 28, 2001.  As a development-stage
 company, Northfield has no revenues.
 
     Patent Position Strengthened
     Late in 2000, Northfield was issued U.S. patent number 6,133,425,
 "Acellular Red Blood Cell Substitute," from the U.S. patent office.  "This
 patent added to our already substantial portfolio of patents and serves to
 protect both our product and our technology until 2017 in the U.S.  Efforts of
 this sort are underway in Europe and the rest of the world as well," said
 Richard DeWoskin, CEO.
 
     Published Data Endorses PolyHeme in Urgent Settings
     In the March 2001 issue of the Journal of Trauma, Johnson et. al describe
 positive results of the use of PolyHeme? in trauma patients in a paper titled,
 "Resuscitation with a Blood Substitute Abrogates Pathologic Postinjury
 Neutrophil Cytotoxic Function."  Prior work has demonstrated the
 life-sustaining capability of PolyHeme in the setting of life-threatening
 blood loss when blood may be unavailable.  This current study extends the
 already large body of published data suggesting that PolyHeme may have
 subtantial patient benefit compared to blood in urgent situations.
     According to Dr. Steven A. Gould, president of Northfield, "This is a
 noteworthy study since it suggests that the use of PolyHeme may provide an
 approach to decreasing the incidence or severity of postinjury organ failure,
 which accounts for much of the morbidity and mortality following trauma.
 Although the potential for PolyHeme to save lives by providing oxygen-carrying
 capacity has always been clear, this possible additional benefit of improving
 the immunologic status of trauma patients is exciting."
 
     Financial Performance
     For the third quarter, Northfield reported a loss of $2.6 million, or
 $0.18 cents per basic share compared with a loss of $2.5 million, or
 $0.17 cents per basic share, in the year-earlier period.
     For the latest nine months, net loss was $7.4 million, or $0.52 cents per
 basic share compared with a loss of $6.8 million, or $0.48 cents per basic
 share, in the first nine months of fiscal 2000.
     At the close of the quarter, the company reported shareholders' equity of
 $33.0 million, with $31.1 million in cash and marketable securities.
     PolyHeme is the only blood substitute undergoing clinical trials that has
 been tested at large enough dosages to be considered a substitute for acute
 blood loss in trauma and surgical settings.  As a result of the process used
 to manufacture the blood substitute, essentially a solution of polymerized
 hemoglobin, PolyHeme has a longer shelf life than blood, requires no cross
 matching and does not transmit disease.
 
     Northfield Laboratories was founded in 1985.  The company is headquartered
 in Evanston, Illinois, and its stock is traded on the Nasdaq National Market
 System under the symbol NFLD.
 
     Statements in this release that are not strictly historical are
 "forward-looking" statements that are made pursuant to the safe harbor
 provisions of the Private Securities Litigation Reform Act of 1995.  Forward-
 looking statements involve known and unknown risks, which may cause the
 company's actual results in the future to differ materially from expected
 results.  These risks include, among others:  competition from other blood
 substitute products; the company's ability to obtain regulatory approval to
 market PolyHeme commercially; the company's and/or its representative's
 ability to successfully market and sell PolyHeme; the company's ability to
 manufacture PolyHeme in sufficient quantities; the company's ability to obtain
 an adequate supply of raw materials; the company's ability to maintain
 intellectual property protection for its proprietary product and to defend its
 existing intellectual property rights from challenges by third parties; the
 availability of capital to finance planned growth; and the extent to which the
 hospitals and physicians using PolyHeme are able to obtain third-party
 reimbursement, as described in the company's filing with the Securities and
 Exchange Commission.
     For more information on Northfield Laboratories Inc. via facsimile at no
 cost, simply dial 1-800-PRO-INFO and enter the company code NFLD.
     Visit the Northfield website at:  http://www.northfieldlabs.com
 
 
     Northfield Laboratories Inc.
     (a company in the development stage)
 
     Statements of Operations
     Three months and nine months ended February 28, 2001 and February 29, 2000
     (In thousands except per share data)
 
                                     Three months ended   Nine months ended
                                    February    February   February   February
                                       28,         29,         28,        29,
                                      2001        2000        2001       2000
                                   (unaudited)(unaudited)(unaudited)(unaudited)
                                        $          $          $           $
     Revenues - license income          --         --         --          --
 
     Costs and expenses:
          Research and development   2,489      2,365      6,964       6,852
          General and administrative   620        658      2,047       1,666
                                     3,109      3,023      9,011       8,518
 
     Other income and expense:
          Interest income              505        559      1,646       1,708
          Interest expense              --         --         --          --
                                       505        559      1,646       1,708
 
     Net loss                      $(2,604)   $(2,464)   $(7,365)    $(6,810)
 
     Net loss per basic share       $(0.18)    $(0.17)    $(0.52)     $(0.48)
 
     Shares used in calculation
         of per share data          14,263     14,241     14,253      14,240
 
 
     Northfield Laboratories Inc.
     (a company in the development stage)
 
     Balance Sheets
     February 28, 2001 (unaudited) and May 31, 2000
     (In thousands)
 
                                                   February 28,      May 31,
     Assets                                            2001            2000
     Current assets:
          Cash                                        $7,299         $15,154
          Short-term marketable securities            23,800          23,129
          Prepaid expenses                               224             409
          Other current assets                           632             506
     Total current assets                             31,955          39,198
 
     Plant and equipment, net                          2,811           2,456
     Other assets                                        123              74
     Total assets                                    $34,889         $41,728
 
 
     Liabilities and Shareholders' Equity
     Current liabilities:
          Accounts payable                            $1,347          $1,061
          Accrued expenses                               150             174
          Accrued compensation and benefits              268             251
     Total current liabilities                         1,765           1,486
 
     Other liabilities                                   167             148
     Total liabilities                                 1,932           1,634
 
     Shareholders' equity:
           Capital stock                                 143             142
           Additional paid-in capital                117,503         117,276
           Deficit accumulated during the            (84,689)        (77,324)
                development stage
     Total shareholders' equity                       32,957          40,094
 
     Total liabilities and
          shareholders' equity                       $34,889         $41,728
 
 

SOURCE Northfield Laboratories Inc.
    EVANSTON, Ill., April 17 /PRNewswire/ -- Northfield Laboratories Inc.
 (Nasdaq:   NFLD), a leading developer of an oxygen-carrying blood substitute for
 trauma and elective surgery situations, reported a loss, as anticipated, for
 its third fiscal quarter ended February 28, 2001.  As a development-stage
 company, Northfield has no revenues.
 
     Patent Position Strengthened
     Late in 2000, Northfield was issued U.S. patent number 6,133,425,
 "Acellular Red Blood Cell Substitute," from the U.S. patent office.  "This
 patent added to our already substantial portfolio of patents and serves to
 protect both our product and our technology until 2017 in the U.S.  Efforts of
 this sort are underway in Europe and the rest of the world as well," said
 Richard DeWoskin, CEO.
 
     Published Data Endorses PolyHeme in Urgent Settings
     In the March 2001 issue of the Journal of Trauma, Johnson et. al describe
 positive results of the use of PolyHeme? in trauma patients in a paper titled,
 "Resuscitation with a Blood Substitute Abrogates Pathologic Postinjury
 Neutrophil Cytotoxic Function."  Prior work has demonstrated the
 life-sustaining capability of PolyHeme in the setting of life-threatening
 blood loss when blood may be unavailable.  This current study extends the
 already large body of published data suggesting that PolyHeme may have
 subtantial patient benefit compared to blood in urgent situations.
     According to Dr. Steven A. Gould, president of Northfield, "This is a
 noteworthy study since it suggests that the use of PolyHeme may provide an
 approach to decreasing the incidence or severity of postinjury organ failure,
 which accounts for much of the morbidity and mortality following trauma.
 Although the potential for PolyHeme to save lives by providing oxygen-carrying
 capacity has always been clear, this possible additional benefit of improving
 the immunologic status of trauma patients is exciting."
 
     Financial Performance
     For the third quarter, Northfield reported a loss of $2.6 million, or
 $0.18 cents per basic share compared with a loss of $2.5 million, or
 $0.17 cents per basic share, in the year-earlier period.
     For the latest nine months, net loss was $7.4 million, or $0.52 cents per
 basic share compared with a loss of $6.8 million, or $0.48 cents per basic
 share, in the first nine months of fiscal 2000.
     At the close of the quarter, the company reported shareholders' equity of
 $33.0 million, with $31.1 million in cash and marketable securities.
     PolyHeme is the only blood substitute undergoing clinical trials that has
 been tested at large enough dosages to be considered a substitute for acute
 blood loss in trauma and surgical settings.  As a result of the process used
 to manufacture the blood substitute, essentially a solution of polymerized
 hemoglobin, PolyHeme has a longer shelf life than blood, requires no cross
 matching and does not transmit disease.
 
     Northfield Laboratories was founded in 1985.  The company is headquartered
 in Evanston, Illinois, and its stock is traded on the Nasdaq National Market
 System under the symbol NFLD.
 
     Statements in this release that are not strictly historical are
 "forward-looking" statements that are made pursuant to the safe harbor
 provisions of the Private Securities Litigation Reform Act of 1995.  Forward-
 looking statements involve known and unknown risks, which may cause the
 company's actual results in the future to differ materially from expected
 results.  These risks include, among others:  competition from other blood
 substitute products; the company's ability to obtain regulatory approval to
 market PolyHeme commercially; the company's and/or its representative's
 ability to successfully market and sell PolyHeme; the company's ability to
 manufacture PolyHeme in sufficient quantities; the company's ability to obtain
 an adequate supply of raw materials; the company's ability to maintain
 intellectual property protection for its proprietary product and to defend its
 existing intellectual property rights from challenges by third parties; the
 availability of capital to finance planned growth; and the extent to which the
 hospitals and physicians using PolyHeme are able to obtain third-party
 reimbursement, as described in the company's filing with the Securities and
 Exchange Commission.
     For more information on Northfield Laboratories Inc. via facsimile at no
 cost, simply dial 1-800-PRO-INFO and enter the company code NFLD.
     Visit the Northfield website at:  http://www.northfieldlabs.com
 
 
     Northfield Laboratories Inc.
     (a company in the development stage)
 
     Statements of Operations
     Three months and nine months ended February 28, 2001 and February 29, 2000
     (In thousands except per share data)
 
                                     Three months ended   Nine months ended
                                    February    February   February   February
                                       28,         29,         28,        29,
                                      2001        2000        2001       2000
                                   (unaudited)(unaudited)(unaudited)(unaudited)
                                        $          $          $           $
     Revenues - license income          --         --         --          --
 
     Costs and expenses:
          Research and development   2,489      2,365      6,964       6,852
          General and administrative   620        658      2,047       1,666
                                     3,109      3,023      9,011       8,518
 
     Other income and expense:
          Interest income              505        559      1,646       1,708
          Interest expense              --         --         --          --
                                       505        559      1,646       1,708
 
     Net loss                      $(2,604)   $(2,464)   $(7,365)    $(6,810)
 
     Net loss per basic share       $(0.18)    $(0.17)    $(0.52)     $(0.48)
 
     Shares used in calculation
         of per share data          14,263     14,241     14,253      14,240
 
 
     Northfield Laboratories Inc.
     (a company in the development stage)
 
     Balance Sheets
     February 28, 2001 (unaudited) and May 31, 2000
     (In thousands)
 
                                                   February 28,      May 31,
     Assets                                            2001            2000
     Current assets:
          Cash                                        $7,299         $15,154
          Short-term marketable securities            23,800          23,129
          Prepaid expenses                               224             409
          Other current assets                           632             506
     Total current assets                             31,955          39,198
 
     Plant and equipment, net                          2,811           2,456
     Other assets                                        123              74
     Total assets                                    $34,889         $41,728
 
 
     Liabilities and Shareholders' Equity
     Current liabilities:
          Accounts payable                            $1,347          $1,061
          Accrued expenses                               150             174
          Accrued compensation and benefits              268             251
     Total current liabilities                         1,765           1,486
 
     Other liabilities                                   167             148
     Total liabilities                                 1,932           1,634
 
     Shareholders' equity:
           Capital stock                                 143             142
           Additional paid-in capital                117,503         117,276
           Deficit accumulated during the            (84,689)        (77,324)
                development stage
     Total shareholders' equity                       32,957          40,094
 
     Total liabilities and
          shareholders' equity                       $34,889         $41,728
 
 SOURCE  Northfield Laboratories Inc.