CytoCore Reports 2007 Financial Results and Recent Progress
Company Poised for Rapid Market and Manufacturing Expansion and Ongoing Trials in 2008
CHICAGO -- April 3, 2008 – CytoCore Inc. (OTCBB:CYOE), the developer of a suite of cost-effective cervical cell collection devices for the early detection of cancer and sexually transmitted diseases, today reported 2007 year-end financial results. The company also provided an update on the progress it has made in expanding its presence within the global medical device market, including initial international distribution and new FDA approval.
“We regard 2007 as a watershed year and real turning point for the Company,” said CEO Robert McCullough, Jr. “Our ongoing progress in marketing and sales along with technology developments have positioned us for a productive 2008. The reduction of liabilities to approximately $1.5 million and the addition of $6 million equity capital both which occurred during the first quarter of 2008 along with the other financial restructuring during 2006 and 2007 including the reverse stock split provides us with the capital structure to launch the growth phase of CytoCore.
The Company reported revenue of $83,000 in 2007. This included the first sales of the SoftPAP product which commenced European sales in the fourth quarter of 2007. The Company reported a net loss of $8.24 million in 2007 or $.24 per share versus a loss of $7.2 million or $.30 per share in 2006.
Major advances in 2007 for CytoCore Solutions™ include: CE Marking and the receiving of FDA clearance for its SoftPAP® Collector, progress with key clinical trials, and the market launch of the SoftPAP® Collector in Europe. The Endoscan phase I trial, which utilized tissue slices from biopsy specimens in order to gather data to support the development of a cytological (cell-based) screening test for endometrial cancer, was concluded in July 2007. Development of a cytological endometrial cancer screening assay for use in conjunction with the AIPS platform is continuing. Meanwhile, the Collector Colposcopy trial is expected to reach its 650-patient objective by May of 2008, with results available shortly thereafter.
In the area of manufacturing engineering, CytoCore has partnered with the Engineered Plastics and Rubber Group of ATP to successfully initiate semi-automated commercial production of the SoftPAP® Collector in China. A fully automated manufacturing line is nearing completion in China and additional SoftPAP® manufacturing capacity is being brought on-line in Elkhorn, Wisconsin and Tempe, Arizona. The SoftPap Collector is now being shipped internationally to various distribution outlets. “We are now in the ramp-up stage, and are ready to produce and ship in quantities responsive to expanding worldwide demand – in line with CytoCore’s overall business plan and marketing goals,” said McCullough. “Moving the SoftPAP® Collector into manufacturing and distribution was a principal focus and achievement for us this past year.”
As a result of that focus, CytoCore’s SoftPAP® Collector received CE Mark approval for distribution into Europe in the third quarter of 2007, and the Company signed new distribution agreements for Italy, Spain and Portugal. The decision to hire Dr. Augusto Ocana as president of international distribution further enhanced this effort, which culminated at year-end with an initial shipment of SoftPAP® Collectors to markets in Italy. Subsequently, SoftPap Collectors have been shipped to Spain and Portugal, and a new distribution agreement has been signed for Switzerland with several other countries close at hand.
Other tactical executive appointments included McCullough’s expanded executive role as CEO, the addition of Dick Domanik as COO and President, and the election of several dynamic new board members.
The Company also strengthened its AIPS (Automated Image-Guided Proteomic System) development project with the addition of Dr. Michael Jolley, whose strength in Assay development was demonstrated by his success in developing Assays for Abbot Lab’s TDX system (the first ever automated drug monitoring system). His understanding of the needs and potential of the AIPS project positions CytoCore for rapid progress that is expected to produce a beta version of the AIPS, with two key assays, scheduled for testing in the fourth quarter of 2008.
“Our achievements in 2007 are consistent with the goals we articulated at year-end in 2006,” said McCullough. “As a result of our execution, we have established CytoCore as an institutional quality investment and were able to raise $10 million in new equity financing -- despite a challenging market. We have positioned ourselves for continued growth with medical screening and other devices that respond directly to well-documented global health crises such as the epidemic of HPV infection among young women in the United States and abroad.”
About CytoCore Inc.
CytoCore develops cost-effective, highly accurate screening systems for early detection of gynecological cancers and sexually transmitted diseases. Designed for easy deployment at a laboratory or at the point-of-care, the CytoCore suite of sample collection technologies assists in the detection of cervical, endometrial, and other cancers, as well as the human Papilloma virus. The CytoCore Solutions™ System is being developed to provide medical practitioners with highly accurate, low-cost, cervical and uterine cancer screening systems that can be seamlessly integrated into existing medical models. More information is available at: www.CytoCoreInc.com.
Certain statements in this release are forward-looking. These statements are based on CytoCore's current expectations and involve many risks and uncertainties, such as the company's inability to obtain sufficient financing, the possibility that clinical trials will not substantiate CytoCore's expectations with respect to the CytoCore Solutions™ System, and other factors set forth in reports and documents filed by CytoCore with the Securities and Exchange Commission. Actual results may differ materially from CytoCore's current expectation depending upon a number of factors affecting the Company's business. These factors include, among others, risks and uncertainties detailed in the Company's periodic public filings with the Securities and Exchange Commission, including but not limited to the Company's Annual Report on Form 10-K for the year ended December 31, 2006. Except as expressly required by law, CytoCore undertakes no obligation to publicly update or revise any forward-looking statements contained herein.
Contact:
CytoCore, Inc.
Robert McCullough, Jr., 312-222-9550
or
EVC Group
Douglas Sherk/Matthew Selinger, 415-896-6820
mselinger@evcgroup.com
