CHICAGO - (Business Wire) 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 good progress during its first quarter ended March 31, 2008.
“During the first quarter we continued our ongoing progress in our marketing and sales efforts,” said Robert McCullough, Jr., chief executive officer of CytoCore, Inc. “We received approval from the U.S. Food & Drug Administration (FDA) for our SoftPAP™ Cervical Cell Collector, we launch our revolutionary collection device at the American College of Obstetricians and Gynecologist annual meeting in May in New Orleans, and we signed our first U.S. distribution agreement with CoMedical, Inc. We have received our first order and began shipment in April of 2008.”
Advances for CytoCore Solutions™ include: the continued progress with key clinical trials; the Collector Colposcopy trial reached its 650-patient objective in May, and results are expected in the latter half of 2008. Continued development of a cytological endometrial cancer screening assay for use in conjunction with the AIPS platform is continuing.
CytoCore has expanded its international distribution agreement to include Switzerland. The company received its first order in April from the region and began shipment. “We are making good progress in Europe. We are producing and shipping in quantities responsive to expanding worldwide demand – in line with CytoCore’s overall business plan and marketing goals,” added Mr. McCullough.
The company continues its focus on high volume, higher-end physician practices, and has hired Eric Cohill as senior vice president responsible for U.S. sales and marketing. The company signed its first U.S. distribution agreement with CoMedical for SoftPAP and will leverage CoMedical’s relationship with targeted healthcare professionals in the Pacific Northwest.
“Our achievements this quarter are consistent with the goals we articulated at year-end in 2007. 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. 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,” Mr. McCullough concluded.
Financial Highlights for the First Quarter Ended March 31, 2008
Revenues increased $24,000, or 109% to $46,000 compared with $22,000 in the same period last year. This increase was the result of sales of the company’s SoftPAP cervical collection device totaling $28,000 during the quarter, partially offset by a reduction in revenue of $6,000 from the licensing fees for our slide-based installed system.
Selling, general and administrative expenses decreased 38% to $1.1 million compared with $1.7 million in the first quarter of 2007. The reduction in SG&A expenses was partially offset by increases in advertising and marketing costs related to our SoftPAP product and other professional fees.
Net loss for the quarter, before preferred dividends, decreased 23% to $1.9 million compared with $2.5 million in the same period in 2007. This decrease was partially offset by increases in research and development and SG&A expenses due to the expansion in operations.
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-KSB for the year ended December 31, 2007. Except as expressly required by law, CytoCore undertakes no obligation to publicly update or revise any forward-looking statements contained herein.
CytoCore, Inc.
Robert McCullough, Jr., 312-222-9550
or
EVC Group
Dahlia Bailey or Matthew Selinger, 415-896-6820
mselinger@evcgroup.com
