UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended June 30, 1997
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from _______ to _________.
Commission File Number 0-21863
-------
EPIX Medical, Inc.
------------------
(Exact name of Registrant as Specified in its Charter)
Delaware 04-3030815
------------------------------ ----------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
71 Rogers Street
Cambridge, Massachusetts 02142
------------------------------ ----------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (617) 499-1400
--------------
Securities registered pursuant to Section 12(b) of the Act: None
----
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, $.01 par value per share
--------------------------------------
(Title of Class)
Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
As of August 1, 1997, 8,679,728 shares of the registrant's Common Stock,
$.01 par value per share, were issued and outstanding.
<PAGE>
EPIX MEDICAL, INC.
INDEX
<TABLE>
<CAPTION>
Page
Number
------
<S> <C> <C>
PART I. FINANCIAL INFORMATION
Item 1. Condensed Financial Statements
Balance Sheets - June 30, 1997 and December 31, 1996 ........................................ 3
Statements of Operations - Three Months Ended June 30, 1997 and 1996 ........................ 4
Statements of Operations - Six Months Ended June 30, 1997 and 1996 .......................... 5
Statements of Cash Flows - Six Months Ended June 30, 1997 and 1996........................... 6
Notes to Condensed Financial Statements ..................................................... 7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of
Operations................................................................................... 8
PART II. OTHER INFORMATION
Item 2. Changes in Securities........................................................................ 12
Item 4. Submission of Matters to a Vote of Security Holders.......................................... 12
Item 6. Exhibits and Reports on Form 8-K............................................................. 12
Signatures.................................................................................................. 13
</TABLE>
2
<PAGE>
EPIX Medical, Inc.
(A Company in the Development Stage)
BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
----------- -----------
(Unaudited)
<S> <C> <C>
Assets:
Current assets:
Cash and cash equivalents $ 977,427 $ 2,667,892
Marketable securities 19,502,671 7,996,186
Receivables 899,988
Prepaid expenses 199,727 57,135
Other current assets 10,783 12,221
----------- -----------
Total current assets 21,590,596 10,733,434
Property and equipment, net 1,130,135 994,179
Notes receivable from officer 305,126 295,344
Other assets 51,773 551,610
----------- -----------
Total assets $23,077,630 $12,574,567
=========== ===========
Liabilities and Stockholders' Equity (Deficit):
Current liabilities:
Current portion of capital lease obligations $ 209,636 $ 208,571
Accounts payable and accrued expenses 1,808,346 2,225,713
----------- -----------
Total current liabilities 2,017,982 2,434,284
Capital lease obligations, less current portion 71,626 176,269
Redeemable convertible preferred stock:
Series B, $.01 par value, 2,655,138 shares authorized; 2,643,736 shares
issued and outstanding at December 31, 1996 ($6,416,368 liquidation value) 3,963,682
Series C, $.01 par value, 1,445,536 shares authorized; 1,432,318 shares
issued and outstanding at December 31, 1996 ($3,565,063 liquidation value) 3,251,444
Series D, $.01 par value, 1,740,002 shares authorized; 1,700,002 shares
issued and outstanding at December 31, 1996 ($5,641,777 liquidation value) 5,072,575
Series E, $.01 par value, 868,329 shares authorized; 868,329 shares issued
and outstanding at December 31, 1996 ($4,916,106 liquidation value) 4,916,106
Stockholders' equity (deficit):
Series A convertible preferred stock, $.01 par value, 104,388 shares
authorized; 93,691 shares issued and outstanding at December 31, 1996 1,037,664
Common stock, $.01 par value, 15,000,000 shares authorized; 8,679,728 and
1,564,451 shares issued and outstanding at June 30, 1997 and December 31, 1996,
respectively 86,797 15,644
Additional paid-in capital 32,486,921 112,960
Accretion of redeemable convertible
preferred stock to redemption value (101,059)
Deficit accumulated during the development stage (11,585,696) (8,305,002)
------------ -----------
Total stockholders' equity (deficit) 20,988,022 (7,239,793)
------------ -----------
Total liabilities and stockholders' equity (deficit) $23,077,630 $12,574,567
============ ===========
</TABLE>
See accompanying notes.
3
<PAGE>
EPIX MEDICAL, INC.
(A Company in the Development Stage)
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three months Three months
ended June 30, ended June 30,
1997 1996
-------------- --------------
<S> <C> <C>
Revenues $ 1,101,193 $
Operating expenses:
Research and development 2,119,271 1,112,366
General and administrative 698,961 740,865
------------ -----------
Total operating expenses 2,818,232 1,853,231
------------ -----------
Operating loss (1,717,039) (1,853,231)
Interest expense (8,515) (93,894)
Interest income 272,823 40,602
------------ -----------
Net loss $(1,452,731) $(1,906,523)
============ ===========
Net loss per share $ (0.17) $ (0.25)
Shares used in computation of net loss per share 8,679,000 7,711,000
</TABLE>
See accompanying notes.
4
<PAGE>
EPIX MEDICAL, INC.
(A Company in the Development Stage)
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Period from
inception
(November 29,
Six months ended Six months ended 1988) to June
June 30, 1997 June 30, 1996 30, 1997
---------------- ---------------- -----------------
<S> <C> <C> <C>
Revenues $ 1,394,373 $ 2,970,000 $ 15,415,621
Operating expenses:
Research and development 3,559,298 2,946,639 18,861,221
General and administrative 1,598,752 1,093,115 8,528,761
----------- ----------- ------------
Total operating expenses 5,158,050 4,039,754 27,389,982
----------- ----------- ------------
Operating loss (3,763,677) (1,069,754) (11,974,361)
Interest expense (18,459) (249,714) (603,940)
Interest income 501,442 51,118 1,008,072
----------- ----------- ------------
Net loss $(3,280,694) $(1,268,350) $(11,570,229)
=========== =========== ============
Net loss per share $ (0.40) $ (0.16)
Shares used in computation of net loss per share 8,210,000 7,711,000
</TABLE>
See accompanying notes.
5
<PAGE>
EPIX MEDICAL, INC.
(A Company in the Development Stage)
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Period
from inception
Six Months Six Months (November 12, 1988)
Ended June Ended June to
30, 1997 30, 1996 June 30, 1997
------------ ------------ ---------------
<S> <C> <C> <C>
Operating activities:
Net loss $ (3,280,694) $ (1,268,351) $ (11,570,229)
Adjustments to reconcile net loss to cash provided (used) by
operating activities:
Depreciation and amortization 279,374 260,720 1,932,018
Expenses paid with equity instruments 109,861 204,342
Change in operating assets and liabilities:
Accounts receivable and notes
receivable from officer (909,770) (3,651) (909,770)
Prepaid expenses, other current assets and other assets 358,683 (23,974) 219,034
Accounts payable and accrued expenses (417,367) (226,419) 1,534,422
----------- ------------ -------------
Net cash used by operating activities (3,969,774) (1,151,814) (8,590,183)
Investing activities:
Purchase of fixed assets (415,330) (262,217) (2,798,382)
Proceeds from lease financing of fixed assets 1,122,853
Purchase of marketable securities (41,827,685) (52,180,381)
Proceeds from sale or redemption of marketable securities 30,321,200 32,677,710
Issuance of notes receivable from officer (230,000) (280,000)
----------- ------------ -------------
Net cash used by investing activities (11,921,815) (492,217) (21,458,200)
----------- ------------ -------------
Financing activities:
Repayment of capital lease obligations (103,578) (179,300) (1,030,311)
Proceeds from issuance of promissory notes 300,000 3,000,000
Proceeds from issuance of bridge notes 600,000 600,000
Proceeds from sale of Series B redeemable convertible
preferred stock 3,941,236
Proceeds from sale of Series D redeemable convertible
preferred stock 4,468,963 4,468,963
Proceeds from sale of Series E redeemable convertible
preferred stock 3,000,000 4,882,372
Proceeds from sale of Series A convertible
preferred stock 1,037,664
Repurchase of stock from officer (270,000) (270,000)
Proceeds from sale of common stock 14,268,564 14,268,564
Proceeds from issuance of stock options and warrants 36,138 17,649 127,322
----------- ------------ -------------
Net cash provided used by financing activities 14,201,124 7,937,312 31,025,810
----------- ------------ -------------
Increase (decrease) in cash and cash equivalents (1,690,465) 6,293,281 977,427
Cash and cash equivalents at beginning of period 2,667,892 149,686
----------- ------------ -------------
Cash and cash equivalents at end of period $ 977,427 $6,442,967 $ 977,427
=========== ============ =============
Supplemental cash flow information:
Cash paid for interest $ 18,459 $ 50,751 $ 312,003
=========== ============ =============
</TABLE>
See accompanying notes.
6
<PAGE>
EPIX MEDICAL, INC.
(A Company in the Development Stage)
Notes to Condensed Financial Statements
June 30, 1997
(unaudited)
1. Basis of Presentation
The unaudited condensed financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-Q and the rules of the
Securities and Exchange Commission (the "Commission"). Accordingly, they do not
include all of the information and footnotes required to be presented for
complete financial statements. The accompanying condensed financial statements
reflect all adjustments (consisting only of normal recurring adjustments) which
are, in the opinion of management, necessary for a fair presentation of the
results for the interim periods presented. The results of the interim periods
ended June 30, 1997 are not necessarily indicative of the results expected for
the full fiscal year.
The condensed financial statements and related disclosures have been
prepared with the assumption that users of the interim financial statements have
read or have access to the audited financial statements for the preceding fiscal
year. Accordingly, these condensed financial statements should be read in
conjunction with the audited financial statements and the related notes thereto
included in the Company's Annual Report on Form 10-K for the year ended December
31, 1996.
2. Initial Public Offering
On February 4, 1997, the Company completed an initial public offering
of 2,000,000 shares of its Common Stock at a price of $7.00 per share. On
February 13, 1997, the Company issued an additional 300,000 shares of its Common
Stock at a price of $7.00 per share to cover an underwriters' over-allotment
option. The net proceeds to the Company, after deducting underwriters' discounts
and offering expenses, aggregated approximately $14.3 million.
3. Net Loss Per Share
Net loss per share for the three and six month periods ended June
30, 1997 are computed using the weighted-average number of outstanding shares of
common stock assuming all convertible preferred stock were converted into common
stock at the beginning of the period. Common stock equivalents, consisting of
options and warrants, are excluded from the calculation because they are
anti-dilutive.
Pro forma net income per share for the three and six month periods
ended June 30, 1996 are computed using the weighted-average number of
outstanding shares of common stock and common stock equivalents, assuming
conversion of convertible stock into common stock (as of their original date of
issuance). Common stock equivalents are excluded from the pro forma net income
(loss) per share computation when their effect is anti-dilutive; however,
pursuant to the requirements of the Commission, common stock equivalent shares
relating to stock options and warrants (using the treasury stock method and an
assumed initial public offering price) and convertible preferred stock issued
during the twelve-month period prior to the initial public offering are included
for pro forma purposes, whether or not they are anti-dilutive.
In February 1997, Financial Standards No. 128, "Earnings Per Share"
(FAS 128), which simplifies the calculation of earnings per share and creates a
standard of comparability to the recently issued International Accounting
Standard No. 33, "Earnings Per Share". Since early application is not permitted,
the Company will adopt this standard in the fourth quarter of 1997. The earnings
per share calculations required under FAS 128 are not materially different from
the net loss per share calculation for the three and six month periods ended
June 30, 1997 as presented herein.
7
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Overview
Since commencing operations in 1992, the Company has been engaged
principally in the research and development of its product candidates as well as
seeking various regulatory clearances and patent protection. The Company has had
no revenues from product sales and has incurred net losses since inception
through June 30, 1997 aggregating approximately $11.6 million. The Company has
received revenues in connection with various licensing and collaboration
agreements.
The Company's initial product candidate, MS-325, an injectable magnetic
resonance imaging (MRI) contrast agent, is currently the Company's only product
candidate undergoing human clinical trials. In 1996, the Company formed a
strategic alliance with Daiichi Radioisotope Laboratories, Ltd. (Daiichi)
related to the development and commercialization of MS-325 in Japan. In 1996 the
Company also formed a strategic alliance with Mallinckrodt Inc. (Mallinckrodt)
related to the development and commercialzation of MS-325 world-wide, exclusive
of Japan. The Company filed an Investigational New Drug ("IND") application for
MS-325 with the U.S. Food and Drug Administration ("FDA") and initiated Phase I
clinical trials in 1996 and commenced Phase II clinical trials in the second
quarter of 1997. During the second quarter of 1997, the Company also formed a
strategic alliance with DYAX Corp. (DYAX) which will seek to identify and
develop novel diagnostic agents for imaging blood clots.
The Company anticipates fluctuation in its quarterly results of
operations due to several factors, including: the timing of fees and milestone
payments received from strategic partners; the formation of new strategic
alliances by the Company; the timing of expenditures in connection with research
and development activities; the timing of product introductions and associated
launch, marketing and sales activities; and the timing and extent of product
acceptance for different indications and geographical areas.
Results of Operations
Comparison of Three Months Ended June 30, 1997 and 1996
Revenues. Revenues for the three months ended June 30, 1997 were $1.1
million as compared to no revenues for the three months ended June 30, 1996. The
1997 revenues consisted of a $900,000 milestone fee earned from Daiichi and
$200,000 of MS-325 development contract revenue received from Mallinckrodt.
Research and development expenses. Research and development expenses
for the three months ended June 30, 1997 were $2.1 million, as compared to $1.1
million for the three months ended June 30, 1996. The increase largely reflects
the higher costs to support advancement of MS-325 through the development
program. Research and development expenses are expected to increase in future
quarters of 1997 as MS-325 continues in Phase II clinical trials and as
additional costs are incurred to further develop the process for manufacturing
MS-325. Additional research and development expenses are also anticipated in
connection with the strategic alliance with DYAX which was formed during the
second quarter of 1997.
General and administrative expenses. General and administrative
expenses for the three months ended June 30, 1997 were $699,000 as compared to
$741,000 for the three months ended June 30, 1996. The decrease was mainly due
to reduced consulting expenses and lower costs associated with legal and patent
activities, which more than offset higher personnel costs and the added expenses
of being a publicly held company. Moderate increases
8
<PAGE>
to general and administrative expenses are expected to be incurred in future
quarters to support research and development programs and ongoing patent
protection activities.
Interest expense and income. Interest expense for the three months
ended June 30, 1997 was $8,500, as compared to $94,000 for the three months
ended June 30, 1996. This decrease was mainly due to interest on promissory
notes and bridge loans which were outstanding during April and May of 1996.
Interest income for the quarter ended June 30, 1997 was $273,000, as compared to
$41,000 for the quarter ended June 30, 1996. This increase was due to higher
average cash available for investment during 1997.
Comparison of Six Months Ended June 30, 1997 and 1996
Revenues. Revenues for the six months ended June 30, 1997 were $1.4
million as compared to $3.0 million for the six months ended June 30, 1996.
Revenues for the six months ended June 30, 1997 consisted of a $900,000
milestone fee from Daiichi and $494,000 of MS-325 development contract revenue
from Mallinckrodt. Revenues for the six months ended June 30, 1996 consisted of
a $3.0 million license fee received from Daiichi upon formation of the strategic
alliance.
Research and development expenses. Research and development expenses
for the six months ended June 30, 1997 were $3.6 million, as compared to $2.9
million for the six months ended June 30, 1996. The increase largely reflects
the higher costs during the second quarter to support clinical trials and other
development activities associated with MS-325.
General and administrative expenses. General and administrative
expenses for the six months ended June 30, 1997 were $1.6 million as compared to
$1.1 million for the six months ended June 30, 1996. The increase was largely
due to higher personnel costs associated with the addition of senior management
($200,000) and payment of discretionary bonuses ($100,000) in the first quarter
as well as other increased costs to build the infrastructure needed to support
development of MS-325 and new discovery programs. Increased costs associated
with the transition to and operation as a publicly-held company also contributed
to the increase in 1997 as compared to 1996.
Interest expense and income. Interest expense for the six months ended
June 30, 1997 was $18,000, as compared to $250,000 for the six months ended June
30, 1996. This decrease was mainly due to interest on promissory notes and
bridge loans which were outstanding during the first five months of 1996.
Interest income for the six months ended June 30, 1997 was $501,000, as compared
to $51,000 for the six months ended June 30, 1996. This increase was due to
higher average cash available for investment during 1997.
Liquidity and Capital Resources
The Company's principal source of liquidity consists of cash, cash
equivalents and marketable securities which totaled $20.5 million at June 30,
1997, as compared to $10.7 million at December 31, 1996. In addition, in July
1997, the Company collected a $900,000 receivable from Daiichi and a $2.0
million payment from Mallinckrodt, both related to attainment of MS-325
development milestones. In July 1997, the Company also completed arrangements
for a $1 million equipment lease facility.
In February 1997 the Company completed its initial public offering,
realizing net proceeds of approximately $14.3 million from the sale of 2.3
million shares of common stock, including 300,000 shares from the full exercise
of the underwriters' over-allotment option. The Company is eligible to receive
additional payments of $2.4 million from Daiichi upon the attainment of certain
future MS-325 development milestones. The Company's agreement with Mallinckrodt
requires Mallinckrodt to fund a portion of the future development costs of
MS-325 up to a specified maximum amount.
9
<PAGE>
During the six months ended June 30, 1997, the Company used
approximately $4.0 million of cash for operating activities. The Company expects
that its cash needs for operations will increase significantly in future
quarters of 1997 due to planned clinical trials and other expenses associated
with the development of MS-325 and new research and development programs.
The Company estimates that cash and cash equivalents available at June
30, 1997 will be sufficient to meet the Company's capital requirements through
June 1998. The Company's future capital requirements will, however, depend on
many factors, including the progress of the Company's research and development
programs and clinical trials, the time and costs required to gain regulatory
approvals, the ability of the Company to obtain and retain continued funding
from third parties under collaborative agreements, the costs of filing,
prosecuting and enforcing patents, patent applications, patent claims and
trademarks, the status of competing products and the market acceptance of the
Company's products, if and when approved. The Company may be required to raise
substantial additional funds to complete development of any product candidate,
whether or not it receives milestone payments under its collaboration with
Daiichi, or to commercialize any products if and when approved by the FDA. The
Company may be required to obtain such additional funds through future public or
private sales of equity securities, equipment lease financing or through
strategic alliances. There can be no assurance that additional financing will be
available on acceptable terms, if at all.
Because of anticipated spending to support development of MS-325 and
new research programs, the Company does not expect positive cash flow from
operating activities for any future quarterly or annual period prior to
commercialization of MS-325. The Company anticipates continued investments in
fixed assets, including equipment and facilities expansion to support new and
continuing research and development programs. In July 1997, the Company reached
an agreement to which will enable it to lease its current facilities through
December 31, 2002.
The Company has reported only tax losses to date and therefore has not
paid federal or state income taxes since inception. At June 30, 1997, the
Company had loss carryforwards of approximately $11.6 million available to
offset future taxable income. These amounts expire at various times through
2011. As a result of ownership changes resulting from recent sales of equity
securities, the Company's ability to use the loss carryforwards is subject to
limitations as defined in Sections 382 and 383 of the Internal Revenue Code of
1986, as amended (the "Code"). The Company currently estimates that the annual
limitation on its use of net operating losses through May 31, 1996 will be
approximately $900,000. Pursuant to Section 382 of the Code, the change in
ownership resulting from the initial public offering and any other future sale
of stock may limit utilization of future losses in any one year. The Company is
also eligible for research and development tax credits which can be carried
forward to offset federal taxable income. The annual limitation and the timing
of attaining profitability may result in the expiration of net operating loss
and tax credit carryforwards before utilization.
The Company does not believe that inflation has had a material impact
on its operations.
10
<PAGE>
Forward-Looking Statements
The discussion included in this section as well as elsewhere in the
Quarterly Report on Form 10-Q contains forward-looking statements based on the
current expectations of the Company's management. Such statements are subject to
risks and uncertainties which could cause actual results to differ materially
from those projected. See "Important Factors Regarding Forward-Looking
Statements" attached as Exhibit 99.1 and incorporated herein by reference to the
Company's Annual Report on Form 10-K for the year ended December 31, 1996 as
previously filed with the Commission. Readers are cautioned not to place undue
reliance on the forward-looking statements which speak only as of the date
thereof. The Company undertakes no obligation to release publicly the result of
any revisions to these forward-looking statements which may be made to reflect
events or circumstances occurring after the date hereof or to reflect the
occurrence of unanticipated events.
11
<PAGE>
PART II. OTHER INFORMATION
Item 2. Changes in Securities
During the three months ended June 30, 1997, the Company issued approximately
2,567 shares of common stock to Company employees and consultants upon the
exercise of stock options in exchange for cash consideration totaling $6,187.56
in reliance on the exemption from registration provided pursuant to Rule 701
under the Securities Act of 1933 as amended.
Item 4. Submission of Matters to a Vote of Security Holders
The Company's 1997 Annual Meeting of Stockholders was held on June 20,
1997. The following is a description of the two matters submitted to a vote of
stockholders at such meeting and the results of voting.
(i) At the meeting two directors were re-elected for a term of office expiring
in year 2000 to the Company's Board of Directors as follows:
Number of Shares Number of Votes
Voted For Withheld
--------- --------
Luke B. Evnin 7,387,545 6,331
Randall B. Lauffer 7,387,545 6,331
There were no broker non-votes or abstentions with respect to this
matter.
(ii) The stockholders also approved a proposal to amend the Company's 1992
Equity Incentive Plan to increase the aggregate number of shares of the
Company's common stock as to which awards may be granted under such plan by
500,000 shares and to limit the number of shares of the Company's common stock
that may be subject to awards granted under such plan to any individual in any
fiscal year to 300,000 shares.
Number of shares voted:
For: 6,408,544
Against: 163,000
Abstaining: 5,233
Broker Non-Votes: 817,099
Item 6. Exhibits and Reports on Form 8-K
(A) EXHIBITS
11.1 Computation of net income (loss) per share
27.2 Financial Data Schedule for the interim
year-to date period ended June 30, 1997 (for
electronic filing only).
(B) REPORTS ON FORM 8-K
No reports on Form 8-K were filed by the Company during the
quarter ended June 30, 1997.
12
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
EPIX MEDICAL, INC.
Date: August 13, 1997 By: /s/ Jeffrey R. Lentz
--------------------
Jeffrey R. Lentz,
Chief Financial Officer and
Vice President, Finance and
Administration
(Principal Financial Officer and
Accounting Officer)
13
<PAGE>
EXHIBIT INDEX
Page
Number Description Number
------ ----------- ------
11.1 Computation of net income (loss) per share 15
27.2 Financial data schedule for the interim year-to date
period ended June 30, 1997 (for electronic filing only). 16
99.1 Important Factors Regarding Forward-Looking
statements filed as Exhibit 99.1 to the Company's
Annual Report on Form 10-K for the year ended
December 31, 1996 and incorporated herein by
reference.
14
EXHIBIT 11.1
Computation of Net Income (Loss) Per Share
<TABLE>
<CAPTION>
Three Months Ended
Three Months Ended June 30, 1996
June 30, 1997 Pro Forma
------------- ---------
<S> <C> <C>
Weighted average shares of common stock and equivalents:
Common stock(1)................................................... 8,679,000 6,290,000
Options and warrants, based
on treasury stock method (2)................................... -- 1,421,000
----------- ------------
Total.......................................................... 8,679,000 7,711,000
Net loss............................................................. $(1,452,731) $(1,906,523)
Net loss per share................................................... $ (0.17) $ (0.25)
=========== ===========
Six Months Ended
Six Months Ended June 30, 1996
June 30, 1997 Pro Forma
------------- ---------
Weighted average shares of common stock and equivalents:
Common stock(1).................................................. 8,210,000 6,290,000
Options and warrants, based
on treasury stock method (2)................................... -- 1,421,000
----------- -----------
Total.......................................................... 8,210,000 7,711,000
Net loss............................................................. $(3,280,694) $(1,268,350)
Net loss per share................................................... $ (0.40) $ (0.16)
=========== ===========
</TABLE>
(1) All convertible preferred stock converted to common stock upon
completion of the Company's initial public offering in February 1997.
All convertible preferred stock (including, for pro forma purposes,
convertible preferred stock issued during the twelve-month period prior
to the initial public offering) is treated as if converted to common
stock at the beginning of earliest period presented.
(2) Weighted average shares for the three and six month periods ended
June 30, 1997 exclude all options and warrants because they are
anti-dilutive. Pro forma weighted average shares for the three and six
month periods ended June 30, 1996 include common stock equivalents
issued during the twelve month period prior to the initial public
offering.
15
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET OF EPIX MEDICAL, INC. AS OF JUNE 30, 1997 AND FOR THE THREE MONTH PERIOD
ENDED JUNE 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0001027702
<NAME> EPIX MEDICAL, INC.
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> APR-1-1997
<PERIOD-END> JUN-30-1997
<EXCHANGE-RATE> 1
<CASH> 977,427
<SECURITIES> 19,502,671
<RECEIVABLES> 899,988
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 21,590,596
<PP&E> 2,921,829
<DEPRECIATION> 1,791,694
<TOTAL-ASSETS> 23,077,630
<CURRENT-LIABILITIES> 2,017,982
<BONDS> 0
0
0
<COMMON> 86,797
<OTHER-SE> 20,901,225
<TOTAL-LIABILITY-AND-EQUITY> 23,077,630
<SALES> 0
<TOTAL-REVENUES> 1,101,193
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 2,818,232
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 8,515
<INCOME-PRETAX> (1,452,731)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,452,731)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,452,731)
<EPS-PRIMARY> (0.17)
<EPS-DILUTED> (0.17)
</TABLE>
