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, 1998
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 12, 1998, 11,366,279 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, 1998 and December 31, 1997 3
Statements of Operations--Three Months Ended June 30, 1998 and 1997 4
Statements of Operations--Six Months Ended June 30, 1998 and 1997 5
Statements of Cash Flows--Six Months Ended June 30, 1998 and 1997 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 4. Submission of Matters to a vote of Security Holders 11
Item 6. Exhibits and Reports on Form 8-K 11
Signatures 12
</TABLE>
2
<PAGE>
EPIX Medical, Inc.
(A Company in the Development Stage)
BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, December 31,
1998 1997
-------- ------------
(Unaudited)
<S> <C> <C>
Assets:
Current assets:
Cash and cash equivalents $1,384,745 $1,455,657
Marketable securities 34,719,204 41,356,941
Receivables 306,910 58,525
Prepaid expenses 304,965 241,138
Other current assets 12,157 11,247
----------- -----------
Total current assets 36,727,981 43,123,508
Property and equipment, net 2,161,644 1,254,281
Notes receivable from officer 326,876 315,616
Other assets 95,437 81,966
----------- -----------
Total assets $39,311,938 $44,775,371
=========== ===========
Liabilities and Stockholders' Equity:
Current liabilities:
Current portion of capital lease obligations $293,256 $319,745
Contract advances 764,048 794,346
Accounts payable and accrued expenses 2,403,691 2,336,135
----------- -----------
Total current liabilities 3,460,995 3,450,226
Capital lease obligations, less current portion 588,515 278,966
Common stock, $.01 par value, 15,000,000 shares
authorized; 11,354,848 and 11,218,264 shares
issued and outstanding at June 30, 1998 and
December 31, 1997, respectively 113,548 112,183
Additional paid-in capital 55,608,752 55,351,091
Loans to stock option holders (118,602)
Deficit accumulated during the development stage (20,341,270) (14,417,095)
----------- -----------
Total stockholders' equity 35,262,428 41,046,179
----------- -----------
Total liabilities and stockholders' equity $39,311,938 $44,775,371
=========== ===========
</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,
1998 1997
-------------- --------------
<S> <C> <C>
Revenues $ 517,199 $ 1,101,193
Operating expenses:
Research and development 3,074,708 2,119,271
General and administrative 1,023,014 698,961
----------- -----------
Total operating expenses 4,097,722 2,818,232
----------- -----------
Operating loss (3,580,523) (1,717,039)
Interest expense (15,104) (8,515)
Interest income 540,312 272,823
----------- -----------
Net loss $(3,055,315) $(1,452,731)
=========== ===========
Weighted average shares
Basic 11,326,494 8,678,639
Diluted 11,326,494 8,678,639
Loss per common share
Basic $(0.27) $(0.17)
Diluted $(0.27) $(0.17)
</TABLE>
See accompanying notes.
4
<PAGE>
EPIX MEDICAL, INC.
(A Company in the Development Stage)
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Period from
Six months Six months inception
ended June 30, ended June 30, (November 29, 1988)
1998 1997 to June 30, 1998
--------------- -------------- --------------------
<S> <C> <C> <C>
Revenues $ 941,024 $ 1,394,373 $ 19,189,798
Operating expenses:
Research and development 5,964,532 3,559,298 30,165,652
General and administrative 1,866,354 1,598,752 11,586,585
------------ ----------- ------------
Total operating expenses 7,830,886 5,158,050 41,752,237
------------ ----------- -------------
Operating loss (6,889,862) (3,763,677) (22,562,439)
Interest expense (27,757) (18,459) (675,241)
Interest income 993,443 501,442 2,911,876
------------ ----------- ------------
Net loss $ (5,924,176) $(3,280,694) $(20,325,804)
============ =========== ============
Weighted average shares
Basic 11,294,304 7,310,334
Diluted 11,294,304 7,310,334
Loss per common share
Basic $(0.52) $(0.45)
Diluted $(0.52) $(0.45)
</TABLE>
See accompanying notes.
5
<PAGE>
EPIX MEDICAL, INC.
(A Company in the Development Stage)
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Period
Six Months Ended Six Months Ended from inception
June 30, June 30, (November 12, 1988)
1998 1997 to June 30, 1998
---------------- ---------------- --------------
<S> <C> <C> <C>
Operating activities:
Net loss $ (5,924,175) $ (3,280,694) $ (20,325,803)
Adjustments to reconcile net loss to cash provided
(used) by operating activities:
Depreciation and amortization 344,114 279,374 2,577,610
Expenses paid with equity instruments 204,342
Change in operating assets and liabilities:
Prepaid expenses and other current assets (337,853) (551,087) (269,685)
Contract advances (30,298) 764,048
Accounts payable and accrued expenses 67,556 (417,367) 2,129,767
------------ ----------- ------------
Net cash used by operating activities (5,880,656) (3,969,774) (14,919,721)
Investing activities:
Purchase of fixed assets (1,251,477) (415,330) (4,475,480)
Purchase of marketable securities (261,073,362) (41,827,685) (630,823,446)
Proceeds from sale or redemption of marketable securities 267,711,098 30,321,200 596,104,241
Issuance of notes receivable from officer (280,000)
------------ ----------- ------------
Net cash provided (used) by investing activities 5,386,259 (11,921,815) (39,474,685)
------------ ----------- ------------
Financing activities:
Lease financing of fixed assets 492,265 2,067,311
Repayment of capital lease obligations (209,205) (103,578) (1,374,261)
Issuance of promissory notes 3,000,000
Issuance of bridge notes 600,000
Sale of Series B redeemable convertible preferred stock 3,941,236
Sale of Series D redeemable convertible preferred stock 4,468,963
Sale of Series E redeemable convertible preferred stock 4,882,372
Sale of Series A convertible preferred stock 1,037,664
Repurchase of stock from officer (270,000)
Issuance of stock option loan (118,602) (118,602)
Proceeds from Employee Stock Purchase Plan 76,216 76,216
Sale of common stock 14,268,564 37,124,118
Exercise of stock options and warrants 182,811 36,138 344,134
------------ ----------- ------------
Net cash provided (used) by financing activities 423,485 14,201,124 55,779,151
------------ ----------- ------------
Increase (decrease) in cash and cash equivalents (70,912) (1,690,465) 1,384,745
Cash and cash equivalents at beginning of period 1,455,657 2,667,892
------------ ----------- ------------
Cash and cash equivalents at end of period $1,384,745 $977,427 $1,384,745
============ =========== ============
Supplemental cash flow information:
Cash paid for interest $27,757 $18,459 $359,285
============ =========== ============
</TABLE>
See accompanying notes.
6
<PAGE>
EPIX MEDICAL, INC.
(A Company in the Development Stage)
Notes to Condensed Financial Statements
June 30, 1998
(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 "SEC"). 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 period ended June 30,
1998 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, 1997.
2. Net Income (Loss) Per Share
In February 1997, the Financial Accounting Standard Board (FASB) issued
Financial Standards No. 128, "Earnings Per Share" (FAS 128). SFAS 128 replaces
the calculation for computing primary and diluted earnings per share with basic
and diluted earnings per share. Basic earnings per share excludes any dilutive
effect of options, warrants or convertible securities. Pursuant to the previous
requirements of the SEC, common shares, common share equivalents and convertible
preferred stock issued by the Company during the twelve month period prior to
the initial public offering in February 1997 had been included in the previously
reported weighted average shares for all periods presented, whether or not
anti-dilutive. In February 1998, the SEC issued Staff Accounting Bulletin 98
which, among other things, conformed prior SEC requirements to SFAS 128 and
eliminated inclusion of such shares in the computation of earnings per share.
All earnings (loss) per share amounts for all periods have been presented, and
as appropriate, restated to conform to SFAS 128 and the current SEC
requirements. Due to its loss position, diluted earnings per share for periods
reported herein is the same amount as basic earnings per share.
3. Comprehensive Income
In 1997, the Financial Accounting Standards Board (FASB) issued Financial
Standards No. 130 "Reporting Comprehensive Income." Adoption of the Standard is
required for all periods beginning after December 15, 1997.
Statement 130 establishes the rules for reporting and displaying
"comprehensive income" and its components. In general, comprehensive income
consists of net income and "other comprehensive income". Other comprehensive
income is comprised of non-owner related changes in equity that were excluded
from net income. Examples of other comprehensive income include: certain
unrealized gains or losses on available-for-sale securities, certain foreign
currency translation adjustments, changes in the value of certain futures
contracts and certain changes in pension liabilities.
The Company had no other comprehensive income during the three and six
month periods ended June 30, 1998 and 1997 and, accordingly, its comprehensive
loss and net loss are the same.
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 losses since its inception through
June 30, 1998 aggregating approximately $20.3 million. The Company has received
revenues in connection with various licensing and collaboration agreements. In
August 1996, the Company entered into a strategic alliance with Mallinckrodt,
Inc. for the development and commercialization of the Company's initial product
candidate, MS-325, worldwide excluding Japan pursuant to which it received $6.0
million in up-front license fees. The agreement provided for an additional $2.0
million milestone payment which was received in July 1997. In March 1996, the
Company entered into a strategic alliance (the "Daiichi Agreement") with Daiichi
Radioisotope Laboratories, Ltd. related to the development and commercialization
of MS-325 in Japan. To date, the Company has received $3.0 million in license
fees and $5.0 million from the sale of shares of the Company's preferred stock
pursuant to the Daiichi Agreement. The Company is also entitled to receive up to
$3.3 million in future payments pursuant to the Daiichi Agreement based upon the
Company's achievement of certain product development milestones. The Company has
received $900,000 of such milestone payments to date.
The Company expects continued operating losses for the next several years as it
incurs expenses to support research, development and efforts to obtain
regulatory approvals.
The Company's initial product candidate, MS-325 which is anticipated to be
marketed under the name AngioMARK, is currently the Company's only product
candidate undergoing human clinical trials. The Company filed an IND application
for MS-325 in July 1996 and initiated a Phase I clinical trial in 1996, a Phase
I dose escalation study in 1997 and a Phase II trial for peripheral vascular
disease indication in June 1997, all of which have been completed. The Company
and has since commenced feasibility clinical trials for both cardiac and breast
cancer indications.
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 of the world.
Results of Operations
Comparison of Three Months Ended June 30, 1998 and 1997
Revenues. Second quarter revenues were $517,000 and $1.1 million in 1998 and
1997, respectively. Revenues for the three months ended June 30, 1998 consisted
primarily of MS-325 development contract revenue from Mallinckrodt. Revenues for
the three months ended June 30, 1997 were comprised of a $900,000 milestone fee
from Daiichi and $200,000 of MS-325 development contract revenue from
Mallinckrodt.
Research and development expenses. Research and development expenses for the
three months ended June 30, 1998 were $3.1 million as compared to $2.1 million
for the three months ended June 30, 1997. This increase was primarily due to
increasing costs of MS-325 clinical trials including the costs of additional
regulatory personnel and related travel. The increase was also attributable to
the costs of personnel and resources necessary to support research in the area
of thrombus imaging and the advancement of core technology.
General and administrative expenses. General and administrative expenses for the
three months ended June 30, 1998 were $1.0 million as compared to $700,000 for
the corresponding period of 1997. The increase was partially due to additional
marketing costs including the hiring of new personnel and development of
marketing communication programs. Higher legal costs related to ongoing patent
activities, principally in Europe and Japan, also contributed to the increase.
8
<PAGE>
Interest income and expense. Other income, consisting mainly of interest income,
increased $262,000 in 1998 as compared to 1997 mainly due to higher average
levels of invested cash during the 1998 second quarter.
Comparison of Six Months Ended June 30, 1998 and 1997
Revenues. Revenues for the six months ended June 30, 1998 were $941,000 as
compared to $1.4 million for the six months ended June 30, 1997. Revenues for
the six months ended June 30, 1998 consisted primarily of MS-325 development
contract revenue from Mallinckrodt. 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.
Research and development expenses. Research and development expenses for the six
months ended June 30, 1998 were $6.0 million as compared to $3.6 million for the
six months ended June 30, 1997. This increase was primarily due to increasing
costs of MS-325 clinical trials including the costs of additional regulatory
personnel and related travel. During the first six months of 1998, the Company
was enrolling patients in three separate Phase II clinical trials for MS-325 as
compared to the first six months of 1997 during which two Phase I trials were in
progress and a Phase II trial had just been initiated. The increase was also
attributable to the costs of personnel and resources necessary to support
research in the area of thrombus imaging and the advancement of core technology.
General and administrative expenses. General and administrative expenses for the
six months ended June 30, 1998 were $1.9 million as compared to $1.6 million for
the six months ended June 30, 1997. The increase was partially due to additional
marketing activities which included the hiring of personnel and development of
marketing communication programs. Also contributing to the increase were higher
legal costs related to ongoing patent activities, principally in Europe and
Japan.
Interest income and expense. Other income, consisting mainly of interest income,
increased $483,000 in 1998 as compared to 1997 mainly due to higher average
levels of invested cash during the six months ended June 30, 1998.
Liquidity and Capital Resources
The Company financed its operations from inception through June 30, 1998 with
$14.3 million in net proceeds from the Company's initial public offering
completed in February 1997, $22.9 million from a follow-on public offering of
common stock in November 1997, $18.4 million from private sales of equity
securities, $19.2 million received from third parties in connection with
collaboration and license arrangements, $2.3 million of equipment lease
financing and $2.9 million in interest income. From inception through June 30,
1998, the Company has incurred $41.8 million of costs attributable to operating
activities, including $30.2 million related to the research and development of
technology and new product candidates, including MS-325.
The Company's principal source of liquidity consists of cash, cash equivalents
and marketable securities which totaled $36.1 million at June 30, 1998, as
compared to $42.8 million at December 31, 1997.
The Company is eligible to receive additional payments of $2.4 million from
Daiichi upon the attainment of certain future MS-325 development milestones.
Under the Company's agreement with Mallinckrodt, Mallinckrodt and the Company
will generally share equally in future development costs of MS-325 up to a
specified maximum amount.
The Company estimates that existing cash, cash equivalents and marketable
securities will be sufficient to fund its operations through the second quarter
of 1999. The Company believes that it will need to raise additional funds for
research, development and other expenses, through equity or debt financings,
strategic alliances, licensing arrangements, or otherwise, prior to
commercialization of any of its product candidates. There can be no assurance
that additional financing will be available on terms acceptable to the Company,
or at all. The Company's future liquidity and capital requirements will depend
on numerous factors, including the following: the success, progress and scope of
clinical trials; the timing and costs of filing future regulatory submissions;
the timing and costs required to receive both United States and foreign
governmental approvals; the cost of filing, prosecuting, defending and enforcing
patent claims and other intellectual property rights; the extent to which the
Company's products gain market acceptance; the timing and costs of product
introductions; the extent of the Company's ongoing research and development
programs; the costs of training physicians to become proficient with the use of
the Company's products; and, if necessary, once regulatory approvals are
received, the costs of developing marketing and distribution capabilities.
During the six months ended June 30, 1998, the Company used approximately $5.9
million of cash for operating activities. 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 entered into a lease for its current principal scientific
9
<PAGE>
facilities which expires on December 31, 2002. The Company also has a lease for
nearby office space which expires in December 1999 but can be extended by the
Company for up to three years.
The Company has reported only tax losses to date and therefore has not paid
significant federal or state income taxes since inception. At December 31, 1997,
the Company had loss carryforwards of approximately $12.0 million available to
offset future taxable income. These amounts expire at various times through
2011. As a result of ownership changes resulting from 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 and 383 of the Code, the change
in ownership resulting from public equity offerings in 1997 and any other future
ownership changes may further limit utilization of losses and credits 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.
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, 1997 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.
10
<PAGE>
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
The annual meeting of the stockholders of the Company's was held on Tuesday, May
12, 1998. The following is a description of the three matters submitted to a
vote of stockholders at such meeting and the result of voting.
(i) At the meeting one director were re-elected for a term of office expiring in
year 2001.
<TABLE>
<CAPTION>
Number of Shares Number of Votes
Voted For Withheld
---------------- ---------------
<S> <C> <C>
Stanley T. Crooke, M.D., Ph.D. 7,707,807 16,100
</TABLE>
There were no broker non-votes or abstentions with respect to this matter.
The following is a list of the directors whose term of office as a director
continued after the meeting:
<TABLE>
<CAPTION>
Term Expires
------------
<S> <C>
Christopher F.O. Gabrieli 1999
Michael D. Webb 1999
Luke B. Evnin, Ph.D. 2000
Randall B. Lauffer, Ph.D. 2000
</TABLE>
(ii) The stockholders approved an amendment to the Company's 1992 Equity
Incentive Plan to increase the number of shares of the Company's common stock as
to which awards may be granted under such plan by 250,000 shares.
<TABLE>
<S> <C>
Number of shares voted:
For: 7,450,591
Against: 273,216
Abstaining: 100
Broker Non-Votes: 0
</TABLE>
(iii) The stockholders also approved amendments to the Company's 1996 Director
Stock Option Plan to increase the size of the grant awarded to a director upon
election or reelection from 6,666 shares of the Company's common stock to 15,000
shares, to change the vesting schedule of such grants from five years to three
years and to increase the number of shares of the Company's common stock as to
which awards may be granted under such plan by 33,334 shares.
<TABLE>
<S> <C>
Number of shares voted:
For: 7,479,522
Against: 243,675
Abstaining: 710
Broker Non-Votes: 0
</TABLE>
Item 6. Exhibits and Reports on Form 8-K
(A) EXHIBITS
27.1 Financial Data Schedule for the interim year-to date period ended
June 30, 1998 (for electronic filing only).
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, 1998.
11
<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, 1998
By: /s/ Stephen C. Knight
---------------------------------
Stephen C. Knight,
Chief Financial Officer and
Senior Vice President, Finance and
Business Development
(Principal Financial Officer and
Accounting Officer)
12
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
Page
Number Description Number
- ------ ----------- ------
<S> <C>
27.1 Financial data schedule for the interim year-to-date period ended
June 30, 1998 (for electronic filing only). 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, 1997 and incorporated herein by reference.
</TABLE>
<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, 1998 AND FOR THE THREE MONTH PERIOD
ENDED JUNE 30, 1998 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
<RESTATED>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> APR-01-1998
<PERIOD-END> JUN-30-1998
<EXCHANGE-RATE> 1
<CASH> 1,384,745
<SECURITIES> 34,719,204
<RECEIVABLES> 306,910
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 36,727,981
<PP&E> 4,598,930
<DEPRECIATION> 2,437,286
<TOTAL-ASSETS> 39,311,938
<CURRENT-LIABILITIES> 3,460,995
<BONDS> 0
0
0
<COMMON> 113,548
<OTHER-SE> 35,148,880
<TOTAL-LIABILITY-AND-EQUITY> 39,311,938
<SALES> 0
<TOTAL-REVENUES> 517,199
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 4,097,722
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 15,104
<INCOME-PRETAX> (3,055,315)
<INCOME-TAX> 0
<INCOME-CONTINUING> (3,055,315)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,055,315)
<EPS-PRIMARY> (0.27)
<EPS-DILUTED> (0.27)
</TABLE>
<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
<RESTATED>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
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