<PAGE>
FORM 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(MARK ONE)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTER ENDED MARCH 31, 2000 OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission file number 000-29839
ORAPHARMA, INC.
(Exact name of registrant as specified in its charter)
Delaware
----------------------------
(State or other jurisdiction
of incorporation or organization)
22-3473777
----------------------------
(I.R.S. Employer
Identification No.)
732 Louis Drive
Warminster, Pennsylvania
18974
----------------------------------------
(Address of principal executive offices)
215/956-2200
----------------------------------------
(Registrant's telephone number, including area code)
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 1. NO
----- -----
As of May 12, 2000, 13,351,299 shares of common stock were outstanding.
- --------------------------------------------------------------------------------
1. The registrant has filed all reports required to be filed by Section 13 or
15(d) of the Securities Exchange Act of 1934, but it has not been subject to
such filing requirement for the past 90 days.
<PAGE>
ORAPHARMA, INC.
INDEX
<TABLE>
<CAPTION>
Page
-------
<S> <C> <C>
PART I FINANCIAL INFORMATION
Item 1 Financial Statements (Unaudited) 3
Balance Sheets - March 31, 2000 and December 31, 1999 3
Statements of Operations - Three months ended March 31, 2000
and 1999 4
Statements of Cash Flows - Three months ended March 31, 2000
and 1999 5
Notes to Consolidated Financial Statements 6
Item 2 Management's Discussion and Analysis of Financial Condition and
Results of Operations 7
Item 3 Quantitative and Qualitative Disclosures About Market Risk: 8
PART II. OTHER INFORMATION 9
Item 2. Change in Securities and Use of Proceeds 9
Item 6. Exhibits and Reports on Form 8-K 10
SIGNATURES 11
</TABLE>
2
<PAGE>
PART I
------
ITEM 1. Financial Statements
ORAPHARMA, INC. AND SUBSIDIARY
------------------------------
(a development-stage company)
BALANCE SHEETS
--------------
(unaudited)
<TABLE>
<CAPTION>
December 31, March 31,
1999 2000
------------- -------------
<S> <C> <C>
ASSETS
------
CURRENT ASSETS:
Cash and cash equivalents $ 13,073,803 $ 76,336,146
Prepaid expenses and other 263,944 823,280
Deferred offering costs 222,012 --
------------- -------------
Total current assets 13,559,759 77,159,426
FIXED ASSETS, net 957,897 969,152
INTANGIBLE ASSETS, net 194,083 187,233
------------- -------------
$ 14,711,739 $ 78,315,811
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
----------------------------------------------
CURRENT LIABILITIES:
Current portion of long-term debt $ 192,935 $ --
Accounts payable 452,763 1,476,581
Accrued expenses 1,420,468 995,363
------------- -------------
Total current liabilities 2,066,166 2,471,944
------------- -------------
LONG-TERM DEBT 288,043 --
------------- -------------
REDEEMABLE CONVERTIBLE PREFERRED STOCK 32,974,359 --
------------- -------------
STOCKHOLDERS' EQUITY (DEFICIT):
Common stock, par value $.001 per share, 50,000,000 shares authorized,
1,039,635, and 12,737,611 issued and outstanding 1,040 12,738
Additional paid-in capital 2,789,617 101,855,185
Deferred compensation (815,393) (762,133)
Deficit accumulated during the development stage (22,592,093) (25,261,923)
------------- -------------
Total stockholders' equity (deficit) (20,616,829) 75,843,867
------------- -------------
$ 14,711,739 $ 78,315,811
============= =============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
ORAPHARMA, INC. AND SUBSIDIARY
------------------------------
(a development-stage company)
STATEMENTS OF OPERATIONS
------------------------
(unaudited)
<TABLE>
<CAPTION>
Period from
Inception
(August 1,
Three Months Ended 1996)
March 31, Through
------------------------------ March 31,
1999 2000 2000
----------- ------------ ------------
<S> <C> <C> <C>
OPERATING EXPENSES:
Research and development $ 1,574,153 $ 2,045,751 $ 21,060,851
General and administrative 404,419 962,452 6,104,372
----------- ------------ ------------
Operating loss (1,978,572) (3,008,203) (27,165,223)
----------- ------------ ------------
INTEREST INCOME 212,915 347,262 2,005,002
INTEREST EXPENSE (14,626) (8,889) (101,702)
----------- ------------ ------------
NET LOSS $(1,780,283) $ (2,669,830) $(25,261,923)
=========== ============ ============
BASIC AND DILUTED NET LOSS
PER SHARE $ (2.50) $ (0.68)
=========== ============
SHARES USED IN COMPUTING BASIC AND DILUTED NET
LOSS PER SHARE 712,001 3,920,117
=========== ============
PRO FORMA BASIC AND DILUTED NET LOSS PER SHARE $ (0.23) $ (0.28)
=========== ============
SHARES USED IN COMPUTING PRO FORMA BASIC AND
DILUTED NET LOSS PER SHARE 7,639,039 9,567,181
=========== ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
ORAPHARMA, INC. AND SUBSIDIARY
------------------------------
(a development-stage company)
STATEMENTS OF CASH FLOWS
------------------------
(unaudited)
<TABLE>
<CAPTION>
Period from
Inception
(August 1,
Three Months Ended 1996)
March 31, Through
------------------------------ March 31,
1999 2000 2000
------------ ------------ ------------
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (1,780,283) $ (2,669,830) $(25,261,923)
Adjustments to reconcile net loss to net cash used in operating
activities-
Depreciation and amortization 68,996 77,978 611,965
Stock based compensation expense 5,881 139,364 494,740
Common stock and warrants issued in
connection with acquisition of technology -- -- 835,897
Changes in operating assets and liabilities-
Prepaid expenses and other 10,462 (337,324) (601,268)
Accounts payable (376,781) 1,023,818 1,476,581
Accrued expenses (720,238) (425,106) 573,318
------------ ------------ ------------
Net cash used in operating activities (2,792,033) (2,191,100) (21,870,690)
------------ ------------ ------------
CASH FLOWS USED IN INVESTING ACTIVITIES:
Capital expenditures (122,887) (82,383) (1,484,711)
Expenditures for intangible assets -- -- (259,639)
------------ ------------ ------------
Net cash used in investing activities (122,887) (82,383) (1,744,350)
------------ ------------ ------------
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES:
Proceeds from issuance of notes payable -- -- 915,000
Proceeds from the sale of preferred stock, net of expenses -- -- 33,730,563
Proceeds from the sale of common stock and exercise of stock
options and warrants -- 66,016,804 66,020,623
Proceeds from PA Opportunity Grant -- -- 200,000
Repayment of notes payable (48,234) (480,978) (915,000)
------------ ------------ ------------
Net cash provided by (used in) financing activities (48,234) 65,535,826 99,951,186
------------ ------------ ------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (2,963,154) 63,262,343 76,336,146
CASH AND CASH EQUIVALENTS, beginning of period 19,236,084 13,073,803 --
------------ ------------ ------------
CASH AND CASH EQUIVALENTS, end of period $ 16,272,930 $ 76,336,146 $ 76,336,146
============ ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
ORAPHARMA, INC. AND SUBSIDIARY
------------------------------
(a development-stage company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation:
The unaudited consolidated financial statements included herein have been
prepared by the Company pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such rules and regulations. In
management's opinion, the accompanying consolidated financial statements
have been prepared on a basis consistent with the audited financial
statements and contain adjustments, which are of a normal and recurring
nature, necessary to present fairly the Company's financial position and
results of operations. Interim financial results are not necessarily
indicative of results anticipated for the full year. These unaudited
consolidated financial statements should be read in conjunction with the
Company's 1999 audited financial statements and footnotes included in the
Company's Registration Statement on Form S-1 (File No. 333-93881).
The preparation of financial statements in conformity with generally
accepted accounting principles requires that management make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amount of expenses incurred during
the reporting period. Actual results could differ from those estimates.
2. Net Loss Per Common Share
The Company has presented basic and diluted net loss per share pursuant to
the Statement of Financial Accounting Standards ("SFAS") No. 128 "Earnings
per Share," and the Securities and Exchange Commission Staff Accounting
Bulletin No. 98. In accordance with SFAS 128, basic and diluted net loss
per share has been computed using the weighted-average number of shares of
common stock outstanding during the period, less shares subject to
repurchase. Pro forma basic and diluted net loss per common share, as
presented in the statements of operations, gives effect to the conversion
of the redeemable convertible preferred stock, which automatically
converted to common stock upon the closing of the Company's initial public
offering, from the original date of issuance.
<TABLE>
<CAPTION>
Three months ended
March 31,
--------------------------
1999 2000
----------- -----------
<S> <C> <C>
Net Loss $(1,780,283) $(2,669,830)
=========== ===========
Basic and diluted:
Weighted-average shares of common stock outstanding 957,038 4,071,792
Less: weighted average shares subject to repurchase (245,037) (151,675)
----------- -----------
Weighted-average shares used in computing basic and
diluted net loss per share 712,001 3,920,117
=========== ===========
Basic and diluted net loss per share $ (2.50) $ (0.68)
=========== ===========
Pro forma:
Shares used above 712,001 3,920,117
Pro forma adjustment to reflect the weighted average
effect of assumed conversion of redeemables convertible
preferred stock 6,927,038 5,647,064
----------- -----------
Shares used in computing pro forma basic and diluted
net loss per share 7,639,039 9,567,181
=========== ===========
Pro forma basic and diluted net loss per share $ (0.23) $ (0.28)
=========== ===========
</TABLE>
We have excluded all outstanding redeemable convertible preferred stock,
outstanding stock options and warrants, and shares subject to repurchase
from the calculation of basic and diluted loss per common share because all
such securities are antidilutive for all applicable periods presented. The
pro forma calculations exclude outstanding stock options and warrants, and
shares subject to repurchase as they are antidilutive.
3. Stockholders' Equity
In February 2000, we effected a 1 for 2 reverse stock split of all
outstanding common and preferred stock and increased the number of
authorized shares of common stock to 50,000,000. All references in the
accompanying financial statements to the number of shares and per share
amounts have been retroactively restated to reflect the reverse stock
split.
On March 9, 2000 we completed our initial public offering ("IPO") and sold
4,000,000 shares of our common stock to the public at $18.00 per share. Net
proceeds to the Company after underwriting commission and expenses were
approximately $66 million. On April 10, 2000 we sold an additional 600,000
shares of common stock to cover underwriter over-allotments and received
net proceeds of approximately $10 million.
Following completion of our IPO, all of the outstanding shares of Series
A,B,C, and D redeemable convertible preferred stock were converted into
7,557,100 shares of common stock.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FORWARD LOOKING STATEMENTS
The following Management's Discussion and Analysis of Financial Condition
and Results of Operations as well as information contained elsewhere in this
Report contains forward-looking statements within the meaning of Section 21E of
the Securities Exchange Act of 1934. These forward-looking statements include
statements about the following:
. establishing a sales and marketing force, including related hiring and
training activities:
. our intentions regarding international collaborations:
. anticipated operating losses and capital expenditures:
. our product development efforts for MPTS and our other product
candidates: and
. the status of our regulatory process for MPTS.
When used in this Report, we intend the words "may", "believe,"
"anticipate," "planned," "expect," "require," "intend," and "depend" to identify
"forward-looking statements." Our forward-looking statements involve
uncertainties and other factors that may cause our actual results, performance
or achievements, to be far different from that suggested by our forward-looking
statements. You should not place undue reliance on our forward-looking
statements. We do not intend to update any of these factors or to publicly
announce the results of any revisions to any of these forward-looking
statements.
OVERVIEW OF ORAPHARMA'S FINANCIAL PERFORMANCE
Background
We have devoted substantially all of our resources since we began
operations in August 1996 to research and development of locally delivered
pharmaceutical products for oral healthcare. We are a development stage
pharmaceutical company and have not generated any revenues from product sales.
We have not been profitable and since inception have incurred a cumulative net
loss of approximately $ 25.3 million through March 31, 2000. These losses have
resulted principally from costs incurred in research and development activities,
including phase 3 clinical trials of our lead product candidate, Minocycline
Periodontal Therapeutic System (MPTS) and general and administrative expenses.
We expect to incur additional operating losses until such time as we generate
sufficient revenue to offset expenses. Research and development costs relating
to new product candidates will continue to increase. Manufacturing, sales and
marketing costs will increase as we prepare for product launch of MPTS.
In October 1999 we completed phase 3 clinical trials for MPTS for the
treatment of periodontitis. We filed a New Drug Application (NDA) for MPTS with
the United States Food and Drug Association(FDA) on February 17, 2000. The FDA
accepted the NDA for review on April 21, 2000. Most of our revenue for the
foreseeable future will depend on our ability to receive regulatory approval
for, and successfully market, MPTS. Assuming we obtain FDA approval, we intend
to sell MPTS in the United States by deploying a sales and marketing force of 50
to 75 persons, and expect to begin hiring and training activities in late 2000.
In international markets, we intend to rely on strategic relationships to market
and sell MPTS rather than establish our own sales force.
Equity Financings
We have financed our operations primarily with the net proceeds generated
from the issuance of common and redeemable convertible preferred stock. From
our inception in August 1996 through December 31, 1999, we received net proceeds
of approximately $33 million from the sale of redeemable convertible preferred
stock.
On March 9, 2000 we sold 4,000,000 shares of common stock in connection
with our initial public offering and received net proceeds of approximately $66
million. On April 7, 2000, we sold an additional 600,000 shares to cover
underwriters' over-allotments and received net proceeds of approximately $10
million.
At the effective date of the initial public offering on March 9, 2000, all
outstanding shares of series A,B,C, and D preferred stock automatically
converted into an aggregate of 7,557,100 shares of common stock.
Milestone Payments, Royalties and License Fees
In April 2000, we paid American Home Products(AHP) a milestone payment of
$500,000 based on the FDA acceptance of our NDA for review. A second milestone
payment of $2.5 million is due to AHP if and when we receive FDA Approval of
MPTS for the treatment of periodontitis. We also paid AHP $250,000 and issued
them 110,000 shares of our common stock at the time we entered into our license
agreement in February 1997. Our license agreement with AHP also requires us to
pay royalties on sales of MPTS and other products that are covered by the AHP
patents or developed using the AHP technology.
In April 2000, we paid Gary R. Jernberg DDS a milestone payment of $50,000 based
on the FDA acceptance of our NDA for review. A second milestone payment of
$100,000 is due to Dr. Jernberg if and when we receive FDA approval of MPTS for
the treatment of periodontitis. We are also required to pay royalties on sales
of MPTS to Dr. Jernberg, a holder of three U.S. patents, and to Technical
Development and Investments, Est., relating to technology previously licensed by
AHP to this third party. Royalties payable to these parties can be fully
credited against up to 50% of the royalties payable under our agreement with
AHP.
<PAGE>
RESULTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2000 COMPARED TO THREE MONTHS ENDED MARCH 31,
1999.
Research and Development Expenses. Research and development expenses
---------------------------------
increased to approximately $2.0 million for the three months ended March 31,
2000 compared to approximately $1.6 million in the same period in 1999, an
increase of 30%. This increase of $472,000 was primarily due to costs of the
scale up activities associated with the production of MPTS, our lead product
candidate, which was partially off set by a reduction in phase 3 clinical trial
expenses.
General and Administrative Expenses. General and administrative expenses
-----------------------------------
increased to $962,000 for the three months ended March 31, 2000 compared to
$404,000 in the same period in 1999, an increase of 138%. This increase of
$558,000 is primarily due to market research activities associated with MPTS and
to a lesser extent higher personnel costs and professional expenses.
Net Interest Income (Expense). Interest income for the three months ended
-----------------------------
March 31, 2000 and 1999 was $347,000 and $213,000 respectively. This increase
of $134,000, a 63% increase, is attributable to higher levels of cash and cash
equivalents available for investment in 2000, due to the initial public offering
of our common stock on March 9, 2000. Interest expense for the same periods was
$9,000 and $15,000 respectively and represents interest paid on an equipment
financing facility.
Net Loss. The net loss was approximately $2.7 million for the three months
--------
ended March 31, 2000 compared to approximately $1.8 million for the same period
in 1999, an increase of 50%. The increase reflects increases in research and
development, and general and administrative expenses, offset by the increase
in interest income.
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 2000, we had cash and cash equivalents of approximately
$76.3 million, an increase of approximately $63.3 million from December 31 1999.
On March 9, 2000, we sold 4,000,000 shares of common stock in the initial public
offering and raised net proceeds of approximately $66.0 million. On April 7,
2000, we sold an additional 600,000 shares of common stock to cover underwriter
over-allotments and received net proceeds of approximately $10.0 million. As of
March 31, 2000, all of the proceeds from the sale of these shares has been
invested in short term, investment-grade, interest-bearing securities.
During the three months ended March 31, 2000, the net cash used in
operating activities was approximately $2.2 million. This represents the net
loss for the period, adjusted for certain non-cash expenses, and changes in
other operating assets and liabilities as set forth in the statements of cash
flows.
Net cash used in investing activities for the three months ended March 31,
2000 was $82,000 for the acquisition of laboratory and computer equipment.
We anticipate that our capital expenditures will be approximately $2.5
million for the year ending December 31, 2000, although we have no firm
commitments to spend this amount. Approximately $1.8 million of this amount
represents laboratory and production equipment for which we have committed to
purchase approximately $967,000 as of March 31, 2000. The balance is
represented by planned expenditures for laboratory and production equipment,
computer equipment and furniture.
Net cash proceeds from financing activities for the three months ended
March 31, 2000 was approximately $66.0 million from the sale of 4,000,000 shares
of common stock.
In June 1999, we increased our credit facility with a bank from $750,000 to
$1,750,000. The facility may be used to finance purchases of equipment, software
and leasehold improvements through June 30, 2000. Borrowings under this facility
bear interest at the prime rate plus 0.75%. In the three months ended March 31,
2000, we repaid the outstanding balance of $480,978 under this facility and
$1,000,000 was available for future borrowings at March 31, 2000.
We lease our corporate and research and development facilities under an
operating lease expiring on September 30, 2003. We have two 5 year renewal
options subject to the landlords determination of the fair rental value for each
renewal term. We have also entered into operating lease agreements for various
office equipment. The term of these lease agreements range from 18 to 65
months. Current minimum annual payments under these leases aggregate to
$189,652 per year.
We believe that our current cash position, $1,000,000 available under our
credit facility and expected interest income combined with the proceeds from the
sale of 600,000 shares of common stock in April 2000, will be sufficient to fund
the operations and capital expenditures through 2001. Our operating expenses and
capital expenditures will increase due to the manufacturing scale up and market
launch of MPTS in the second half of 2001. Research and development
expenditures, including clinical studies, are expected to continue at high
levels as we develop new product candidates. The initiation of commercial
manufacturing will require the purchase of production equipment and the hiring
of additional staff to coordinate raw material suppliers and manage contract
manufacturing services at multiple locations. Sales and marketing activities
will require hiring and training of approximately 50 to 75 sales and marketing
persons in late 2000 and early 2001. We also intend to hire additional research
and development, clinical research and administrative staff.
INCOME TAXES
As of December 31, 1999, we had approximately $20.5 million and $670,000 of
net operating loss and research and development credit carryforwards,
respectively, for federal income tax purposes, which expire on various dates
beginning in 2011. These amounts reflect different treatment of expenses for
tax reporting than are used for financial reporting. As of December 31, 1999,
we had capitalized approximately $1.2 million of research and development
expenses for federal income tax purposes. The Tax Reform Act of 1986 contains
certain provisions that may limit our ability to utilize net operating loss and
tax credit carryforwards in any given year or if there has been an ownership
change. Any such future ownership change as described in Section 382 of the
Internal Revenue Code, may limit the utilization of net operating loss and tax
credit carryforwards.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS
The Company believes that it is not subject to a material impact to its
financial position or results of operations, relating to market risk.
<PAGE>
PART II - OTHER INFORMATION
------------------------------
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
d) On March 9, 2000, the Company consummated its initial public offering (the
"Offering") of its common stock, no par value (the "Common Stock") based on the
registration statement relating to this offering (File No. 333-93881) which was
declared effective on that date. Robertson Stephens, U. S. Bancorp Piper Jaffray
and Gerard Klauer Mattison & Co., Inc. were the managing underwriters of the
Offering. The Offering terminated on April 7, 2000 upon the sale of the 600,000
shares subject to the underwriters' over-allotment option. The number of shares
registered, the aggregate price of the offering amount registered, the amount
sold and the aggregate offering price of the amount sold by the Company in the
Offering were as follows:
<TABLE>
<CAPTION>
Shares Aggregate Aggregate
Registered Price Registered Amount Sold Price Sold
----------------- ----------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Primary Offering 4,000,000 $72,000,000 4,000,000 $72,000,000
Overallotment Offering 600,000 10,800,000 600,000 10,800,000
</TABLE>
The Company incurred the following expenses with respect to the Offering during
the period March 9, 2000 through March 31, 2000, none which were direct or
indirect payments to directors, officers, general partners of the Company or
their associates or to persons owning 10% or more of any class of equity
securities of the Company or to affiliates of the Company:
<TABLE>
<CAPTION>
Underwriting
Discounts Underwriter's
and Commissions Finders' Fees Expenses Other Expenses Total Expenses
--------------------- ---------------- ------------------ ------------------ ------------------
<S> <C> <C> <C> <C>
Primary Offering $5,040,000 $0 $0 $967,702 $6,007,702
Overallotment Offering $ 756,000 $0 $0 $ 52,552 $ 808,552
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The net offering proceeds to the Company, from the primary offering, after
deducting the foregoing discounts, commissions, fees and expenses were
$65,992,298. An estimate of how these proceeds were used by the Company during
the period March 9, 2000 through March 31, 2000 is as follows:
Construction of plant, building and facilities $0
Purchase and installation of machinery and equipment 0
Purchases of real estate 0
Acquisition of other businesses 0
Repayment of indebtedness 0
Temporary investments (money market account) $65,992,298
The net offering proceeds from the April 2000 over allotment offering, to
the Company after deducting the foregoing discounts, commissions, fees and
expenses, were $9,991,448.
<PAGE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27.1 Financial Data Schedule
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: May 12, 2000 /s/ Michael D. Kishbauch
- ----------------------- -------------------------------------
Michael D. Kishbauch
President and Chief Executive Officer
(Principal Executive Officer
and Duly Authorized Signatory)
Date: May 12, 2000 /s/ James A. Ratigan
- ----------------------- -------------------------------------
James A. Ratigan
Executive Vice President, Chief Financial
Officer and Secretary (Principal Financial
Officer and Duly Authorized Signatory)
Date: May 12, 2000 /s/ Robert D. Haddow
- ----------------------- -------------------------------------
Robert D. Haddow
Controller (Principal Accounting Officer
and Duly Authorized Signatory)
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SECTION CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ORAPHARMA,
INC'S MARCH 31, 2000 FINANCIAL STATEMENT AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0001028065
<NAME> ORAPHARMA, INC
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<EXCHANGE-RATE> 1
<CASH> 76,336,146
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 77,159,426
<PP&E> 1,484,711
<DEPRECIATION> 515,559
<TOTAL-ASSETS> 78,315,811
<CURRENT-LIABILITIES> 2,471,944
<BONDS> 0
0
0
<COMMON> 12,738
<OTHER-SE> 75,831,129
<TOTAL-LIABILITY-AND-EQUITY> 78,315,811
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,008,203
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 8,889
<INCOME-PRETAX> (2,669,830)
<INCOME-TAX> 0
<INCOME-CONTINUING> (2,669,830)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,669,830)
<EPS-BASIC> (0.68)
<EPS-DILUTED> (0.68)
</TABLE>
