SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter ended September 30, 1995 Commission File Number: 0-7101
INAMED CORPORATION
State of Incorporation: Florida I.R.S. Employer Identification No.: 59-0920629
3800 Howard Hughes Parkway, Suite #900, Las Vegas, Nevada 89109
Telephone Number: (702) 791-3388
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_____
On September 30, 1995 there were 7,677,617 Shares of the Registrant's
Common Stock Outstanding.
This document contains 15 pages.
<PAGE>
INAMED CORPORATION AND SUBSIDIARIES
Form 10-Q
Quarter Ended September 30, 1995
TABLE OF CONTENTS
PAGE
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets 3
Unaudited Consolidated Income Statements 5
Unaudited Consolidated Statements
of Cash Flows 7
Notes to the Unaudited Consolidated
Financial Statements 9
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 12
PART II - OTHER INFORMATION 14
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1.
INAMED CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
(Unaudited)
September 30, 1995 December 31, 1994
<C> <C>
<S>
Assets
Current assets:
Cash and cash equivalents $ 768,967 $ 673,951
Trade accounts receivable, net of
allowance for doubtful accounts and
returns and allowances of $6,089,929 at
September 30, 1995 and $6,025,827 at
December 31, 1994 13,316,129 11,319,487
Notes receivable 833,113 1,400,503
Related party notes receivable 142,093 --
Inventories (Note 3) 18,773,300 14,879,570
Prepaid expenses and other current assets 1,144,143 2,548,748
Income tax refund receivable 449,691 462,304
Deferred income taxes 2,517,446 2,648,653
_____________ _____________
Total current assets 37,944,882 33,933,216
______________ _____________
Property and equipment, at cost:
Machinery and equipment 8,664,824 7,449,622
Furniture and fixtures 3,375,866 2,620,594
Leasehold improvements 7,690,677 5,469,234
_____________ ______________
19,731,367 15,539,450
Less accumulated depreciation
and amortization (8,672,716) (6,819,866)
_____________ ______________
Net property and equipment 11,058,651 8,719,584
_____________ ______________
Notes receivable 2,478,341 2,215,058
Related party notes receivable 868,847 688,184
Intangible assets, net 1,723,598 1,956,648
Deferred income taxes -- 48,810
Other assets, at cost 256,377 248,901
_____________ ______________
$ 54,330,696 $ 47,810,401
============= ==============
(continued)
<FN>
The Notes to Financial Statements are an integral part of this statement.
</TABLE>
<PAGE>
INAMED CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
(Unaudited)
September 30, 1995 December 31, 1994
<C> <C>
<S>
Liabilities and Stockholders' Equity
Current liabilities:
Current installments of long-term debt $ 21,715 $ 176,910
Notes payable to bank 1,795,543 1,795,721
Related party notes payable 1,084,814 970,610
Accounts payable 16,289,799 15,780,050
Accrued liabilities:
Salaries and wages 5,972,023 2,251,275
Interest 566,338 567,365
Self-insurance 1,237,032 1,291,605
Stock option compensation 68,714 68,714
Other 2,990,602 3,593,024
Royalties payable 1,975,580 1,053,888
Income taxes payable 4,349,931 4,960,352
Deferred income taxes 109,995 335,777
_____________ _______________
Total current liabilities 36,462,086 32,845,291
_____________ _______________
Long-term debt, excluding current installments 39,325 50,801
Deferred grant income 1,026,595 931,367
Deferred income taxes 945,067 352,115
Litigation settlement 32,562,472 9,152,000
Net stockholders' equity:
Common stock, $0.01 par value.
Authorized 20,000,000 shares;
issued and outstanding 7,677,617 76,776 74,662
Additional paid-in capital 10,071,635 9,699,345
Cumulative translation adjustment 997,719 437,683
Accumulated deficit (27,850,979) (5,732,863)
____________ _____________
Net stockholders' equity (16,704,849) 4,478,827
Commitments and contingencies (Note 4) ____________ _____________
$ 54,330,696 $ 47,810,401
=========== ============
<FN>
The Notes to Financial Statements are an integral part of this statement.
</TABLE>
<PAGE>
INAMED CORPORATION AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Nine Months
Ended Ended
September 30, 1995 September 30, 1994
<C> <C>
<S>
Net sales $ 64,136,586 $ 59,785,327
Cost of goods sold 20,854,509 20,558,935
________________ _____________
Gross profit 43,282,077 39,226,392
________________ _____________
Operating expenses:
Marketing 16,772,662 14,653,433
General and administrative 21,587,052 17,778,837
Research and development 3,276,591 2,623,826
Litigation settlement 23,410,472 --
________________ _____________
Total operating expenses 65,046,777 35,056,096
________________ _____________
Operating income (loss) (21,764,700) 4,170,296
________________ _____________
Other income (expense):
Interest income 648,866 279,658
Interest expense (213,229) (210,838)
Royalty income 102,265 237,597
Foreign currency transaction gains (losses) (414,175) 912,967
Miscellaneous income 238,348 83,673
________________ _____________
Net other income 362,075 1,303,057
________________ _____________
Income (loss) before income taxes (21,402,625) 5,473,353
Income taxes 715,491 1,486,693
________________ _____________
Net income (loss) $ (22,118,116) $ 3,986,660
================ =============
Net income (loss) per share of common stock $ (2.93) $ .54
================ =============
Weighted average common shares outstanding 7,559,073 7,417,458
<FN>
The Notes to Financial Statements are an integral part of this statement.
</TABLE>
<PAGE>
INAMED CORPORATION AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
September 30, 1995 September 30, 1994
<C> <C>
<S>
Net sales $ 18,279,111 $ 20,911,167
Cost of goods sold 6,839,178 6,825,374
________________ _____________
Gross profit 11,439,933 14,085,793
________________ _____________
Operating expenses:
Marketing 5,233,406 5,412,412
General and administrative 8,159,422 6,005,492
Research and development 1,165,297 1,035,164
Litigation settlement 23,410,472 --
________________ _____________
Total operating expenses 37,968,597 12,453,068
________________ _____________
Operating income (loss) (26,528,664) 1,632,725
________________ _____________
Other income (expense):
Interest income 325,790 100,831
Interest expense (72,730) (119,561)
Royalty income 74,287 --
Foreign currency transaction gains (losses) (580,253) 115,664
Miscellaneous income 94,967 12,971
________________ _____________
Net other income (expense) (157,939) 109,905
________________ _____________
Income (loss) before income taxes (26,686,603) 1,742,630
Income taxes (683,543) 738,221
________________ _____________
Net income (loss) $ (26,003,060) $ 1,004,409
================ =============
Net income (loss) per share of common stock $ (3.39) $ .14
================ =============
Weighted average common shares outstanding 7,662,257 7,390,471
================ =============
<FN>
The Notes to Financial Statements are an integral part of this statement.
</TABLE>
<PAGE>
INAMED CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Nine Months ended September 30, 1995 and 1994
Increase (Decrease) in Cash and Cash Equivalents
1995 1994
<C> <C>
<S>
Cash flows from operating activities:
Net income (loss) $ (22,118,116) $ 3,986,660
____________ ______________
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation of property and equipment 1,940,954 1,617,254
Amortization of intangible assets 233,057 163,369
Deferred income taxes 532,535 7,791
Litigation settlement 23,410,472 --
Changes in assets and liabilities:
Increase in trade accounts receivable (1,772,322) (4,291,099)
(Increase) decrease in notes receivable 304,107 (82,822)
(Increase) decrease in inventories (3,385,739) 1,370,320
(Increase) decrease in prepaid expenses
and other current assets 1,472,731 (122,995)
(Increase) decrease in income tax refund
receivable 20,091 (87,384)
Increase in other assets (7,062) (53,673)
Increase (decrease) in accounts payable 415,305 (1,096,227)
Increase in accrued salaries and wages 3,672,596 800,751
Increase (decrease) in accrued interest (1,027) 11
Decrease in accrued self-insurance (54,573) (1,132,417)
Decrease in other accrued liabilities (452,066) (941,215)
Increase in royalties payable 921,692 73,114
Increase (decrease) in income taxes payable (610,421) 520,643
Foreign currency translation adjustment 560,036 265,881
____________ ______________
Total adjustments 27,200,366 (2,988,698)
____________ _____________
Net cash provided by
operating activities 5,082,250 997,962
_____________ ______________
Cash flows from investing activities:
Purchases of property and equipment (3,907,150) (1,590,011)
_____________ ______________
Net cash used in investing activities (3,907,150) (1,590,011)
_____________ ______________
<FN>
(continued)
The Notes to Financial Statements are an integral part of this statement.
</TABLE>
<PAGE>
INAMED CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine Months ended September 30, 1995 and 1994
Increase (Decrease) in Cash and Cash Equivalents
<TABLE>
<CAPTION>
1995 1994
<C> <C>
<S>
Cash flows from financing activities:
Increases in notes payable and
long-term debt $ 190,580 $ 1,172,315
Principal repayment of notes payable
and long-term debt (452,330) (529,218)
(Increase) decrease in related party
receivables (322,756) 267,464
Increase in related party payables 114,204 411,541
Net change in deferred grant income 51,222 32,353
Repurchases and retirements of common
stock (1,346) (480,016)
Proceeds from exercise of stock options 181,250 17,400
Issuance of common stock 29,500 --
Cash overdraft -- 949,103
____________ ______________
Net cash provided by (used in)
financing activities (209,676) 1,840,942
____________ ______________
Effect of exchange rate changes
on cash (870,408) (1,248,893)
____________ ______________
Net increase (decrease) in cash
and cash equivalents 95,016 --
Cash and cash equivalents at beginning of
period 673,951 --
____________ ______________
Cash and cash equivalents at end of period $ 768,967 $ --
=========== =============
Supplemental disclosure of cash flow information:
Cash paid during the nine months for:
Interest $ 249,148 $ 256,315
Income Taxes $ 853,577 $ 1,177,224
Supplemental schedule of non-cash investing and financing activities:
During the nine months ended September 30, 1995, the Company issued 75,000
shares of common stock and recorded a corresponding $165,000 reduction of a
liability which had been incurred in connection with the acquisition of
INAMED, S.A.
Disclosure of accounting policy:
For purposes of the consolidated statement of cash flows, the Company
considers all certificates of deposit to be cash equivalents.
Certain reclassifications were made to the 1994 Consolidated Statement of
Cash Flows to conform to the 1995 presentation.
<FN>
The Notes to Financial statements are an integral part of this statement.
</TABLE>
<PAGE>
INAMED CORPORATION AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
Note 1 - Interim Financial Statements
The accompanying unaudited consolidated financial statements include
all adjustments (consisting only of normal recurring accruals) which are, in
the opinion of management, necessary for fair presentation of the results of
operations for the periods presented. Interim results are not necessarily
indicative of the results to be expected for a full year.
Certain information and footnote disclosures normally included in
financial statements, prepared in accordance with generally accepted
accounting principles, have been condensed or omitted as allowed by
Form 10-Q. The accompanying unaudited consolidated financial statements
should be read in conjunction with the Company's consolidated financial
statements for the year ended December 31, 1994 as filed with the
Securities and Exchange Commission on Form 10-K.
Note 2 - Basis of Presentation and Summary of Significant Accounting
Policies
The Company
INAMED Corporation's subsidiaries are McGhan Medical Corporation and
CUI Corporation, which develop, manufacture and sell medical devices
principally for the plastic and general surgery fields; BioEnterics
Corporation which develops, manufactures and sells medical devices and
associated instrumentation to the bariatric and general surgery fields;
Biodermis Corporation which develops, produces and distributes premium
products for dermatology, wound care and burn treatment; Bioplexus
Corporation which is a development company that develops, produces and
distributes specialty medical products for use by the general surgery
profession; Flowmatrix Corporation which manufactures high quality
silicone components and devices for INAMED's wholly-owned subsidiaries
and distributes an international line of proprietary silicone products;
Medisyn Technologies Corporation which focuses on the development and
promotion of the merits of the use of silicone chemistry in the fields of
medical devices, pharmaceuticals and biotechnology; INAMED Development
Company , which is engaged in the research and development of new medical
devices using silicone-based technology; McGhan Limited, an Irish
corporation which manufactures medical devices principally for the plastic
and general surgery fields; Medisyn Technologies, Ltd. and Chamfield Ltd.,
Irish corporations which specialize in the development of silicone materials
for use by INAMED's wholly-owned subsidiaries; and INAMED B.V., a Netherlands
corporation, INAMED B.V.B.A., a Belgium corporation, INAMED GmbH, a German
corporation, INAMED S.R.L., an Italian corporation, INAMED Ltd., a United
Kingdom corporation, INAMED S.A.R.L., a French corporation, and INAMED, S.A.,
a Spanish corporation, which all sell medical devices on a direct sales basis
in the various countries in which they are located.
Basis of Presentation
The consolidated financial statements include the accounts of INAMED
Corporation and its wholly-owned subsidiaries (collectively referred to as
the Company). All significant intercompany balances and transactions have
been eliminated in consolidation.
Net Income Per Share
Net income per share is based upon the weighted average number of
shares outstanding during each of the respective periods. Common stock
equivalents are excluded since their inclusion would immaterially affect
the calculation or would be antidilutive.
<PAGE>
INAMED CORPORATION AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1995 (CONTINUED)
Note 3 - Inventories
Inventories are summarized as follows:
<TABLE>
<CAPTION>
September 30, 1995 December 31, 1994
<C> <C>
<S>
Raw materials $ 2,583,614 $ 2,187,689
Work in process 3,401,729 3,268,947
Finished goods 12,787,957 9,422,934
_____________ ______________
$ 18,773,300 $ 14,879,570
============= =============
Note 4 - Commitments and Contingencies
INAMED and/or its subsidiaries are defendants in numerous State court
actions and a Federal class action in the United States District Court,
Northern District of Alabama, Southern Division, under Chief Judge
Sam C. Pointer, Jr., U.S. District Court, regarding Master File
No. C892-P-10000-S (Silicone Gel Breast Implants Product Liability
Litigation MDL 926). The claims are for general and punitive damages
substantially exceeding provisions made in the Company's consolidated
financial statements. The accompanying consolidated financial statements
have been prepared assuming that the Company will withstand the financial
results of said litigation.
Several U.S. based manufacturers negotiated a settlement with the
Plaintiffs' Negotiating Committee ("PNC"), and on March 29, 1994 filed a
Proposed Non-Mandatory Class Action Settlement in the Silicone Breast
Implant Products Liability (the "Settlement Agreement") providing
for settlement of the claims as to the class (the "Settlement") as
described in the Settlement Agreement. The Settlement Agreement
provides for resolution of any existing or future claims, including
claims for injuries not yet known, under any Federal or State law,
from any claimant who received a silicone breast implant prior to
June 1, 1993. A fairness hearing for the non-mandatory class was held
before Judge Pointer on August 18, 1994. On September 1, 1994, Judge
Pointer gave final approval to the non-mandatory class action settlement.
The Company was not originally a party to the Settlement Agreement.
However, on April 8, 1994 the Company and the PNC reached an agreement
which would join the Company into the Settlement. The agreement
reached between the Company and the PNC added great value to the
Settlement by enabling all plaintiffs and U.S. based
manufacturers to participate in the Settlement, and facilitating
the negotiation of individual contributions by the Company, Minnesota
Mining and Manufacturing Company ("3M"), and Union Carbide Corporation
which total more than $440 million.
Under the terms of the Settlement Agreement, the parties stipulate and
agree that all claims of the Settlement Class against the Company regarding
breast implants and breast implant materials shall be fully and finally
settled and resolved on the terms and conditions set forth in the
Settlement Agreement.
Under the terms of the Settlement Agreement, the Company agreed to pay
$1 million to the Settlement fund for each of 25 years starting three
years after Settlement approval by the Court. The Company recorded a
pre-tax charge of $9.1 million in the fourth quarter of 1993. The
charge represents the present value (discounted at 8%) of the
Company's settlement of $25 million over a payment period of 25 years.
<PAGE>
INAMED CORPORATION AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1995 (CONTINUED)
Under the Settlement, $1.2 billion had been provided for "current
claims"(disease compensation claims). In May 1995, Judge Pointer
completed a preliminary review of current claims which had been filed
as of September 1994, in compliance with deadlines set by the court.
Judge Pointer determined that based on the preliminary review, it appears
that projected amounts of eligible current claims exceed the $1.2
billion provided in the Settlement. The Settlement provided that in the
event of such over subscription, the amounts to be paid to eligible
current claimants would be reduced and claimants would have a right to
"opt-out" of the Settlement at that time.
On October 1, 1995, Judge Pointer finalized details of a scaled-back
breast implant injury settlement involving defendants Bristol-Myers
Squibb, Baxter International, and 3M, allowing plaintiffs to reject
this settlement and file their own lawsuits if they believe payments
are too low. On November 14, 1995, McGhan Medical and Union Carbide were
added to this list of settling defendants to achieve the Bristol, Baxter,
3M, McGhan and Union Carbide Revised Settlement Program (the
"Revised Settlement Program").
The Company recorded a pre-tax charge of $23.4 million in the third
quarter of 1995. The charge represents the present value (discounted at 8%)
of the additional amount that the Company expects to contribute to the
Revised Settlement Program. Under the Revised Settlement Program, the
Company expects to pay a total of up to $50 million to the Settlement fund
over a 15-year period.
The Company has opposed the plaintiffs' claims in these complaints and
other similar actions, and continues to deny any wrongdoing or liability to
the plaintiffs of any kind. However, the extensive burdens and expensive
litigation the Company would continue to incur related to these matters
prompted the Company to work toward and enter into the Settlement which
insures more satisfactory method of resolving claims of women who have
received the Company's breast implants.
Management's commitment to the Settlement does not alter the
Company's need for complete resolution sought under a mandatory
("non-opt-out") settlement class (the "Mandatory Class"). Therefore,
the Company has petitioned the United States District Court, Northern
District of Alabama, Southern Division,for certification of a Mandatory
Class under the provisions of Federal Rule of Civil Procedure.
The Company was a defendant with 3M in a case involving three
plaintiffs in Houston, Texas, in March 1994, in which the jury awarded
the plaintiffs $15 million in punitive damages and $12.9 million in damages
plus fees and costs. However, the decision was reversed in March 1995
resulting in no financial responsibility on the part of the Company.
<PAGE>
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Financial Condition
During the first nine months of 1995 INAMED Corporation has maintained
its position as one of the largest medical device companies serving
the plastic, reconstructive and general surgical markets world-wide. In
order to meet increased international product needs, the Company has
increased production of its products in Europe through expansion at
its manufacturing plant in Ireland which supplies the majority of the
products for the Company's international market. The Irish facility
works closely with the Company's subsidiaries in Europe to develop new
products for that market. Internationally, the Company has
significantly increased its market share due to the use of direct sales
methods rather than distributors wherever financially advantageous to do so.
The Company currently has direct marketing subsidiaries in seven European
countries.
The cash balance has increased since December 31, 1994, while the
current ratio at September 30, 1995 of 1.0 to 1 is consistent with the
ratio at December 31, 1994 of 1.0 to 1. The majority of the Company's
cash flows in the first nine months of 1995 were generated by product
sales which is consistent with prior periods. Growth, regulatory
activities and legal expenses continue to use a significant amount of
available cash resources.
In June of 1990, the Company established a $4.5 million comprehensive
financing package for working capital with a major bank that utilizes the
domestic accounts receivable, inventories and certain other assets as
collateral. In December of 1990, the line of credit was increased to $5.3
million. As of September 30, 1995, approximately $418,366 had been drawn on
the line of credit. The weighted average interest rate during the period
was 11.25%.
The Company's line of credit was due for renewal in August, 1993. The
present bank line was not renewable under acceptable terms and conditions,
and was extended until December 31, 1995. The balance due on the credit
line as of December 31, 1995 is projected to be approximately $313,366.
At that time, the Company intends to retire the balance of the credit
line. The Company believes that it can start reasonable discussions
with lenders for a new credit facility now that the Company has entered
into global settlement agreements. Although there are no assurances that
the Company will be successful in the engagement of a lender, the Company
has made progress in addressing lender concern surrounding the breast
implant litigation through settlement agreements which include mandatory
class certification.
In April 1994, the Company increased its international line of credit
with a major Dutch bank. The current line is $1,540,000 and is
collateralized by the accounts receivable, inventories and certain other
assets of INAMED B.V. The line of credit expires on December 31, 1995.
As of September 30, 1995, approximately $1,395,000 had been drawn on the
line of credit. The interest rate on the line of credit is European
prime discount rate plus 2.5% per annum, at a minimum of 7% per annum.
McGhan Limited continues to receive grants from the Irish Industrial
Development Authority ("IDA") which include reimbursement for qualified
training expenses, leasehold improvements and capital improvement costs
at the Company's operation in Ireland. Additionally, McGhan
Limited has obtained approval for additional grants from the European
Economic Community "Industry R & D Initiative" for approved research
and development programs for up to $1 million. The Company believes
that additional approvals will be achieved in future years.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)
Results of Operations
Net sales as an aggregate were $64.1 million during the first nine
months of 1995 which represents a 7% increase over the first nine months of
1994. This increase can be attributed to increases in international
sales. Sales during the third quarter of 1995 were affected by the
Company's need for additional capacity to manufacture product.
Management expects the lack of product to negatively affect sales
growth throughout the remainder of 1995.
Gross profit was 67% of net sales for the first nine months and 63% for
the third quarter of 1995 compared to 66% and 67% for the corresponding
periods in 1994. Management expects gross profit to remain
consistent throughout the remaining quarter of 1995.
Marketing expense as a percentage of net sales was 26% in the first
nine months of 1995 which is consistent with 25% in the first nine months
of 1994.
General and administrative expenses as a percentage of net sales were
34% in the first nine months of 1995 compared to 30% in the first nine
months of 1994. Management expects future general and administrative
expenses to grow proportionally with sales, and to be reactive to litigation
expense.
Research and development expenses increased from $2,623,826 in the
first nine months of 1994 to $3,276,591 in the first nine months of
1995, reflecting the Company's continuing commitment to developing
new and improved medical products for use by the medical profession
and the public. As a percentage of net sales, this expense has increased
from 4.4% in the first nine months of 1994 to 5.1% in the first nine months
of 1995. Diversification into other facets of medical devices through use
of new technology remains a goal of the Company. R & D expenses are
expected to increase throughout 1995 as the Company is also increasing
research and development overseas due to the FDA backlog on approval
of new devices in the United States.
Interest expense for the first nine months of 1995 was consistent with
interest expense for the same period of 1994.
The Company continues to incur increased costs related to obtaining
FDA and European Economic Community approvals for the Company's products.
The Company is continuing to address FDA regulations related to
pre-market approval of silicone mammary implants, and anticipates
ongoing investment of employee hours and Company funds to facilitate
compliance with all FDA regulations as determined by PMA studies and
any new regulations which may be adopted. The FDA is expected to issue
a call for PMA applications for saline-filled breast implants in 1998.
The Company has agreed to conduct clinical trials and is collecting
data in anticipation of FDA action.
Management anticipates strong market demand, with pressure for added
production capacity both domestically and internationally, to continue
throughout 1995.
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is a defendant in breast implant litigation as
discussed in Note 4 to the unaudited consolidated financial
statements.
ITEMS 2. THROUGH 5.
Not Applicable
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
None
<PAGE>
INAMED CORPORATION
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
INAMED CORPORATION
By /s/Michael D. Farney
-----------------------------------
Michael D. Farney
Chief Executive Officer and
Chief Financial Officer
Dated: November 14, 1995
___________________________
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> SEP-30-1995
<CASH> 768,967
<SECURITIES> 0
<RECEIVABLES> 19,406,058
<ALLOWANCES> (6,089,929)
<INVENTORY> 18,773,300
<CURRENT-ASSETS> 37,944,882
<PP&E> 19,731,367
<DEPRECIATION> (8,672,716)
<TOTAL-ASSETS> 54,330,696
<CURRENT-LIABILITIES> 36,462,086
<BONDS> 0
<COMMON> 10,148,411
0
0
<OTHER-SE> (26,853,260)
<TOTAL-LIABILITY-AND-EQUITY> 54,330,696
<SALES> 64,136,586
<TOTAL-REVENUES> 64,136,586
<CGS> 20,854,509
<TOTAL-COSTS> 85,901,286
<OTHER-EXPENSES> 0
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</TABLE>
