SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934
For the Quarterly Period Ended September 30, 1995
Commission file number 0-15681
WESTMED VENTURE PARTNERS, L.P.
================================================================================
(Exact name of registrant as specified in its charter)
Delaware 13-3443230
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(State of organization) (I.R.S. Employer Identification No.)
Oppenheimer Tower, World Financial Center
New York, New York 10281
================================================================================
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 667-7000
Not applicable
================================================================================
Former name, former address and former fiscal year, if changed since last report
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
<PAGE>
WESTMED VENTURE PARTNERS, L.P.
INDEX
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
Balance Sheets as of September 30, 1995 (Unaudited) and December 31, 1994
Schedule of Portfolio Investments at September 30, 1995 (Unaudited)
Statements of Operations for the Three and Nine Months Ended September 30, 1995
and 1994 (Unaudited)
Statements of Cash Flows for the Nine Months Ended September 30, 1995 and 1994
(Unaudited)
Statement of Changes in Partners' Capital for the Nine Months Ended September
30, 1995 (Unaudited)
Notes to Financial Statements (Unaudited)
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
Item 2. Changes in Securities.
Item 3. Defaults upon Senior Securities.
Item 4. Submission of Matters to a Vote of Security Holders.
Item 5. Other Information.
Item 6. Exhibits and Reports on Form 8-K.
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
WESTMED VENTURE PARTNERS, L.P.
BALANCE SHEETS
<TABLE>
September 30, 1995 December 31,
(Unaudited) 1994
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Portfolio investments, at fair value
(cost $11,695,448 at September 30, 1995 and
$11,667,193 at December 31, 1994) - Notes 2 and 4 $ 13,950,800 $ 12,012,688
Cash and cash equivalents - Note 2 2,438,068 2,609,028
Accrued interest receivable and other assets 54,567 49,016
---------------- ----------------
TOTAL ASSETS $ 16,443,435 $ 14,670,732
================ ================
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Due to Managing General Partner - Note 4 $ 81,989 $ 38,059
Due to Independent General Partners - Note 4 11,250 85,148
Accounts payable and accrued expenses 34,475 15,000
---------------- ----------------
Total liabilities 127,714 138,207
---------------- ----------------
Partners' Capital:
Managing General Partner 163,162 145,329
Limited Partners (66,929 Units) 16,152,559 14,387,196
---------------- ----------------
Total Partners' capital 16,315,721 14,532,525
---------------- ----------------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 16,443,435 $ 14,670,732
================ ================
</TABLE>
See notes to financial statements.
<PAGE>
WESTMED VENTURE PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED)
September 30, 1995
Active Portfolio Investments:
<TABLE>
Initial Investment
Company / Position Date Cost Fair Value
<C> <C> <C> <C>
Aprogenex, Inc.(A)(B)
476,739 shares of Common Stock Jan. 1989 $ 1,471,807 $ 1,483,850
Warrant to purchase 15,446 shares of Common Stock
at $7.88 per share, expiring 10/15/98 0 0
- -------------------------------------------------------------------------------------------------------------------------------
Bellara Medical Products Ltd.(A)
442,430 shares of Common Stock Sept. 1987 250,000 33,978
- -------------------------------------------------------------------------------------------------------------------------------
CliniCom Incorporated(A)(C)
4,908 shares of Common Stock Dec. 1987 165,934 120,246
- -------------------------------------------------------------------------------------------------------------------------------
Cortex Pharmaceuticals, Inc.(A)
140,833 shares of Common Stock May 1988 504,038 662,943
75,000 shares of Preferred Stock 53,030 34,641
Warrants to purchase 6,500 shares of Common Stock
at $9.19 per share, expiring on 12/31/95 0 0
--------------- ---------------
557,068 697,584
- -------------------------------------------------------------------------------------------------------------------------------
Corvita Corporation*(A)
410,765 shares of Common Stock Aug. 1988 2,394,797 2,118,007
Warrant to purchase 36,916 shares of Common Stock
at $7 per share, expiring 11/1/99 0 0
- -------------------------------------------------------------------------------------------------------------------------------
Exocell, Inc.*
598,083 shares of Preferred Stock Feb. 1988 714,266 714,266
- -------------------------------------------------------------------------------------------------------------------------------
MNI Group Inc.(A)
211,973 shares of Common Stock Sept. 1987 451,457 65,404
- -------------------------------------------------------------------------------------------------------------------------------
Nimbus Medical, Inc.
200,709 shares of Common Stock Apr. 1988 380,431 192,374
Nimbus Medical, L.P.
38,340 units of limited partnership interest 88,868 76,316
--------------- ---------------
469,299 268,690
- -------------------------------------------------------------------------------------------------------------------------------
Oclassen Pharmaceuticals, Inc.
292,955 shares of Preferred Stock Jan. 1989 1,351,405 2,705,842
- -------------------------------------------------------------------------------------------------------------------------------
Somatogen, Inc.(A)
125,404 shares of Common Stock Dec. 1988 657,194 2,736,942
- -------------------------------------------------------------------------------------------------------------------------------
Ultramed, Inc.(D)
954,545 shares of Preferred Stock Oct. 1987 333,410 0
18% Convertible Promissory Notes 159,090 150,000
12% Promissory Note 7,500 7,500
Warrant to purchase 7,500 shares of Common Stock
at $.05 per share, expiring 2/1/97 0 0
-------------- ---------------
500,000 157,500
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
WESTMED VENTURE PARTNERS, L.P.
SCHEDULE OF PORTFOLIO INVESTMENTS (UNAUDITED) - continued
September 30, 1995
Active Portfolio Investments:
<TABLE>
Initial Investment
Company / Position Date Cost Fair Value
<C> <C> <C> <C>
UroCor, Inc.
368,930 shares of Preferred Stock May 1991 $ 1,097,258 $ 1,844,650
Warrant to purchase 8,000 shares of Common Stock
at $1.25 per share, expiring 2/13/01 0 30,000
Warrant to purchase 8,995 shares of Common Stock
at $4.30 per share, expiring 10/18/98 0 6,297
Warrant to purchase 9,000 shares of Common Stock
at $5 per share, expiring 6/2/00 0 0
- -------------------------------------------------------------------------------------------------------------------------------
Xenova Group plc*(A)
304,403 Ordinary shares Aug. 1988 1,614,963 967,544
- -------------------------------------------------------------------------------------------------------------------------------
Totals From Active Portfolio Investments $ 11,695,448 $ 13,950,800
=================================
SUPPLEMENTAL INFORMATION: LIQUIDATED PORTFOLIO INVESTMENTS(E)
Cost Realized Loss Return
Totals From Liquidated Portfolio Investments $ 16,658,316 $ (9,693,973) $ 6,964,343
=====================================================
Combined Combined
Unrealized and Fair Value
Cost Realized Loss and Return
Totals From Active and Liquidated Portfolio Investments $ 28,353,764 $ (7,438,621) $ 20,915,143
=====================================================
</TABLE>
(A) Public company
(B) During the quarter, the Partnership sold 51,000 shares of Aprogenex, Inc.
common stock for $275,850, realizing a gain of $65,470.
(C) Subsequent to the end of the quarter, in October 1995, HBO & Co., a public
company, acquired CliniCom Incorporated. As a result, the Partnership
exchanged its 4,908 shares of CliniCom Incorporated for 1,963 shares of HBO
& Co.
(D) On July 31, 1995, the Partnership's warrants to purchase 46,535 shares of
common stock of Ultramed, Inc. expired unexercised.
(E) Amounts provided for "Supplemental Information: Liquidated Portfolio
Investments" are cumulative from inception through September 30, 1995.
* Company may be deemed an affiliated person of the Partnership as such term is
defined in the Investment Company Act of 1940.
<PAGE>
WESTMED VENTURE PARTNERS, L.P.
STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
-------------- -------------- -------------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME AND EXPENSES
Income:
Interest from short-term investments $ 31,118 $ 27,557 $ 99,639 $ 75,008
Interest, dividend and other income from
portfolio investments - 3,978 55,593 71,882
-------------- -------------- -------------- ---------------
Total 31,118 31,535 155,232 146,890
-------------- -------------- -------------- ---------------
Expenses:
Management fee - Note 4 81,989 88,064 188,300 288,001
Professional fees 23,325 20,093 44,886 41,619
Mailing and printing 7,998 1,500 27,910 8,579
Insurance expense 20,545 14,113 69,471 24,056
Custodial fees 907 2,964 4,283 6,804
Independent General Partners' fees - Note 4 3,750 3,750 11,250 11,250
Miscellaneous 10 - 1,263 1,558
-------------- -------------- -------------- ---------------
Total 138,524 130,484 347,363 381,867
-------------- -------------- -------------- ---------------
NET INVESTMENT LOSS (107,406) (98,949) (192,131) (234,977)
Net realized gain (loss) from portfolio investments 65,470 - 65,470 (944,232)
-------------- -------------- -------------- ---------------
NET REALIZED LOSS FROM OPERATIONS (41,936) (98,949) (126,661) (1,179,209)
Net change in unrealized appreciation or
depreciation of investments 1,611,372 (583,443) 1,909,857 309,587
-------------- -------------- -------------- ---------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS
(allocable to Partners) - Note 3 $ 1,569,436 $ (682,392) $ 1,783,196 $ (869,622)
============== ============== ============== ===============
</TABLE>
See notes to financial statements.
<PAGE>
WESTMED VENTURE PARTNERS, L.P.
STATEMENTS OF CASH FLOWS (UNAUDITED)
For the Nine Months Ended September 30,
<TABLE>
1995 1994
-------------- ---------
CASH FLOWS USED FOR OPERATING ACTIVITIES
<S> <C> <C>
Net investment loss $ (192,131) $ (234,977)
Adjustments to reconcile net investment loss to cash used for operating
activities:
Increase in accrued interest receivable and other assets (5,551) (68,682)
Decrease in payables (10,493) (36,493)
-------------- ---------------
Cash used for operating activities (208,175) (340,152)
-------------- ---------------
CASH FLOWS PROVIDED FROM (USED FOR)
INVESTING ACTIVITIES
Proceeds from the sale of portfolio investments 275,850 421,875
Cost of portfolio investments purchased (238,635) (480,845)
-------------- ---------------
Cash provided from (used for) investing activities 37,215 (58,970)
-------------- ---------------
Decrease in cash and cash equivalents (170,960) (399,122)
Cash and cash equivalents at beginning of period 2,609,028 3,063,851
-------------- ---------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 2,438,068 $ 2,664,729
============== ===============
</TABLE>
See notes to financial statements.
<PAGE>
WESTMED VENTURE PARTNERS, L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL (UNAUDITED)
For the Nine Months Ended September 30, 1995
<TABLE>
Managing
General Limited
Partner Partners Total
<S> <C> <C> <C>
Balance at beginning of period $ 145,329 $ 14,387,196 $ 14,532,525
Net increase in net assets resulting
from operations - Note 3 17,833 1,765,363 1,783,196
------------ --------------- ----------------
Balance at end of period $ 163,162 $ 16,152,559(A) $ 16,315,721
============ =============== ================
</TABLE>
(A) The net asset value per unit of limited partnership interest, including the
allocation of net unrealized appreciation of investments, was $241 at
September 30, 1995. Such per unit amount is based on average allocations to
all limited partners and does not reflect specific limited partner
allocations, which are determined by the original closing date associated
with the units of limited partnership interest held by each limited
partner.
See notes to financial statements.
<PAGE>
WESTMED VENTURE PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. Organization and Purpose
WestMed Venture Partners, L.P. (the "Partnership") was formed under Delaware law
on February 5, 1987. The Partnership operates as a business development company
under the Investment Company Act of 1940, as amended. The Partnership is a
closed-end investment fund and accordingly its units of limited partnership
interest ("Units") are not redeemable. A total of 66,929 Units were sold to
limited partners ("Limited Partners" and together with the Managing General
Partner (as hereinafter defined), the "Partners") at $500 per Unit.
The general partners of the Partnership include three individuals (the
"Independent General Partners") and the managing general partner, WestMed
Venture Management, L.P., a Delaware limited partnership (the "Managing General
Partner" and collectively with the Independent General Partners, the "General
Partners"). The general partner of the Managing General Partner is Medical
Venture Holdings, Inc., a Delaware corporation affiliated with Oppenheimer &
Co., Inc. ("Opco"). The limited partners of the Managing General Partner are
Oppenheimer Holdings, Inc., MVP Holdings, Inc. and BSW, Inc., a Delaware
corporation owned by John A. Balkoski, Philippe L. Sommer and Howard S.
Wachtler. Messrs. Sommer and Wachtler are principally responsible for managing
the investments of the Partnership.
Opco, a member firm of the New York Stock Exchange, the National Association of
Securities Dealers, Inc., and all principal United States securities exchanges,
is a diversified investment banking and securities firm, a registered investment
advisor and Futures Commission Merchant providing a broad range of services to
individual, corporate, and institutional clients. Opco operates in the capacity
of broker and dealer for its customers, as well as trader for its own account.
The services provided by Opco and its subsidiaries, and the activities in which
it is engaged, include securities brokerage, securities research, customer
financing, securities trading, corporate finance, mergers and acquisitions,
underwriting and investment advisory services.
The Partnership's objective is to achieve long-term capital appreciation from
its portfolio of venture capital investments, consisting of companies engaged in
the health care industry. The Partnership is scheduled to terminate on December
31, 1997. However, the General Partners can extend the term for up to two
additional two-year periods, if they determine that such extensions are in the
best interest of the Partnership.
2. Summary of Significant Accounting Policies
Valuation of Investments - Portfolio investments are carried at fair value as
determined quarterly by the Managing General Partner under the supervision of
the Independent General Partners. The fair value of publicly-held portfolio
securities is adjusted to the average closing public market price for the last
five trading days of each quarter discounted for sales restrictions. Factors
considered in the determination of an
<PAGE>
WESTMED VENTURE PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
appropriate discount include underwriter lock-up or Rule 144 trading
restrictions, insider status where the Partnership either has a representative
serving on the board of directors of the portfolio company under consideration
or is greater than a 5% shareholder thereof, and other liquidity factors such as
the size of the Partnership's position in a given company compared to the
trading history of the public security. Privately-held portfolio securities are
carried at cost until significant developments affecting the portfolio company
provide a basis for change in valuation. The fair value of private securities is
adjusted (i) to reflect meaningful third-party transactions in the private
market and (ii) to reflect significant progress or slippage in the development
of the company's business such that cost no longer reflects fair value. As a
venture capital investment fund, the Partnership's portfolio investments involve
a high degree of business and financial risk that can result in substantial
losses. The Managing General Partner considers such risks in determining the
fair value of the Partnership's portfolio investments.
Investment Transactions - Investment transactions are recorded on the accrual
method. For portfolio investments, transactions are recorded on the date which
the Partnership obtains an enforceable right to demand the securities or payment
thereof. Realized gains and losses on investments sold are computed on a
specific identification basis.
Statements of Cash Flows - Cash and cash equivalents include short-term
interest-bearing investments in commercial paper and other money market
investments. The Partnership considers its interest bearing cash account to be
cash equivalents.
Income Taxes - No provision for income taxes has been made since all income and
losses are allocable to the partners for inclusion in their respective tax
returns. The Partnership's net assets for financial reporting purposes differ
from its net assets for tax purposes. Net unrealized depreciation of $2,255,352
at September 30, 1995, which was recorded for financial statement purposes, was
not recognized for tax purposes. Additionally, from inception to September 30,
1995, other timing differences totaling $10.1 million, relating to net realized
losses, original sales commissions paid and other costs of selling the Units,
have been recorded on the Partnership's financial statements but have not yet
been deducted for tax purposes.
3. Allocations of Partnership Profits and Losses
Pursuant to the Partnership's agreement of limited partnership (the "Partnership
Agreement"), the Partnership's net income and net realized gains from all
sources are allocated to all Partners, in proportion to their capital
contributions, until all Partners have been allocated an amount equal to 6% per
annum, simple interest, on their total Adjusted Invested Capital; i.e., original
capital contributions reduced by previous distributions (the "Priority Return").
Thereafter, net income and net realized gains from venture capital investments
in excess of the amount used to cover the Priority Return are allocated 20% to
the Managing General Partner and 80% to all Partners in proportion to their
capital contributions. Any net income from non-venture capital investments in
excess of the amount used to cover the Priority Return is allocated to all
<PAGE>
WESTMED VENTURE PARTNERS, L.P.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Partners in proportion to their capital contributions. Realized losses are
allocated to all Partners in proportion to their capital contributions. However,
if realized gains had been previously allocated in the 80-20 ratio, then losses
are allocated in the reverse order in which profits were allocated. From its
inception to September 30, 1995, the Partnership had a $9.1 million net realized
loss from its venture capital investments which includes interest and other
income from portfolio investments of $550,325.
4. Related Party Transactions
Pursuant to the Partnership Agreement, the Managing General Partner is entitled
to receive a one-time venture capital fee equal to 5% of the gross proceeds from
the sale of Units. Such fee is incurred as portfolio investments are made in the
proportion of the cost of each portfolio investment to the net proceeds from the
sale of Units. Venture capital fees are recorded as a cost of acquiring the
portfolio investments. The Partnership incurred venture capital fees of $14,000
and $27,000 for the nine months ended September 30, 1995 and 1994, respectively.
Cumulative venture capital fees incurred from inception to September 30, 1995
totaled $1.6 million.
Pursuant to a management agreement between the Partnership and the Managing
General Partner, the Managing General Partner performs, or arranges for others
to perform, the management, administrative and certain investment advisory
services necessary for the operation of the Partnership. For such services, the
Managing General Partner receives a management fee at the annual rate of 2% of
the lesser of the net assets of the Partnership or the net contributed capital
of the Partnership; i.e., gross capital contributions to the Partnership (net of
selling commissions and organizational expenses) reduced by capital distributed.
Such fee is determined and payable quarterly.
For services rendered to the Partnership, each of the three Independent General
Partners receives a $5,000 annual fee and reimbursement for all out-of-pocket
expenses relating to attendance at meetings of the General Partners.
5. Interim Financial Statements
In the opinion of the Managing General Partner, the unaudited financial
statements as of September 30, 1995, and for the three and six month periods
then ended, reflect all adjustments necessary for the fair presentation of the
results of the interim periods.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Liquidity and Capital Resources
During the three months ended September 30, 1995, the Partnership made no
follow-on investments. At September 30, 1995, the Partnership had invested an
aggregate of $28.4 million in 23 portfolio companies (including acquisition
costs and venture capital fees totaling $1.9 million) representing approximately
95% of the original $30 million of net proceeds received from the offering of
Units.
At September 30, 1995, the Partnership held $2.4 million of cash and short-term
investments: $2 million in short-term securities with maturities of less than
one year and $443,000 in an interest-bearing cash account. For the three and
nine months ended September 30, 1995, the Partnership earned $31,000 and
$100,000 of interest from such investments, respectively. Interest earned from
short-term investments in future periods is subject to fluctuations in
short-term interest rates and changes in funds available for investment.
It is anticipated that funds needed to cover the Partnership's future follow-on
investments and operating expenses will be obtained from existing cash reserves,
interest and dividend income and proceeds received from the sale of portfolio
investments.
Results of Operations
For the three and nine months ended September 30, 1995, the Partnership had a
$42,000 and $127,000 net realized loss from operations, respectively. For the
three and nine months ended September 30, 1994, the Partnership had a $99,000
and $1.2 million net realized loss from operations, respectively. Net realized
gain or loss from operations is comprised of (i) net realized gain or loss from
portfolio investments and (ii) net investment income or loss (interest and
dividend income less operating expenses).
Realized Gains and Losses from Portfolio Investments - For the three and nine
months ended September 30, 1995, the Partnership had a net realized gain from
its portfolio investments of $65,000. During July and August of 1995, the
Partnership sold 51,000 shares of Aprogenex common shares in the public market
for $276,000, realizing a gain of $65,000. The Partnership had no realized gain
or loss from its portfolio investments for the three months ended September 30,
1994. For the nine months ended September 30, 1994, the Partnership had a net
realized loss from its portfolio investments of $944,000. During March and April
1994, the Partnership sold 20,000 common shares of CliniCom Incorporated in the
public market for $422,000, realizing a loss of $944,000.
Investment Income and Expenses - Net investment loss for the three months ended
September 30, 1995 and 1994 was $107,000 and $99,000, respectively. The increase
in net investment loss for the three month period ended September 30, 1995
compared to the same period in 1994 was due to an $8,000 increase in operating
expenses, primarily due to an increase in insurance expense for the 1995 period.
Net investment loss for the nine months ended September 30, 1995 and 1994 was
$192,000 and $235,000, respectively. The decline in net investment loss for the
1995 periods compared to the 1994 periods primarily is attributable to a
decrease in the management fee for the 1995 periods, as discussed below,
partially offset by an increase in insurance expense for the 1995 periods. The
increase in insurance expense for the 1995 periods resulted from directors and
officers liability insurance coverage initiated in August 1994.
The management fee paid to the Managing General Partner, pursuant to a
management agreement between the Partnership and the Managing General Partner,
was $82,000 and $88,000 for the three months ended September 30, 1995 and 1994,
respectively. For the nine months ended September 30, 1995 and 1994, the
management fee was $188,000 and $288,000, respectively. The management fee for
the nine months ended September 30, 1995 was reduced by $38,000 relating to
director's fees received by the Managing General Partner. The remaining
reduction in the management fee incurred during the 1995 periods resulted from
the Partnership's lower net asset value at September 30, 1995, June 30, 1995 and
March 31, 1995 as compared to the same periods in 1994.
To the extent possible, the management fee and other operating expenses are paid
with funds provided from operations. Funds provided from operations are obtained
from interest received from short-term investments, interest and dividend income
from portfolio investments and proceeds received from the sale of portfolio
investments.
Unrealized Gains and Losses and Changes in Unrealized Appreciation or
Depreciation of Portfolio Investments - For the nine months ended September 30,
1995, the Partnership had a $1,918,000 net unrealized gain resulting from the
net upward revaluation of its portfolio investments, primarily due to the
increased market values of its publicly traded securities. Additionally, during
the nine months ended September 30, 1995, $8,000 was transferred from unrealized
gain to realized gain in connection with the sale of Aprogenex common shares
during the three months ended September 30, 1995, as discussed above. The
$1,918,000 unrealized gain from the revaluation of portfolio investments offset
by the $8,000 transfer from unrealized gain to realized gain resulted in a
$1,910,000 increase to net unrealized appreciation for the nine month period.
For the nine months ended September 30, 1994, the Partnership had a $627,000 net
unrealized loss resulting from the net downward revaluation of its portfolio
investments. Additionally, during the nine month period, $936,000 was
transferred from unrealized loss to realized loss relating to the 20,000 shares
of CliniCom sold during the period, as discussed above. The $936,000 transfer to
realized loss partially offset by the additional $626,000 unrealized loss
resulted in a $310,000 increase to net unrealized appreciation of investments
for the nine month period.
Net Assets - Changes to net assets resulting from operations are comprised of
(i) net realized gain or loss from operations and (ii) changes to net unrealized
appreciation or depreciation of portfolio investments.
At September 30, 1995, the Partnership's net assets were $16.3 million, an
increase of $1.8 million from $14.5 million at December 31, 1994. This increase
was comprised of the $1.9 million increase in net unrealized appreciation of
investments partially offset by the $127,000 net realized loss from operations
for the nine month period.
At September 30, 1994, the Partnership's net assets were $17.5 million, a
decrease of $870,000 from $18.4 million at December 31, 1993. This decrease
resulted from the $1.2 million net realized loss from operations for the period
partially offset by the $310,000 increase in net unrealized appreciation of
investments for the nine month period.
The net asset value per $500 Unit, including an allocation of net unrealized
appreciation or depreciation of portfolio investments, at September 30, 1995 and
December 31, 1994 was $241 and $215, respectively. Such per Unit amounts are
based on average allocations to all Limited Partners and do not reflect specific
Limited Partner allocations, which are determined by the original closing date
associated with the Units held by each Limited Partner.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
The Partnership is not a party to any material pending legal proceedings.
Item 2. Changes in Securities.
Not applicable.
Item 3. Defaults Upon Senior Securities.
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders.
No matter was submitted to a vote of security holders during the quarter covered
by this report.
Item 5. Other Information.
Not applicable.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
(27) Financial Data Schedule.
(b) No reports on Form 8-K have been filed during the quarter for
which this report is filed.
<PAGE>
SIGNATURES
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.
WESTMED VENTURE PARTNERS, L.P.
By: WestMed Venture Management, L.P.
The Managing General Partner
By: MEDICAL VENTURE HOLDINGS, INC.
General Partner
By: /s/ Howard S. Wachtler
Howard S. Wachtler
Executive Vice President
By: /s/ Philippe L. Sommer
Philippe L. Sommer
Executive Vice President and Principal
Financial and Accounting Officer
Date: November 14, 1995
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM WESTMED
VENTURE PARTNERS, L.P.'S QUARTERLY REPORT ON FORM 10-Q FOR THE PERIOD ENDED
SEPTEMBER 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-1-1995
<PERIOD-END> SEP-30-1995
<INVESTMENTS-AT-COST> 11,695,448
<INVESTMENTS-AT-VALUE> 13,950,800
<RECEIVABLES> 54,567
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 2,438,068
<TOTAL-ASSETS> 16,443,435
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 127,714
<TOTAL-LIABILITIES> 127,714
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (2,255,352)
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</TABLE>
