UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended April 30, 1997
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period From to
Commission File Number 0-22354
MARTEK BIOSCIENCES CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 52-1399362
(State of Incorporation) (IRS Employer Identification No.)
6480 Dobbin Road, Columbia, Maryland 21045
(Address of principal executive offices)
Registrant's telephone number including area code: (410)740-0081
None
(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. X Yes No
Common stock, par value $.10 per share: 13,612,894 shares outstanding
as of June 9, 1997
Page 1 of 14
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
MARTEK BIOSCIENCES CORPORATION
Balance Sheets
($ in thousands)
- --------------------------------------------------------------------------------
April 30, October 31,
1997 1996
- --------------------------------------------------------------------------------
(Unaudited)
Assets:
Current assets:
Cash and cash equivalents $1,852 $8,633
Short-term investments and
marketable securities 28,107 30,759
Accounts receivable 797 322
Inventories (Note 4) 2,063 1,841
Prepaid expenses 361 134
Other current assets 228 125
--------------------------------
Total current assets 33,408 41,814
Property, plant and equipment, net 15,839 15,309
--------------------------------
$49,247 $57,123
================================
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable $679 $642
Accrued liabilities 1,351 1,495
Current portion of notes payable 1,265 4,371
--------------------------------
Total current liabilities 3,295 6,508
Long-term portion of notes payable 3,959 1,199
Commitments and contingencies (Note 2)
Stockholders' equity:
Preferred stock, $.01 par value,
4,700,000 shares authorized; none
issued or outstanding. --- ---
Series A junior participating preferred
stock, $.01 par value, 300,000 shares
authorized; none issued or outstanding. --- ---
Common stock, $.10 par value; 30,000,000
shares authorized at April 30, 1997
and at October 31, 1996; 13,595,694
and 13,392,250 shares issued at April 30,
1997 and October 31, 1996, respectively. 1,360 1,339
Additional paid-in capital 78,668 78,268
Accumulated deficit (38,035) (30,191)
--------------------------------
Total stockholders' equity 41,993 49,416
--------------------------------
$49,247 $57,123
================================
See accompanying notes.
Page 2 of 14
<PAGE>
MARTEK BIOSCIENCES CORPORATION
Statements of Operations
(Unaudited - $ in thousands, except per share data)
Three months Six Months
ended April 30, ended April 30,
- --------------------------------------------------------------------------------
1997 1996 1997 1996
- --------------------------------------------------------------------------------
Revenues:
Product Sales:
Nutritional product sales $510 $28 $653 $36
Other product sales 414 260 793 430
-------------------- ----------------------
Total Product Sales 924 288 1,446 466
License fees and related
revenues 0 91 293 2,232
Royalties 5 4 9 6
Research and development
contracts and grants 136 185 274 384
---------------------- ----------------------
Total revenues 1,065 568 2,022 3,088
Costs and expenses:
Cost of product sales 782 163 1,152 256
Research and development 2,798 2,963 5,681 5,068
Selling, general and
administrative 2,224 1,032 3,802 2,032
---------------------- ----------------------
Total costs and expenses 5,804 4,158 10,635 7,356
----------------------- ----------------------
Loss from operations (4,739) (3,590) (8,613) (4,268)
Other income (expense):
Miscellaneous income 19 14 27 29
Interest income 437 617 954 1,311
Interest expense (109) (71) (212) (146)
----------------------- ----------------------
Total other income 347 560 769 1,194
----------------------- ----------------------
Net loss ($4,392) ($3,030) ($7,844) ($3,074)
- --------------------------------------------------------------------------------
Net loss per share (Note 5) ($0.32) ($0.23) ($0.58) ($0.23)
- --------------------------------------------------------------------------------
Weighted average common
shares outstanding 13,556,755 13,292,624 13,490,618 13,183,836
- --------------------------------------------------------------------------------
See accompanying notes.
Page 3 of 14
<PAGE>
MARTEK BIOSCIENCES CORPORATION
Statements of Cash Flows
(Unaudited - $ in thousands)
Six Months ended April 30,
- --------------------------------------------------------------------------------
1997 1996
- --------------------------------------------------------------------------------
Operating activities:
Net loss ($7,844) ($3,074)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 531 422
Changes in assets and liabilities:
Accounts receivable (475) (148)
Inventories (222) (348)
Prepaid expenses (227) (56)
Other current assets (103) 67
Accounts payable 37 265
Accrued liabilities (144) 31
Unearned revenue --- (2,075)
-----------------------------
Net cash used in operating activities (8,447) (4,916)
Investing activities:
Change in short-term investments
and marketable securities 2,652 (18,357)
Purchase of property, plant and equipment (1,061) (3,018)
-----------------------------
Net cash used in investing activities 1,591 (21,375)
Financing activities:
Proceeds from the exercise of warrants
and options, and other 421 800
Borrowings on notes payable 4,000 ---
Repayment of notes payable (4,346) (43)
-----------------------------
Net cash provided by financing activities 75 757
-----------------------------
Net increase in cash and cash equivalents (6,781) (25,534)
Cash and cash equivalents at beginning of year 8,633 41,039
-----------------------------
Cash and cash equivalents at end of period $1,852 $15,505
- --------------------------------------------------------------------------------
See accompanying notes.
Page 4 of 14
<PAGE>
MARTEK BIOSCIENCES CORPORATION
Statement of Stockholders' Equity
(Unaudited - $ in thousands, except per share data)
Additional
Paid-In Accumulated
Common Stock Capital Deficit Total
-----------------------------------------------------
Shares Amounts
Balance at
October 31, 1996 13,392,250 $1,339 $78,268 ($30,191) $49,416
- --------------------------------------------------------------------------------
Exercise of stock options 203,444 21 400 --- 421
Net loss --- --- --- (7,844) (7,844)
- --------------------------------------------------------------------------------
Balance at
April 30, 1997 13,595,694 $1,360 $78,668 ($38,035) $41,993
- --------------------------------------------------------------------------------
See accompanying notes.
Page 5 of 14
<PAGE>
Notes to Financial Statements (Unaudited)
1. Basis of Presentation
The accompanying unaudited 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 Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included.
Operating results for the quarter and six months ended April 30, 1997 are not
necessarily indicative of the results that may be expected for the year ended
October 31, 1997. For further information, refer to the financial statements and
footnotes thereto included in Martek Biosciences Corporation's annual report on
Form 10-K for the year ended October 31, 1996.
2. Commitment and Contingencies
The Company had commitments at April 30, 1997 to fund up to $1.7 million of
Phase III Small Business Innovation Research ("SBIR") technology
commercialization expenses, provided the technology under existing Phase II SBIR
grants yields commercial opportunities favorable to the Company.
Costs under U.S. Government contracts are subject to audit by the appropriate
U.S. Government agency. Management believes that cost disallowances, if any,
arising from such audits of costs charged to government contracts through April
30, 1997, would not have a material effect on the financial statements.
The Company has licensed certain technologies and recognized license fee revenue
under various agreements. Potentially refundable license fees are recorded as
unearned revenue and are not recognized as revenue until the earnings process is
complete and amounts are not subject to refund. Under the terms of one of the
Company's license agreements, $2,075,000 previously recorded as unearned was
recognized during the first quarter of 1996. See "Management's Discussion and
Analysis of Financial Condition and Results of Operations."
The Company has entered into various collaborative research and license
agreements. Under the agreements, the Company is required to fund research or to
collaborate on the development of potential products. Certain of these
agreements also commit the Company to make payments upon the occurrence of
certain milestones, and royalties upon the sale of certain products resulting
from such collaborations.
On June 20, 1996, the Company entered into an equipment line of credit in the
amount of $2,000,000 to finance a portion of the construction of the oil
processing facility in Winchester, KY. Draws on the line of credit as of June
20, 1996 converted to a four year term loan bearing interest at a rate of 9.02%.
As of April 30, 1997, $460,000 of the line was available for future borrowings
and $1,262,000 was outstanding. This loan is collateralized solely by the
equipment purchased with the proceeds.
On March 24, 1997, the Company entered into a four year term loan in the amount
of $4,000,000 to refinance the notes payable for the purchase of the Winchester,
Kentucky fermentation facility that were due in March and September 1997. The
loan bears interest at a rate of 8.61% and as of April 30, 1997 the outstanding
balance was $3,835,000. The Company uses this facility to produce oils rich in
DHA and ARA using its proprietary technology. The loan is collateralized solely
by the fermentation plant.
Page 6 of 14
<PAGE>
3. Income Taxes
At April 30, 1997, the Company had net operating loss carryforwards of
approximately $49,734,000 for income tax purposes that expire in years 2000
through 2011.
Section 382 of the Internal Revenue Code limits the utilization of net operating
losses when ownership changes, as defined by that section, are greater than 50
percent. The Company has had significant ownership changes over the past several
years, including an initial public offering of its common stock in December 1993
and a follow-on public offering of its common stock in October 1995, which may
have caused these limitations to apply.
Deferred income taxes reflect the net tax effects of temporary differences
between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for income tax purposes. Significant components of
the Company's deferred tax assets as of April 30, 1997 are as follows:
Deferred tax assets:
Write-off of patent $ 404,000
Net operating loss carryforwards 19,894,000
--------------
Total deferred tax assets $ 20,298,000
==============
Valuation allowance for net
deferred tax assets ($ 20,298,000)
--------------
Net deferred tax assets $ ---
==============
4. Inventories
Inventories consist of the following:
April 30, October 31,
1997 1996
----------- -----------
Finished products $1,047,615 $875,645
Work in process 669,986 545,168
Raw materials 345,167 420,315
----------- -----------
$2,062,768 $1,841,128
=========== ===========
Inventories include products and materials held for sale as well as products and
materials that could alternatively be used in the Company's research and
development activities.
5. Net loss per share
Net loss per share is computed using the weighted average number of shares of
common stock outstanding during the period. Common equivalent shares from stock
options and warrants are excluded as their effect is antidilutive.
Page 7 of 14
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
General
This Management's Discussion and Analysis of Financial Condition and Results of
Operations contains forward-looking statements concerning the Company's business
and operations, including statements about future production efficiencies for
its nutritional oil products. Such statements involve risks and uncertainties
that could cause actual results to differ due to a variety of risk factors set
forth herein and from time to time in the Company's filings with the Securities
and Exchange Commission, including but not limited to its recently filed report
on Form 10-K and its S-3 declared effective on September 26, 1995.
Since its inception in 1985, Martek has been engaged primarily in the research
and development, manufacturing and sales of products derived from microalgae. In
1989, the Company began the commercial production and sale of its products for
drug discovery. In 1992, Martek began to realize revenues from license fees
related to its nutritional oils containing docosahexaenoic acid ("DHA") and
arachidonic acid ("ARA") and sales of sample quantities of these oils. In 1995,
Martek recognized its first product and royalty revenues from sales of infant
formula containing these oils and in 1996 began to recognize revenues from the
sale of Neuromins(TM), a DHA dietary supplement. Martek has incurred losses in
each year since its inception. At April 30, 1997, the Company's accumulated
deficit was $38,035,000. The Company expects to continue to expand its research
and development effort, optimize oils production and increase its product
marketing activities. As a result, Martek expects its losses to continue and
possibly increase for at least the next six months, or until significant
royalties from sales of infant formula products containing its oils, and/or
sales revenues from Neuromins(TM) and/or its nutritional oils to infant formula
companies are realized. In addition, the Company expects to experience
quarter-to-quarter and year-to-year fluctuations in revenues, expenses and
losses, some of which may be significant. The timing and extent of such
fluctuations will depend, in part, on the timing and receipt of oils-related
revenues, if any.
One of the Company's licensees has introduced a term infant formula product
containing Martek's DHA and ARA in Spain, and three of the Company's licensees
have introduced preterm infant formula products containing Martek's DHA and ARA
in eight countries. The Company is not able to predict however when, or if, any
of these licensees will expand or introduce new offerings of products containing
Martek's oils. The Company does not believe that broad product introductions of
term infant formulas containing these oils will occur before late 1997, at the
earliest, and cannot predict the timing or extent of further introductions or
expansions of preterm infant formula products containing Martek's oils. Revenues
from preterm uses of Martek's oils will not, alone, significantly reduce
Martek's losses. Future oils-related revenues, and the timing or likelihood of
future profitability, are largely dependent on factors over which the Company
has no control.
Results of Operations - Comparison of Quarters and Six Months
Ended April 30, 1997 and 1996
Revenues for the quarter ended April 30, 1997, were $1,065,000, an 88% increase
from revenues of $568,000 for the same period in 1996, primarily due to
increased product sales. Revenues for the six-month period ended April 30, 1997
were $2,022,000, a decrease of $1,066,000 or 35%, from the same period in 1996.
Despite a significant increase in product sales during the first six months of
1997, total revenues decreased as a result of $2,075,000 in license fees
recognized during the first quarter of 1996 that were initially recorded as
unearned in 1992 and 1993. Total product sales during the second quarter and six
months ending April 30, 1997, increased by $636,000 and $980,000 or 221% and
210%, respectively, from the same periods in 1996. Sales of nutritional products
including Neuromins(TM)capsules, increased nearly twenty times for the second
quarter and first six months of 1997, when compared to the same periods in 1996.
Sales of products for drug discovery increased 59% for the second quarter and
Page 8 of 14
<PAGE>
84% for the first six months of 1997, when compared to the same periods in 1996.
Revenues from research and development contracts and grants decreased by 26% in
the second quarter of 1997 when compared to the second quarter of 1996 and
decreased 29% for the six months ended April 30, 1997 from the same period in
1996.
Cost of product sales increased to 85% of revenues from product sales for the
second quarter of 1997 from 57% for the second quarter of 1996. For the
six-month period ended April 30, 1997 cost of product sales increased to 80% of
revenues from product sales from 55% for the same period in 1996. This increase
resulted primarily from the cost of sales of Martek's nutritional oils which
represented a higher percentage of the product mix than in prior periods. Oil
production cost was high due to the current low volume of production and because
the production process requires further optimization. As sales volume increases,
and manufacturing efficiencies and optimization occurs, the Company believes
that the cost of production of the nutritional oils products will decrease. The
Company believes that a significant continued optimization effort will be
required for at least the next one or two years. There can be no assurance that
the Company will be able to successfully optimize production of its nutritional
oils in order to manufacture commercial quantities at a reasonable cost, or
continue to comply with applicable regulatory requirements, including GMP, or
that its facilities will be sufficient to meet the demand for the oils. The
balance of the increase in cost of sales resulted from price reductions in the
Company's drug discovery products brought about by competition for these
products. The Company is working to decrease its production costs and has
developed new, co-products and proprietary products in an effort to improve
profit margins. The Company's ability to successfully market these new products
and the ultimate impact of these efforts on cost of sales, however, cannot be
predicted.
Research and development costs decreased by $165,000, or 6%, in the second
quarter of 1997 as compared to the same period in 1996. This decrease resulted
from the conversion of certain development efforts to production efforts. For
the six-month period ended April 30, 1997, research and development costs
increased $613,000 or 12% when compared to the same period in 1996. Consistent
with the Company's plans, nutritional oils development costs accounted for a
significant portion of all research and development costs as a result of
intensified efforts to meet production and product introduction objectives. To
support the introductions of infant formula products containing Martek's oils,
the Company intensified its commercial scale up, process development and
optimization efforts for its oil products beginning during the latter half of
1994. These efforts have continued through the second quarter of 1997.
Production development and other oils-related development costs comprised over
75% of research and development expenses for the first six months of 1997.
Research and development costs may increase in the future as the Company expands
its research and development efforts, including optimization of oil production
and in-house oil processing capabilities.
Selling, general and administrative expenses increased by $1,192,000, or 116%,
during the second quarter of 1997 and $1,770,000 or 87%, in the six months ended
April 30, 1997 over the second quarter and six months ended April 30, 1996,
respectively. These costs increased primarily due to marketing, advertising and
public awareness costs resulting from the commercialization of the Company's
Neuromins(TM)products. Increased insurance and other corporate overhead costs
also contributed to the increase. Other income was $213,000 lower during the
second quarter of 1997 than in the second quarter of 1996 and $425,000 lower in
the first six months of 1997 than in the first six months of 1996. These
decreases are due primarily to a decrease in the amount of interest earned on
the investment of funds received in the Company's 1995 public offering as funds
are being used to support Company operations.
Net loss for the second quarter of 1997 was $4,392,000, or $.32 per share,
compared to a net loss of $3,030,000, or $.23 for the same period in 1996. A net
loss of $7,844,000 or $.58 per share for the six months ended April 30, 1997,
was an increase from a net loss of $3,074,000 or $.23 per share for the same
period in 1996. The increase in net loss for 1997's second quarter was primarily
due to an increase in marketing expenses and a decrease in other income (both
Page 9 of 14
<PAGE>
described above), which more than offset the effect of increased product sales
and decreased research and development expenses. The increase in net loss for
the first six months of 1997 resulted from the increase in marketing expenses
and decrease in other income (both described above) plus the recognition of
$2,075,000 in license fees during the first quarter of 1996 as discussed above.
Recent Accounting Pronouncements
In October 1995, the Financial Accounting Standards Board issued SFAS No. 123,
"Accounting for Stock- Based Compensation." SFAS No. 123 allows companies to
either account for stock-based compensation under the new provisions of SFAS No.
123 or under the provisions of APB No. 25, "Accounting for Stock Issued to
Employees". If companies elect to account for stock-based compensation under the
provisions of APB No. 25, pro forma disclosure is required for fiscal years
beginning after December 31,1995 in the footnotes to the financial statement as
if the measurement provisions of SFAS 123 had been adopted. The Company intends
to continue accounting for its stock-based compensations in accordance with the
provisions of APB No. 25. As such, the adoption of SFAS No. 123 will not impact
the financial position of the Company.
Liquidity and Capital Resources
Cash, cash equivalents, short-term investments and marketable securities
decreased by $9,433,000 in the first six months of 1997 resulting in a cash
balance of $1,852,000 and a balance of $28,107,000 in short-term investments and
marketable securities at April 30, 1997. Capital expenditures of $545,000 and
$1,061,000 were made in the second quarter of 1997 and the six month period
ending April 30, 1997, respectively, a significant portion of which represents
upgrades to the Company's fermentation facility in Winchester, Kentucky and
modifications to the newly constructed oil processing plant at the site. The
Company expects additional capital expenditures of approximately $1,000,000
during the balance of 1997 as a result of escalating fermentation activity and
optimization of oil processing capabilities at the facility.
Martek may require substantial additional funds to continue its research and
development programs, to conduct preclinical and clinical studies to
commercialize its nutritional oils, Neuromins(TM),and its other products under
development. The ultimate levels of these expenditures will depend, in part, on
whether the Company seeks independently, or with other parties through
collaborative agreements, to develop, manufacture and market its products. The
capital requirements of Martek will depend, among other things, on one or more
of the following factors: the speed at which Martek's infant formula licensees
incorporate Martek's oils into their term infant formula products; the progress
of preclinical and clinical studies; the time and costs of obtaining regulatory
clearance for those products subject to regulatory clearance; the costs involved
in filing, protecting and enforcing patents and other intellectual property
rights; competing technological and market developments; the costs of
manufacturing facilities for those products the Company chooses to manufacture
itself; the costs of optimizing manufacturing processes for the Company's
nutritional oil products; the costs of commercializing its products; and the
extent of future facilities expansion and collaborative partnerships. The
Company's 1995 purchase of a fermentation facility has had, and will continue to
have, a material effect upon Martek's liquidity and capital resources. In
addition to the $1.0 million in cash used to close the transaction, the
investment in subsequent improvements and the addition of oil processing
capabilities, additional capital expenditures will be needed to modify the plant
to meet Martek's future production requirements as the demand for the Company's
nutritional oils grows to fill plant capacity. Plant modifications, costing at
least $1,000,000, are expected to occur throughout the remainder of 1997.
Expenditures beyond 1997 will depend in part on production capacity needs, the
extent of development and implementation of process improvements and the success
of previously implemented improvements. In March 1997 the Company refinanced the
promissory notes, associated with the plant purchase, in the aggregate of
$4,000,000 with a four year term loan bearing interest at 8.61% (See Notes to
Financial Statements, Note 2).
Page 10 of 14
<PAGE>
The Company believes its existing capital resources, consisting primarily of
cash, short-term investments and marketable securities will provide adequate
capital for at least the next 15 months. However, due to the Company's
expectations of growth and the rapidly changing nature of the markets in which
it competes, no prediction can be made with certainty of the Company's need for
additional capital or its liquidity position over the long term. The Company
intends to seek additional funding through commercial and government research
and development contracts and grants, product sales and license fee
arrangements. The Company may pursue other methods of financing its activities,
including asset-based borrowing, equity issuances, additional lease financing
and collaborative arrangements with partners, if such methods are available to
the Company and on favorable terms. Should the Company need to raise additional
funds, there can be no assurance that such funds will be available to the
Company on acceptable terms, if at all.
Page 11 of 14
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
As previously reported in the Company's annual reports on Form 10-K for its
fiscal years ended October 31, 1995 and 1996, and in the Company's reports on
Form 10-Q since the first quarter of fiscal 1996, on November 29, 1995 Martek
received a letter from the United States Environmental Protection Agency ("EPA")
notifying Martek of potential liability under the Comprehensive Environmental
Response, Compensation and Liability Act in connection with the cleanup of the
RAMP Industries Site in Denver, Colorado. EPA has stated that to date it has
incurred $2.1 million in costs in connection with the cleanup of the site, but
that at this time it is unable to estimate total cleanup costs. EPA has
informally indicated that based on its initial review, it believes that Martek
is responsible for less than .02% of the waste at the RAMP Site. Martek's own
review indicates that its contribution to the site, if any, may be a lower
percentage. EPA has stated that it intends to enter into a "de minimis"
settlement with smaller contributors based on a waste-in list it is currently
compiling. Martek believes that the impact of any settlement will be immaterial
to its financial condition and results of operations.
The Company is not a party to any other legal proceedings.
Item 2. Changes in Securities.
None
Item 3. Defaults Upon Senior Securities.
Not Applicable
Item 4. Submission of Matter to a vote of Security Holders.
The Company's Annual Meeting of Stockholders was held on March 14, 1997.
The following items were voted on at the Annual Meeting:
1. Proposal to approve and adopt Martek Biosciences Corporation 1997
Stock Option Plan and to reserve 750,000 shares of Common Stock for
issuance under the 1997 Plan.
In Favor Opposed Abstained Non-Vote
8,562,799 1,363,837 12,878 2,047,161
2. The following members were elected to the Company's Board of
Directors to hold office for the periods indicated below:
Elected Until
Annual Meeting
Nominee To Be Held In Favor Withheld
Bruce E. Elmblad 2000 11,976,419 10,256
Richard J. Radmer 2000 11,976,854 9,821
William D. Smart 2000 11,975,919 10,756
Page 12 of 14
<PAGE>
Directors Continuing in Office:
Jules Blake
Ann L. Johnson
Henry Linsert, Jr.
Douglas J. MacMaster, Jr.
John H. Mahar
Sandra Panem
Eugene H. Rotberg
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits: None
(b) Reports on Form 8-K: None
Page 13 of 14
<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.
MARTEK BIOSCIENCES CORPORATION
(Registrant)
Date: June 13, 1997 /s/ Steve Dubin
--------------- ---------------------------------
Steve Dubin, Chief Financial
and Accounting Officer
Page 14 of 14
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