<PAGE>
UNITED STATES
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 March 31, 1998
Commission file number 000-23266
UroMed Corporation
(Exact name of registrant as specified in its charter)
Massachusetts 04 - 3104185
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
64 A Street, Needham,
Massachusetts 02194
(Address of principal
executive offices)
(781) 433-0033
(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 No
--- - --
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date:
26,825,091 shares of Common stock, no par value,
outstanding at April 30, 1998
<PAGE>
UROMED CORPORATION
FORM 10-Q
For the quarterly period ended March 31, 1998
Table of contents
Part I - FINANCIAL INFORMATION Page No.
Item 1. Financial Statements
Condensed Balance Sheet at March 31, 1998 and December 31, 1997 3
Condensed Statement of Operations for the three months ended
March 31, 1998 and 1997 4
Condensed Statement of Cash Flows for the three months ended
March 31, 1998 and 1997 5
Notes to Condensed Financial Statements 6 - 7
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 8 -11
Part II - OTHER INFORMATION
Item 6. Exhibits 12
Signatures 13
<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
UROMED CORPORATION
CONDENSED BALANCE SHEET
(In thousands)
(unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
---------- -----------
Assets
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 11,915 $ 12,007
Short-term investments 47,228 53,018
Inventories 302 287
Prepaid expenses and other assets 1,072 1,403
---------- ----------
Total current assets 60,517 66,715
Fixed assets, net 6,362 6,357
Other assets 3,423 3,521
---------- ----------
$ 70,302 $76,593
========== ==========
Liabilities and Stockholders' Equity / (Deficit)
Current liabilities:
Accounts payable $ 613 $ 1,197
Accrued expenses 5,804 4,378
Deferred revenue 233 233
---------- ----------
Total current liabilities 6,650 5,808
---------- ----------
Convertible subordinated notes 69,000 69,000
---------- ----------
Stockholders' equity / (deficit):
Common stock 107,024 106,993
Other stockholders' equity / (deficit) (112,372) (105,208)
---------- ----------
Stockholders' equity / (deficit) (5,348) 1,785
---------- ----------
$ 70,302 $76,593
========== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
Item 1. Financial Statements (continued)
UROMED CORPORATION
CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
--------------------------
<S>
<C> <C>
1998 1997
-------- --------
Revenues $ 61 $ 263
-------- --------
Costs and expenses:
Cost of revenues 1,135 1,001
Research and development 1,921 2,308
Marketing and sales 1,764 4,136
General and administrative 1,077 1,317
Restructuring 1,024 -
-------- --------
Total costs and expenses 6,921 8,762
-------- --------
Loss from operations (6,860) (8,499)
Interest income 897 1,302
Interest expense (1,134) (1,134)
-------- --------
Net loss $(7,097) $(8,331)
======== ========
Basic and diluted net loss per share $(0.27) $(0.31)
========= ========
Weighted average common shares outstanding 26,774 26,489
========= =========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
Item 1. Financial Statements (continued)
UROMED CORPORATION
CONDENSED STATEMENT OF CASH FLOWS
Increase (Decrease) in Cash and Cash Equivalents
(In thousands)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
----------------------------
<S>
<C> <C>
1998 1997
Net cash used in operating activities $ (5,372) $(5,252)
---------- ----------
Cash flows from investing activities:
Sales of short-term investments, net 5,710 1,923
Purchase of fixed assets (461) (2,682)
---------- ----------
Net cash provided by (used for)
investing activities 5,249 (759)
---------- ----------
Cash flows from financing activities:
Proceeds from issuance of common stock 31 -
---------- ----------
Net cash provided by financing activities 31 -
---------- ----------
Net decrease in cash and cash equivalents (92) (6,011)
Cash and cash equivalents, beginning of period 12,007 45,556
---------- ----------
Cash and cash equivalents, end of period $ 11,915 $39,545
========== ==========
Supplemental disclosure of cash flow information:
Interest paid $ 0 $ 0
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
Item 1. Financial Statements (continued)
UROMED CORPORATION
NOTES TO FINANCIAL STATEMENTS
(In thousands, except per share data)
(unaudited)
1. Nature of Business
UroMed Corporation (the "Company"), a Massachusetts corporation, was
incorporated in October 1990 to develop male and female health care
products and has developed or acquired technology in three core areas:
prostate cancer, urinary incontinence, and breast cancer. The Company has
a direct hospital-based business and an office-based continuum of
continence care consumer products. The Company is developing its
investigational BreastExam, BreastCheck and BreastView electronic
palpation technology.
2. Basis of Presentation
The condensed balance sheet at March 31, 1998, the condensed statement of
operations and the condensed statement of flows for the three months ended
March 31, 1998 and 1997 are unaudited. In the opinion of management, all
adjustments necessary for a fair presentation of these financial
statements have been included. Such adjustments consisted only of
recurring items. Interim results are not necessarily indicative of results
for a full year.
Certain prior year amounts have been reclassified to conform to the
current period financial statement presentation. These reclassifications
had no impact on net loss.
The financial statements should be read in conjunction with the Company's
audited financial statements and related footnotes for the year ended
December 31, 1997, which may be found in the Company's 1997 Annual Report
on Form 10-K
3. Inventories
Inventories are stated at the lower of cost or market, cost being
determined using the first-in, first-out method. At March 31, 1998,
inventories consisted of the following:
Raw materials $ 126
Work in process 9
Finished goods 167
--------
$ 302
--------
4. Comprehensive Loss
The Company adopted FASB Statement No. 130, "Reporting Comprehensive
Income", in the first quarter of 1998. This statement establishes
standards for the reporting and display of comprehensive income or loss
and its components in the financial statements.
Quarter ended Quarter ended
March 31, 1998 March 31, 1997
--------------- --------------
Net loss ($7,097) ($8,331)
Unrealized loss (58) (64)
on investments
available-for-sale
--------------- --------------
Total comprehensive loss ($7,155) ($8,395)
=============== ==============
<PAGE>
5. Recently Enacted Accounting Pronouncement
In June 1997, the FASB issued Statement of Financial Accounting Standards
No. 131, "Disclosures about Segments of an Enterprise and Related
Information" ("SFAS 131"). The Company will implement SFAS 131 as required
in 1998, which will require the Company to report and display separately
certain information related to operating segments but will not result in
any changes to previously recorded amounts.
6. Licensing Agreement with BEBIG GmbH
During the first quarter of 1998, the Company signed an agreement with
BEBIG GmbH for the exclusive right to market BEBIG's Iodine-125 ("I-125")
seeds for prostate brachytherapy treatment in North and South America, and
non-exclusive rights in other parts of the world. This licensing agreement
calls for a commitment by UroMed of approximately $1.75 million, which is
expected to be paid in 1998 and will be used to support construction of a
related production line and partially as an advance payment against
future I-125 seed purchases.
7. Restructuring
During the first quarter of 1998, the Company recorded a charge of
$1,024,000 for the restructuring of its operations to increase its
emphasis on its hospital-based sales efforts and to decrease its
investment in the consumer-oriented continence care business, which the
Company believes will be best approached through utilizing marketing
partners. This charge is reported as restructuring in the Condensed
Statement of Operations for the quarter ended March 31, 1998, and includes
$579,000 of employee termination benefits and $445,000 of costs to exit
certain leased facilities. The $579,000 cost for employee termination
benefits included the reduction of approximately 40 people from all
functions of the Company. Costs to exit certain leased facilities included
the write-off of $138,000 of fixed assets. As of March 31, 1998, actual
cash expenditures of $216,000 were made for employee termination benefits
and $47,000 for costs to exit certain leased facilities. The remaining
restructuring accrual at March 31, 1998 is $623,000.
8. Proposed Reverse Stock Split
The Company proposed an amendment to its Restated Articles of
Organization which will effect a one-for-five reverse stock split. The
Company believes that the reverse stock split is necessary to prevent the
Company from losing the designation of its Common Stock as a Nasdaq
National Market security, in effect being de-listed, due to new listing
requirements recently adopted by Nasdaq. The proposed amendment, which
will be voted on by common stockholders of the Company at the Company's
Special Meeting of Stockholders on May 15, 1998, if approved, would have
had the following impact on reported basic and diluted net loss per share
and weighted average common shares outstanding for the three months ended
March 31, 1998 and 1997:
Basic and diluted Weighted average common shares
net loss per share: outstanding (in thousands):
-------------------- -------------------------------
March 31, 1998
As reported $ (.27) 26,774
Pro Forma $(1.33) 5,355
March 31, 1997
As reported $ (.31) 26,489
Pro Forma $(1.55) 5,298
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Overview
The Company is a developer of male and female healthcare products. The
Company has developed or acquired technology in three core areas: prostate
cancer, urinary incontinence, and breast cancer. The Company's direct
hospital-based business lines include its CaverMap Surgical Aid, intended
to aid physicians in preserving vital nerves which control potency during
prostate cancer surgery, its BEBIG Iodine-125 seeds for prostate cancer
brachytherapy and its BEACON Technology System (TM), a minimally invasive
incontinence surgical line. The Company's office-based continuum of
continence care product lines include the Impress(TM) Softpatch, the
INTROL(R) Bladder Neck Support Prosthesis, and the Reliance(R) Insert. In
breast cancer screening, the Company is developing its investigational
BreastExam(TM), BreastCheck(TM) and BreastView(TM) electronic palpation
technology in order to aid physicians and patients in finding suspicious
breast lumps earlier. The Company also continues to dedicate significant
resources to the development and/or acquisition of product lines that fit
into its strategic platform.
In the first quarter of 1998, the Company restructured its operations to
increase its emphasis on hospital-based sales efforts and to decrease its
investment in the consumer-oriented continence care business, which the
Company believes will be best approached through utilizing marketing
partners. The restructuring included the reduction Company-wide of
approximately 40 employees and a provision for exiting certain leased
facilities. This initiative is designed to reduce operating costs while
allowing UroMed to create a business model with a significantly lower
break-even level. The Company expects projected annual cost savings of the
restructuring, and related actions, to be approximately $11.0 million per
year. However, there can be no assurance that these cost savings will be
realized.
Hospital-Based Business
The CaverMap Surgical Aid was cleared by the U.S. Food and Drug
Administration ("FDA") for marketing in the United States in November
1997. The Company intends to make initial introduction efforts of this
product in the U.S. in mid-1998. The Company began sales launches of a
series of surgical kits utilizing its BEACON technology during the first
quarter of 1998. The Company expects to commence full-scale marketing and
complete sales launches of all BEACON technology kits throughout the
remainder of 1998.
During the first quarter of 1998, the Company signed an agreement with
BEBIG GmbH for the exclusive right to market BEBIG's Iodine-125 ("I-125")
seeds for prostate brachytherapy treatment in North and South America, and
non-exclusive rights in other parts of the world. Prostate cancer
brachytherapy is a minimally-invasive procedure in which small radiation
sources, or "seeds", are implanted into the prostate to treat localized
cancer. According to terms of the agreement, BEBIG will design and build
an automated manufacturing line, based on its proprietary technology, at
its facility in Berlin, Germany. This licensing agreement calls for a
commitment by UroMed of approximately $1.75 million, which is expected to
be paid in 1998 and will be used to support construction of a related
production line and partially as an advance payment against future I-125
seed purchases. The Iodine I-125 seeds are expected to be commercially
available in the United States in early 1999.
As a result of the BEBIG agreement, the Company will be able to pursue two
significant treatment segments for prostate cancer: nerve-sparing
prostatectomy, via the CaverMap Surgical Aid, and brachytherapy, via the
Iodine-125 seeds.
Office-Based Continence Care Products
During the first quarter of 1998, the Company received FDA marketing
clearance for over-the-counter use of its Impress Softpatch. The Company
believes that the best vehicle for capitalizing on both the
over-the-counter and prescription marketplaces is in partnership or
partnerships with larger, more established companies. Therefore, the
Company is currently pursuing partnership(s), and has decided not to incur
Impress launch costs until such partnership(s) are in place.
<PAGE>
Breast Cancer
The BreastCheck technology is an investigational technology and must
receive FDA approval. The Company anticipates seeking this approval
through the form of Pre-Market Approval ("PMA"). The Company has agreed to
a clinical protocol with the FDA and will continue its piloting of studies
on the performance of this technology for professional as well as consumer
use. The final clinical trials are currently slated to begin in 1999, and
this technology may be available in the U.S. in 2000, if and only if, FDA
approval is obtained within that time frame. No assurances can be made
that the Company will be successful in obtaining FDA approval for this
product, or as to the timing of such approval.
Results of Operations
Revenues
The Company's revenues for the first quarter of 1998 decreased 77% to
$0.06 million as compared to $0.3 million in the first quarter of 1997.
This decrease is primarily the result of the recognition of deferred
revenue from European distributorship agreements in the first quarter of
1997 and there being no such revenue in the first quarter of 1998,
slightly offset by the commencement in the first quarter of 1998 of
shipments of BEACON Technology Surgical kits, which were not commercially
available in 1997.
Cost of revenues
Cost of revenues for the first quarter of 1998 increased 13% to $1.1
million as compared to $1.0 million in the first quarter of 1997. The
increase is predominantly a result of an increase in material costs during
the first quarter of 1998 due to the material content of the products
available for sale in the first quarter of 1998 as compared to the first
quarter of 1997, slightly offset by decreased manufacturing engineering
costs as a result of a reduced headcount. The Company anticipates a
decreasing cost of revenues over the next two quarters due to the indirect
effects of the first quarter of 1998 restructuring. The Company expects
negative or low gross margins for the near term and, accordingly, has
considered this in its valuation of inventory. There can be no assurance
that the Company will ever realize sufficient production volumes or
otherwise reduce its manufacturing costs in order to raise gross margins.
Operating Expenses
Research and development expenses in the first quarter of 1998 decreased
17% to $1.9 million as compared to $2.3 million in the first quarter of
1997. The decrease is a result of the decreased level of expenses incurred
on Impress Softpatch activities in the first quarter of 1998 as compared
to the first quarter of 1997, partially offset by increased expenses in
efforts for the development activities of the BreastCheck, BreastExam and
BreastView products. The Company anticipates a slight decrease in research
and development expenditures in the second and third quarters of 1998, as
compared to the first quarter of 1998, as a result of the reduced
headcount due to the first quarter of 1998 restructuring.
Marketing and sales expenses in the first quarter of 1998 decreased 57% to
$1.8 million as compared to $4.1 million in the first quarter of 1997.
This decrease was predominantly the result of the high level of
advertising and public relations expenses incurred during the first
quarter of 1997 in connection with the ramp-up for the U.S. launch of the
Reliance Insert. There were no such marketing and sales expenses incurred
during the first quarter of 1998 for the Reliance Insert. Marketing and
sales expenses are expected to decrease in the second and third quarter of
1998, as a compared to the first quarter of 1998, as a result of a reduced
headcount due to the first quarter of 1998 restructuring.
General and administrative expenses in the first quarter of 1998 decreased
18% to $1.1 million as compared to $1.3 million in the first quarter of
1997. This decrease was mainly due to decreased headcount, and decreased
systems and consulting expenses. General and administrative expenses are
expected to decrease slightly in the second and third quarters of 1998 as
compared to the first quarter of 1998 due to a decreased level of
consulting expenses.
<PAGE>
Restructuring
During the first quarter of 1998, the Company recorded a charge of $1.0
million for the restructuring of its operations to increase its emphasis
on its hospital-based sales efforts and to decrease its investment in the
consumer-oriented continence care business, which the Company believes
will be best approached through utilizing marketing partners. This charge
included $579,000 of employee termination benefits and $445,000 of costs
to exit certain leased facilities. The $579,000 cost for employee
termination benefits included the reduction of approximately 40 people
from all functions of the Company. Costs to exit certain leased facilities
included $138,000 of fixed assets written off. As of March 31, 1998,
actual cash expenditures of $216,000 were made for employee termination
benefits and $47,000 for costs to exit certain leased facilities. The
remaining restructuring accrual at March 31, 1998 is $623,000. Cash
expenses of approximately $523,000 are to be paid out against this accrual
over the next twelve months and the remaining $100,000, pertaining to
costs to exit certain leased facilities, are expected to be paid out
evenly over the subsequent three years.
Interest income and interest expense
Interest income in the first quarter of 1998 decreased 31% to $0.9 million
as compared to $1.3 million in the first quarter of 1997. The decrease was
due to decreased balances of interest-bearing cash equivalents and
short-term investments.
Interest expense in the first quarter of 1998 remained unchanged at $1.1
million as compared to the first quarter of 1997.
Liquidity and Capital Resources
Cash and short-term investments totaled $59.1 million at March 31, 1998
compared to $65.0 million at December 31, 1997. At March 31, 1998, the
Company's funds were invested in U.S. government obligations, corporate
debt obligations and money market funds.
Net cash used in operating activities of $5.4 million during the three
months ended March 31, 1998 was primarily a result of the net loss for the
period, which was partially offset by depreciation and amortization
expenses and increases in accrued expenses which were primarily the result
of interest accrued on the Company's 6% Convertible Subordinated Notes due
October 15, 2003 (the "Convertible Notes").
Net cash provided by investing activities was $5.2 million during the
three months ended March 31, 1998. Short-term investments decreased by
$5.7 million due to a shift into cash and cash equivalents and cash used
for operating expenses. In addition, the Company made $0.5 million of
fixed asset purchases during the period.
Net cash provided by financing activities was $0.03 million during the
three months ended March 31, 1998 as a result of proceeds received from
the exercise of stock options and from purchases under the Company's
employee stock purchase plan.
In October 1996, the Company sold $69.0 million of its Convertible Notes.
These Convertible Notes are convertible at any time into shares of common
stock of the Company at a conversion price of $13.281 per share, and is
subject to adjustment under certain circumstances, including an adjustment
to be effected in the event that the Company's shareholders approve the
proposed reverse stock split in May 1998. Interest on the Convertible
Notes is payable each April and October, unless previously converted or
repurchased. There have been no such conversions or repurchases through
March 31, 1998. The Convertible Notes are redeemable at the option of the
Company on or after October 1999 at specified redemption prices, initially
103.429% of the principal amount plus accrued and unpaid interest at the
redemption date.
The Company believes that available cash, cash equivalents and short term
investments will be sufficient to meet the Company's operating expenses
and capital requirements for the foreseeable future. The Company's future
long-term liquidity and capital requirements depend on numerous factors,
including, but not limited to, development of the Company's marketing
capability, market acceptance of the BEACON Technology system surgical
line and the CaverMap Surgical Aid, development of the Company's Impress
Softpatch partnership(s), the development status of other potential
products, including but not limited to the BreastCheck, BreastExam and the
BreastView devices, potential acquisitions and other potential strategic
product opportunities. There can be no assurance that the Company will not
require additional financing or that, if required, such financing will be
available on terms acceptable to the Company.
<PAGE>
The Company has been evaluating its computer software and databases to
ensure that any modifications required to be year 2000 compliant are made
in a timely manner. Thus far, management has determined the financial
impact of such modifications to be immaterial to Company's financial
position or results of operations in any given year.
Forward-Looking Statements and Associated Risks
Certain statements contained in this Quarterly Report may be considered
forward looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934, including statements regarding (i) the planned progression of the
Company's commercialization strategies for the Impress Softpatch, the
INTROL Bladder Neck Support Prosthesis and the BEACON Technology System
surgical line, including the timing and extent of initial or other sales,
(ii) consumer acceptance of the use of the Impress Softpatch and the
INTROL Bladder Neck Support Prosthesis as strategies for the self-care of
urinary incontinence and the size and accessibility of the Company's
target markets, (iii) the Company's expectations regarding its research
and development and in-licensing activities, including but not limited to
the BreastCheck,BreastExam and BreastView devices, (iv) the timing related
to the commencement of marketing activities for the commerical launches of
the BreastCheck, BreastExam and BreastView devices, Impress Softpatch,
BEACON Technology System, and the CaverMap Surgical Aid, (v) the timing
related to regulatory clearance for the BreastCheck and BreastExam
devices, (vi) the Company's planned uses for its cash and other liquid
resources, (vii) the Company's expectations regarding its 1998
restructuring, included anticipated cost savings and (viii) the extent of
future revenues, expenses and results of operations and the sufficiency of
the Company's financial resources to meet planned operational costs and
other expenditure needs. These forward-looking statements are based
largely on the Company's expectations and are subject to a number of risks
and uncertainties, many of which are beyond the Company's control. Actual
results could differ materially from these forward-looking statements as a
result of certain factors, including those described below:
o The uncertainty that the Impress Softpatch, the INTROL Bladder Neck
Support Prosthesis, the BEACON Technology system and the CaverMap
Surgical Aid will gain market acceptance either among physicians or
urinary incontinence sufferers in the United States.
o The uncertainty that physicians will prescribe the Impress
Softpatch and the INTROL Bladder Neck Support Prostheses in
significant numbers.
o The uncertainty that the Company will be able to develop an
effective sales force and implement a successful marketing
campaign for the BEACON Technology system and the CaverMap Surgical
Aid in the United States.
o The uncertainty that the Company will be able to develop
effective partnerships to pursue over-the-counter and prescription
outlets for the Impress Softpatch.
o The uncertainty of receiving regulatory clearance for the
Company's BreastCheck, BreastExam and BreastView devices.
o The Company's dependence on others for raw materials and
certain components of its products, including certain materials
available only from single sources.
o The uncertain protection afforded the Company by its
patents and/or other intellectual property rights relating to
the the Impress Softpatch, the INTROL Bladder Neck Support
Prosthesis and other products.
o The uncertainty whether the Company will be able to manufacture,
market and sell its products at prices that permit it to
achieve satisfactory margins in the production and marketing of its
products.
o Risks relating to FDA or other governmental oversight of the
Company's operations, including the possibility that the FDA could
impose costly additional labeling requirements on, or restrict the
marketing of, the Company's products, or suspend operations at one or
more of the Company's facilities.
o The uncertainty of the size of the potential markets based on
such technology and the coordination of products based on such
technology with UroMed's other products.
Other relevant risks are described in the Company's Annual Report on Form
10-K for the year ended December 31, 1997 under the headings
"Forward-Looking Statements and Associated Risks" and "Risk Factors", and
are incorporated herein by reference.
<PAGE>
Part II. OTHER INFORMATION
Item 6. Exhibits
27 Financial Data Schedule
<PAGE>
SIGNATURES
Pursuant to 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.
UroMed Corporation
Date: May 13, 1998 /s/ John G. Simon
-------------- ----------------------------------
John G. Simon, President and
Chief Executive Officer
Date: May 13, 1998 /s/ Paul J. Murphy
-------------- -----------------------------------
Paul J. Murphy, Treasurer and
Chief Financial Officer (Principal
Financial and Accounting Officer)
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION FROM THE BALANCE
SHEET AND THE STATEMENT OF OPERATIONS FILED AS PART OF THE QUARTERLY
REPORT ON FORM 10Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
QUARTERLY REPORT ON FROM 10Q.
</LEGEND>
<CIK> 0000917821
<NAME> UroMed-Corp.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 11,915
<SECURITIES> 47,228
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 302
<CURRENT-ASSETS> 60,517
<PP&E> 9,693
<DEPRECIATION> 3,331
<TOTAL-ASSETS> 70,302
<CURRENT-LIABILITIES> 6,650
<BONDS> 69,000
0
0
<COMMON> 107,024
<OTHER-SE> (112,372)
<TOTAL-LIABILITY-AND-EQUITY> 70,302
<SALES> 61
<TOTAL-REVENUES> 61
<CGS> 1,135
<TOTAL-COSTS> 6,921
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (1,134)
<INCOME-PRETAX> (7,097)
<INCOME-TAX> 0
<INCOME-CONTINUING> (7,097)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (7,097)
<EPS-PRIMARY> (0.27)
<EPS-DILUTED> (0.27)
</TABLE>
