Fourth quarter 2009 sales of $24.4 million reflect 17% growth over fourth quarter 2008; full year 2009 sales of $92.9 million increased 21% over 2008.
MALVERN, Pa., Mar 10, 2010 (BUSINESS WIRE) — –Fourth quarter 2009 operating income of $385,000 compared to an operating loss of $670,000 in fourth quarter 2008; full year 2009 operating loss was $1.1 million compared to an operating loss of $9.2 million in 2008
–Fourth quarter 2009 net loss of $291,000, or less than $0.01 per common share, compared to a net loss of $1.2 million, or $0.02 per common share, in fourth quarter 2008; full year 2009 net loss was $3.9 million, or $0.05 per common share, compared to a net loss of $10.8 million, or $0.14 per common share, in 2008
–2010 financial guidance: total sales of $106 million to $112 million and net income between breakeven and $2 million
Orthovita, Inc. /quotes/comstock/15*!vita/quotes/nls/vita (VITA 3.75, +0.10, +2.74%) , a specialty spine and orthopedic company with a portfolio of orthobiologic and biosurgery products, reported financial results for the quarter and year ended December 31, 2009. Product sales for the quarter ended December 31, 2009 increased 17% to $24.4 million, compared to $20.8 million for the same period in 2008. Product sales for the year ended December 31, 2009 increased 21% to $92.9 million, compared to $76.9 million for 2008. The 2009 fourth quarter and full year results included U.S. sales of $700,000 and $1.1 million, respectively, of Cortoss(TM), the Company’s novel synthetic biomaterial that was cleared by the FDA in June 2009 for the treatment of vertebral compression fractures, and Aliquot(TM), the Company’s Cortoss delivery device.
Gross profit for the quarters ended December 31, 2009 and 2008 was $16.3 million and $13.8 million, respectively. Gross profit for 2009 was $62.9 million compared to $51.0 million in 2008. As a percentage of sales, gross profit was 67% and 68% for the quarter and year ended December 31, 2009, respectively, compared to 66% for the quarter and year ended December 31, 2008. These increases in gross profit margins during the 2009 periods were primarily due to a more favorable product mix resulting from strong growth in our Vitoss(TM) Bioactive Foam products.
During the fourth quarter of 2009, Orthovita recorded operating income of $385,000 compared to an operating loss of $670,000 in the fourth quarter of 2008. The operating loss for the years ended December 31, 2009 and 2008 was $1.1 million and $9.2 million, respectively. The net loss for the fourth quarter of 2009 declined to $291,000, or less than $0.01 per common share, compared to a net loss of $1.2 million, or $0.02 per common share, in the fourth quarter of 2008. The net loss for the year ended December 31, 2009 was $3.9 million, or $0.05 per common share, compared to a net loss of $10.8 million, or $0.14 per common share, for the year ended December 31, 2008.
“Our financial results for the fourth quarter of 2009 demonstrated our ability to continue to drive growth in our Vitoss and biosurgery product platforms while launching a significant new product, Cortoss, to both current and prospective customers,” said Antony Koblish, President and Chief Executive Officer of Orthovita. “During the fourth quarter of 2009, sales of our Vitoss and biosurgery products increased 13% and 14%, respectively, over the fourth quarter of 2008.”
Mr. Koblish continued, “At the same time, our sales force made progress in launching Cortoss to our existing spine customers, primarily orthopedic and neurological surgeons, and to a new customer group of interventional radiologists and neuro-interventional radiologists. While the challenging economic environment has lengthened the process for getting new technologies approved and used regularly in hospitals, we have seen our number of active Cortoss customer accounts increase steadily. At the end of February 2010, we had 151 active Cortoss accounts, and 76% of our customers have placed reorders. Most importantly, physicians are reporting that their patients are experiencing excellent clinical outcomes from the use of Cortoss to treat vertebral compression fractures, with no reported adverse events.”
Nancy Broadbent, Chief Financial Officer of Orthovita, commented, “Our 2009 sales and net loss were in line with our 2009 financial guidance. For 2010, we estimate that sales will be in the range of $106 million to $112 million, and that our bottom line will range from breakeven to $2 million of net income.”
“Our primary financial objective in 2010 is to drive product sales growth, a key element in building shareholder value,” Ms. Broadbent continued. “Following the U.S. approval of Cortoss in June 2009, we initiated an expansion of our sales force from 90 sales representatives to 103 at December 31, 2009. Since it usually takes new sales representatives up to nine months to generate meaningful sales levels, we do not expect to see the sales impact from the new sales representatives to occur until the second half of 2010. We anticipate that the quarterly progression of sales and net income or loss from late 2009 through 2010 could be uneven, as we manage the integration of the new sales representatives into our sales force while continuing to launch Cortoss and drive sales growth in our Vitoss and biosurgery product lines. Future expansion of our sales force in 2010 and beyond will be on a highly targeted, selective basis, largely by augmenting existing, under-served territories. We believe that our current cash and short-term investments are sufficient to support this strategy, and we do not anticipate a need to raise additional capital to fund our operations for the foreseeable future.”
Cash, cash equivalents and short-term investments were $23.1 million at December 31, 2009, compared to $32.3 million at December 31, 2008. For the years ended December 31, 2009 and 2008, the net cash used in operating activities was $4.8 million and $14.2 million, respectively. Additionally, for the years ended December 31, 2009 and 2008, the Company spent $4.9 million and $5.9 million, respectively, on capital expenditures primarily related to the expansion of its manufacturing facilities; such costs are reported as a use of cash for investing activities.
