CryoLife Inc. to move forward on BioFoam product
Biomaterials, medical device and tissue processing company CryoLife, Inc. (NYSE: CRY) CryoLife said today on a conference call that it is scheduled to begin animal testing in the third quarter on its product BioFoam, which is a protein hydrogel foam for rapidly filling and sealing open wounds.
Encouraged by positive preliminary test results company officials said that spending associated with its BioFoam product should increase in the third quarter significantly. Preliminary tests were conducted recently to assess if the product worked on lactated organs, and results were positive, the company said.
CryoLife also said it received $2 million from the U.S. government toward its BioFoam product and that the U.S. military is keenly interested in the product and its results. The company said it gives the military updates periodically; however, it still awaits FDA approval.
Earlier today, the Atlanta, Ga.-based company reported net income for the second quarter ended June 30 of $1.3 million, or $0.05 per basic and fully diluted common share, compared with net income of $0.22 million, or $0.00 per basic and fully diluted common share, in the second quarter of 2006. Two analysts polled by Thomson Financial had anticipated earnings of $0.04 per share.
Revenues increased 11% to $23 million, compared with $20.8 million in the second quarter last year. Two analysts polled by Thomson Financial were expecting revenues of $22.97 million.
On the call, company executives said that a $866,000 charge for the change in the valuation of a derivative related to the company's preferred stock would not impact future earnings.
Going forward, CryoLife’s management said that the company’s infrastructure in conjunction with relatively flat SG&A expenses seen since 2004 puts CryoLife in a good position to drive profitability.
Shares of CryoLife climbed 3.56%, or $0.33, to $9.59 in mid-day trading on Tuesday.
