CIMA Labs Inc. Reports Financial Results for 1994 and Fourth Quarter

Strategic Insights -

CIMA Labs Inc. announced financial results for 1994, with revenue of $2.6 million, expenses of $9.3 million, and a net loss of $6.2 million. Despite the net loss, the company achieved significant milestones, including agreements with multinational pharmaceutical companies such as Pfizer Inc., Sterling Winthrop, Inc., and Glaxo Group Limited for the OraSolv(R) technology. The company completed its initial public offering in August 1994, raising net proceeds of approximately $16.4 million. As of December 31, 1994, CIMA had cash, cash equivalents, and short-term investments of $13.7 million.

Key Takeaways:

  • CIMA Labs Inc. reported revenue of $2.6 million, expenses of $9.3 million, and a net loss of $6.2 million for the year 1994.
  • The company achieved significant milestones, including agreements with Pfizer Inc., Sterling Winthrop, Inc., and Glaxo Group Limited for the OraSolv(R) technology.
  • CIMA completed its initial public offering in August 1994, raising net proceeds of approximately $16.3 million.
  • As of December 31, 1994, CIMA had cash, cash equivalents, and short-term investments of $13.7 million.
  • The company's manufacturing facility, completed at the end of December 1994, has a capacity of 400 million tablets per year and is designed to accommodate up to six production lines.
  • CIMA has a license and supply agreement with Pfizer Inc. for multiple OTC pharmaceutical products using OraSolv(R), a license and development agreement with Glaxo Group Limited for an OraSolv(R) version of Zantac(R), and a development and license option agreement with Sterling Winthrop, Inc./SmithKline Beecham, plc/Bayer A.G. for analgesic and cold/cough/flu, allergy and sinus OraSolv(R) products.
  • The funds raised during the initial public offering were applied toward the completion of CIMA's manufacturing facility, the purchase of manufacturing and packaging equipment, and research and development projects.

Statistics:

  • Revenue for the year 1994: $2.6 million
  • Expenses for the year 1994: $9.3 million
  • Net loss for the year 1994: $6.2 million
  • Net loss per share for the year 1994: $0.95
  • Revenue for the fourth quarter of 1994: $609,000
  • Expenses for the fourth quarter of 1994: $2.83 million
  • Net loss for the fourth quarter of 1994: $2.0 million
  • Net loss per share for the fourth quarter of 1994: $0.27
  • Cash, cash equivalents, and short-term investments as of December 31, 1994: $13.7 million
  • Number of shares of common stock sold in the initial public offering: 2,050,000
  • Price per share of common stock sold in the initial public offering: $9.00
  • Net proceeds from the initial public offering: $16.3 million

Sources:

  • CIMA Labs Inc.
  • Business Wire
  • Nasdaq
  • Pfizer Inc.
  • Sterling Winthrop, Inc.
  • Glaxo Group Limited
  • Dewe Rogerson Inc.