-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FNZCHf9W3gL/sdW/EVIzsEsUpn5GHVlqwo1VhG5ZMX9KMAOV7bMwpKLJnRmOzqDs kCYafsJG5NK1Ztf02cpT6w== 0000950135-98-003256.txt : 19980515 0000950135-98-003256.hdr.sgml : 19980515 ACCESSION NUMBER: 0000950135-98-003256 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980514 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: CREATIVE BIOMOLECULES INC CENTRAL INDEX KEY: 0000857121 STANDARD INDUSTRIAL CLASSIFICATION: BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836] IRS NUMBER: 942786743 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-19910 FILM NUMBER: 98619621 BUSINESS ADDRESS: STREET 1: 45 S STREET CITY: HOPKINTON STATE: MA ZIP: 01748 BUSINESS PHONE: (508) 782-1100 MAIL ADDRESS: STREET 1: 45 SOUTH ST CITY: HOPKINTON STATE: MA ZIP: 01748 10-Q 1 CREATIVE BIOMOLECULES, INC. 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1998 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 0-19910 CREATIVE BIOMOLECULES, INC. (Exact name of registrant as specified in its charter) DELAWARE 94-2786743 (State or other jurisdiction (I.R.S. Employer Identification No.) of incorporation or organization) 45 SOUTH STREET, HOPKINTON, MA 01748 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (508) 782-1100 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 APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. As of May 1, 1998, the registrant had 33,499,950 shares of common stock outstanding. 2 TABLE OF CONTENTS PART I. FINANCIAL INFORMATION Item 1. Financial Statements Consolidated Balance Sheets - March 31, 1998 and December 31, 1997 3 Consolidated Statements of Operations for the three months ended March 31, 1998 and 1997 4 Consolidated Statements of Cash Flows for the three months ended March 31, 1998 and 1997 5 Notes to Consolidated Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7 PART II. OTHER INFORMATION Item 1. Legal Proceedings 11 Item 2. Changes in Securities 11 Item 3. Defaults Upon Senior Securities 11 Item 4. Submission of Matters to a Vote of Security Holders 11 Item 5. Other Information 11 Item 6. Exhibits and Reports on Form 8-K 11 SIGNATURES 2 3 CREATIVE BIOMOLECULES, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS
March 31, December 31, 1998 1997 ------------ ------------ (unaudited) ASSETS - ------ CURRENT ASSETS: Cash and cash equivalents $ 2,197,845 $ 2,158,909 Marketable securities 24,024,270 28,438,841 Accounts receivable 5,111,286 4,572,518 Inventory 1,199,658 1,249,330 Prepaid expenses and other 528,890 284,649 ------------ ------------ Total current assets 33,061,949 36,704,247 ------------ ------------ PROPERTY, PLANT AND EQUIPMENT - net 17,134,493 17,245,338 ------------ ------------ OTHER ASSETS: Notes receivable - officer 262,501 273,334 Patents and licensed technology - net 411,288 417,070 Deferred patent application costs - net 4,510,668 4,220,080 Deposits and other 128,809 177,930 ------------ ------------ Total other assets 5,313,266 5,088,414 ------------ ------------ TOTAL $ 55,509,708 $ 59,037,999 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY - ------------------------------------ CURRENT LIABILITIES: Lease obligations - current portion 187,355 124,575 Accounts payable 1,758,748 2,311,710 Accrued liabilities 547,020 575,171 Accrued compensation 1,708,566 1,312,274 Deferred contract revenue 875,000 ------------ ------------ Total current liabilities 5,076,689 4,323,730 ------------ ------------ LEASE OBLIGATIONS 2,315,178 2,004,927 ------------ ------------ STOCKHOLDERS' EQUITY: Preferred stock, $.01 par value, 10,000,000 shares authorized, none issued Common stock, $.01 par value, 50,000,000 shares authorized, 33,493,544 shares and 33,392,582 shares issued and outstanding at March 31, 1998 and December 31, 1997, respectively 334,935 333,926 Additional paid-in capital 140,791,870 140,465,512 Accumulated deficit (93,008,964) (88,090,096) ------------ ------------ Total stockholders' equity 48,117,841 52,709,342 ------------ ------------ TOTAL $ 55,509,708 $ 59,037,999 ============ ============
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 3 4 CREATIVE BIOMOLECULES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended March 31, ------------------------------ 1998 1997 ----------- ----------- (unaudited) REVENUE: Research and development contracts $ 3,002,859 $ 2,751,473 Manufacturing contracts 232,239 Interest and other 415,259 663,225 ----------- ----------- Total revenues 3,418,118 3,646,937 ----------- ----------- COSTS AND EXPENSES: Research and development 6,297,867 5,579,053 Manufacturing contracts 161,038 General and administrative 1,966,609 1,602,916 Interest 72,510 52,472 ----------- ----------- Total costs and expenses 8,336,986 7,395,479 ----------- ----------- NET LOSS $(4,918,868) $(3,748,542) =========== =========== BASIC AND DILUTED LOSS PER SHARE ($.15) ($.11) ===== ===== SHARES FOR BASIC AND DILUTED 33,442,341 32,853,617 =========== =========== SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 4 5 CREATIVE BIOMOLECULES, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March 31, --------------------------------- 1998 1997 ----------- ------------ (unaudited) CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $(4,918,868) $ (3,748,542) ----------- ------------ Adjustments to reconcile net loss to net cash provided by (used for) operating activities: Depreciation and amortization 574,366 490,639 Compensation expense 10,833 Increase (decrease) in cash from: Accounts receivable (538,768) (169,875) Inventory and prepaid expenses (194,569) (287,598) Accounts payable and accrued liabilities (184,821) (1,231,061) Deferred contract revenue 875,000 1,079,765 ----------- ------------ Total adjustments 542,041 (118,130) ----------- ------------ Net cash used for operating activities (4,376,827) (3,866,672) ----------- ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of marketable securities (500,755) (12,552,675) Sales of marketable securities 4,915,326 317,712 Expenditures for property, plant and equipment (198,027) (420,497) Expenditures for patents (333,746) (281,672) Decrease in deposits and other 49,121 99,784 ----------- ------------ Net cash provided by (used for) investing activities 3,931,919 (12,837,348) ----------- ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Net proceeds from sale of equity: Common stock - other 327,367 553,657 Increase in obligations under capital leases 193,524 Repayments of obligations under capital leases (37,047) (12,744) ----------- ------------ Net cash provided by financing activities 483,844 540,913 ----------- ------------ NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 38,936 (16,163,107) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 2,158,909 38,248,988 ----------- ------------ CASH AND CASH EQUIVALENTS, END OF PERIOD $ 2,197,845 $ 22,085,881 =========== ============ SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES: Property and equipment purchased under capital lease obligations $ 216,554 ===========
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 5 6 CREATIVE BIOMOLECULES, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. OPINION OF MANAGEMENT - The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles applicable to interim periods. These statements are condensed and do not include all disclosures as required by generally accepted accounting principles. In the opinion of management, the unaudited financial statements contain all adjustments (all of which were considered normal and recurring) necessary to present fairly the Company's financial position at March 31, 1998 and the results of operations and cash flows for the three months ended March 31, 1998 and 1997. The financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 1997. Interim results are not necessarily indicative of results for a full year and such results are subject to year-end adjustments and independent audit. 2. NEW ACCOUNTING STANDARDS - In January 1998, the Company adopted Statement of Financial Accounting Standards ("SFAS") Number 130 "Reporting Comprehensive Income" ("SFAS 130") and SFAS Number 131 "Disclosures about Segments of an Enterprise and Related Information" ("SFAS 131"). SFAS 130 establishes standards for reporting comprehensive income and its components in the consolidated financial statements. SFAS 131 establishes standards for reporting information on operating segments in interim and annual financial statements. The adoption of SFAS 130 had no effect on the Company's business, results of operations or financial position for the three months ended March 31, 1998. The adoption of SFAS 131 had no effect on the Company's financial statement disclosures for the three months ended March 31, 1998. 6 7 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS GENERAL To date, most of the Company's revenues have been derived from research and development payments and license fees under agreements with collaborative partners. In 1996 and 1995, a significant portion of the Company's revenues also were derived from contract manufacturing. The Company anticipates that over the next several years its revenues will be derived primarily from agreements with collaborative partners. The Company has been unprofitable since its inception and expects to incur additional operating losses over the next several years. The Company's research agreements with collaborative partners have typically provided for the partial or complete funding of research and development for specified projects and royalties payable to the Company in exchange for licenses to market the resulting products. The Company is presently a party to major research collaborations with Stryker Corporation ("Stryker") to develop products for orthopaedic reconstruction and with Biogen, Inc. ("Biogen") to develop products for the treatment of renal disorders. Under the research portion of the collaboration with Stryker, the Company supplies OP-1 products to Stryker for clinical trials and other uses, provides clinical support and performs research work pursuant to work plans established periodically by the two companies. The current work plan established research objectives and funding through April 1998. The two companies currently are negotiating whether and to what extent Stryker will continue to provide financial support for research collaborations. In December 1996, the Company signed a Research Collaboration and License Agreement with Biogen (the "Biogen Research Agreement"). Under the research collaboration, the Company performs research work through December 1999 pursuant to work plans established periodically by the two companies, and supplies OP-1 to Biogen for preclinical and clinical uses. Although the Company is seeking and in the future may seek to enter into collaborative arrangements with respect to certain other projects, there can be no assurance that the Company will be able to obtain such agreements on acceptable terms or that the costs required to complete the projects will not exceed the funding available for such projects from the collaborative partners. The Company's manufacturing contracts provide for technical collaboration and manufacturing for third parties at the Company's manufacturing facility in Lebanon, New Hampshire and at the Company's research facility in Hopkinton, Massachusetts. The Company is presently a party to a manufacturing contract with Biogen (the "Manufacturing Contract") to produce several of Biogen's protein-based therapeutic candidates. The companies agreed that the supply of OP-1 to Biogen pursuant to the Biogen Research Agreement during 1997 satisfied Biogen's 1997 obligation under the Manufacturing Contract. The companies also agreed to extend the Manufacturing Contract for two years through 1999, with Biogen having the option, but not the obligation, to use the manufacturing facility for a mutually agreeable number of months in one of the two years. Although the Company is seeking additional manufacturing contracts for available cell culture and bacterial fermentation capacity, there can be no assurance that the Company will be able to obtain such contracts on acceptable terms. Revenue is earned and recognized based upon work performed, upon the sale or licensing of product rights, upon shipment of product for use in preclinical and clinical testing or upon attainment of benchmarks specified in collaborative agreements. The Company's results of operations vary significantly from year to year and quarter to quarter and depend on, among other factors, the timing of contract manufacturing activities and the timing of payments made by collaborative partners. The timing of the Company's contract revenues may not match the timing of the Company's associated product development expenses. As a result, research and development expenses may exceed contract revenues in any particular period. Furthermore, aggregate research and development contract revenues for any product may not offset all of the Company's development expenses for such product. 7 8 RESULTS OF OPERATIONS THREE MONTHS ENDED MARCH 31, 1998 AND 1997. The Company's total revenues for the three month periods ended March 31, 1998 and 1997 were $3,418,000 and $3,647,000, respectively. Research and development contract revenues increased 9% from $2,751,000 for the three month period ended March 31, 1997 to $3,003,000 for the three month period ended March 31, 1998. The increase in research and development contract revenues primarily is due to fluctuations in research funding from Stryker. The Company anticipates that research and development contract revenues for each of the remaining quarters in 1998 will be less than the three month period ended March 31, 1998 and less than the research and development contract revenues for the comparable periods in 1997 due to decreases in research funding from Stryker (see discussion under "Liquidity and Capital Resources" below). In addition, research and development contract revenues for the year ended December 31, 1997 included revenue from the supply of OP-1 to Biogen pursuant to the Biogen Research Agreement. The Company does not anticipate significant revenues from the supply of OP-1 to Biogen during the year ending December 31, 1998. Manufacturing contract revenues for the three month period ended March 31, 1997 reflect manufacturing for Biogen, under a Service Agreement separate from the Biogen Research Agreement and Manufacturing Contract, conducted at the Company's research facility in Hopkinton, Massachusetts. The Company does not anticipate significant manufacturing contract revenues during the year ending December 31, 1998. Interest revenues decreased 37% from $663,000 for the three month period ended March 31, 1997 to $415,000 for the three month period ended March 31, 1998. The decrease is due to a decrease in the average funds of the Company available for investment. The Company's total costs and expenses, consisting primarily of research and development expenses, increased 13% from $7,395,000 for the three month period ended March 31, 1997 to $8,337,000 for the three month period ended March 31, 1998. Research and development expenses increased 13% from $5,579,000 for the three month period ended March 31, 1997 to $6,298,000 for the three month period ended March 31, 1998. The increase in research and development expenses is due to expanded research and development activities, including work in preparation for the filing of a Pre-Market Approval ("PMA") application by Stryker for the bone graft substitute product, and research into neurological disease therapies and other indications proprietary to the Company. Stryker has initiated regulatory review of the bone graft substitute product following a 122 patient pivotal trial in the treatment of tibial non-union fractures which was presented at the American Academy of Orthopaedic Surgeons in March 1998. The filing will be done on a modular basis under a new regulatory review procedure initiated by the U.S. Food and Drug Administration ("FDA"). The first module has been submitted and Stryker has indicated to the Company that it expects the final module of the PMA application will be submitted by mid-year 1998. The Company anticipates that research and development expenses for each of the remaining quarters in 1998 will continue at amounts higher than the prior year due to expanded research and development activities, including work in preparation for the FDA's regulatory review of Stryker's bone graft substitute product, and research into neurological disease therapies and other indications proprietary to the Company. Cost of manufacturing contracts for the three month period ended March 31, 1997 consists of the costs associated with the manufacturing for Biogen, discussed under manufacturing contract revenues above. General and administrative expenses increased 23% from $1,603,000 for the three month period ended March 31, 1997 to $1,967,000 for the three month period ended March 31, 1998. The increase is due to an increase in executive staff. General and administrative expenses for the three month period ended March 31, 1998 are consistent with general and administrative expenses for the three month period ended December 31, 1997. The Company anticipates that general and administrative expenses for the remaining quarters in 1998 will continue at amounts consistent with the three month period ended March 31, 1998 but at amounts higher than the comparable periods in 1997. 8 9 Interest expense increased 40% from $52,000 for the three month period ended March 31, 1997 to $73,000 for the three month period ended March 31, 1998. The increase is due to an increase in obligations under capital leases. In October 1997, the Company entered into a master lease agreement for the sale and leaseback or lease of up to $2,000,000 of laboratory and office equipment, of which $900,000 is outstanding at March 31, 1998. See discussion under "Liquidity and Capital Resources" below. As a result of the foregoing, the Company incurred a net loss of $4,919,000 for the three month period ended March 31, 1998 compared to a net loss of $3,749,000 for the three month period ended March 31, 1997. LIQUIDITY AND CAPITAL RESOURCES At March 31, 1998, the Company's principal sources of liquidity consisted of cash, cash equivalents and marketable securities of $26,222,000, a $15,000,000 unsecured line of credit from Biogen and $1,100,000 remaining on an equipment lease line, as discussed further below. The Company increased its investment in property, plant and equipment to $31,699,000 at March 31, 1998 from $31,378,000 at December 31, 1997. The Company currently plans to spend up to approximately $7,000,000 in the year ending December 31, 1998 in leasehold improvements, equipment purchases and validation expenses required to obtain FDA approval of the manufacturing facility and to expand the Company's research, development and manufacturing capabilities. In October 1997, the Company entered into a master lease agreement for the sale and leaseback or lease of up to $2,000,000 of laboratory and office equipment. At March 31, 1998, $1,100,000 is available under this lease commitment. The Company's collaborative agreements with Stryker provide for research payments to the Company and royalty payments to the nonseller from sales of any OP-1 products. The Company also has the exclusive right to supply Stryker's worldwide commercial requirements for OP-1 products for use in orthopaedic reconstruction. Under the research portion of the collaboration, the Company supplies OP-1 products to Stryker for clinical trials and other uses and provides clinical support and performs research work pursuant to work plans established periodically by the two companies. The current work plan established research objectives and funding through April 1998. The two companies currently are negotiating whether and to what extent Stryker will continue to provide financial support for research collaborations. In December 1996, the Company signed the Biogen Research Agreement to collaborate on the development of the Company's morphogenic protein, OP-1, for the treatment of renal disorders. Under the agreement, the Company granted to Biogen exclusive worldwide rights to manufacture, market and sell OP-1 for the treatment of renal disease. Biogen paid a $10,000,000 license fee in 1996 and made an $18,000,000 equity investment in common stock at a premium over the then-current market price per share. In addition, the agreement provides for $10,500,000 in research funding over a three year period ending December 31, 1999. Biogen also will pay up to an additional $69,000,000 upon the attainment of certain milestones and make available a $15,000,000 line of credit. The Biogen Research Agreement further provides for the payment of royalties to the Company based on product sales. The Company may draw upon the $15,000,000 line of credit over the next two years to fund the research and development of small molecule products based on OP-1. Advances are limited to $10,000,000 in 1998 and the remaining balance in 1999. In exchange for the line of credit, Biogen received an exclusive option to obtain an exclusive, worldwide license to OP-1 based small molecule products for the treatment of renal disorders. In the event Biogen exercises its option, Biogen will forgive the lesser of $10,000,000 or the principal amount outstanding under the line of credit. The remaining principal, together with all accrued and unpaid interest is due and payable five years from the date of the first advance and may be repaid, at the Company's option, in either cash, common stock or reduction of royalties due the Company from Biogen. In September 1994, the Company signed a three year manufacturing contract with Biogen to produce in the Company's manufacturing facility in Lebanon, New Hampshire several of Biogen's protein-based therapeutic candidates for use in Biogen's clinical trials. The contract covered the period from January 1995 through December 1997. As part of the research collaboration, the two companies agreed to extend the 9 10 Manufacturing Contract for two years through December 31, 1999, with Biogen having the option, but not the obligation, to use the manufacturing facility for a mutually agreeable number of months in one of the two extension years. To enable the Company to meet its obligations under the Manufacturing Contract, Biogen financed the construction of a 7,000 square foot addition to the present facility for cGMP production using bacterial fermentation at an estimated total cost of $2,900,000. The Company agreed to reimburse Biogen for the construction costs and leasehold improvements at the end of the contract term, including the extension, at an amount equal to Biogen's construction costs less $300,000 and less all accumulated depreciation. The reimbursement to Biogen is estimated to be no more than $2,100,000. Biogen also agreed to lease equipment to the Company for the operation of such portion of the facility and for cGMP production using bacterial fermentation by the Company at an estimated total cost of $2,400,000, as provided in an equipment lease agreement. The Company has the option to purchase the equipment at the end of the extended lease term for an amount equal to its then fair market value or for such other amount as is negotiated by the two parties. The Company anticipates that its existing capital resources should enable it to maintain its current and planned operations through late 1999. The Company expects to incur substantial additional research and development and other costs, including costs related to preclinical studies and clinical trials. The Company's ability to continue funding its planned operations beyond late 1999 is dependent upon its ability to generate sufficient cash flow from collaborative arrangements and manufacturing contracts, and to obtain additional funds through equity or debt financings, or from other sources of financing, as may be required. The Company is seeking additional collaborative arrangements and also expects to raise funds through one or more financing transactions, as conditions permit. Over the longer term, because of the Company's significant long-term capital requirements, the Company intends to raise funds when conditions are favorable, even if it does not have an immediate need for additional capital at such time. If substantial additional funding is not available, the Company's business will be materially and adversely affected. CAUTIONARY FACTORS WITH RESPECT TO FORWARD-LOOKING STATEMENTS This Form 10-Q contains forward-looking statements which are based on management's current expectations and which involve risks and uncertainties. The Company's actual results may differ significantly from the results discussed in the forward-looking statements. The Company cautions investors that there can be no assurance that the actual results or business conditions will not differ materially from those projected or suggested in such forward-looking statements as a result of various factors, including, but not limited to the following: uncertainty as to timing of and the Company's ability to commercialize its products; the Company's reliance on its lead product candidate and the Company's lack of control over the clinical progress of several applications of its products, which are controlled by the Company's collaborative partners; the Company's reliance on current and prospective collaborative partners to supply funds for research and development and to commercialize its products; intense competition related to the research and development of morphogenic and other proteins for various applications and therapies and the possibility that others may discover or develop, and the Company may not be able to gain rights with respect to, the technology necessary to commercialize its products; the Company's lack of experience in commercial manufacturing and unproven ability to manufacture products on a large scale; the Company's lack of marketing and sales experience and the risk that any products that the Company develops may not be able to be marketed at acceptable prices or receive commercial acceptance in the markets that the Company expects to target; uncertainty as to whether there will exist adequate reimbursement for the Company's products from government, private health insurers and other organizations; and uncertainties as to the extent of future government regulation of the Company's business. As a result, the Company's future development and commercialization efforts involve a high degree of risk. 10 11 PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS Not Applicable. ITEM 2. CHANGES IN SECURITIES. Not Applicable. ITEM 3. DEFAULTS UPON SENIOR SECURITIES. Not Applicable. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Not Applicable. ITEM 5. OTHER INFORMATION. Not Applicable. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. (a) Exhibits Exhibit Number Description ------- ----------- 27 Financial Data Schedule. (b) Reports on Form 8-K. No reports on Form 8-K were filed during the three month period ended March 31, 1998. 11 12 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, in Hopkinton, Massachusetts, on May 14, 1998. CREATIVE BIOMOLECULES, INC. By: /s/ Wayne E. Mayhew III ------------------------------------------ Wayne E. Mayhew III Vice President and Chief Financial Officer By: /s/ Susan B. Blanton ------------------------------------------ Susan B. Blanton Controller 13 EXHIBIT INDEX Exhibit Number Description - ------- ----------- 27 Financial Data Schedule EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 1998 AND FOR THE THREE MONTH PERIOD ENDED MARCH 31, 1998. U.S. DOLLARS 3-MOS DEC-31-1998 JAN-01-1998 MAR-31-1998 1 2,197,845 24,024,270 5,111,286 0 1,199,658 33,061,949 17,134,493 0 55,509,708 5,076,689 2,315,178 0 0 334,935 47,782,906 55,509,708 0 3,418,118 0 0 6,297,867 0 72,510 (4,918,868) 0 (4,918,868) 0 0 0 (4,918,868) (0.15) (0.15)
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