Despite Periowave sales, Ondine financials dip

Ondine Biopharma reported a loss of $1.11 million on revenues of $210,000 for the second quarter of 2010 (end-June 30), compared with a loss of $340,000 on revenues of $270,000 in the same quarter a year ago.

"Highlights of the second quarter included the introduction of new products for the dental market as well as the establishment of a new subsidiary dedicated to photodynamic treatment of chronic sinusitis," stated Carolyn Cross, chairman and CEO of Ondine, in a press release. "The introduction of second-generation laser hardware and photosensitizer solutions to the dental market expands our Periowave platform, increasing the therapeutic window, improving handling and retention characteristics, and enhancing outcomes for both patients and clinicians."

Although Ondine sold its dental healthcare business to Periowave Dental Technologies (PDT) in June 2009, the company said it expects that its continuing involvement in the dental market through its agreements with PDT will be an important source of future cash flow. Ondine earns gross margin on its Periowave product sales to PDT, receives consulting fees from PDT, and receives royalties on PDT's sales of the Periowave.

In July 2010, Ondine completed the development and quality release of a cordless handheld laser, initially for use with the Periowave photodisinfection system. PDT has taken preorders for this product, and Ondine expects to ship the initial commercial order of laser units to PDT this month.

However, based on Ondine's current level of activities and its future plans, the company said it will need to raise additional capital in the near term to continue with its planned operating activities. "Should the company be unable to obtain additional cash in a timely manner, it would have to severely curtail or cease its activities, and there can be no assurances that the company would be able to continue in business," Ondine said.