Med-Design Reports Loss of $4.2 Million in 1999

Med-Design Corp. in Ventura, which designs safety needles for medical use, reported a net loss of $4.2 million, or 53 cents per share, for 1999, compared with a net profit of $900,000, or 11 cents per share, in 1998.

The company did not recognize any licensing revenue during 1999, compared with the $4.5 million it recognized in 1998.

Despite the loss, company officials said there were major accomplishments during the year, including the signing of option agreements to license 15 additional products. The new licensing agreements bring the number of products currently under agreement with Becton Dickinson to more than 90% of Med-Design’s product portfolio.

Last year also saw significant government action on safety needles, including a federal OSHA compliance directive mandating safety-needle implementation, and an alert from the Centers for Disease Control and the National Institutes for Occupational Safety and Health regarding the prevention of needle-stick injuries in health-care settings.

James Donegan, Med-Design chairman and chief executive, said 1999 was “a watershed year” for the company, “a year in which our performance exceeded both our expectations and the promises made to our shareholders at the beginning of the year.”

“Working closely with Becton Dickinson, the world’s largest manufacturer of needle-based products and the leader in safety-engineered needle devices, we have helped to position a number of products for market introduction in 2000 and early 2001,” Donegan said.