Bioject receives going-concern opinion

By Lisa Kerner

Erie, Pa., April 7 - Bioject Medical Technologies Inc. said its independent registered public accounting firm's report for the fiscal year ended Dec. 31 includes an explanatory paragraph regarding Bioject's ability to continue as a going concern.

The company has suffered recurring losses, has had significant recurring negative cash flows from operations and has an accumulated deficit that raises substantial doubt about its ability to continue as a going concern, according to a company news release.

Bioject previously announced it is restructuring its corporate organization and closing its New Jersey administrative office. The company is also reducing operations and research and development costs at its Portland, Ore., facility.

Bioject said that going forward it anticipates annual cost savings in excess of $1.2 million in 2006 and $1.4 million in 2007. With the company's current cash, cash equivalents, short-term marketable securities and additional committed funds, Bioject believes it will be able to fund its operations through at least May 31, when it expects $3 million in equity financing.

There can be no assurances that Bioject will successfully close the series E convertible preferred stock financing. If necessary, Bioject will be forced to explore alternative plans, which could include a further curtailment of operations and alternative financing sources, the company said.

Bioject, based in Portland, Ore., develops and manufactures needle-free drug delivery systems.

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