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BioSpecifics First Quarter: Revenues $902,000, Net Loss $938,000; Progress on Upgraded Production Facilities; Update on New Applications

Jun 18, 2002

BioSpecifics Technologies Corp. (NASDAQ: BSTC) reported revenues for the first fiscal quarter ended April 30, 2002 of $902,000 as compared to $2,800,000 in the prior year's first quarter. For the quarter, the Company had net loss of $938,000 or ($.21) per share. In the prior year's first quarter, the Company had net income of $175,000 or $.04 per share. During the quarter ended April 30, 2002, BioSpecifics made no deliveries of its product, Collagenase ABC enzyme to its major customer, Abbott Laboratories ("Abbott"), versus the delivery of a large backorder during the prior year's first quarter. BioSpecifics expects to make one delivery of its enzyme to Abbott during the fiscal second quarter ended July 31, 2002. That delivery will deplete the stockpile of enzyme inventory available for Abbott. Inventory is being produced at the upgraded production facility in Curacao, which must be inspected and approved by the FDA prior to being used by Abbott. BioSpecifics anticipates that the FDA will inspect the Curacao facility by the end of July 2002. BioSpecifics continues to earn royalties on the distribution of Collagenase Santyl Ointment by Smith & Nephew, Inc. ("S&N"). Inventories of Collagenase Santyl Ointment produced or to be produced by Abbott from enzyme inventory that was stockpiled are expected to generate royalties for BioSpecifics at least through the fiscal year ended January 31, 2003. Enzyme is also sold to BioSpecifics' international customers. Thomas L. Wegman, Executive Vice President stated: "We have made good progress with the renovation and approval process for our facilities, which will resume normal production upon FDA approval. At the same time, we continue to work with Smith & Nephew (NYSE: SNN) on developing the marketing of Collagenase Santyl® Ointment."

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                        Update on New Applications

Mr. Wegman continued, "The clinical investigations with collagenase for treatment of Dupuytren's and Peyronie's disease continue to show excellent progress. FDA has directly funded the Phase 3 trials for the use of collagenase for Dupuytren's disease ( ). Currently, the clinical protocol for the Phase 3 trials is being worked out with FDA and we anticipate that the pivotal trials will begin this fall. Also, a May 2002 article in Archives of Ophthalmology titled "Non-Surgical Sclerostomy Demonstrates Potential as New Treatment for Glaucoma" describes how our purified collagenase reduced intraocular pressure and relieved symptoms in patients with primary open-angle glaucoma." ( )

Founded in 1990, BioSpecifics Technologies Corp. is a biopharmaceutical company with a focus on wound healing and tissue remodeling. It has pioneered the application of Collagenase for several disease conditions, notably dermal ulcers, pressure sores (bedsores), and second and third degree burns. BioSpecifics produces Collagenase ABC, the essential ingredient in the prescription drug Collagenase Santyl® Ointment sold in the United States, and under other trademarks abroad. Phase 2 clinical trials are completed in the U.S. for the use of injectable collagenase in treating Dupuytren's disease, which restricts the extension of one or more fingers. Clinical trials investigating the use of injectable collagenase in the treatment of lipoma reduction have been initiated.

Clinical and laboratory investigations further profiling the potential role of collagenase and its pharmacological activity for wound healing are being pursued.

   Santyl® is a registered of Abbott Laboratories.

   Visit BioSpecifics' websites at
           its Dupuytren's Disease patient discussion forum at
          and its Peyronie's Disease patient discussion forum at

Forward-looking statements in this release involve a number of risks and uncertainties including, but not limited to, government regulation, the ability of the Company to complete the renovation at its manufacturing facilities and adequately address concerns of the FDA, product demand, pricing, market acceptance, changing economic conditions, risks in product and technology development, the effect of the Company's accounting policies, and other risk factors detailed in the Company's filings with the Securities and Exchange Commission.

             BioSpecifics Technologies Corp. and Subsidiaries
                          Results of Operations

                                                      Three Months ended
                                                            April 30,
                                                      2002           2001

  Revenues                                        $902,000     $2,792,000
  Net income (loss)                              $(938,000)      $175,000

  Basic net income (loss) per share                  ($.21)          $.04
  Diluted net income (loss) per share                ($.21)          $.04

  Weighted average common shares outstanding     4,551,000      4,530,000

  Weighted average common and dilutive
   potential common shares outstanding           4,551,000      4,563,000

  Cash and marketable securities                 1,320,000        318,000
  Cost of sales                                    769,000      1,899,488
  General and administrative                       741,000        450,000
  Research and development                         361,000        276,000



SOURCE: BioSpecifics Technologies Corp.

CONTACT: Albert Horcher of BioSpecifics Technologies Corp.,
+1-516-593-7000; or Deborah Duke Passik of William Dunk Partners,
+1-919-929-4100, for BioSpecifics Technologies Corp.

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