Neurocrine Biosciences Reports Second Quarter 1999 Results and Announces Milestone Payment From Wyeth-Ayerst
SAN DIEGO, Aug. 3 /PRNewswire/ -- Neurocrine Biosciences, Inc. (Nasdaq: NBIX) today announced its financial results for the second quarter ended June 30, 1999. The Company reported a net loss of $4.6 million or $0.24 per share for the three months ended June 30, 1999 compared with $8.0 million or $0.45 per share for the respective period in 1998. The Company reported a net loss of $8.7 million or $0.46 per share for the six months ended June 30, 1999, as compared to a net loss of $9.2 million or $0.51 per share for the same period last year.
Second quarter 1999 revenues were $3.8 million compared to $2.3 million in 1998. Revenues for the six months ended June 30, 1999 were $7.4 million compared to $6.4 million for the respective period in 1998.
The increase in revenues primarily resulted from sponsored research payments for the collaboration with Wyeth-Ayerst, the pharmaceutical division of American Home Products Corporation, which was established earlier this year to develop new drugs for neurodegenerative diseases and psychiatric disorders. The collaboration targets excitatory amino acid transporters (EAATs) which are part of the family of neurotransmitter transporters and play a key role in regulating the actions of neurotransmitters and brain function. During the second quarter the Company received a $750,000 milestone payment for a fundamental discovery in EAATs neurotransmitter transporter biology under this collaboration.
Research and development expenses increased to $7.2 million and $13.6 million for the three and six months ended June 30, 1999, respectively, compared to $4.4 million and $9.1 million for the same periods last year. Increased expenses reflect higher costs associated with increased development personnel and related expenditures as the Company advances its drug candidates through clinical testing.
General and administration expenses increased to $2.0 million and $3.7 million for the three and six months ended June 30, 1999, respectively, compared to $1.3 million and $2.9 million for the same periods last year. Increased expenses resulted from additional administrative personnel, business development and professional services including patent and legal services to support the Company's expanded clinical development efforts.
The Company's balance sheet on June 30, 1999 reflected total assets of $70.6 million, including cash, cash equivalents, marketable securities and accounts receivable of $55.8 million, compared to $80.5 million and $64.1 million, respectively, at December 31, 1998.
"Our financial condition remains strong and our business model is in place to support our diversified product development strategy. We are pleased with the second quarter 1999 results and expect to continue our trend of strong financial management and a tightly managed burn rate into 2000 and beyond," commented Paul W. Hawran, Senior Vice President and Chief Financial Officer of Neurocrine Biosciences.
"During the second quarter we announced that Neurocrine has reacquired the rights to MSP771 from Novartis Pharma A.G. While we are disappointed with the premature end of the Novartis collaboration, Novartis will fulfill their obligation to fund development costs related to the existing Phase II clinical program through January 2000. If the current analysis of data from this program is positive, we plan to move quickly to secure strategic partners and alternative funding sources," added Hawran.
Neurocrine Biosciences is a leading neuroscience company focused on the discovery and development of novel therapeutics for neuropsychiatric, neuroinflammatory and neurodegenerative diseases and disorders. The Company's neuroscience, endocrine and immunology disciplines provide a unique biological understanding of the molecular interaction between central nervous, immune and endocrine systems for the development of therapeutic interventions for anxiety, depression, Alzheimer's disease, insomnia, stroke, malignant brain tumors, multiple sclerosis, obesity and diabetes.
Neurocrine Biosciences, Inc. news releases are available free of charge though PR Newswire's Company News On-Call fax service. For a menu of Neurocrine's previous releases, or to receive a specific release via fax call: (800) 758-5804, ext. 604138, or use the Internet via http://www.prnewswire.com.
In addition to historical facts, this press release contains forward looking statements that involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially from those indicated in the forward looking statements are risks and uncertainties associated with Neurocrine's research and development programs and business and finances including, but not limited to, risks and uncertainties associated with, or arising out of, drug discovery, pre-clinical and clinical development of products including risk that research may not generate development candidates, development candidates will not successfully proceed through early clinical trials or that in later stage clinical trials will not show that they are effective in treating humans; determinations by regulatory and governmental authorities; changes in relationships with strategic partners and dependence upon strategic partners for performance of clinical and commercialization activities under collaborative agreements including potential for any collaboration agreement to be terminated without any product success; uncertainties relating to patent protection and intellectual property rights of third parties; impact of competitive products and technological changes; availability of capital and cost of capital; and other material risks. A more complete description of these risks can be found in the Company's Form 10K for the year ended December 31, 1998 and the current form 10Q each of which should be read before making any investment in Neurocrine common stock. Neurocrine undertakes no obligation to update the statements contained in this press release after the date hereof.
NEUROCRINE BIOSCIENCES, INC.
Consolidated Statement of Operations
(unaudited; in thousands except for loss per share data)
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Revenues:
Sponsored research and
development $2,762 $1,976 $5,551 $4,637
Sponsored research and
development from
related party -- -- 494 --
Milestones 750 -- 750 1,250
Grant income and
other revenues 298 315 566 540
Total revenues 3,810 2,291 7,361 6,427
Operating expenses:
Research and development 7,182 4,423 13,562 9,064
General and administrative 2,008 1,339 3,705 2,867
Write-off of acquired
in-process research and
development and licenses -- 4,910 -- 4,910
Total operating expenses 9,190 10,672 17,267 16,841
Loss from operations (5,380) (8,381) (9,906) (10,414)
Other income and (expenses):
Interest and other
income, net 884 1,448 2,070 2,696
Equity in NPI loss
and other (141) (1,043) (890) (1,443)
Net loss $(4,637) $(7,976) $(8,726) $(9,161)
Loss per common share:
Basic & Diluted $(0.24) $(0.45) $(0.46) $(0.51)
Shares used in the
calculation of loss
per common share:
Basic & Diluted 18,961 17,874 18,958 17,790
Consolidated Balance Sheet
(in thousands)
June 30, December 31,
1999 1998
(unaudited)
Cash, cash equivalents and
marketable securities $53,098 $62,670
Other current assets 3,421 2,963
Total current assets 56,519 65,633
Property and equipment, net 11,100 10,899
Other assets 2,964 3,997
Total assets $70,583 $80,529
Current liabilities $3,694 $5,569
Long-term liabilities 3,555 3,002
Stockholders' equity 63,334 71,958
Total liabilities and
stockholders' equity $70,583 $80,529
* Prior period information includes reclassifications to conform to
current financial presentations.
SOURCE Neurocrine Biosciences, Inc.
Web site: http: //www.neurocrine.com
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CONTACT: Elizabeth Foster or Paul Hawran of Neurocrine Biosciences, 619-658-7600