Neurocrine Biosciences Announces Its Financial Results For The Year Ended 1996 And Selection Of A Drug Development Candidate For Anxiety And Depression
SAN DIEGO, Feb. 3 /PRNewswire/ -- Neurocrine Biosciences, Inc. (Nasdaq: NBIX) announced its financial results for the fourth quarter and year ended December 1996. For the year ended December 31, 1996, the Company reported net income of $5.9 million or $0.35 per share on revenues of $19.2 million, as compared to a net loss of $3.3 million or $0.27 per share on revenues of $6.1 million for the same period last year. Neurocrine reported a net income of $4.5 million or $0.24 per share for the quarter compared to a net loss of $1.6 million or $0.14 per share for the fourth quarter of 1995.
Revenues for the year ended December 31, 1996 totaled $19.2 million, including $7.3 million in sponsored research, $4.0 million in milestones, $5.0 million in license fees and $2.9 million in other revenue. Prior year revenues were $6.1 million, including 2.0 million in license fees, $3.0 million in sponsored research, $750,000 in milestones, and $356,000 in other revenue. Revenues for the fourth quarter were $9.4 million compared to $882,000 for the comparable period last year. The increased revenues were primarily due to increased sponsored research revenues, milestone payments and license fee revenue under the Ciba-Geigy and Eli Lilly and Janssen collaborations.
In a separate statement, Neurocrine announced today that, as part of its research and development collaboration formed in 1995, Janssen Pharmaceutica N.V., a subsidiary of Johnson & Johnson, has selected a lead drug candidate for development for the treatment of anxiety and depression. The candidate is based on Neurocrine's novel technology platform corticotropin releasing factor (CRF). Under the agreement, Neurocrine will receive a milestone payment of $1 million.
"1996 was a year of excellent progress for Neurocrine Biosciences," noted Gary Lyons, president and chief executive officer. "We achieved several corporate milestones, from a scientific, financial and strategic standpoint. In addition to the selection of a CRF drug candidate for depression and anxiety, we have moved forward with other technology platforms. Our lead altered peptide ligand (APL) product, NBI-5788 has completed Phase I clinical trials and is expected to enter Phase II clinical trials for the treatment of multiple sclerosis (MS) in mid-1997. We formed two new strategic partnerships, Ciba-Geigy to develop APL therapeutics for MS and Eli Lilly & Co. to develop CRF-binding protein ligand inhibitors for the treatment of obesity and Alzheimer's disease. Together with the Janssen collaboration these strategic agreements provide Neurocrine with the resources and expertise to advance our research and development programs aggressively through clinical development and commercialization."
Research and development expenses increased to $4.2 million for the fourth quarter compared to $2.1 million for the same period last year. Increased expenses resulted from additional scientific personnel and related support expenditures as the Company increased its research activities. General and administration expenses increased to $1.7 million during the quarter compared to $576,000 for the same period last year. This increase resulted from additional administrative personnel and related expenses to support the increased research effort.
The Company's balance sheet on December 31, 1996, reflected total assets of $78 million, including cash and marketable securities of $69.9 million, compared to total assets of $24.0 million, including cash and marketable securities of $18.7 million. Cash and marketable securities excludes $9.1 million available to the Company for certain of the Company's R & D programs from its subsidiary Neuroscience Pharma, Inc. (NPI). Cash available to the Company including NPI totals $79.0 million.
Neurocrine Biosciences is a leading neuroimmunology company focused on the discovery and development of novel therapeutics to treat diseases and disorders of the central nervous and immune system such as anxiety, depression, Alzheimer's disease, obesity, and multiple sclerosis.
The statements in this press release that relate to continuation of strategic partnerships, the expected date for the entry into clinical trials of the Company's development candidates, and the potential development of commercial products are forward looking statements. Such forward looking statements involve risks and uncertainties, including, without limitation, that development will continue under Neurocrine's strategic partnerships in a timely manner consistent with Neurocrine's objectives, that development candidates will successfully proceed through pre-clinical and early stage clinical trials, that development candidates will prove effective for treatment in humans in later stage clinical trials, the timely receipt of regulatory clearances required for clinical testing, manufacturing and marketing of products, the potential impact of competitive technologies and potential products, and the other risks and uncertainties outlined in "Risk Factors" and elsewhere in the Company's registration statement Form S-1 and the Prospectus dated May 23, 1996 constituting a part thereof. Actual results and the timing of certain events could differ materially from those indicated in the forward looking statements as a result of these and other factors.
NEUROCRINE BIOSCIENCES, INC.
Condensed Statement of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
1996 1995 1996 1995
REVENUES
Sponsored research $2,469 750 $7,344 $3,000
Milestones 1,000 - 4,000 750
License fees 5,000 - 5,000 2,000
Other revenues 889 132 2,872 356
Total revenues 9,358 882 19,216 6,106
OPERATING COSTS AND EXPENSES
Research and development 4,230 2,109 12,569 7,740
General and administration 1,682 576 3,694 2,728
Total operating expenses 5,912 2,685 16,263 10,468 INCOME (LOSS) FROM OPERATIONS 3,446 (1,803) 2,953 (4,362)
Interest income 1,182 207 2,868 1,137
Interest expense (74) (73) (273) (298)
Other income 191 43 574 177
NET INCOME (LOSS) BEFORE
FEDERAL AND STATE TAXES 4,745 (1,626) 6,122 (3,346)
Provision for taxes 248 - 248 -
Net income (loss) $4,497 $(1,626) $5,874 $(3,346)
NET INCOME (LOSS) PER COMMON SHARES $0.24 $(0.14) $0.35 $(0.27)
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING 18,370 12,027 16,581 12,184
Neurocrine Biosciences, Inc.
Condensed Balance Sheet
(in thousands)
(unaudited)
December 31, December 31,
1996 1995
Cash, cash equivalents and marketable securities $69,920 $18,696 Other current assets, primarily accounts receivable 2,171 1,235
Total current assets 72,091 19,931
Property, plant and equipment, net 3,546 2,773
Other assets 2,320 1,308
Total assets $77,957 $24,012
Current liabilities $4,068 $2,941
Long term debt 1,122 1,846
Shareholders equity 72,767 19,225
Total liabilities and shareholders equity $77,957 24,012
SOURCE Neurocrine Biosciences, Inc.
CONTACT: Elizabeth Foster or Paul Hawran, both of Neurocrine Biosciences, 619-658-7600