Release Details

Neurocrine Biosciences Reports Financial Results For Fourth Quarter and Year-End 2000

SAN DIEGO, Jan. 30 /PRNewswire/ -- Neurocrine Biosciences, Inc. (Nasdaq: NBIX) today announced its financial results for the fourth quarter ended December 31, 2000. The Company reported a net loss of $6.5 million, or $0.29 per share for the fourth quarter 2000 as compared to a net loss of $3.7 million, or $0.19 per share for the same period 1ast year. For the year ending December 31, 2000, the Company reported a loss of $28.8 million, or $1.30 per share as compared to a net loss of $16.8 million, or $0.88 per share in 1999.

Revenues for the fourth quarter of 2000 were $6.4 million compared with $4.2 million for the same period in 1999. Revenues for the year ended December 31, 2000 were $14.6 million compared with $16.8 million for the year ended December 31, 1999. The decline in annual revenues, resulted primarily from the conclusion of the Novartis collaboration in January 2000 and the sponsored research portion of the Eli Lilly collaboration in October 1999, which were partially offset by $7.1 million in revenues received pursuant to the collaborative agreement with Taisho Pharmaceuticals, signed in July 2000. In addition, the Company received $3.0 million in revenues under its agreement with Janssen during 2000, compared to $2.4 million received during 1999.

Research and development expenses increased to $11.8 million for the fourth quarter of 2000 compared with $7.3 million for the same period last year. For the twelve months ended December 31, 2000, research and development expenses totaled $40.2 million compared to $29.2 million in 1999. The increase in expenses primarily reflects higher costs associated with expanding clinical and pre-clinical testing as the Company continues the development of its drug candidates.

General and administrative expenses increased to $3.0 million for the fourth quarter of 2000 compared with $1.9 million for the same period last year. For the year ended December 31, 2000, general and administrative expenses totaled $10.0 million compared to $7.5 million for the year ended 1999. The increase in annual expenses resulted primarily from business development consulting expense of $976,000 in 2000 and non-cash charges associated with the employee stock purchase program and options granted to consultants of $1.1 million in 2000, compared to $167,000 in 1999.

The Company's balance sheet on December 31, 2000 reflected total assets of $186.0 million, including cash, cash equivalents, marketable securities and current receivables of $171.8 million compared with balances at December 31, 1999 of $109.2 million and $94.5 million, respectively. The increase in cash, cash equivalents, marketable securities and current receivables represents additional funding received from a public offering in December 2000, offset by funding of clinical and pre-clinical development projects throughout the year. Net proceeds received from the offering totaled $ 90.3 million.

Neurocrine Conference Call and Webcast

Neurocrine will hold a conference call and live webcast on Friday, February 2nd at 8:00 AM Pacific Time. Gary Lyons, President and CEO, Paul Hawran, Executive Vice President and CFO, and Bruce Campbell, Senior Vice President Development, will discuss the Company's year-end earnings, its 2001 financial expectations, and clinical programs. To access the call, please go to http://www.videonewswire.com/NEUROCRINE/020201/ approximately 15 minutes prior to the call to register and install any necessary software. In you are unable to participate in the live webcast, the call will be archived on the Company's website at www.neurocrine.com.

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, insomnia, stroke, malignant brain tumors, multiple sclerosis, obesity and diabetes.

Neurocrine Biosciences, Inc. news releases are available through the Company's website via the Internet at http://www.neurocrine.com.

In addition to historical facts, this press release contains forward-looking statements that involve a number of risks and uncertainties. A more complete description of these risks can be found in the Company's Form 10K for the year ended December 31, 2000, as amended, the current form 10Q and its most recent registration statement, as filed with the Securities and Exchange Commission, 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.
                             Statement of Operations
             (unaudited; in thousands except for loss per share data)

                                        Three Months Ended     Year Ended
                                           December 31,       December 31,
                                          2000     1999     2000*      1999
    Revenues:
      Sponsored research and development  $1,938   $2,411    $6,881   $12,171
      Sponsored research and development
       from related party                    --       (10)       --       491
      License and option fees                192       --     2,345        --
      Milestones                           4,000    1,500     4,000     3,000
      Grant income and other revenues        312      298     1,362     1,129
        Total revenues                     6,442    4,199    14,588    16,791

    Operating expenses:
      Research and development            11,823    7,276    40,227    29,169
      General and administrative           3,032    1,889     9,962     7,476
        Total operating expenses          14,855    9,165    50,189    36,645

    Loss from operations                  (8,413)  (4,966)  (35,601)  (19,854)

    Other income and (expenses):
      Interest and other income, net       1,755      811     6,048     2,851
      Other income and expenses, net         121      466     1,047       181

    Loss before taxes                     (6,537)  (3,689)  (28,506)  (16,822)
    Income taxes                            $ --       --      $302        --

    Net loss                             $(6,537) $(3,689) $(28,808) $(16,822)
    Loss per common share:
      Basic and diluted                   $(0.29)  $(0.19)   $(1.30)   $(0.88)

    Shares used in the calculation of
     loss per common share:
      Basic and diluted                   22,789   19,361    22,124    19,072


                                  Balance Sheet
                                  (in thousands)
                                                December 31,      December 31,
                                                    2000              1999
                                                (unaudited)
    Cash, cash equivalents and marketable
     securities                                    $164,670           $91,098
    Other current assets                              7,735             3,715
      Total current assets                          172,405            94,813

    Property and equipment, net                      11,300            11,181
    Other assets                                      2,257             3,228
      Total assets                                 $185,962          $109,222

    Current liabilities                             $17,849            $8,645
    Long-term liabilities                             4,905             4,223
    Stockholders' equity                            163,208            96,354
      Total liabilities and stockholders'
       equity                                      $185,962          $109,222

    * During the fourth quarter of 2000, the Company adopted SEC Staff
      Accounting Bulletin 101 (SAB 101), Revenue Recognition in Financial
      Statements.  SAB 101 provides, among other revenue items, guidance in
      the recognition of nonrefundable up-front fees received in conjunction
      with a research and development arrangement.  The result of the
      adoption of SAB 101 was to reduce recognition of previously reported
      license fee revenues by $2.7 million.  These revenues were deferred and
      will be recognized as income, ratably over the estimated lives of the
      respective agreements.  The adoption of SAB 101 did not require an
      adjustment for revenues recorded prior to December 31, 1999.

SOURCE Neurocrine Biosciences, Inc.
Web site: http: //www.neurocrine.com
Company News On-Call: http: //www.prnewswire.com/comp/604138.html or fax, 800-758-5804, ext. 604138
CONTACT: Claudia Jones, or Paul Hawran, both of Neurocrine Biosciences, 858-658-7600