Dyax Corp. Announces First Quarter 2002 Financial Results
CAMBRIDGE, Mass.--(BW HealthWire)--April 25, 2002--Dyax Corp. (Nasdaq: DYAX - news) today announced financial results for the first quarter ended March 31, 2002.
For the quarter ended March 31, 2002, the Company reported a net loss of $7,064,000 or ($0.36) per share compared to a net loss of $3,426,000 or ($0.18) per share in the comparable quarter of 2001. In the first quarter of 2002, the Company reported revenues of $8,886,000, compared to $7,068,000 for the same period in 2001. This 26% increase in revenues for the quarter was due to increases in revenues from Biotage equipment product sales as well as increases in product development and license fee revenues. Dyax ended the first quarter of 2002 with $48,640,000 in cash, cash equivalents, and restricted cash.
Research and development expenses for the first quarter of 2002 increased 84% to $7,590,000 from $4,133,000 in the first quarter of 2001. This increase was due primarily to: increased costs incurred on the Company's two compounds in Phase II clinical trials, costs incurred with respect to projected clinical trials of DX-88 for the Coronary Artery Bypass Graft (CABG) indication, costs incurred in connection with our activities related to the acquisition of targets to feed our discovery and preclinical pipeline, and costs related to increasing our product development capability.
Commenting on Dyax's results, Henry E. Blair, Chairman and CEO said, ``We continue to make progress on the two product candidates that we have in Phase II trials, DX-890 for cystic fibrosis and DX-88 for hereditary angioedema. We are further encouraged that these products have promising additional indications and we are moving to expand the clinical development program for these compounds.'' Mr. Blair also noted, ``Other accomplishments in the first quarter of 2002 included the licensing of a new target for anti-inflammatory drugs from the Center for Blood Research and the signing of several new licensees, notably Amersham Biosciences, a market leader in the separations field. In addition, we have granted over 60 licenses to our phage display patents.''
Commenting on the quarter and the rest of 2002, Stephen Galliker, Chief Financial Officer of Dyax Corp. said, ``Our plan for the remainder of 2002 is to continue to build each of our existing businesses. As we previously indicated, we expect to increase total revenues by 18-22%.'' Mr. Galliker added that, ``A review of current business opportunities and spending plans indicates that Dyax will invest approximately $13 million to $18 million of our cash in growing our company during the balance of the year. When added to the Company's net cash consumption of $6.8 million in the recently completed quarter, we would expect net cash consumption to be $20 million to $25 million for 2002.''
Dyax Corp. also announced that it has filed a Form S-3 shelf registration statement with the Securities and Exchange Commission for the issue and sale of up to 5,000,000 shares of its common stock. Subject to being declared effective by the SEC, this registration will provide the company with flexibility to sell common stock in one or more offerings at its discretion. In commenting on the filing, Mr. Galliker stated ``As a shelf registration, this filing was not made in anticipation of a specific transaction.''
Conference Call
The Company will host a conference call and question and answer session at 10:00 am Eastern time today (April 25, 2002) to discuss these financial results. Dial (800) 269-6183 to access the conference call. International callers should dial (719) 457-2682 and reference access code: 475588. The event web cast will be accessible from the Investor Relations page on Dyax's corporate web site at www.dyax.com, and will be archived at this site following the call. A replay of the conference call will be available for one week following the call, and may be accessed by dialing (888) 203-1112 within the U.S., or (719) 457-0820 for international callers. The replay access code is 475588.
Dyax Corp. is a biopharmaceutical company focused on the discovery, development and commercialization of therapeutic products. The company uses its patented phage display technology to identify a broad range of protein, peptide, and antibody compounds with potential to treat a variety of inflammatory diseases and cancers. Dyax has two protein product candidates, each for a different inflammatory disease, in early stage clinical trials and is about to begin clinical trials for one of these therapeutic candidates in another indication. Dyax leverages its technology broadly through licenses and collaborations in therapeutics and in non-core areas of affinity separations, diagnostics and imaging, and research reagents. Through its subsidiary, Biotage, Inc., Dyax develops, manufactures and sells chromatography separations systems and products worldwide for drug discovery and purification. For additional information, visit www.dyax.com.
This press release contains forward-looking statements regarding Dyax Corp., including statements regarding its revenues, results of operations, financial position, research and development expenditures and programs, clinical trials and collaborations. Statements that are not historical facts are based on Dyax's current expectations, beliefs, assumptions, estimates, forecasts and projections for Dyax and the industry and markets in which Dyax competes. The statements contained in this release are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed in such forward-looking statements. Important factors which may affect future revenues, operating results, financial position, research and development programs, clinical trials and collaborations include Dyax's dependence on the expertise, effort, priorities and contractual obligations of its collaborators in the development, clinical trials, manufacture, marketing, sales and distribution of biopharmaceuticals developed by Dyax or its collaborators; the risk that biopharmaceuticals developed by Dyax or its collaborators may not show therapeutic effect or an acceptable safety profile in clinical trials or could take a significantly longer time to gain regulatory approval than Dyax expects or may never gain approval; Dyax's ability to obtain and maintain intellectual property protection for its products and technologies; the development of technologies or products superior to its technologies or products; and other risk factors described or referred to in Dyax's most recent Annual Report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission. Dyax cautions investors not to place undue reliance on the forward-looking statements contained in this release. These statements speak only as of the date of this release, and Dyax undertakes no obligation to update or revise these statements, except as may be required by law.
Dyax and the Dyax logo are the registered trademarks of Dyax Corp. Biotage is a trademark of Biotage, Inc., a Dyax subsidiary.
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SELECTED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
2002 2001
Revenues:
Product revenues $ 4,982,000 $ 3,846,000
Product development and license
fee revenues 3,904,000 3,222,000
Total revenues 8,886,000 7,068,000
Operating expenses:
Cost of products sold 2,172,000 1,768,000
Research and development:
Other research and development 7,467,000 3,962,000
Non-cash compensation 123,000 171,000
Selling, general and administrative:
Other selling, general and administrative 5,995,000 5,250,000
Non-cash compensation expense 156,000 209,000
Total operating expenses 15,913,000 11,360,000
Loss from operations (7,027,000) (4,292,000)
Other (expense) income, net (37,000) 866,000
Net loss $(7,064,000) $(3,426,000)
Basic and diluted net loss per share $ (0.36) $ (0.18)
Weighted average number of shares used in
computing basic and diluted net
loss per share 19,560,357 19,099,185
SELECTED CONSOLIDATED BALANCE SHEET INFORMATION
(Unaudited)
March 31, December 31,
2002 2001
Cash, cash equivalents and restricted cash $48,640,000 $55,399,000
Working capital 35,115,000 44,010,000
Total assets 77,132,000 81,441,000
Stockholders' equity 48,956,000 55,464,000
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