Here's the press release on ALRI's accelerated spending plans (forcing an early call of ALRI):
Allergan Ligand Retinoid Therapeutics, Inc. Reports Year-End and Fourth Quarter
Results and Announces 1997 Spending Plans
SAN DIEGO, Feb. 3 /PRNewswire/ -- Allergan Ligand Retinoid Therapeutics,
Inc. (ALRT) (Nasdaq: ALRIZ) today reported operating results for the quarter
and year ended December 31, 1996. Net loss was $9.2 million or $2.82 per
share for the quarter and $29.4 million or $9.06 per share for the year ended
December 31, 1996. ALRT began operating in June 1995 on completion of a
public offering of units. Net loss was $5.2 million or $1.61 per share for
the quarter and $17.8 million or $5.47 per share for the period ended
December 31, 1995. Results in 1995 include research and development (R&D)
expenses for the entire year since ALRT reimbursed a prior joint venture for
work performed prior to completion of the public offering in June.
Interest income was $0.6 million for the quarter and $3.6 million for all
of 1996. R&D expenses were $9.6 million for the quarter and $31.7 million for
the twelve months. R&D was performed primarily by Allergan, Inc. and Ligand
Pharmaceuticals Incorporated under contracts with ALRT. General and
administrative expenses were $0.1 million for the quarter and $1.3 million for
the year.
ALRT had cash and cash equivalents and marketable securities of $50.3
million as of December 31, 1996.
ALRT also reported today that its Board of Directors approved a research
and development plan for fiscal 1997 which represents an acceleration in
spending on ALRT's retinoid programs. This accelerated spending is the result
of more rapid discovery and development of a significantly larger library of
viable retinoid compounds than anticipated at the time of formation of ALRT.
The Company anticipates the acceleration in spending could result in the use
of substantially all of the funds available for research and development
remaining in ALRT in late 1997 or early 1998. Ligand and Allergan have
certain purchase options over ALRT Callable Common Stock and the assets of
ALRT which could be triggered by the use of substantially all of ALRT's funds.
There can be no assurance that Ligand or Allergan will exercise these options.
Allergan Ligand Retinoid Therapeutics, Inc. is a company whose primary
purpose is to discover and develop drugs based on retinoids. Retinoids have a
broad range of biological actions, and evidence suggests that retinoids may be
useful in the treatment of skin diseases, metabolic diseases, a variety of
cancers, including kidney cancer, certain forms of leukemia and other cancers,
as well as eye diseases.
This statement contains certain forward looking statements and actual
results could differ materially from those described as a result of factors,
including, but not limited to, the following. There can be no assurance: (a)
that the Company's products will be successfully developed, that regulatory
approvals will be granted, or patient and physician acceptance of these
products will be achieved; (b) that if a need for additional financing occurs,
such financing will be available to the Company when required or that such
financing would be available under favorable terms; (c) or that changes in the
existing collaborative research relationships will not occur, including their
early termination. In addition patent positions of pharmaceutical and
biotechnology firms, including the Company, are uncertain and involve complex
legal and factual questions for which some important legal principles are
largely unresolved.
ALLERGAN LIGAND RETINOID THERAPEUTICS, INC.
(In thousands, except per share amounts)
Statements of operations
Three Months Year Period
Ended Ended Ended
December 31 December 31 December 31
1996 1995 1996 1995
Interest income $613 $1,187 $3,627 $2,864
Research & development 9,649 5,979 31,738 19,496
General and administrative 142 449 1,334 1,152
Total costs and expenses 9,791 6,428 33,072 20,648
Net loss $(9,178) $(5,241) $(29,445) $(17,784)
Net loss per callable
common share $(2.82) $(1.61) $(9.06) $(5.47)
Condensed Balance Sheets
December 31 December 31
1996 1995
Assets
Cash and equivalents $29,897 $79,793
Marketable securities 20,394 ---
Other assets 720 335
Total assets $51,011 $80,128
Liabilities and stockholders' equity
Payable to Allergan, Inc. and Ligand
Pharmaceuticals Incorporated $ 3,889 $2,886
Accounts payable and accrued liabilities 261 766
Total current liabilities 4,150 3,652
Stockholders' equity 46,861 76,476
Total liabilities and
stockholders' equity $51,011 $80,128
SOURCE Allergan Ligand Retinoid Therapeutics, Inc.
CONTACT: Dwight Yoder of Allergan, 714-246-5458 |
