March 8 /PRNewswire/ -- Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN - news) today announced financial results for its second fiscal quarter and first half year ended January 31, 2001.
In its second quarter ended January 31, 2001, Alexion received revenues amounting to $3.03 million compared to $6.68 million received in the same period ended January 31, 2000. Important revenue elements include clinical trial and clinical manufacturing reimbursements and research and development support payments received under Alexion's collaboration with Procter & Gamble Pharmaceuticals on its C5 complement inhibitor, pexelizumab (formerly known as 5G1.1-SC). The lower revenues reflect the completion of the Phase IIb trial in cardiopulmonary bypass patients and resultant lower pexelizumab clinical trial and clinical manufacturing reimbursements.
The Company's research and development expenses for the three-month period were $9.40 million, or slightly lower than the $9.84 million for the same period last year, due primarily to lower clinical manufacturing and clinical trial costs associated with pexelizumab. Somewhat offsetting these lower costs were increased clinical trial costs for the Company's other lead C5 complement inhibitor, 5G1.1. Ongoing clinical trials with 5G1.1 include a Phase II study in membranous nephritis, extension studies in rheumatoid arthritis and membranous, and Phase Ib studies in dermatomyositis, psoriasis and pemphigoid. R&D expenses also increased due to the reporting of the consolidated ongoing research costs of Alexion Antibody Technologies, which was formed through the September 2000 acquisition of Prolifaron, Inc. General and administrative expenses were $1.97 million for the quarter compared to $1.15 million for the same period last year mostly as a result of increased rent expense, legal fees related to patents and higher payroll costs from added personnel. Accordingly, total operating expenses increased to $11.37 million for the quarter compared to $10.99 million in the three-month period ended January 31, 2000. The Company posted other income, net for the quarter of $4.59 million compared to $672,000 for the same period last year. The increase was primarily due to greater investment income from larger cash balances resulting primarily from the Company's November 2000 financing (with net proceeds of approximately $209 million). As a result of the above factors, for the quarter, the Company incurred a net loss of $3.76 million or $0.21 per share, before amortization of purchased intangibles charges related to the Prolifaron acquisition versus a net loss of $3.64 million or $0.26 per share for the same three-month period in 2000. Taking into account the non-cash amortization of purchased intangibles charges, the Company's total net loss amounted to $4.63 million or $0.26 per common share for the quarter ended January 31, 2001.
For the six months ended January 31, 2001, Alexion's revenues were $6.28 million compared to $12.97 million for the same period last year. The decrease in revenue is again primarily the result of lower clinical trial and clinical manufacturing reimbursements from P&G for pexelizumab. Research and development expenditures were $20.32 million for the first half of this fiscal year compared to $20.98 million for the six months ended January 31, 2000. Again, lower clinical manufacturing and clinical trial costs associated with pexelizumab were offset by increased clinical trial costs for our other lead C5 complement inhibitor, 5G1.1. General and administrative expenses were $3.35 million for the six months compared to $1.77 million for the same period last year again, mostly as a result of increased rent expense, legal fees related to patents and higher payroll costs from added personnel. Accordingly, without taking into account acquisition related non-cash charges, total operating expenses increased to $23.67 million for the half year compared to $22.75 million in the six month period ended January 31, 2000. The Company posted other income, net for the six months of $5.40 million primarily due to greater investment income from larger cash balances compared to $962,000 for the same period last year. Net loss for the six months increased to $11.99 million or $.72 per share from a net loss of $8.82 million or $.69 per share recorded for the same six month period last year. Related to Alexion's acquisition of Prolifaron, $21 million of the purchase price was accounted for as a one-time, non-cash first quarter charge allocated to in-process research and development projects. In addition, the Company recognized $23.17 million of the purchase price as purchased intangible assets which are amortized over the seven years following purchase. The amortization of these purchased intangible assets resulted in a charge of $1.23 million in the six months ended January 31, 2001. Taking into account these non-cash charges, the Company's total net loss including operating expenses, the in-process research and development charge and amortized intangibles charges, amounted to $34.22 million or $2.05 per common share for the six months ended January 31, 2001.
As of January 31, 2001 Alexion had approximately $370 million in cash, cash equivalents and marketable securities.
``With the completion and announcement of the encouraging results of two major Phase II studies in CABG and rheumatoid arthritis patients for our two lead complement inhibitors, Alexion achieved two very significant milestones in the second quarter,'' said David Keiser, Executive VP and Chief Operating Officer of Alexion. ``The results to date of these studies have given us significantly increased confidence to make the necessary investments in Phase III clinical development, manufacturing and pre-commercialization activities for these two drug candidates. Pending full analysis of the studies and our expected end of Phase II meetings with the FDA, the Company's strong cash position should allow us to undertake these plans in a high quality and expeditious fashion.'' |
