Hyseq Pharmaceuticals Announces Fourth Quarter and Year End 2001 Financial Results and Accomplishments
SUNNYVALE, Calif., Feb. 7 /PRNewswire-FirstCall/ -- Hyseq Pharmaceuticals, Inc. (Nasdaq: HYSQ - news), today announced consolidated financial results for the fourth quarter and year ended December 31, 2001.
For the three months ended December 31, 2001, Hyseq reported a net loss of $11.4 million or ($0.61) per share compared to a net loss of $6.7 million or ($0.49) per share for the comparable quarter of 2000. For the twelve months ended December 31, 2001 Hyseq reported a net loss of $36.5 million or ($2.26) per share, compared to a net loss of $22.3 million or ($1.65) per share for the comparable twelve-month period of 2000.
Revenues for the fourth quarter of 2001 were approximately $7.1 million, compared to revenues of $4.3 million for the same period of 2000. Revenues for the twelve-month period ended December 31, 2001 were $24.6 million compared to revenues of $15.6 million for the same period of 2000. The increase in revenues for 2001, as compared with 2000, was principally due to increased contract revenue recognized under our agreement with BASF Plant Sciences GmbH.
Expenses for the fourth quarter of 2001 were approximately $18.6 million, compared to $10.9 million for the same period of 2000. Expenses for the year ended December 31, 2001 were $60.8 million versus $38.3 million in 2000. The increases represent our continued investment in building a drug discovery and drug development organization, including personnel and facilities.
As of December 31, 2001 Hyseq had approximately $12.3 million in unrestricted cash and cash equivalents. In addition, Hyseq has a $20.0 million line of credit available from George Rathmann, Ph.D., Chairman of Hyseq's Board of Directors.
``The year 2001 was pivotal for Hyseq and included major accomplishments that significantly propelled us toward our goals of developing clinical drug candidates based on our proprietary database of human genes and ultimately delivering products to the market,'' said Ted W. Love, M.D., President and Chief Executive Officer of Hyseq Pharmaceuticals. ``While still early, we are pleased with the quality and quantity of early research programs which show promise of delivering clinical candidates. This progress in part is a direct result of our efforts to bring in experienced senior scientists, skilled in functional genomics, drug discovery and drug development.''
Year 2001 Company Highlights:
-- Recruited an experienced and accomplished senior management team,
including Ted W. Love, M.D., President and Chief Executive Officer.
-- Completed major research and development deals with Aurora Biosciences,
Kirin Pharmaceuticals, and Deltagen to accelerate discovery and
development of biopharmaceutical drug candidates.
-- Continued to build upon our impressive patent estate of full-length
human genes, which includes patent applications filed on more than
10,000 genes, proteins, and antibodies, with a focus on products
related to rarely expressed genes.
-- First four patents based on full-length genes and claiming genes,
proteins and antibodies were issued.
-- Raised $21.3 million in an equity financing, through biotechnology
institutional investors.
-- Settled litigation with Affymetrix, Inc. and formed a collaboration
with Affymetrix to accelerate the development and commercialization of
a high speed DNA sequencing chip.
-- Created a new majority-owned subsidiary, Callida Genomics, Inc., for
the development and commercialization of Hyseq's
sequencing-by-hybridization technology.
-- Hyseq, Inc, became known as Hyseq Pharmaceuticals, Inc. reflecting the
company's primary mission to develop and commercialize new treatments
for human diseases based on its proprietary collection of novel genes.
Collaboration With Amgen, Inc.
In January 2002, Hyseq announced a collaboration with Amgen to develop and commercialize Alfimeprase, a novel acting thrombolytic, for the treatment of peripheral arterial occlusion (PAO) and other cardiovascular indications. Under the terms of the agreement, Hyseq will lead clinical development, while Amgen will be responsible for manufacturing. Alfimeprase is a derivative of the fibrolase enzyme and was discovered through Amgen's research program. PAO of the lower extremity is a significant cause of morbidity and amputation in the United States with over 100,000 cases reported annually. Hyseq expects to initiate Phase I clinical trials with Alfimeprase in the first half of this year, and proceed into Phase II studies by early next year.
Hyseq's 2002 Outlook
``We believe we will continue to build on our substantial progress achieved in 2001 and are well on our way toward building a fully integrated biopharmaceutical company. We are excited that our first product will begin human testing this year, with a great partner, in an area of unmet medical need and an area where the success rate for drugs is high. In addition, we expect our functional genomics collaborations and internal discovery efforts will yield clinical candidates from our gene collection this year,'' said Love.
The following are our key goals for 2002:
Begin Phase I human clinical trials for Alfimeprase;
Evaluate over 400 genes through current R&D partnerships;
Identify at least two clinical candidates from Hyseq's proprietary gene
collection;
Continue to pursue a patent strategy that continues to add issued patents to our portfolio;
Execute additional collaborations and strategic relationships;
Raise additional capital to fund research and development efforts.
Hyseq will host a conference call to discuss fourth quarter results on Thursday, February 7, 2002 beginning at 4:30 p.m. EST. To participate in the live call by telephone, please call +1-800-360-9865. The conference call will also be broadcast live over the Internet: follow the Investor Relations link at hyseq.com . A telephone replay will be available through February 11, 2002. To access the replay from the U.S., please call +1-800-428-6051 and reference pass code 226663. To access the replay from outside the U.S., please call +1-973-709-2089 and reference pass code 226663. The call will also be available for replay on Hyseq's web site though March 7, 2002
Hyseq Pharmaceuticals, Inc. is engaged in research and development of novel biopharmaceutical products from its collection of proprietary genes discovered using its high-throughput screening-by-hybridization platform. Hyseq's screening-by-hybridization platform provided a significant advantage in discovering novel, rarely-expressed genes, and assembly of one of the most important proprietary databases of full-length human gene sequences. Hyseq is expanding and accelerating its research activities to further elucidate the role of novel genes in its proprietary database. Hyseq's database includes genes which encode a number of therapeutically important classes of molecules including chemokines, growth factors, stem cell factors, interferons, integrins, proteases, hormones, receptors, and other potential protein therapeutics or drug targets.
Callida Genomics, Inc., a majority owned subsidiary of Hyseq Pharmaceuticals, is focused on the development and commercialization of advanced DNA sequencing and analysis tools based upon its sequencing-by-hybridization technology. Information about Hyseq Pharmaceuticals, and Callida Genomics is available at www.hyseq.com or by phoning 408-524-8100.
Statements contained in ``Hyseq's 2002 Outlook'' and other sections in this press release which are not historical in nature, are intended to be, and are hereby identified as ``forward-looking statements'' for purposes of the safe harbor provided by the Private Securities Litigation Act of 1995. Forward-looking statements may be identified by words such as ``believe,'' ``expect,'' ``anticipate,'' ``should,'' ``may,'' ``estimate,'' ``goals, and ''potential,`` among others. Such statements are based on our management's current expectations and involve risks and uncertainties. Actual results and performance could differ materially from those projected in the forward-looking statements as a result of many factors, including, without limitation, uncertainties relating to unanticipated difficulties and delays relating to gene identification, drug discovery and clinical development processes; changes in relationships with strategic partners and dependence upon strategic partners for the performance of critical activities under collaborative agreements; the impact of competitive products and technological changes; uncertainties relating to patent protection and regulatory approval; and uncertainties relating to our ability to obtain substantial additional funds required for progress in drug discovery and development. These and other factors are identified and described in more detail in our periodic reports filed from time to time with the SEC, including without limitation our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2001. We disclaim any intent or obligation to update these forward-looking statements.
HYSEQ, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
($ in thousands, except per share amounts)
Three months ended Twelve months ended
December 31 December 31
2001 2000 2001 2000
(unaudited) (unaudited)
Contract revenues $7,069 $4,289 $24,590 $15,604
Operating expense:
Research and development 14,975 8,896 46,506 29,018
General and administrative 3,647 2,020 13,452 9,315
Restructuring 825
Total operating expenses 18,622 10,916 60,783 38,333
Loss from operations (11,553) (6,627) (36,193) (22,729)
Interest income (expense), net (97) (69) (572) 476
Loss before minority interest (11,650) (6,695) (36,765) (22,253)
Income (loss) attributable
to minority interest (293) (293)
Net Loss $(11,357) $(6,695) $(36,472) $(22,253)
Basic and diluted net loss
per share $(0.61) $(0.49) $(2.26) $(1.65)
Shares used in computing basic
and diluted net loss per share 18,550 13,689 16,158 13,449
CONDENSED CONSOLIDATED BALANCE SHEET
AND OTHER DATA
($ in thousands)
December 31, December 31,
2001 2000*
(unaudited)
Cash $12,329 $2,699
Working capital (1,829) (2,577)
Cash on deposit 1,606 2,106
Total assets 39,904 21,288
Deferred revenue 3,702 1,798
Noncurrent portion of capital lease and loan
obligations 2,353 4,722
Accumulated deficit (108,395) (71,922)
Total stockholders' equity 15,421 8,362
* The condensed consolidated balance sheet data at December 31, 2000 has
been derived from the audited financial statements as of that date.
SOURCE: Hyseq, Inc. |
