AtheroGenics Announces Second Quarter Financial Results
ALPHARETTA, Ga., Sep 06, 2000 (CNW via COMTEX) -- AtheroGenics, Inc. (Nasdaq:
AGIX), an emerging pharmaceutical company focused on the discovery, development
and commercialization of novel drugs for the treatment of chronic inflammatory
diseases, today reported financial results for the quarter ended June 30, 2000.
AtheroGenics completed its initial public offering in August 2000, in which it
sold 6,000,000 shares of common stock at $8.00 per share for net proceeds of
approximately $43.2 million, net of offering expenses.
For the three months ended June 30, 2000, AtheroGenics reported a net loss of
$3.1 million, or $(0.18) pro forma per share (basic and diluted), as compared to
a net loss of $2.6 million, or $(0.21) pro forma per share (basic and diluted)
in the second quarter of 1999. For the six months ended June 30, 2000,
AtheroGenics reported a net loss of $6.5 million, or $(0.39) pro forma per share
(basic and diluted), compared to a net loss of $5.3 million, or $(0.52) pro
forma per share (basic and diluted) for the six months ended June 30, 1999. Pro
forma net loss per share assumes conversion of all outstanding preferred stock
into shares of AtheroGenics' common stock (which was effected upon the closing
of AtheroGenics' initial public offering), as if such conversion had occurred on
the dates of original issue.
Revenues for the three and six months ended June 30, 2000 were $2.1 million and
$4.2 million, respectively, compared to none in 1999. Revenues in the current
year resulted from the exclusive license agreement signed in October 1999 with
Schering-Plough. Total operating expenses for the three and six months ended
June 30, 2000, increased to $3.3 million and $7.0 million, respectively,
(excluding amortization of deferred stock compensation) compared to $2.4 million
and $5.0 million, respectively, for the comparable periods in 1999. The increase
in operating expenses reflects continued expansion of internal research and
development capabilities, planned higher costs associated with the AGI-1067
clinical trials, and pre-clinical costs related to other product development
programs.
At June 30, 2000, cash, cash equivalents and short-term investments totaled $8.7
million, which does not include the net proceeds of approximately $43.2 million
from AtheroGenics' initial public offering completed in August 2000.
"Considerable progress was made was made during the second quarter on all four
of our drug development programs, said Russell M. Medford, M.D., Ph.D.,
president and CEO of AtheroGenics. "The Phase II clinical program for AGI-1067,
targeting post-angioplasty restenosis, has been moving forward as planned, as
have our pre-clinical programs targeting rheumatoid arthritis, cystic
fibrosis/asthma and solid organ transplant rejection." Dr. Medford added, "We
are pleased that our relationship with Schering-Plough Corporation, with whom we
signed a major collaboration involving AGI-1067 last year, has been very
productive and, we believe, mutually rewarding thus far."
AtheroGenics, Inc., through its proprietary vascular protectant drug discovery
technology platform, is focused on the discovery, development and
commercialization of novel small molecule therapeutics for the treatment of
chronic inflammatory diseases such as atherosclerosis, asthma and arthritis. The
Company designed its lead product candidate, AGI-1067, to benefit patients with
coronary artery disease, which is atherosclerosis of the blood vessels of the
heart.
This press release may contain forward-looking statements made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such statements are subject to certain factors, risks and uncertainties that may
cause actual results, events and performance to differ materially from those
referred to in such statements. These risks include statements which address
operating performance, events or developments that we expect or anticipate will
occur in the future, such as projections about our future results of operations
or our financial condition, the development of our product candidates,
anticipated trends in our business, and other such risks identified in
AtheroGenics' SEC filings, including the Company's registration statement on
Form S-1, Registration No. 333-31140 filed with the Securities and Exchange
Commission, all of which are incorporated by reference into this press release.
STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Revenues:
License fees $ 833,333 $ -- $ 1,666,666 $ --
Research and
development 1,230,717 -- 2,488,664 --
Total
revenues 2,064,050 -- 4,155,330 --
Operating expenses:
Research and
development
compensation 2,728,397 1,616,227 5,614,037 3,817,187
General and
administrative 575,177 754,047 1,361,539 1,181,179
Amortization of
deferred stock
compensation 1,980,221 225 3,952,059 225
Total operating
expenses 5,283,795 2,370,499 10,927,635 4,998,591
Operating loss (3,219,745) (2,370,499) (6,772,305) (4,998,591)
Net interest income
(expense) 136,532 (198,558) 294,299 (320,801)
Net loss $(3,083,213) $(2,569,057) $(6,478,006) $ (5,319,392)
Net loss per share
- basic and
diluted $ (1.05) $ (1.06) $ (2.33) $ (2.20)
Weighted average shares
outstanding - basic
and diluted 2,929,823 2,426,521 2,782,819 2,419,323
Pro forma net loss
per share -
basic and
diluted $ (.18) $ (.21) $ (.39) $ (.52)
Pro forma weighted average
shares outstanding
- basic and
diluted 16,788,925 12,404,977 16,560,740 10,201,959
CONTACT: For further information: Mark Colonnese, Chief Financial Officer of
AtheroGenics, 678-336-2511; or Janice Kuntz of Fleishman Hillard,
404-739-0144
News release via Canada NewsWire, Toronto 416-863-9350 -ME-
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