GENE - earnings...
Genome Therapeutics Reports Financial Results For Second Quarter Of Fiscal 2000
-- Q2 revenues increased 22%, net loss decreased 77% from previous year --
WALTHAM, Mass., March 22 /PRNewswire/ -- Genome Therapeutics Corp. (Nasdaq: GENE - news) today reported financial results for the second quarter of fiscal 2000, which ended February 26, 2000. Total revenues for the second quarter of fiscal 2000 were $7,805,000, compared to $6,403,000 in the same period of fiscal 1999. Net loss in the second quarter of fiscal 2000 was ($73,000), or ($0.00) per share, compared to a net loss of ($1,218,000), or ($0.07) per share, for the same period in fiscal 1999.
For the first six months of fiscal 2000, the Company reported total revenues of $13,840,000, compared to $11,513,000 during the same period of fiscal 1999. Net loss in the first half of fiscal 2000 was ($195,000), or ($0.01) per share, compared to a net loss of ($3,690,000), or ($0.20) per share, in the same period of fiscal 1999. The Company's cash and cash equivalents at the end of the second fiscal quarter of 2000 were approximately $35,891,000, compared with $25,062,000 at the end of the prior fiscal year, August 31, 1999.
``We announced the largest alliance in the Company's history during the quarter -- a potential $118 million human genomics alliance with Wyeth-Ayerst, the pharmaceutical division of American Home Products, for development of novel therapeutics for the prevention and treatment of osteoporosis,' said Dr. Richard D. Gill, President and COO. ``This second human genomics alliance strongly complements our established infectious disease franchise and growing sequencing operations.'
During the second fiscal quarter, the Company also attained an important scientific milestone in its alliance with Schering-Plough to discover and develop new therapeutics for treating asthma, which triggered a financial payment to the Company. In December 1999, the Company announced an extension to its alliance with Schering-Plough to develop new pharmaceutical products to prevent and treat fungal infections through September 2001. Last month, as a first step in its emerging pharmacogenomics program, Genome Therapeutics entered into a contract with a biotechnology company to determine genetic variations in order to validate that company's drug target.
Genome Therapeutics (www.genomecorp.com) is a leader in the commercialization of genomics-based drug discovery. The Company's gene discovery strategy is to identify and characterize human genes associated with major diseases and elucidate microbial genes as novel drug targets against many serious infectious organisms. Together with its strategic partners, including Schering-Plough, AstraZeneca, Wyeth-Ayerst and bioMerieux, Genome Therapeutics is using genomic information to develop a new generation of genomics-based pharmaceutical, vaccine and diagnostic products.
Statements in this press release that are not strictly historical are ``forward looking' statements as defined in the Private Securities Litigation Reform Act of 1995. A number of important factors could cause actual results to differ materially from those projected or suggested in the forward looking statement including, but not limited to, the ability of the Company and its alliance partners to (i) successfully develop products based on the Company's genomic information, (ii) obtain the necessary governmental approvals, (iii) effectively commercialize any products developed before its competitors and (iv) obtain and enforce intellectual property rights, as well as the risk factors described in the Company's Annual Report on Form 10-K.
GENOME THERAPEUTICS CORP.
STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
Thirteen weeks ended Twenty-six weeks ended
Feb. 26, Feb. 27, Feb. 26, Feb. 27,
2000 1999 2000 1999
Revenues:
Contract research, licenses
and subscription fees
& royalties $7,805 $6,403 $ 13,840 $ 11,513
Costs and expenses:
Research and development 6,408 6,673 11,750 13,486
Selling, general
and administrative 1,718 1,152 2,688 2,062
Total costs
and expenses 8,126 7,825 14,438 15,548
Loss from operations (321) (1,422) (598) (4,035)
Interest income 435 462 799 874
Interest expense (187) (258) (396) (529)
Net loss $(73) $(1,218) $(195) $(3,690)
Basic/diluted net loss
per common share $(0.00)* $(0.07) $(0.01) $(0.20)
Basic/diluted weighted
average number of
common shares
outstanding 19,843,446 18,352,272 19,395,565 18,335,058
* rounds to less than ($0.01)
SELECTED BALANCE SHEET DATA
(in thousands) (unaudited)
February 26, August 31,
2000 1999
Cash, cash equivalents,
restricted cash
and investments $35,891 $25,062
Total assets 51,034 39,485
Long-term obligations,
net of current maturities 5,760 5,925
Shareholders' equity 31,054 23,411
SOURCE: Genome Therapeutics Corp.
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