Monday August 2, 4:30 pm Eastern Time
Company Press Release
SOURCE: Pharmacopeia, Inc.
Pharmacopeia, Inc. Announces 1999 Second Quarter
and Six Month Results
PRINCETON, N.J., Aug. 2 /PRNewswire/ -- Pharmacopeia, Inc. (Nasdaq: PCOP - news) today announced results for the
second quarter and six month period ended June 30, 1999. Where applicable, the 1998 results have been restated to reflect the
June 1998 acquisition of Molecular Simulations Inc. (MSI), which was accounted for as a pooling of interests.
Total revenues for the 1999 second quarter were $23.3 million, a 15% increase compared to the $20.3 million reported for the
second quarter of 1998. These results include a 23% increase in software segment revenue throughout the United States and
Europe and a 17% increase in laboratory services segment revenue. These gains were partially offset by a 29% decrease in
software segment revenue in Asia. Total revenues for the six months ended June 30, 1999 rose 14% to $46.6 million compared to
$40.8 million reported for the same period last year.
Net loss for the 1999 second quarter was $1.6 million, or $0.08 per share, compared to a net loss of $8.4 million, or $0.44 per
share, for the second quarter of 1998. For the six months ended June 30, 1999, the net loss was $2.2 million, or $0.11 per share,
compared to a net loss of $9.2 million, or $0.49 per share, for the comparable six month period of 1998. The net loss for both the
1998 second quarter and the 1998 six month period includes merger-related costs of approximately $8.0 million.
''I am pleased to report another quarter of increased revenue,'' stated Joseph A. Mollica, Ph.D., Chairman, President and CEO.
''Our laboratory services segment benefited from activity in our newest collaborations with Schering-Plough, Schering AG and
Pharmacia and Upjohn. Research work done on behalf of these new partners, in addition to our existing customers, more than
offset the decline in revenues from those partners for whom our work last year has now been successfully completed. Software
segment revenues grew 13% despite continued weakness in our sales in Asia. Strong sales in the United States and Europe
contributed to our overall gain in this segment. Further, most of the year to date decline in software segment revenue in Asia will be
recovered by the end of 1999 as a result of certain performance commitments included in our new Japanese distribution
arrangement.''
''The second quarter also saw an increased emphasis on our Lead Discovery Services (LDS) business. LDS offers customers
access to the unique combination of Pharmacopeia's multi-million compound sample collection and ultra high-throughput screening
experience and capacity. Heretofore, we have marketed this business to large pharmaceutical companies. Leveraging MSI's
experienced sales force, we began in July to offer this service to the many biotechnology companies who have interesting targets.
These companies can benefit from our large chemical sample collection and screening capabilities as well. Given our scientific and
technological accomplishments in our drug discovery and software businesses, we remain cautiously optimistic about our overall
performance for the remainder of the year,'' concluded Dr. Mollica.
Pharmacopeia (http://www.pcop.com) is a leader in enabling technology and technology-based services that accelerate drug
discovery and chemical development. Pharmacopeia's laboratory services segment (Pharmacopeia Labs) integrates three platform
technologies: informatics, small molecule combinatorial chemistry, and high-throughput screening. Using ECLiPSTM, its
proprietary combinatorial chemistry technology, Pharmacopeia Labs has generated more than 5.6 million diverse, small molecules.
Pharmacopeia Labs tests these molecules using state-of-the-art high-throughput screening. Pharmacopeia's software subsidiary,
Molecular Simulations Inc. (MSI), develops and commercializes molecular modeling, simulation, and informatics software and
services. The Pharmacopeia Labs and MSI technologies are integrated to support the following four businesses: 1) software sales
and service for pharmaceutical, biotechnology, and chemical research, 2) chemical compound leasing, 3) collaborative drug
discovery, and 4) internal drug discovery. Pharmacopeia employs approximately 550 people and is headquartered in Princeton,
NJ. Major regional operations are in San Diego, CA, Cambridge, England, and Tokyo, Japan.
Except for the historical information contained herein, this statement may contain projections or other forward-looking statements
regarding future events or the future financial performance of the Company. Pharmacopeia wishes to caution you that such
statements are just predictions. Actual events or results may differ materially. Pharmacopeia refers you to the documents that it files
from time to time with the Securities and Exchange Commission, specifically the Company's last filed Annual Report on Form
10-K and subsequent Quarterly Reports on Form 10-Q. These documents contain and identify important factors, including risk
factors that could cause the actual results to differ materially from those contained in the projections or forward-looking statements.
PHARMACOPEIA, INC.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except share data, unaudited)
Statements of Operations
For the Three Months For the Six Months
Ended June 30, Ended June 30,
1999 1998 1999 1998
Revenue:
Contract revenue $8,228 $7,023 $17,304 $13,455
Software license,
service and other 12,394 11,458 24,817 24,512
Hardware 2,645 1,814 4,439 2,880
Total revenue 23,267 20,295 46,560 40,847
Costs and expenses:
Software license
and other 942 794 2,112 1,563
Hardware 2,496 1,549 3,973 2,420
Research and
Development
Collaborative 5,092 4,715 10,929 9,135
Proprietary 7,013 7,207 13,710 13,964
Sales, general
and administrative 10,151 8,248 19,768 16,889
Merger related costs -- 7,998 -- 7,998
Total costs and
expenses 25,694 30,511 50,492 51,969
Operating loss (2,427) (10,216) (3,932) (11,122)
Interest and
other income, net 863 907 1,842 1,949
Loss before provision
for (benefit from)
income taxes (1,564) (9,309) (2,090) (9,173)
Provision for
(benefit from)
income taxes 28 (936) 68 (8)
Net loss $(1,592) $(8,373) $(2,158) $(9,165)
Net loss per share
- Basic $(0.08) $(0.44) $(0.11) $(0.49)
Net loss per share
- Diluted $(0.08) $(0.44) $(0.11) $(0.49)
Weighted average number
of common stock
Outstanding - Basic 19,656 18,906 19,465 18,872
Weighted average number
of common stock
Outstanding - Diluted 19,656 18,906 19,465 18,872
Balance Sheet
June 30, December 31,
1999 1998
Cash, cash equivalents and marketable
securities $63,119 $81,098
Trade receivables, net 18,888 23,307
Other assets, net 33,741 23,460
Total assets $115,748 $127,865
Current liabilities $42,496 $52,316
Long-term liabilities 1,337 3,332
Total stockholders' equity 71,915 72,217
Total liabilities and stockholders'
equity $115,748 $127,865
SOURCE: Pharmacopeia, Inc.
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