Procept Announces Second Quarter
Results
Company Advances Clinical Development Programs
CAMBRIDGE, Mass.--(BW HealthWire)--Aug. 12, 1999--Procept Inc. (Nasdaq SmallCap:PRCT -
news) today announced its financial results for the second quarter and six months ended June 30, 1999.
The Company reported a net loss of $0.8 million or $0.12 per share on revenues of $0.1 million for the
quarter ended June 30, 1999. The results for the second quarter reflect an improvement over the
second quarter of 1998 when the Company recorded a net loss of $0.9 million or $0.32 per share on
revenues of $0.1 million. The decrease in the net loss resulted from lower operating expenses primarily
due to the Company's continued focus on clinical development. As a result of the conversion of the
minority interest of the Company's subsidiary, BG Development Corp., into Procept shares, the net loss
available to common shareholders increased to $1.3 million for the second quarter of 1999 compared to
$0.9 million for the same period of 1998. For the six months ended June 30, 1999, the Company
reported a net loss of $10.8 million or $1.54 per share on revenues of $0.2 million as compared to a net
loss of $2.3 million or $1.40 per share on revenues of $0.2 million for the same period in 1998. The
1999 year-to-date net loss includes a non-recurring charge of approximately $9.4 million associated
with the acquisition of Pacific Pharmaceuticals, Inc. (``Pacific').
As of June 30, the Company had cash, cash equivalents and marketable securities of $6.0 million. The
increase in cash is primarily attributable to the acquisition of Pacific which resulted in a cash infusion of
approximately $2.8 million. Based upon its planned utilization of cash (``burn rate') going forward, the
Company expects that its current resources, combined with anticipated government support, will be
sufficient to fund Procept's operations through June 2000.
``We are making substantial progress in implementing Procept's clinical development strategy,' said
John F. Dee, President and Chief Executive Officer of Procept, Inc. ``The initiation of additional
clinical trials for PRO 2000 Gel and O6-Benzylguanine is imminent. With the current government
support and funding, the Company should continue to advance its clinical development and improve the
potential for securing corporate partnerships.'
Procept, Inc., located in Cambridge, MA, is a biopharmaceutical company currently engaged in the
in-licensing, development and commercialization of novel drugs with a focus on anti-infectives and
oncology. The Company's lead AIDS product, PRO 2000 Gel, is being developed as a
female-controlled topical microbicide for the prevention of HIV infection and other sexually transmitted
diseases. The Company is also developing O6-benzylguanine (``BG'), a chemosensitizing agent
designed to break down tumor resistance and therefore enhance the efficacy of chemotherapeutic
agents in several cancer indications. The Company's photodynamic therapy compound, Boronated
Protoporphyrin (``BOPP'), is designed to be used with lasers to selectively kill fast growing cells and
may be suitable to treat cancer, pre-cancer and various other medical conditions, including age-related
macular degeneration, an area of recent excitement. Each of these compounds is in human clinical
trials and two have received government funding and support. The Company continues its search for
new in-licensing and acquisition opportunities.
Certain statements in this press release constitute ``forward-looking statements' that involve risks and
uncertainties, including those arising under the Company's business strategy; the success of the
Company in financing efforts; the pursuit of collaborative arrangements for research and development
of product candidates, as well as the pursuit of joint development or licensing arrangements with
pharmaceutical, diagnostic or instrumentation companies; the research or development of particular
products, compounds or technologies; the uncertainty of the results of such development activities and
related clinical trials or required regulatory approvals; and the reliance on collaborative partners and
governments for development, regulatory or marketing activities. |
