as expected...... grim, still lots of science.......
Monday November 8, 8:05 am Eastern Time
Company Press Release
SOURCE: Synaptic Pharmaceutical Corporation
Synaptic Pharmaceutical Reports Third Quarter and
Nine Months Results
PARAMUS, N.J., Nov. 8 /PRNewswire/ -- Synaptic Pharmaceutical Corporation (Nasdaq: SNAP - news) today reported
financial results for the third quarter and nine months ended September 30, 1999.
Revenue for the third quarter was $314,000 compared with $1.6 million in the third quarter of 1998. The net loss for the
quarter was $3.9 million, or $0.36 per share on a basic and diluted basis, as compared with last year's third quarter net loss of
$2.5 million, or $0.23 per share on a basic and diluted basis.
For the nine months ended September 30, 1999, revenue was $1.8 million versus $8.1 million for the same period in 1998.
The net loss for the nine-month period was $11.3 million, or $1.05 per share on a basic and diluted basis, as compared with
$3.8 million, or $0.36 per share on a basic and diluted basis, for the comparable period last year.
The decrease in revenue of $1.3 million in the third quarter over the prior year's comparable quarter was primarily related to the
contractual termination of the Company's collaborative agreements with Novartis Pharma A.G., Merck and Co., Inc., and Eli
Lilly and Co., Inc. Third quarter operating expenses decreased to $4.8 million from $4.9 million last year primarily as a result of
decreased scientific salary and scientific supply costs substantially offset by increased facility related costs.
The decrease in revenue of $6.3 million for the nine months ended September 30, 1999 was due to a decline in contract
revenue of $4.1 million resulting from the contractual termination of three of the Company's collaborative agreements as well as
to the receipt of $2.0 million in non-recurring license revenue resulting from the licensing of certain patent rights to Glaxo Group
Limited during the first quarter of 1998. Operating expenses for the same period increased to $15.1 million from $14.6 million
during the first nine months of 1998 due primarily to increased facility related costs substantially offset by a net decrease in
salary costs.
Kathleen P. Mullinix, Ph.D., chairman, president and chief executive officer, commented on the results for the quarter, ''I am
pleased that our efforts to better align operating expenses with the current level of revenues is starting to take hold. As
reported, operating expense for the third quarter declined as compared to the previous year's third quarter, and I fully expect to
see this trend continue into the fourth quarter. Our headcount now approximates 100, which is down from about 135 at the
beginning of the year. During this period our technology platform has grown considerably and we are seeking ways to capitalize
on these exciting advancements. Our current intention is to maintain a strong biological and chemical effort in order to add
near-term value to our traditionally strong molecular biology efforts. Also during the quarter, we were granted a number of new
patents, bringing our total to 66. In addition, we have been notified by the U.S. Patent and Trademark Office and various
foreign patent offices that 16 additional patents will be granted, and we have another 141 patent applications pending before
these offices.''
Synaptic Pharmaceutical Corporation has developed ''human receptor-targeted drug design technology,'' which involves the
use of cloned human receptors as targets for the design of potential drugs. As of November 8, the Company is collaborating
with Grunenthal GmbH for the alleviation of pain. Eli Lilly and Co., Inc., Merck and Co., Inc., Novartis Pharma A.G. and
Glaxo Group Limited have also been granted licenses by the Company.
This press release contains ''forward-looking statements'' within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Such statements include any statements relating to the future of the
Company's drug discovery programs, patent estate, revenue, spending plans, future cash position, statements regarding future
growth and any other statements which are not historical facts. Such statements involve risks and uncertainties relating to,
among other things, competition within anticipated product markets, the Company's ability to license products and potential
products or certain rights thereto to third parties or otherwise to capitalize on such products, the uncertainty that patents will be
granted by the various patent agencies with respect to applications pending before such agencies, the uncertainty of patent
protection for intellectual property or trade secrets and those risks and uncertainties detailed under the captions ''Patents,
Proprietary Technology and Trade Secrets,'' ''Competition'' and ''Government Regulation'' in the Company's Annual Report
on Form 10-K for the fiscal year ended December 31, 1998 (the ''1998 Form 10-K''), as well as the risks and uncertainties
disclosed under the captions ''Early Stage of Product Development; Technological Uncertainty,'' ''Dependence on
Collaborative Partners and Licensees for Development, Regulatory Approvals, Manufacturing, Marketing and Other
Resources,'' ''Future Capital Needs; Uncertainty of Additional Funding'' and ''External Environment'' as ''Cautionary
Statements'' in the 1998 Form 10-K or detailed from time to time in filings the Company makes with the Securities and
Exchange Commission. Although the Company believes that the expectations reflected in the forward-looking statements
contained herein are reasonable, it can give no assurance that such expectations will prove to be correct. The Company
expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement
contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.
Synaptic Pharmaceutical Corporation
Statements of Operations:
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
Revenues:
Contract revenue $314 $1,598 $1,801 $5,911
License revenue -- -- -- 2,000
Grant revenue -- -- -- 150
Total revenues 314 1598 1,801 8,061
Expenses:
Research and
development 3,614 3,908 11,414 11,420
General and
administrative 1,209 1,015 3,707 3,183
Total expenses 4,823 4,923 15,121 14,603
Loss from operations (4,509) (3,325) (13,320) (6,542)
Other income, net 622 849 2,054 2,720
Net loss $(3,887) $(2,476) $(11,266) $(3,822)
Basic and diluted net
loss per share $(0.36) $(0.23) $(1.05) $(0.36)
Shares used in computation of basic
and diluted net loss
per share 10,743 10,699 10,738 10,679
Balance Sheet Data:
(in thousands)
September 30, 1999 December 31, 1998
(Unaudited) (Audited)
Cash, cash equivalents and
marketable securities $45,492 $56,378
Total assets $52,480 $64,696
Accumulated deficit $(47,075) $(35,809)
Total stockholders' equity $51,192 $62,676
For more information, contact:
Robert L. Spence
Synaptic Pharmaceutical Corporation
201-261-1331, ext. 121
Lisa Baumgartner
Ruder Finn, Inc.
212-593-6352 |
