Trega Biosciences Reports Year-end and Fourth Quarter 1999 Results; Annual Revenues Increase 24% Loss Decreases 32%
SAN DIEGO, Feb. 7 /PRNewswire/ -- Trega Biosciences, Inc. (Nasdaq: TRGA)
today reported financial results for the fourth quarter and the year ended
December 31, 1999.
Total revenues for the year increased to $13.4 million in 1999 compared
with $10.8 million in 1998, an increase of 24% over the previous year. The
net loss for 1999 decreased to $8.7 million, or $0.47 per share, compared with
a net loss of $12.8 million, or $0.89 per share, reported for the year ended
December 31, 1998, a decrease of 32% over the previous year. The increase in
revenues for the year was due primarily to increased shipments of
Chem.Folio(R) compounds. Partially offsetting this increase was a decrease in
drug discovery revenues. Trega ended the year with $6.4 million is cash, cash
equivalents and short-term investments.
For the fourth quarter 1999, total revenues increased to $4.6 million from
$3.6 million in the same period for 1998, representing an increase of 29%.
Additionally, revenues increased 15% from the third quarter 1999 total of
$4.0 million. The net loss for the quarter was approximately $162,000, or
$0.01 per share, compared with a loss of $3.3 million, or $0.21 per share for
the same period in 1998, representing a 95% decrease in net loss for the
quarter. The increase in revenues for the fourth quarter 1999 was primarily
due to an increase in Chem.Folio shipments. Independently from the revenue
increase, Trega also recorded a gain of $2.0 million on the sale of the assets
of a non-core business unit.
"In 1999 we demonstrated the benefits of the new strategic direction for
Trega's business," said Michael G. Grey, president and CEO of Trega. "Trega
has refocused its business model on the iDiscovery(TM) system, which is an
integrated solution including Chem.Folio combinatorial libraries for screening
and optimization of potential drug candidates, and IDEA(TM) predictive models
for the prediction and selection of compounds with essential drug-like
characteristics for advancement into development. This strategic refocus of
the company, as well as the arrival of a new management team, has contributed
to the consistent increase in revenues and decrease in the cash consumption
last year."
"Other events in 1999 that contributed to Trega's growth and success
include establishing an additional important distribution channel for
Chem.Folio through ChemNavigator.com and achieving two important milestones in
the development of the IDEA predictive model for absorption and the
introduction of the model in the marketplace," said Mr. Grey. "We have
established a sound business with Chem.Folio, upon which we can build. With
the continued growth of Chem.Folio and launch of the first IDEA predictive
model, we look forward to continued success in 2000."
Trega Biosciences is an information-driven company focused on accelerating
drug discovery from disease targets to clinical candidates through its
iDiscovery(TM) system comprised of small molecule combinatorial chemistry,
high throughput screening and predictive bioinformatics to rapidly create
novel drug candidates having greater chances of clinical success. Trega
offers integrated products and services spanning the drug discovery process --
beginning with synthesizing novel compounds to providing uniquely qualified
drug leads -- to the pharmaceutical and biopharmaceutical industries.
Except for the historical information contained herein, the matters
discussed in this news release are forward-looking statements that involve
risks and uncertainties, including whether the results reported are indicative
of future results, whether the Company's resources are sufficient to enable it
to reach its business objectives, whether management will be successful,
whether the Company will be successful in the development of its products,
whether any additional collaborations or alliances will be agreed to, formed
or expanded, whether regulatory approvals can be obtained for products
discovered and developed, if any, whether any such products can be
successfully marketed and sold, the impact of competitive products and
pricing, in marketing success, whether any other corporate collaborations or
alliances will be successful, and other risks detailed from time to time in
Trega's Securities and Exchange Commission filings. These forward-looking
statements represent Trega's judgment as of the date of this release. Actual
results may differ materially from those projected. Trega disclaims, however,
any intent or obligation to update these forward-looking statements.
Trega's releases are on the World Wide Web at trega.com and PR
Newswire's fax-on-demand service at 1-800-758-5804, extension 374050.
TREGA BIOSCIENCES, INC.
Condensed Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
1999 1998 1999 1998
Revenues:
Compound revenues $3,120 $1,855 $7,504 $2,257
Contract research and
licenses fees 1,429 1,697 5,560 8,512
Net sales 47 21 313 21
Total revenues 4,596 3,573 13,377 10,790
Operating expenses:
Cost of sales 90 7 332 7
Research and
development 4,369 4,402 17,903 17,934
Acquired in-process
research and
development -- 1,000 -- 1,000
Selling, general and
administrative 2,157 1,562 7,344 5,181
Total operating
expenses 6,616 6,971 25,579 24,122
Loss from operations
before equity in losses
of affiliate $(2,020) $(3,398) $(12,202) $(13,332)
Equity in losses
of affiliate (50) -- (66) --
Loss from operations (2,070) (3,398) (12,268) (13,332)
Interest and other
income, net 1,908 102 3,595 531
Net loss $(162) $(3,296) $(8,673) $(12,801)
Basic and diluted net
loss per share $(0.01) $(0.21) $(0.47) $(0.89)
Shares used in computing
basic and diluted net
loss per share 19,096 15,662 18,389 14,380
TREGA BIOSCIENCES, INC.
Condensed Consolidated Balance Sheet
(in thousands)
December 31, December 31,
1999 1998
(unaudited)
Cash, cash equivalents and
short-term investments $6,434 $16,262
Accounts receivable and
other current assets 2,541 778
Property and equipment, net 4,179 4,123
Other assets 9,507 8,372
Total assets $22,661 $29,535
Current liabilities $8,155 $8,983
Long-term liabilities 2,996 2,912
Stockholders' equity 11,510 17,640
Total liabilities and
stockholders' equity $22,661 $29,535
SOURCE Trega Biosciences, Inc.
CO: Trega Biosciences, Inc.
ST: California
IN: BIO MTC
SU: ERN
02/07/2000 08:03 EST prnewswire.com |
