Nov. 7, 2000--Telik, Inc. (Nasdaq:TELK - news) today reported financial results for the third fiscal quarter and nine months ended September 30, 2000.
Telik reported a net loss of $2.3 million, or $0.12 per share in the third quarter of 2000, compared to a net loss of $1.7 million, or $0.11 per share in the third quarter of 1999. Revenue from collaborative research agreements and government grants for the third quarter of 2000 was $0.7 million, compared to $1.0 million for the third quarter of 1999. Research and development expenses increased to $2.9 million in the third quarter of 2000 from $2.5 million in the third quarter of 1999 primarily due to increased clinical expenses. General and administrative expenses increased to $0.6 million in the third quarter of 2000 from $0.3 million in the third quarter of 1999 due principally to expenses related to the administration of a public company.
For the nine months ended September 30, 2000 Telik reported a net loss of $15.1 million, or $0.90 per share, compared to a net loss of $5.0 million, or $0.34 per share for the same period of 1999. In connection with Telik's initial public offering in August 2000, the financial results for the nine months ended September 30, 2000 include a deemed dividend of $4.7 million upon the issuance of Series K convertible preferred stock in the first quarter of 2000. The company also recorded non-cash charges totaling $4.4 million for stock-based compensation expense in the nine months ended September 30, 2000. Revenue from collaborative research agreements and government grants was $2.1 million in the nine months ended September 30, 2000 compared to $3.5 million for the same period of 1999. The decrease in revenue in the first nine months of 2000 compared to the same period of 1999 was due primarily to the completion of a research collaboration in 1999.
At September 30, 2000, the company had cash, cash equivalents and short-term investments of $44.4 million, compared to $7.6 million at December 31, 1999. The increase in cash from December 31, 1999 to September 30, 2000 was primarily due to gross proceeds of $7.0 million realized upon the issuance of Series K convertible preferred stock in March 2000 and gross proceeds of $40.3 million realized upon the company's initial public offering and subsequent exercise of the underwriter's over-allotment option in August and September of 2000. As a result of higher cash balances, interest income increased to $434,000 in the third quarter of 2000 compared to $99,000 in the third quarter of 1999. Total shares outstanding at September 30, 2000 were 22,563,841.
Recent highlights at Telik have included:
* The initial public offering of 5,750,000 shares of Telik common stock for gross proceeds of $40.3 million, before deducting expenses for the offering and underwriting discounts and commissions.
* The allowance by the European Patent Office of a patent covering TLK199, Telik's small molecule product candidate intended for the treatment of low white blood cell levels, a toxic side effect in cancer patients undergoing chemotherapy. Similar patent claims covering TLK199 have been issued to the company in the U.S.
* The receipt of a Small Business Innovation Research grant from the National Institutes of Health to support the application of TRAP, Telik's proprietary chemogenomics drug discovery technology, for the identification of small molecule modulators of caspase 3, an enzyme that plays a critical role in diseases of the central nervous system as well as many types of cancer.
* The successful completion of a collaboration with Genaissance Pharmaceuticals, Inc. involving the identification of compounds that exhibit activity against several novel gene variants of the estrogen receptor.
Outlook
The company continues to expect to complete patient accrual for the Phase I trial of its TLK286 cancer drug product candidate in refractory cancer patients in the fourth quarter of 2000 and to initiate Phase II trials of TLK286 in the first quarter of 2001. Telik also plans to file an Investigational New Drug application (IND) in the first half of 2001 for U.S. Food and Drug Administration (FDA) clearance to begin clinical testing of its TLK199 product candidate for the treatment of chemotherapy-induced neutropenia.
The company expects operating expenses for the remainder of 2000 and for 2001 to increase as it expands clinical development of TLK286 and as it prepares to file an IND to begin clinical development of TLK199.
Conference Call
Telik will host a conference call at 4:30 p.m. Eastern time tomorrow, November 8, 2000 to discuss third quarter financial results, recent clinical results, and research and clinical plans for the remainder of 2000 and early 2001. Michael M. Wick, M.D., Ph.D., Telik's chairman and chief executive officer will host the call. He will be joined by Cynthia M. Butitta, Telik's chief financial officer. A live webcast of the conference call will be available by logging on to www.telik.com. Please log on to the site at least fifteen minutes prior to the start of the conference call to allow time for any software downloads that may be required. The webcast will be available through November 15, 2000. To access a digitized replay of the conference call by telephone, please call 800-475-6701 from inside the U.S. and 320-365-3844 from outside the U.S. and use the access code 548362. The digitized replay will be available approximately two and one half hours after the conclusion of the conference call and will remain available through November 15, 2000. |
