Wednesday July 25, 7:00 am Eastern Time
Press Release
Tularik Announces 2001 Second Quarter Financial
Results
SOUTH SAN FRANCISCO, Calif.--(BW HealthWire)--July 25, 2001-- Tularik Inc.
(Nasdaq:TLRK - news) today reported results for the three and six months ended June 30,
2001. For the three months ended June 30, 2001, Tularik incurred a net loss of $11.9
million, or $0.25 per share, compared to a net loss of $7.6 million, or $0.16 per share, for
the same period in 2000. For the six months ended June 30, 2001, Tularik incurred a net
loss of $23.0 million, or $0.47 per share, compared to a net loss of $27.1 million, or $0.59
per share, for the same period in 2000. At June 30, 2001, Tularik had $ 260.2 million in
cash, cash equivalents and marketable securities.
Clinical Trial Update
Tularik is currently testing four drugs in clinical studies, three anti-cancer drugs and one
anti-cytomegalovirus (CMV) drug. These studies are being conducted in the United States,
the United Kingdom, Canada, Australia, Hong Kong and Taiwan.
T67, is a novel anti-tubulin agent. T67 is distinguished from other tubulin-binding agents in
that it irreversibly binds to (beta)-tubulin. Tularik is currently conducting five separate Phase
II clinical trials for T67 in the 3 most common cancers (non-small cell lung cancer, breast
cancer and colorectal cancer), as well as in hepatocellular carcinoma (liver cancer) and
glioma (brain cancer). Tularik anticipates completing the current Phase II program this year.
Tularik's second anti-tubulin agent, T607, is an analog of T67, but differs from T67 in that it
does not cross the blood brain barrier and has a different tissue distribution profile. T607 is
currently undergoing Phase I dose-escalation studies, which we anticipate completing this
year.
Tularik's anti-cancer drug candidate T64 is an anti-metabolite that blocks the synthesis of
purines, a building block of DNA. Tularik is currently conducting Phase II trials for T64 in
the two most common cancers (non-small cell lung cancer and breast cancer), as well as in
head and neck cancer, soft tissue sarcoma and melanoma. In addition, five separate
combination studies with the existing cancer therapies gemcitabine, doxorubicin, paclitaxel,
carboplatin and temozolomide are progressing through Phase I clinical trials. Tularik anticipates completing the current Phase II
program this year.
Tularik has completed single and multiple dose Phase I clinical trials for its oral anti-CMV drug candidate, T611. CMV is a
ubiquitous herpes virus that causes serious disease in immunocompromised patients, especially transplant patients. T611 inhibits
a CMV enzyme that is essential for viral replication. Phase I studies have shown that T611 is orally available and well-tolerated.
In particular, results of the studies have shown no bone marrow toxicity, which is the major liability of the current leading
anti-CMV drug, ganciclovir. Tularik expects to initiate a Phase II study in renal transplant patients in the second half of 2001
under the aegis of the NIH/NIAID and the Cooperative Antiviral Study Group.
Financial Results
Revenue from collaborative research and development for the second quarter of 2001 was $8.3 million, compared to the
second quarter 2000 revenue of $5.8 million. Revenue from collaborative research and development for the six-month period
ended June 30, 2001 was $15.4 million, compared to revenue of $11.5 million for the same period in 2000. Revenue included
payments for research collaborations with Japan Tobacco relating to obesity, lipid disorders and metabolic diseases, Roche
Bioscience relating to inflammation and Knoll relating to obesity.
Total research and development expenses for the three- and six-month periods ended June 30, 2001 increased to $21.6 million
and $40.0 million, from $14.5 and $29.5 million for the respective periods in 2000, largely due to increased numbers of clinical
and preclinical studies, higher research and development headcount, higher compound acquisition costs and higher rent and
depreciation costs.
Total general and administrative expenses for the three- and six-month periods ended June 30, 2001 increased to $3.3 and
$6.0 million, from $2.5 and $4.5 million for the respective periods in 2000, primarily due to higher administrative headcount
and higher patent legal costs.
Tularik is engaged in the discovery and development of a broad range of novel and superior orally available drugs that act
through the regulation of gene expression. Tularik programs address cancer, viral diseases, inflammation, immune disorders,
lipid disorders, diabetes and obesity. Tularik has established strategic partnerships with Japan Tobacco Inc., Roche Bioscience
and Knoll AG. For more information, visit Tularik's Internet website at www.tularik.com.
This press release contains ``forward-looking'' statements. For this purpose, any statements contained in this press release that
are not statements of historical fact may be deemed to be forward-looking statements. Words such as ``believes,''
``anticipates,'' ``plans,'' ``expects,'' ``will,'' ``intends'' and similar expressions are intended to identify forward-looking
statements. There are a number of important factors that could cause the results of Tularik to differ materially from those
indicated by these forward-looking statements, including, among others, risks detailed from time to time in Tularik's SEC
reports, including the report on Form 10-Q for the quarter ended March 31, 2001.
Three months ended Six months ended
June 30, June 30,
2001 2000 2001 2000
(unaudited) (unaudited) (unaudited) (unaudited)
Revenue:
Collaborative
research
and development $ 8,315 $ 5,824 $ 15,356 $ 11,500
Operating expenses:
Research
and development 21,593 14,452 40,020 29,447
General and
administrative 3,261 2,477 5,968 4,535
Amortization
of deferred stock
compensation 297 597 682 1,373
Charge for
acceleration
of stock and
option vesting -- -- -- 5,396
---------- ---------- ---------- ----------
25,151 17,526 46,670 40,751
---------- ---------- ---------- ----------
Loss from
operations (16,836) (11,702) (31,314) (29,251)
Interest and
other income 3,370 4,419 6,905 7,598
Realized gains
on sale of
securities 1,898 -- 2,162 --
Interest expense (368) (335) (759) (692)
---------- ---------- ---------- ----------
Loss before
the cumulative
effect of a change
in accounting
principle (11,936) (7,618) (23,006) (22,345)
Cumulative effect
of a change in
accounting
principle -- -- -- (4,800)
---------- ---------- ---------- ----------
Net loss $ (11,936) $ (7,618) $ (23,006) $ (27,145)
========== ========== ========== ==========
Basic and diluted
amounts
per share:
Loss before
cumulative effect
of a change in
accounting
principle $ (0.25) $ (0.16) $ (0.47) $ (0.49)
========== ========== ========== ==========
Cumulative effect
of a change in
accounting
principle -- -- -- $ (0.10)
========== ========== ========== ==========
Net loss $ (0.25) $ (0.16) $ (0.47) $ (0.59)
========== ========== ========== ==========
Weighted average
shares used in
computing basic
and diluted net
loss per share 48,811,500 47,247,554 48,576,383 45,960,720
========== ========== ========== ==========
Balance Sheet Highlights
(In thousands)
June 30, December 31,
2001 2000
(unaudited) (Note)
Cash, cash equivalents
and marketable securities $260,184 $278,903
Total assets $294,544 $315,098
Stockholders' equity $228,776 $247,298
(Note): Derived from audited consolidated financial statements at
that date.
Contact:
Tularik Inc.
Andrew J. Perlman, M.D., Ph.D. (Executive Vice President)
Corinne H. Lyle, 650/825-7000 (VP, CFO)
or
Connections Corporation
Michael Whitehouse, 650/854-1725 (Media)
or
Stern Investor Relations
Lilian Stern, 212/315-0145 (Investors) |
