Late volume in AGIX . . .
>>ATLANTA, Jul 26, 2001 /PRNewswire via COMTEX/ -- AtheroGenics, Inc. (Nasdaq: AGIX chart, msgs), an emerging pharmaceutical company focused on novel treatments for chronic inflammatory diseases, including atherosclerosis, rheumatoid arthritis and asthma, today reported financial results for the three and six months ended June 30, 2001.
For the three months ended June 30, 2001, AtheroGenics reported a net loss of $3.9 million, or $(0.16) per share, compared to a net loss of $3.1 million, or $(0.18) pro forma per share, for the same quarter in 2000. For the six months ended June 30, 2001, AtheroGenics reported a net loss of $7.0 million, or $(0.29) per share, compared to a net loss of $6.5 million, or $(0.39) pro forma per share, for the same period in 2000.
Research and development expenses for the three months ended June 30, 2001 increased 41% to $3.8 million, compared to $2.7 million for the same quarter in 2000. For the six months ended June 30, 2001, research and development expenses increased 32% to $7.4 million, compared to $5.6 million for the same period in 2000. The increase in research and development expenses was primarily due to the Company's ongoing expansion of internal research and development capabilities; pre-clinical and clinical development costs related to the Company's oral rheumatoid arthritis drug candidate, AGIX-4207, and pre- clinical costs for other product development programs currently in progress.
Despite the increased investment in research and development, total operating expenses for the three months ended June 30, 2001 declined to $5.0 million from $5.3 million for the same quarter in 2000. For the six months ended June 30, 2001, total operating expenses were $10.3 million, compared to $10.9 million for the same period in 2000. The decline in expenses was primarily due to reduced amortization of stock compensation.
Revenues for the three months ended June 30, 2001 were $481,000, compared to $2.1 million in the second quarter of 2000. Revenues for the six months ended June 30, 2001 were $1.9 million, compared to $4.2 million for the same period in 2000. The decline in revenues principally reflected lower payments from Schering-Plough Corporation in 2001, due to reduced activities as AtheroGenics completed the final stages of the CART-1 (Canadian Antioxidant Restenosis Trial) Phase II clinical trial for AGI-1067.
As of June 30, 2001, AtheroGenics had cash, cash equivalents and marketable securities of approximately $68.1 million, compared to $54 million as of December 31, 2000. The increase was the result of the Company's private placement financing, which was completed in June 2001 and raised gross proceeds of $20.6 million.
"This has been a productive quarter for AtheroGenics," said Russell Medford, M.D., Ph.D., President and Chief Executive Officer. "We continue to aggressively execute on our strategic business plan as evidenced by key achievements in the last three months. In May 2001, we received encouraging top-line results from the CART-1 Phase II clinical trial for our lead compound, AGI-1067. Shortly thereafter, we successfully completed a $20.6 million private placement financing, managed by JPMorgan H&Q. Most recently, we entered into an exclusive license agreement with National Jewish Medical and Research Center for its MEKK technology platform, further enhancing our product pipeline with novel synergistic technology that addresses chronic inflammatory diseases. This past quarter clearly demonstrates that the Company is making major strides in continuing to build shareholder value."
Quarterly Highlights:
* On May 21, 2001, AtheroGenics announced encouraging preliminary results
of a Phase II clinical trial of AGI-1067, an oral agent for the
treatment of restenosis after angioplasty. An analysis of the results
indicated that six months after angioplasty, the blood vessels of
patients who received AGI-1067 had greater luminal diameters of their
coronary arteries compared to those receiving placebo. This
improvement showed a statistically significant dose response. At the
highest dose of AGI-1067, the increase in the size of the target blood
vessel was similar to that achieved with probucol, the active control
drug in CART-1, which has been shown in previous clinical studies to
significantly reduce restenosis rates following angioplasty. A full
analysis of the safety and efficacy data is underway, and expected to
be announced later this year at a major medical conference.
* The Company completed the sale of 3,585,000 newly issued shares of
Common Stock, raising gross proceeds of $20.6 million. Both new and
existing investors participated in the transaction, including, among
others, SAFECO Growth Opportunities Fund and Vulcan Ventures Inc.
JPMorgan H&Q served as exclusive placement agent for this transaction.
* Last month, AtheroGenics entered into an exclusive license agreement
with National Jewish Medical and Research Center of Denver, Colo. to
discover and develop novel therapeutics based on MEK kinases (MEKKs),
enzymes that participate in a broad range of cellular activities,
including the response to cytokines, and related technology for the
treatment of inflammation. Other licensed technology focuses on the
application of several naturally occurring substances in the
development of a potential treatment for asthma. AtheroGenics will be
exploiting these new technologies to provide a second broad platform
for the discovery and development of a new class of anti-inflammatory
drug candidates.
* On June 25, 2001, AtheroGenics announced the appointment of Stephen G.
Sudovar to the Company's Board of Directors. Mr. Sudovar is the former
President of Roche Laboratories, Inc., a subsidiary of Swiss-based
pharmaceutical giant Roche, and currently serves as President and Chief
Executive Officer of EluSys Therapeutics, Inc., a private
biopharmaceutical company focused on the treatment of blood-borne
viral, bacterial and autoimmune diseases.
* Noted industry executive Martin Wasserman, Ph.D. joined the Company as
Vice President of Research and Chief Scientific Officer. Dr. Wasserman
was formerly with Aventis Pharmaceuticals, Inc., where he served as
Vice President and Senior Distinguished Scientist in the Respiratory
and Rheumatoid Arthritis Disease Group. Previously, Dr. Wasserman
served as Director, Pulmonary Research, Department of Inflammation and
Autoimmune Diseases at Hoffmann-LaRoche, Inc.<<
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Cheers, Tuck |
