MENLO PARK, Calif., Aug. 2 /PRNewswire/ -- Deltagen, Inc. (Nasdaq: DGEN - news) today reported financial results for the second quarter ended June 30, 2001.
Revenue for the quarter ended June 30, 2001 increased 921 percent to $2,735,000 compared to $268,000 for the quarter ended June 30, 2000. The increase is primarily attributable to revenue from Deltagen's DeltaBase(TM) mammalian gene function database.
Costs and expenses for the quarter ended June 30, 2001 were $15.7 million, an increase from $9.3 million in the second quarter of 2000. The increase is due primarily to investments in expanding the production pipeline of gene targets for DeltaBase and development costs for the therapeutic protein discovery and DeltaXpress(TM) gene expression programs.
The June 30, 2001 quarter also included a charge of $1.3 million, or $0.05 per share, for the estimated loss on the sublease of existing redundant facilities as the company entered into a new lease for expanded facilities. The number of employees grew to 270 at June 30, 2001 from 212 at December 31, 2000. Non-cash charges in the second quarter included $1.2 million in amortization of stock compensation costs in 2001 compared to $3.3 million in the second quarter of 2000.
Net interest income was $1.1 million in the three months ended June 30, 2001, compared to net interest income of $125,000 in the prior year second quarter. The increased interest income is due to interest earned on the proceeds from the Company's initial public offering in August 2000.
The net loss for the quarter ended June 30, 2001 was $11.9 million, or $0.41 per share versus a loss of $8.9 million in the prior year second quarter. The loss before the charges for amortization of stock compensation cost and the estimated sublease loss was $9.4 million in the June 30, 2001 quarter compared to $5.6 million in the quarter ended June 30, 2000. At June 30, 2001 cash, cash equivalents and short-term investments totaled $102.5 million.
``We had a very productive second quarter. We demonstrated again our robust production pipeline with the delivery of the fourth installment of DeltaBase, completing the first full year of the product with 250 potentially therapeutically relevant gene targets in the database. Our targeted selection process populates DeltaBase with potential small molecule drug targets from gene families in which pharmaceutical companies have expressed the most interest. The addition of Vertex Pharmaceuticals in the second quarter as a DeltaBase subscriber further demonstrates the power of this targeted approach. We are also making excellent progress thus far in the third quarter, with expansion of our production capacity with the long-term lease of our new headquarters and research facility, the acquisition of Arcaris, Inc. and the expansion of our secreted protein program through our agreement with Lilly,'' said William Matthews, Ph.D., president and chief executive officer at Deltagen. ``We believe that Vertex and Lilly provide additional validation to the proprietary nature of our product offerings.''
Recent key accomplishments:
-- Secured agreement with Lilly to evaluate, develop and commercialize
potential drug targets from their secreted protein pipeline.
-- Signed a long-term facility lease for an additional 160,000 square feet
of building space to house our new corporate headquarters and research
facilities in Redwood City, California, bringing total facility space
to 225,000 square feet. Deltagen will move its administrative services
to the new facility in September, and the research and development
areas are expected to be available in May of 2002. The new facilities
will provide the infrastructure capacity to support Deltagen's internal
growth requirements and accommodate future secreted protein drug
development partnerships.
-- Appointed Dan Shochat, Ph.D., as vice president of pharmaceutical
development and a member of the Executive Management Committee.
Dr. Shochat will lead Deltagen's early-stage product development
programs including our preclinical work with CD 123, a potential
treatment for Acute Myelogenous Leukemia (AML). Dr. Shochat will also
oversee Deltagen's product in-licensing efforts.
-- Delivered fourth quarterly release of DeltaBase to current subscribers,
now totaling 250 potential gene targets.
-- Filed our 400th application with the United States Patent and Trademark
Office (USPTO) describing gene function and drug discovery. Deltagen
continues to pursue patent protection around the in vivo mammalian
function of genes determined through Deltagen's proprietary functional
genomic technologies.
-- Entered into a collaboration agreement to provide Vertex
Pharmaceuticals Incorporated, with non-exclusive access to a subset of
DeltaBase, specifically kinases, proteases and other gene families
selected by both companies for their commercial relevance.
-- Acquired Arcaris, Inc., (now named "Deltagen Proteomics, Inc.") to
extend Deltagen's existing high-throughput efforts to identify and
validate the genomic "druggable universe," the small molecule targets
relevant to small molecule drug screening.
The Arcaris technology platform will be utilized to advance the discovery of new disease targets by potentially defining the role of novel non-traditional targets within intracellular pathways with particular relevance to oncology, viral and infectious diseases.
Deltagen management will hold a conference call at 11:00 a.m. eastern today to discuss today's announcement. The dial-in-number for domestic callers is 1-800-252-8304 and for international callers the dial-in-number is +1-415-904-2440. This conference call will also be broadcast simultaneously via the Internet at www.deltagen.com. The conference call will be archived at this website through August 6, 2001. A telephonic replay will be available after the call through August 6, 2001. To access the replay, please call 1-800-633-8284 (U.S.) or +1-858-587-5842 (International). The conference call reservation number is 19182194. |
