Thursday November 1, 7:33 am Eastern Time
Press Release
SOURCE: Variagenics, Inc.
Variagenics Announces Third Quarter Financial
Results
CAMBRIDGE, Mass., Nov. 1 /PRNewswire/ -- Variagenics, Inc. (Nasdaq: VGNX -
news), a leader in pharmacogenomics, today announced results for the third quarter and nine
months ended September 30, 2001.
For the third quarter of 2001, revenues were $0.6 million, compared with $0.8 million for the
same period in 2000. The third quarter net loss excluding non-cash equity compensation was
$5.2 million, or $0.22 per share (basic and diluted). This compares with a net loss of $1.9
million, or $0.10 per share (basic and diluted), for the comparable quarter ended September
30, 2000.
For the nine months ended September 30, 2001, Variagenics reported revenues of $2.6
million, compared with $1.0 million for the same period in 2000. The net loss for the first nine
months of 2001 excluding non-cash equity compensation was $12.1 million, or $0.52 per
share (basic and diluted). For the comparable nine-month period of 2000, the net loss
excluding non-cash equity compensation was $7.5 million, or $1.11 per share.
The Company ended the third quarter with $85.2 million in cash and marketable securities.
``Variagenics continues to make strides towards establishing pharmacogenomics as an
accepted practice within the drug discovery process among pharmaceutical and
biotechnology companies,'' stated Taylor J. Crouch, Variagenics' President and CEO. ``We
are beginning to notice a growing understanding and acceptance for this discipline and are
pursuing those business partnerships that will not only validate pharmacogenomics within the
scientific community, but also take important steps towards commercializing molecular
diagnostics.''
``Variagenics remains committed towards the cancer treatment area, and it is our feeling that
this is where pharmacogenomics will have the greatest impact,'' continued Crouch. ``We
believe there is significant opportunity in many areas of cancer treatment to influence drug
efficacy through the adoption of pharmacogenomics and ultimately change treatment
outcomes.''
Recent Highlights:
Variagenics announced the issuance of U.S. Patent No. 6,251,587 entitled ``Methods for determining the prognosis of a
patient with a neurological disease.'' This ApoE patent describes a method for determining the prognosis of a patient
diagnosed with Parkinson's disease, multiple sclerosis, stroke and other brain diseases. It was the third ApoE patent
issued to Variagenics, which acquired the patent portfolio of Nova Molecular, Inc.
Variagenics introduced its new interactive, three-dimensional visualization system for individual genetic variations. This
demonstration tool relates functional information about genes involved in biological pathways targeted by common drugs
-- in this case antimetabolite drugs such as 5-fluorouracil, used in cancer therapy -- with information about gene structure
and genetic variation in different population groups.
Variagenics announced the issuance of U.S. Patent No. 6,291,175 titled ``Methods For Treating A Neurological
Disease By Determining BCHE Genotype.'' This patent encompasses a method for genotyping the butyrylcholinesterase
(BCHE) gene to identify patients at risk for or diagnosed with Alzheimer's disease who are pre-disposed to respond to
certain therapies. This is the first BCHE patent issued to Variagenics that describes the use of genotyping to select
therapies for Alzheimer's patients.
Q3 EARNINGS CONFERENCE CALL
Variagenics will hold a conference call at 11:00 a.m. Eastern Time today. Taylor J. Crouch, President and CEO, will lead the
call. Richard P. Shea, Vice President, CFO and Treasurer, will also participate.
Date: Thursday, November 1, 2001
Time: 11:00 a.m. Eastern Time
Conference call numbers
Toll-free: (800) 289-0494
Toll/international: (913) 981-5520
Webcast: www.variagenics.com
There will be a replay (beginning at 3:00 p.m.) of the conference call for five days. To replay the call, please dial (888)
203-1112 in the U.S. and (719) 457-0820, internationally. The access code is 733831.
Variagenics, Inc. applies its pharmacogenomic technologies to the discovery, development and commercialization of
personalized drugs and companion molecular diagnostic products. Using a drug pathway approach, the Company identifies
therapeutically important genetic markers, including SNPs, haplotypes and LOH indicators. This information is then applied to
clinical programs to enhance drugs in development, and ultimately to the creation of diagnostics for predicting patient response
to drugs.
For more information, please visit the Company's website at www.variagenics.com.
This press release may contain forward-looking statements, including statements regarding the effect of pharmacogenomics on
therapeutic outcomes and the delivery of healthcare and the role that the Company will play in the field of pharmacogenomics.
Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that
may cause actual results, events and performance to differ materially from those referred to or implied in such statements. These
risks are identified in Variagenics' Annual Report on Form 10-K for the fiscal year ended December 31, 2000. The Company
does not intend to update any of the forward-looking statements after the date of this release to conform these statements to
actual results or to changes in our expectations, except as required by law.
Contact:
Rick Shea Paul Kidwell
Chief Financial Officer Corporate Communications
617/588-5354 617/588-5340
rshea@variagenics.com pkidwell@variagenics.com
Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
2001 2000 2001 2000
Revenue:
Revenue from
collaborations $574 $763 $2,381 $1,039
Product sales -- -- 210 --
Total revenue 574 763 2,591 1,039
Costs and expenses:
Cost of product sold -- -- 186 --
Research and
development 4,519 2,171 11,477 6,248
General and
administrative 2,312 1,734 6,626 3,748
Non-cash equity
compensation 1,403 4,261 3,843 7,744
Loss from
operations (7,660) (7,403) (19,541) (16,701)
Other income (expense):
Interest income 1,114 1,301 3,803 1,706
Interest expense (78) (61) (156) (199)
Net loss $ (6,624) $ (6,163) $(15,894) $(15,194)
Dividends on redeemable
convertible preferred
stock -- (241) -- (22,106)
Net loss attributable
to common
stockholders $ (6,624) $ (6,404) $(15,894) $(37,300)
Net loss attributable
to common stockholders
per share
(basic and diluted) $(0.28) $(0.35) $(0.68) $(5.56)
Weighted average common
shares outstanding
(basic and diluted) 23,346 18,259 23,272 6,709
Net loss before dividends on redeemable
convertible preferred stock, excluding
non-cash equity
compensation $ (5,221) $ (1,903) $(12,051) $ (7,450)
Net loss per share before dividends
on redeemable convertible preferred
stock, excluding non-cash
equity compensation $(0.22) $(0.10) $(0.52) $(1.11)
Balance Sheet Data
(in thousands)
(unaudited)
September 30, 2001 December 31, 2000
Cash, cash equivalents and
short-term marketable securities $85,218 $90,963
Working capital 83,550 88,182
Total cash and marketable securities 85,218 99,025
Total assets 95,687 106,244
Stockholders' equity 89,431 101,282
SOURCE: Variagenics, Inc. |
