Curis Reports Third Quarter 2001 Results
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CAMBRIDGE, Mass.--(BW HealthWire)--Nov. 14, 2001--Curis, Inc. (NASDAQ: CRIS - news) today reported the results of its operations for the three- and nine-month periods ended September 30, 2001.
Total revenues for the three-month period ended September 30, 2001 were $288,000 as compared to $66,000 for the same period in 2000. Total operating expenses for the three-month period ended September 30, 2001 were $16,912,000 as compared to $323,336,000 for the same period in 2000. Total operating expenses in 2000 included a one-time charge of $294,800,000 related to the write down of in-process research & development incurred in connection with the merger in July 2000. Excluding non-cash amortization of intangible assets and stock-based compensation of $7,554,000, total operating expenses for the three-month period ended September 30, 2001 were $9,358,000.
On July 18, 2001, Curis formed a joint venture with Elan International Services, Inc. (``Elan''). During the three-month period ended September 30, 2001, Curis recognized a loss of $12,697,000 representing Curis' pro rata share of the joint venture's loss for the period.
Other income, net for the three-month period ended September 30, 2001 was $796,000 as compared to $401,000 for the same period in 2000. The net loss to stockholders for the three-month period ended September 30, 2001 was $28,672,000 or ($0.89) per share as compared to a net loss of $322,869,000, or ($15.19) per share, for the three- month period ended September 30, 2000. Excluding non-cash amortization of intangible assets, stock-based compensation and accretion of preferred stock dividend of $7,700,000 and Curis' pro rata share of the joint venture's loss for the period of $12,697,000, the net loss for the three-month period ended September 30 2001 was $8,275,000.
As of September 30, 2001, Curis' cash and investments were $61,899,000, which included restricted securities of $614,000. As of September 30, 2001, there were 32,281,380 shares of Curis common stock and 1,000 shares of Curis convertible exchangeable preferred stock outstanding.
``With the signing of the Elan joint venture, the publication in Nature Cell Biology of an article supporting our hypothesis that adult stem cells may be used to generate cell types other than those found in their tissue of origin, and the approval to initiate a clinical trial in patients suffering from sporadic basal cell carcinoma, our shareholders can see the breadth of our product portfolio'' said Daniel Passeri, President and Chief Executive Officer. ``In addition, we believe our partnering strategy going forward, as demonstrated through our joint venture with Elan, will allow us to further develop our broad portfolio of opportunities and create greater value for our shareholders.''
``Further cause for optimism was the announcement by Stryker Corporation (NASDAQ: SYK - news) that it received marketing approval for OP-1 in the United States under the Humanitarian Device Exemption provision,'' added Mr. Passeri. ``This approval represents the third major market approval for OP-1 this year and should benefit our shareholders through our royalty arrangement with Stryker. Stryker has indicated that it expects to generate product sales of OP-1 in each of Australia, Europe and the United States prior to year end.''
``Our quarterly loss, excluding Curis' pro rata share of the joint venture's loss for the period and non-cash charges for the amortization of intangibles and stock-based compensation, continues to be in line with our previously reported guidance of approximately $10 million,'' said George A. Eldridge, Vice President, Finance, and Chief Financial Officer. ``We continue to project our 2001 net loss, excluding Curis' pro rata share of the joint venture's loss and non-cash items, to be less than $40 million.''
On July 31, 2000, Creative BioMolecules, Inc. (formerly NASDAQ: CBMI), Ontogeny, Inc., and Reprogenesis, Inc., merged with and into Curis. For accounting purposes, Curis is deemed to be the successor to Creative, and the historical financial statements of Creative have become the historical financial statements of Curis. As a result, comparisons between 2000 and 2001 amounts may not accurately reflect changes in Curis' business operations.
About Curis
Curis is developing products that restore health through regenerative therapeutics. Curis utilizes technologies and insights gained through the study of developmental biology to facilitate the discovery and development of new approaches to repair and regeneration of tissues and organs damaged by disease and/or trauma. Through these discoveries, Curis has developed a pipeline of promising new therapies for the treatment of major diseases, including neurological disorders, diabetes, oncology, cardiovascular and renal disease.
The Curis technology platform and product development pipeline is based on developmental biology signaling pathways, adult stem cells, and cell-based therapies. The Curis research program is conducted both internally and through alliances, partnerships and joint ventures with companies and organizations including Aegera Therapeutics and McGill University, Montreal, Canada; Micromet AG, Munich, Germany; and Elan Corporation, Dublin, Ireland.
For more information, please visit the Curis web site at www.curis.com.
Paragraphs six, seven and eight of this press release contain forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve factors that may cause Curis' actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Specifically, by way of example and without limitation, some of the statements in the sixth, seventh and eighth paragraphs are forward-looking statements and their achievement is subject to a number of factors including: Curis' dependence on collaborative partners for the development and commercialization of many of its products; Curis' ability to effectively commercialize products in its product pipeline; Curis' research and development and capital funding requirements; and other risk factors described from time to time in Curis' periodic reports and registration statements filed with the Securities and Exchange Commission, including, without limitation, Curis' Annual Report on Form 10-K for the year ended December 31, 2000 filed on March 30, 2001 and the Company's Post Effective Amendment No. 1 on Form S-3 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on August 10, 2001. Curis cannot guarantee any future results, levels of activity, performance, or achievements. Moreover, neither Curis nor anyone else assumes responsibility for the accuracy and completeness of any forward-looking statements. Curis undertakes no obligation to update any of the forward-looking statements after the date of this press release.
CURIS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three months ended Nine months ended
September 30, September 30,
2001 2000 2001 2000
Revenues $ 287,915$ 65,955 $ 739,718$ 743,813
Operating
expenses:
Research and
development 6,901,611 6,056,255 22,903,482 10,072,461
General and
administrative 2,456,488 4,040,568 7,711,170 6,604,422
Stock-based
compensation 1,726,532 9,356,112 9,225,641 12,495,590
Amortization of
intangible
assets 5,827,392 8,529,302 17,474,712 8,647,473
Loss on
disposition
of fixed
assets -- 553,912 -- 248,516
In-process
research
& development -- 294,800,000 -- 294,800,000
Total
operating
expenses 16,912,023 323,336,149 57,315,005 332,868,462
Net loss from
operations (16,624,108) (323,270,194) (56,575,287) (332,124,649)
Equity in loss
from joint
venture (12,697,406) -- (12,697,406) --
Total other
income, net 796,067 400,959 3,663,009 898,890
Net loss $(28,525,447)$(322,869,235)$(65,609,684)$ (331,225,759)
Accretion of
preferred
stock
dividend $ (146,155)$ -- $ (146,155)$ --
Net loss
applicable to
common
stockholders $(28,671,602)$(322,869,235)$(65,755,839)$ (331,225,759)
Basic and
diluted net
loss per
common share $ (0.89)$ (15.19)$ (2.08)$ (22.59)
Basis and
diluted
weighted
average
common shares
outstanding 32,136,744 21,250,137 31,543,300 14,662,960
CURIS, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
September 30, December 31,
2001 2000
ASSETS
Cash, cash equivalents and
marketable securities $ 61,899,218 $ 75,798,610
Property and equipment, net 10,900,146 7,866,591
Intangible assets, net 79,670,952 97,145,664
Other assets 7,407,212 1,871,125
Total assets $159,877,528 $182,681,990
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and
accrued expenses $ 10,311,200 $ 7,741,465
Debt and capital lease
obligations 9,336,789 6,126,759
Deferred revenue 12,145,533 --
Total liabilities 31,793,522 13,868,224
Total stockholders' equity 128,084,006 168,813,766
Total liabilities and
stockholders' equity $159,877,528 $182,681,990
--------------------------------------------------------------------------------
Contact:
Henry W. McCusker
Head of Corporate Communications
617-503-6641
or
George A. Eldridge
Chief Financial Officer
617-503-6515 |
