CAMBRIDGE, Mass.--(BW HealthWire)--Feb. 26, 2002--VARIAGENICS, INC. (Nasdaq: VGNX - news), a leader in pharmacogenomics, today announced results for the year and fourth quarter ended December 31, 2001.
For the year ended December 31, 2001, VARIAGENICS reported revenues of $3.0 million, compared with $2.3 million for the same period in 2000. For 2001, the net loss excluding non-cash equity compensation was $18.5 million, or $0.79 per share (basic and diluted), compared with $9.2 million, or $0.85 per share (basic and diluted before preferred dividends) for 2000.
For the fourth quarter of 2001, revenues were $0.4 million, compared with $1.2 million for the same period in 2000. The fourth quarter net loss excluding non-cash equity compensation was $6.5 million, or $0.28 per share (basic and diluted). This compares with a net loss of $1.8 million, or $0.08 per share (basic and diluted), for the comparable quarter ended December 31, 2000.
The Company ended the year with $80.0 million in cash and marketable securities.
Recent Highlights:
* VARIAGENICS announced the execution of a worldwide licensing agreement for the Company's MTHFR (methylenetetrahydrofolate reductase) patent rights with Nanogen, Inc. (Nasdaq: NGEN - news). Under the terms of the agreement, VARIAGENICS granted Nanogen worldwide non-exclusive rights to commercialize home brew and analyte specific reagent tests aimed at the assessment of thrombo-embolic disease risk, among others. Additionally, the agreement stipulates that VARIAGENICS retains the rights to the development of future diagnostic tests and all other pharmacogenomic applications.
* VARIAGENICS announced that it entered into a research and development collaboration with GeneMatrix Inc., a Korean biotechnology company. GeneMatrix is applying genomic technology to the development of drugs and diagnostics to treat cancer. The two companies will collaborate on pharmacogenomic research and clinical development of targeted therapeutics. The ultimate goal of the collaboration is to develop molecular diagnostic products for predicting response to leading drugs in the treatment of colon and gastric cancer which can then be marketed globally. As part of the collaboration, GeneMatrix agreed to purchase VARIAGENICS' NuCleave(TM) genotyping and haplotyping platform.
VARIAGENICS CONFERENCE CALL INFORMATION
VARIAGENICS will hold a conference call at 11:00 a.m. Eastern Time today. Taylor J. Crouch, President and CEO, will lead the call. Rick Shea, Vice President, CFO and Treasurer, will also participate.
Date: Tuesday, February 26, 2002
Time: 11:00 a.m. Eastern Time
Conference call numbers
Toll-free: (800) 286-9322
Toll/international: (617) 801-9702
Access Code: 461584
Webcast: www.variagenics.com
There will be a replay of the conference call for five days beginning on Wednesday, February 27, 2002. To replay the call, please dial 888/286-8010 in the U.S. and 617/801-6888, internationally. The access code is 34839.
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.
NuCleave is a trademark of VARIAGENICS, INC.
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.
Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three months ended Year ended
December 31, December 31,
2001 2000 2001 2000
Revenue:
Revenue from collaborations $ 392 $ 1,215 $ 2,773 $ 2,254
Product sales -- -- 210 --
Total revenue 392 1,215 2,983 2,254
Costs and expenses:
Cost of product sold -- -- 186 --
Research and development 5,465 2,638 16,942 8,886
General and administrative 1,947 1,975 8,573 5,723
Non-cash equity compensation 2,959 822 6,802 8,566
Loss from operations (9,979) (4,220) (29,520) (20,921)
Other income (expense):
Interest income 662 1,656 4,465 3,362
Interest expense (92) (42) (248) (241)
Net loss $ (9,409) $ (2,606) $ (25,303) $ (17,800)
Dividends on redeemable
convertible preferred stock -- -- -- (22,106)
Net loss attributable to
common stockholders $ (9,409) $ (2,606) $ (25,303) $ (39,906)
Net loss attributable to
common stockholders per
share (basic and diluted) $ (0.40) $ (0.11) $ (1.09) $ (3.69)
Weighted average common
shares outstanding (basic
and diluted) 23,365 23,109 23,295 10,816
Net loss before dividends
on redeemable convertible
preferred stock, excluding
non-cash equity
compensation $ (6,450) $ (1,784) $ (18,501) $ (9,234)
Net loss per share before
dividends on redeemable
convertible preferred stock,
excluding non-cash equity
compensation $ (0.28) $ (0.08) $ (0.79) $ (0.85)
Balance Sheet Data
(in thousands)
(unaudited)
December 31, 2001 December 31, 2000
Cash, cash equivalents and
short-term marketable securities $72,918 $90,963
Working capital 69,709 88,182
Total cash and marketable securities 80,029 99,025
Total assets 90,932 106,244
Stockholders' equity 82,983 101,282
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