3-Dimensional Pharmaceuticals Announces Financial Results For The Quarter and Year Ended December 31, 2001
YARDLEY, Pa., Feb. 27 /PRNewswire-FirstCall/ -- 3-Dimensional Pharmaceuticals, Inc. (Nasdaq: DDDP - news) today announced results for the fourth quarter and fiscal year ended December 31, 2001. Revenues for the quarter increased to $10.2 million, compared to $3.8 million for the fourth quarter of 2000. Net loss for the quarter was $1.7 million, or $0.08 per share, compared to a net loss of $2.3 million, or $0.11 per share, for the fourth quarter of 2000. For the year ended December 31, 2001, 3DP reported revenues of $28.4 million, compared to $12.4 million for the same period in 2000. Net loss for the year was $11.4 million, or $0.53 per share, compared to $8.2 million, or $0.52 per share, on a pro forma basis for the same period in 2000. (Pro forma loss per common share assumes that all shares of preferred stock, which converted into common stock upon the Company's initial public offering in August 2000, had converted at the original dates of issuance.)
The revenue increases for the quarter result from discovery collaborations and license agreements with Bristol-Myers Squibb and Centocor, Inc. (a wholly owned subsidiary of Johnson & Johnson) that commenced in July 2000 and December 2000, respectively. The revenue increases for the year to date are attributable to the Bristol-Myers Squibb and Centocor agreements as well as a discovery and license agreement with Schering AG, Germany that commenced in May 2000. In addition, included in fourth quarter revenue is a $4.0 million payment resulting from a milestone that the Company achieved in October 2001 in connection with the Centocor, Inc. agreement.
Research and development expenses increased by $4.1 million to $8.7 million for the fourth quarter ended December 31, 2001, compared to $4.6 million for the fourth quarter of 2000. Research and development expenses increased by $15.0 million to $29.6 million for the year ended December 31, 2001, compared to $14.6 million for the year ended December 31, 2000. During 2001, 3DP continued to expand its research and development investments in its internal and collaborative programs. Related to the Company's expansion were increases in personnel and facilities expenses. The Company anticipates that research and development expenses will continue to increase as it advances its research and development programs towards and into human clinical trials. General and administrative expenses increased by $0.9 million to $4.3 million for the quarter ended December 31, 2001 compared to $3.4 million for the fourth quarter of 2000. General and administrative expenses increased by $6.6 million to $15.3 million for the year ended December 31, 2001 compared to $8.7 million for the year ended December 31, 2000. The increases were primarily related to increased management and personnel expenses, increased investments in business development and facilities required to support the Company's continued research and development efforts, and other expenses relating to its operations as a public company.
``The performance of 3DP in 2001 can be described as one of outstanding growth,'' said David C. U'Prichard, Ph.D., Chief Executive Officer of 3DP. ``We nearly doubled the size of our company to 200 people by year-end. We also doubled our research and development expenditures, more than doubled our revenues, and grew by 50 percent the size of our chemistry libraries. Even more exciting was the progress of a number of our key pre-clinical pipeline programs aimed at cancer, rheumatoid arthritis, cardiovascular and pulmonary disease.''
In December 2001, the Company entered into a DiscoverWorks® drug discovery alliance with Johnson & Johnson Pharmaceutical Research & Development and will begin to recognize revenue from this agreement in 2002. For 2002, 3DP's existing collaborations are expected to provide revenues of approximately $24 million relating to up-front fees, research funding payments and license fees. Not included in the 2002 estimate are potential milestone payments from existing agreements or any revenues from new collaborations. Although one of the Company's goals is to enter into additional DiscoverWorks collaborations, 3DP's basic business model is to focus a greater portion of its efforts on internal product research and development. As a result, the Company expects to incur increasing operating losses over the next several years. In connection with the Company's objective to enhance its internal pipeline, in January 2002, 3DP acquired worldwide rights to a pre IND compound from GlaxoSmithKline (GSK) for the prevention and treatment of thrombocytopenia, or low blood platelet count. The Company believes that this compound fits well with its oncology focus. All payments made to GSK will be in 3DP stock. 3DP made an initial payment of 0.5 million shares and may issue up to 1.9 million additional shares should the compound achieve certain key development and regulatory milestone events. With respect to the initial 0.5 million shares issued, the Company expects to recognize a non-cash in-process research and development charge in the first quarter of 2002 of $4.1 million.
At December 31, 2001, 3DP had cash, cash equivalents and marketable securities of $99.3 million. 3DP intends to use the cash that it receives from its collaborations, along with its existing cash, for research and development, the acquisition or licensing of technologies, the expansion of facilities, general corporate and working capital needs, and possible business combinations.
3DP (http://www.3dp.com) is an integrated bio-pharmaceuticals company dedicated to revolutionizing small molecule drug discovery and development. 3DP's proprietary platform, DiscoverWorks®, has the potential to produce drug candidates suitable for faster development, with fewer resources and a higher probability of success than using conventional drug discovery methods. 3DP is developing its own drug pipeline and collaborates with other pharmaceutical companies in discovery and development.
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