Curis Reports Fourth Quarter and Fiscal 2001 Results
CAMBRIDGE, Mass.--(BUSINESS WIRE)--March 14, 2002--Curis, Inc. (NASDAQ: CRIS - news) today reported the results of its operations for the three- and twelve-month periods ended December 31, 2001.
Total revenues for the three-month period ended December 31, 2001 were $347,000 as compared to $280,000 for the same period in 2000; an increase of 24%. Total operating expenses for the three-month period ended December 31, 2001 were $15,946,000 as compared to $19,930,000 for the same period in 2000; a decrease of 20%. Excluding non-cash amortization of intangible assets and stock-based compensation which do not impact Curis' cash reserves of $6,996,000 and $9,936,000 in 2001 and 2000, respectively, and one-time charges of $761,000 in 2000, total operating expenses for the three-month period ended December 31, 2001 were $8,950,000 as compared to $9,233,000 for the same period in 2000; a decrease of 3%.
On July 18, 2001, Curis formed a joint venture with Elan International Services, Inc. (``Elan''). During the three-month period ended December 31, 2001, Curis recognized a loss of $756,000 representing Curis' pro rata share of the joint venture's loss for the period. Curis intends to fund such loss by drawing down on a funding facility provided by an affiliate of Elan.
The net loss applicable to common stockholders for the three-month period ended December 31, 2001 was $16,434,000 or ($0.51) per share as compared to a net loss of $19,125,000 or ($0.71) per share, for the three-month period ended December 31, 2000; a decrease of 14%. Excluding non-cash amortization of intangible assets, stock-based compensation, one-time charges of $296,755,00 in 2000, and accretion of preferred stock dividend of $180,000 in 2001, the net loss for the three-month period ended December 31, 2001 was $9,258,000 as compared to $8,428,000 for the three-month period ended December 31, 2000; an increase of 10%. These non-cash charges do not impact Curis' cash reserves.
As of December 31, 2001, Curis' cash and investments were $52,107,000, which included restricted securities of $890,000. As of December 31, 2001, there were 32,329,228 shares of common stock and 1,000 shares of Series A convertible exchangeable preferred stock outstanding.
Curis' loss for the year, excluding Curis' pro rata share of the joint venture's loss for the period and non-cash charges for the accretion of preferred stock dividends, amortization of intangibles and stock-based compensation, was $34.7 million, in line with management's previously reported guidance of being less than $40 million. Curis confirms its previously reported guidance for 2002, expecting a net loss of approximately $26 million, excluding Curis' pro rata share of the joint venture's loss, $3.5 million realignment cash costs, and other non-cash items. Curis believes it has sufficient capital to operate into the fourth quarter of 2003.
``Since becoming President and Chief Executive Officer of Curis in September 2001, I have focused on prioritizing our assets and programs. This prioritization of product development programs and the realigning of our financial resources strengthens our capacity to enhance future shareholder value,'' said Daniel R. Passeri, President and Chief Executive Officer of Curis. ``As we ended 2001, we defined our blueprint for growth through corporate partnering of our core asset programs. Our major focus is based on therapies that are designed to regulate the pathways used by the body to maintain and restore health. This has been further validated through the marketing approval of OP-1 announced by Stryker, for which Curis receives royalties.''
Total revenues for the twelve-month period ended December 31, 2001 were $1,087,000 as compared to $1,024,000 for the same period in 2000. Total operating expenses for the twelve-month period ended December 31, 2001 were $73,261,000, as compared to $352,799,000 for the same period in 2000. Excluding non-cash amortization of intangible assets and stock-based compensation of $33,697,000, total operating expenses for the twelve-month period ended December 31, 2001 were $39,565,000. These non-cash charges do not impact Curis' cash reserves.
During the twelve-month period ended December 31, 2001, Curis recognized a loss of $13,453,000 representing Curis' pro rata share of the Elan joint venture's loss for the period.
The net loss applicable to common stockholders for the twelve-month period ended December 31, 2001 was $82,190,000 or ($2.58) per share as compared to a net loss of $350,351,000 or ($19.80) per share, for the twelve-month period ended December 31, 2000. Excluding non-cash amortization of intangible assets, stock-based compensation, accretion of preferred stock dividend of $326,000 in 2001 and Curis' pro rata share of the technology acquisition expense incurred by the Elan joint venture of $12,015,000 in 2001, the net loss for the twelve-month period ended December 31, 2001 was $36,152,000. Non-cash charges do not impact Curis' cash reserves.
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.
Financial results for the year ended December 31, 2000 included a number of significant, non-cash charges and other merger-related cash expenses. These include costs and expenses as follows: a one-time non-cash charge of $294,800,000 resulting from the allocated portion of the purchase price of Ontogeny and Reprogenesis identified under the accounting rules as in-process research and development; stock-based compensation of $16,628,000; write-off of patents of $4,611,000; severance paid to former executive officers and former employees of $1,955,000; and a loss on the disposition of assets of $204,000.
About Curis
Curis, Inc. is generating therapies that are designed to regulate the pathways used by the body to maintain and restore health. The company focuses on signaling pathways that govern the proliferation and differentiation of cells. These same pathways control maintenance, repair, and regeneration of tissues and organs from infancy through old age. This approach has created an approved product for bone regeneration and is being used to enable Curis to build a portfolio of product candidates in neurology, kidney disease, and cancer. For more information, please visit the Curis web site at www.curis.com.
This press release contains forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements address a variety of subjects, including, for example, projected net losses, generating stockholder value, operating capital requirements, operating efficiencies, strategic collaboration efforts and product development efforts. Statements in this press release that state Curis' or management's intentions, plans, expectations or predictions of future events are forward-looking statements. The matters discussed in this press release also involve risks and uncertainties 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. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: Curis' need for partnerships to move forward its cell therapy programs, the early stage of product development of Curis' retained programs, uncertainties related to clinical trials, uncertainties related to Curis' ability to raise additional capital, changes in or an inability to execute Curis' realigned business strategy 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three months ended Year ended
December 31, December 31,
2001 2000 2001 2000
Revenues $346,785 $279,756 $1,086,503 $1,023,569
Operating expenses:
Research and
development 6,168,586 7,351,433 29,072,068 17,423,895
General and
administrative 2,781,355 2,687,443 10,492,525 9,330,256
Stock-based
compensation 1,132,661 4,132,628 10,358,302 16,628,218
Amortization of
intangible
assets 5,863,827 5,803,422 23,338,539 14,450,894
Gain (loss) on
disposition of
fixed assets -- (44,612) -- 203,904
In-process research
& development -- -- -- 294,800,000
Reorganization
costs (reversal) -- -- -- (38,391)
Total operating
expenses 15,946,429 19,930,314 73,261,434 352,798,776
Loss from
operations (15,599,644) (19,650,558) (72,174,931) (351,775,207)
Equity in Loss
from Joint
Venture (755,734) -- (13,453,140) --
Total other
income, net 101,412 525,693 3,764,421 1,424,583
Net loss (16,253,966) (19,124,865) (81,863,650) (350,350,624)
Accretion on
Series A
Redeemable
Preferred Stock (180,226) -- (326,381) --
Net loss
applicable
to common
stockholders $(16,434,192) $(19,124,865) $(82,190,031) $(350,350,624)
Basic and diluted
net loss per
common share $(0.51) $(0.71) $(2.58) $(19.80)
Weighted average
common shares
for basic and
diluted net loss
computation 32,291,959 26,786,175 31,858,923 17,693,996
CURIS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
December 31, December 31,
2001 2000
ASSETS
Cash, cash equivalents and
marketable securities $52,107,328 $75,798,610
Property and equipment, net 11,060,711 7,866,591
Intangible assets, net 73,807,125 97,145,664
Other assets 7,781,053 1,871,125
Total assets $144,756,217 $182,681,990
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses $8,681,868 $7,741,465
Debt and capital lease obligations 10,567,789 6,126,759
Deferred revenue 12,145,533 --
Total liabilities 31,395,190 13,868,224
Redeemable preferred stock 12,341,381 --
Total stockholders' equity 101,019,646 168,813,766
Total liabilities and
stockholders' equity $144,756,217 $182,681,990
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Contact:
for Curis, Inc.
Henry W. McCusker, 617-503-6641
George A. Eldridge, 617-503-6515
or
for Noonan Russo/Presence Euro RSCG
Renee Connolly, (212) 696-4455 x 227
Sharon Weinstein, (212) 696-4455 x 334 |
