Hyseq Pharmaceuticals Announces Second Quarter Financial Results
SUNNYVALE, Calif., July 25 /PRNewswire-FirstCall/ -- Hyseq Pharmaceuticals, Inc. (Nasdaq: HYSQ - News) today announced results for the quarter ended June 30, 2002.
For the three months ended June 30, 2002, Hyseq reported a net loss of $8.1 million or $0.37 per share compared to a net loss of $8.4 million or $0.55 per share for the same period in 2001. Revenues for the second quarter of 2002 were approximately $6.7 million, compared to revenues of $6.0 million for the same period in 2001. For the six months ended June 30, 2002 Hyseq reported a net loss of $27.0 million or $1.32 per share, compared to a net loss of $15.1 million or $1.04 per share for the same period in 2001. Revenues for the six-month period ended June 30, 2002 were $11.9 million compared to revenues of $11.6 million for the same period in 2001.
Net loss for the six months ended June 30, 2002 included a one-time non-cash expense of $10.0 million for the issuance of warrants to collaboration partner, Amgen, as part of Hyseq and Amgen's agreement to develop and market the novel thrombolytic drug, alfimeprase, for the treatment of peripheral arterial occlusion (PAO) and other cardiovascular indications. Excluding the one-time non-cash charge, Hyseq reported a pro forma net loss of $17.0 million or $0.83 per share for the first six months of 2002, compared to a net loss of $15.1 million or $1.04 for the same period in 2001. In addition, the company accrued $0.6 million of restructuring costs for personnel reductions triggered by an agreement with BASF Plant Science to accelerate completion of our agricultural gene discovery collaboration.
As of June 30, 2002, Hyseq had approximately $11.8 million in unrestricted cash compared to approximately $12.3 million at December 31, 2001. During the second quarter of 2002 the company received gross proceeds of approximately $15.0 million from a private stock placement with select new and existing institutional investors.
"With the initiation of Phase I trials for alfimeprase, recruiting Nina Giles to lead business development efforts and completing a $15 million private placement, we have continued to achieve our goals in the second quarter," said Dr. Ted W. Love, president and chief executive officer of Hyseq Pharmaceuticals. "As we move into the second half of 2002, we are confident in our ability to execute on our strategy and add value to the company."
Company Highlights
-- Initiated Phase I clinical trials for our lead product candidate,
alfimeprase, for the treatment of peripheral arterial occlusion.
-- Appointed Nina Giles as vice president business development to drive
and accelerate corporate growth and development efforts.
-- Appointed two key new members to our board of directors, Mary K.
Pendergast, J.D., LL.M. from the U.S. Food and Drug Administration and
currently at Elan Corporation, and Richard B. Brewer, president and CEO
of Scios Inc.
-- Callida Genomics, Inc., a majority owned subsidiary of Hyseq, entered
into a licensing agreement with Agilent Technologies for DNA microarray
patents.
-- Accelerated completion of our agricultural gene discovery collaboration
with BASF Plant Science, strengthening our biopharmaceutical focus and
financial position.
-- Raised $15 million in a private placement involving new and existing
institutional investors.
As noted in last quarter's conference call, we have readjusted our conference call schedule, conducting calls periodically around major news events and milestones, and holding one call at the end of the fiscal year instead of on a quarterly basis. We will be updating the public regularly on our progress through press releases and by presenting at investor meetings and conferences.
Upcoming Events
Hyseq will hold its annual shareholder's meeting on Tuesday August 6, 2002 at 11:00 a.m. (Pacific Time) at 675 Almanor Avenue, Sunnyvale, CA 94085.
About Hyseq
Hyseq Pharmaceuticals, Inc. is engaged in research and development of novel biopharmaceutical products from its collection of proprietary genes discovered using its high-throughput screening-by-hybridization platform. Hyseq's screening-by-hybridization platform provided a significant advantage in discovering novel, rarely-expressed genes, and assembly of one of the most important proprietary databases of full-length human gene sequences. Hyseq is expanding and accelerating its research activities to further elucidate the role of novel genes in its proprietary database. Hyseq's database includes genes which encode a number of therapeutically important classes of molecules including chemokines, growth factors, stem cell factors, interferons, integrins, proteases, hormones, receptors, and other potential protein therapeutics or drug targets.
Information about Hyseq Pharmaceuticals is available at www.hyseq.com or by phoning 408-524-8100.
Statements contained in this press release which are not historical in nature, are intended to be, and are hereby identified as "forward-looking statements" for purposes of the safe harbor provided by the Private Securities Litigation Act of 1995. Forward-looking statements may be identified by words such as "believe," "expect," "anticipate," "should," "may," "estimate," "goals," and "potential," among others. Such statements are based on our management's current expectations and involve risks and uncertainties. Actual results and performance could differ materially from those projected in the forward-looking statements as a result of many factors, including, without limitation, uncertainties relating to unanticipated difficulties and delays relating to gene identification, drug discovery and clinical development processes; changes in relationships with strategic partners and dependence upon strategic partners for the performance of critical activities under collaborative agreements; the impact of competitive products and technological changes; uncertainties relating to patent protection and regulatory approval; and uncertainties relating to our ability to obtain substantial additional funds required for progress in drug discovery and development. These and other factors are identified and described in more detail in our periodic reports filed from time to time with the SEC, including without limitation our Annual Report on Form 10-K for the year ended December 31, 2001. We disclaim any intent or obligation to update these forward-looking statements.
HYSEQ PHARMACEUTICALS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
Three months ended Six months ended
June 30 June 30
2002 2001 2002 2001
(unaudited) (unaudited)
Contract revenues $6,661 $5,981 $11,893 $11,649
Operating expense:
Research and development 10,740 11,130 31,754 20,182
General and administrative 3,165 3,200 6,223 6,202
Restructuring 610 0 610 0
Total operating expenses 14,515 14,330 38,587 26,384
Loss from operations (7,854) (8,349) (26,694) (14,735)
Interest expense, net (214) (78) (442) (371)
Net loss before
minority interest (8,068) (8,427) (27,136) (15,106)
Loss attributable to
minority interest 0 0 112 0
Net loss $(8,068) $(8,427) $(27,024) $(15,106)
Basic and diluted net
loss per share $(0.37) $(0.55) $(1.32) $(1.04)
Weighted average shares
used in computing basic
and diluted net
loss per share 22,055 15,369 20,399 14,558
Note (A)
(A) Pro forma net loss for the first six months of 2002 was $(17,024) or $(0.83) per share, excluding a one-time non-cash expense of $10.0 million on the issuance of warrants to collaboration partner Amgen, as part of Hyseq and Amgen's agreement to develop and market alfimeprase.
CONDENSED CONSOLIDATED BALANCE SHEET
AND OTHER DATA
(in thousands)
June 30, December 31,
2002 2001*
(unaudited)
Cash $11,834 $12,329
Working capital (3,181) (1,717)
Cash on deposit 1,606 1,606
Total assets 36,850 39,904
Deferred revenue 2,115 3,702
Noncurrent portion of capital lease
and loan obligations 1,594 2,228
Note Payable 4,000 4,000
Accumulated deficit (135,419) (108,395)
Total stockholders' equity 13,059 15,421
The condensed consolidated balance sheet data at December 31, 2001 has been derived from the audited financial statements as of that date.
SOURCE: Hyseq Pharmaceuticals, Inc. |
