Curis Reports Second Quarter 2002 Results
CAMBRIDGE, Mass.--(BUSINESS WIRE)--Aug. 14, 2002--Curis, Inc. (NASDAQ: CRIS - News) today reported the results of its operations for the three- and six-month periods ended June 30, 2002.
Total revenues for the three-month period ended June 30, 2002 were $190,000 as compared to $203,000 for the same period in 2001. Total operating expenses for the three-month period ended June 30, 2002 were $70,483,000 as compared to $20,057,000 for the same period in 2001. Excluding (i) non-cash amortization of intangible assets, stock-based compensation and impairment of property and equipment of $653,000 and (ii) a non-cash charge for impairment of goodwill of $64,098,000, total operating expenses for the three-month period ended June 30, 2002, were $5,732,000. Total operating expenses for the three-month period ended June 30, 2001, excluding non-cash amortization of intangible assets and stock-based compensation of $9,491,000, were $10,566,000.
On July 18, 2001, Curis formed a joint venture with affiliates of Elan Corporation, plc. ("Elan"). During the three-month period ended June 30, 2002, Curis recognized expenses of $1,078,000 representing its pro rata share of the joint venture's loss for the period. Curis intends to fund such expenses by drawing down, subject to Elan's consent, on a funding facility provided by an affiliate of Elan.
Other income for the three-month period ended June 30, 2002 was $379,000 as compared to $577,000 for the same period in 2001. The net loss for the three-month period ended June 30, 2002 was $71,173,000 or ($2.20) per share as compared to a net loss of $19,277,000 or ($0.61) per share, for the three-month period ended June 30, 2001. Excluding (i) non-cash amortization of intangible assets, stock-based compensation and impairment of property and equipment of $653,000 and (ii) a non-cash charge for impairment of goodwill of $64,098,000, the net loss for the three-month period ended June 30, 2002 was $6,422,000, or ($0.20) per share. Excluding non-cash amortization of intangible assets and stock-based compensation of $9,491,000, the net loss for the three-month period ended June 30, 2001 was $9,786,000, or ($0.31) per share.
As of June 30, 2002, Curis' cash and investments were $35,325,000, including restricted cash and equivalents of $4,695,000. As of June 30, 2002, there were 32,359,187 shares of common stock and 1,000 shares of Series A convertible exchangeable preferred stock outstanding.
"The financial effects of our February 2002 realignment efforts are evidenced by the $3,364,000, or 34%, reduction in our quarterly loss, excluding non-cash charges, for the quarter ended June 30, 2002 as compared to the quarter ended June 30, 2001" said Daniel R. Passeri, President and Chief Executive Officer of Curis. "Going forward, Curis will continue to explore strategies to further reduce our net expenditures. We will also couple these operating efficiencies with our corporate partnering strategy to enable us to most effectively advance those key assets that we believe provide the greatest opportunity for creating shareholder value."
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 programs, the early stage of product development of Curis' retained programs, uncertainties related to clinical trials run by our corporate partners, uncertainties related to Curis' ability to raise additional capital, Curis' ability to drawdown on its credit facility with Elan, 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, 2001 filed on March 29, 2002 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 Six months ended
June 30, June 30,
2002 2001 2002 2001
Revenues $189,603 $202,638 $348,235 $451,803
Operating expenses:
Research and
development 3,902,554 7,893,163 8,737,317 16,001,870
General and
administrative 1,829,752 2,672,291 4,541,091 5,254,682
Stock-based
compensation 427,433 3,667,670 1,124,895 7,499,109
Amortization of
intangible assets 60,405 5,823,660 120,810 11,647,321
Impairment of
property and
equipment 164,842 -- 5,336,785 --
Impairment of
goodwill 64,098,345 -- 64,098,345 --
Realignment
expenses -- -- 3,490,000 --
Total operating
expenses 70,483,331 20,056,784 87,449,243 40,402,982
Net loss from
operations (70,293,728) (19,854,146)(87,101,008)(39,951,179)
Equity in loss from
joint venture (1,078,223) -- (2,239,906) --
Other income, net 378,764 577,138 527,688 2,866,942
Net loss (70,993,187) (19,277,008)(88,813,226)(37,084,237)
Accretion on Series A
convertible exchangeable
preferred stock (180,225) -- (362,453) --
Net loss applicable to
stockholders $(71,173,412)$(19,277,008)$(89,175,679)$(37,084,237)
Basic and diluted net
loss per common share $(2.20) $(0.61) $(2.76) $(1.18)
Basic and diluted
weighted average common
shares outstanding 32,334,965 31,560,390 32,332,113 31,497,604
CURIS, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30, December 31,
2002 2001
ASSETS
Cash, cash equivalents
and marketable securities $ 35,324,622 $ 52,107,328
Property and
equipment, net 4,578,728 11,060,711
Intangible assets 9,587,971 73,807,125
Other assets 8,771,531 7,781,053
Total assets $ 58,262,852 $144,756,217
LIABILITIES AND
STOCKHOLDERS' EQUITY
Accounts payable and
accrued expenses $ 9,994,300 $ 8,681,868
Debt and capital
lease obligations 6,873,956 8,060,937
Convertible notes payable 4,586,593 2,506,852
Deferred revenue 12,002,905 12,145,533
Total liabilities 33,457,754 31,395,190
Series A convertible
exchangeable preferred stock 12,703,833 12,341,381
Total stockholders' equity 12,101,265 101,019,646
Total liabilities and
stockholders' equity $ 58,262,852 $144,756,217
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Contact:
Curis, Inc.
Henry W. McCusker, 617/503-6641
or
Curis, Inc.
Daniel R. Passeri, 617/503-6500
or
Noonan Russo Presence Euro RSCG
Melissa Wainberg (media), 212/845-4262
or
Noonan Russo Presence Euro RSCG
Sharon Weinstein (investors), 212/845-4271 |
