Hyseq Pharmaceuticals Announces Third Quarter 2002 Financial Results
Thursday October 24, 6:31 am ET
SUNNYVALE, Calif., Oct. 24 /PRNewswire-FirstCall/ -- Hyseq Pharmaceuticals, Inc. (Nasdaq: HYSQ - News), today announced results for the quarter ended September 30, 2002.
For the three months ended September 30, 2002, Hyseq reported a net loss of $1.4 million or $0.06 per share compared to a net loss of $10.0 million or $0.59 per share for the same period in 2001. For the nine months ended September 30, 2002, Hyseq reported a net loss of $28.5 million or $1.34 per share, compared to a net loss of $25.1 million or $1.64 per share for the same period in 2001.
Revenues for the third quarter of 2002 were approximately $11.0 million, compared to revenues of $5.9 million for the same period in 2001. Revenues for the nine-month period ended September 30, 2002 were $22.9 million compared to revenues of $17.5 million for the same period in 2001. The increase was primarily due to the accelerated completion of Hyseq's agreement with BASF Plant Sciences GmbH, scheduled to end approximately January 31, 2003.
Net loss for the nine months ended September 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 $18.5 million or $0.87 per share for the first nine months of 2002, compared to a net loss of $25.1 million or $1.64 for the same period in 2001.
As of September 30, 2002, Hyseq had approximately $4.3 million in unrestricted cash compared to approximately $12.3 million at December 31, 2001. In addition, as of September 30, 2002, Hyseq had $16.0 million available through a line of credit from George Rathmann, Ph.D., chairman of Hyseq's board of directors. Hyseq also expects to receive approximately $7.3 million in cash payments over the next four months from BASF.
"As we move into the fourth quarter, we continue to push forward with clinical programs, collaborations and financial strategies," said Dr. Ted W. Love, president and chief executive officer of Hyseq Pharmaceuticals. "Development of our lead product candidate, alfimeprase, is on schedule, expected to begin Phase II trials in the first half of 2003, and we continue to pursue revenue generating business development opportunities as well as a variety of financial strategies to bring additional funding into the company."
Company Highlights
-- Granted our fifteenth gene-related patent from our proprietary
collection of rarely expressed full-length human gene sequences.
-- Callida Genomics, Inc., a majority-owned subsidiary of Hyseq, signed an
agreement with SurroMed and the National Institute of Standards and
Technology to develop a genome-wide SNP scoring system.
-- Signed license agreement with UCSF and Celera Diagnostics granting
Celera Diagnostics non-exclusive access to a large-scale cardiovascular
patient DNA sample collection for use in diagnostics.
-- Initiated Phase I trial for our lead product candidate, alfimeprase,
for the treatment of peripheral arterial occlusion.
As noted in our first quarter 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 investing public regularly on our progress through press releases and in conjunction with presentations at investor meetings and conferences in compliance with Regulation FD.
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. This 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 intends to further elucidate the physiological roles of its proprietary novel genes. 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 Reform 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, except per share amounts)
(unaudited)
Three months ended Nine months ended
September 30 September 30
2002 2001 2002 2001
Contract revenues $11,022 $5,872 $22,915 $17,522
Operating expense:
Research and development 9,131 11,350 40,885 31,532
General and administrative 2,879 3,602 9,102 9,805
Restructuring -- 825 610 825
Total operating expenses 12,010 15,777 50,597 42,162
Loss from operations (988) (9,905) (27,682) (26,640)
Gain/(loss) on sale of fixed
assets (47) -- (34) --
Interest expense, net (409) (103) (864) (475)
Net loss before minority
interest (1,444) (10,008) (28,580) (25,115)
Loss attributable to minority
interest -- -- 112 --
Net loss $(1,444) $(10,008) $(28,468) $(25,115)
Basic and diluted net loss
per share $(0.06) $(0.59) $(1.34) $(1.64)
Weighted average shares used
in computing basic and diluted
net loss per share 22,767 16,911 21,197 15,351
Note (A)
(A) Pro forma net loss for the first nine months of 2002 was $(18,468) or
$(0.87) 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
the novel acting thrombolytic drug alfimeprase for the treatment of
peripheral arterial occlusion (PAO) and other cardiovascular
indications.
CONDENSED CONSOLIDATED BALANCE SHEET
AND OTHER DATA
(in thousands)
September 30, December 31,
2002 2001*
(unaudited)
Cash $4,272 $12,329
Working capital (3,151) (1,717)
Cash on deposit 1,106 1,606
Total assets 32,143 39,904
Deferred revenue 1,204 3,702
Noncurrent portion of capital lease
and loan obligations 1,289 2,228
Note Payable 4,000 4,000
Accumulated deficit (136,862) (108,394)
Total stockholders' equity 11,690 15,421
* The condensed consolidated balance sheet data at December 31, 2001 has
been derived from the audited financial statements as of that date.
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Source: Hyseq Pharmaceuticals, Inc. |
