Wow, cash per share is north of 2 bucks. Apparently the Street thinks it'll be pissed away for nothing.
>>WALTHAM, Mass., Nov. 6 /PRNewswire-FirstCall/ -- Essential Therapeutics, Inc. (Nasdaq: ETRX - News) today announced financial results for the third quarter and the nine-month period ended September 30, 2002.
Total revenues were $1.8 million in the third quarter of 2002 as compared to $2.9 million in the third quarter of 2001. The decrease was primarily due to a decrease in milestone revenue from the Company's Research and License Agreement with a division of Johnson & Johnson received in the third quarter of 2001. Operating expenses increased from $5.2 million in the third quarter of 2001 to $7.3 million. The increase of $2.1 million was driven by the inclusion of the operations of The Althexis Company and Maret Pharmaceuticals in the third quarter of 2002, subsequent to these acquisitions in October 2001 and March 2002, respectively. Net loss allocable to common shareholders for the third quarter of 2002 was $5.5 million or $0.30 per share as compared to $2.3 million or $0.20 per share for the third quarter of 2001.
For the first nine months of 2002, total revenues were $7.2 million as compared to $7.4 million for the same period in 2001. The decrease was primarily due to a decrease in milestone revenue from the Company's Research and License Agreement with a division of Johnson & Johnson received in the third quarter of 2001. Operating expenses increased to $42.3 million for the first nine months of 2002 from $16.2 million in the same period of 2001, due to the previously disclosed $10.7 million restructuring charge incurred in the second quarter of 2002, the $7.7 million non-cash charge for purchased in-process research and development associated with the acquisition of Maret Pharmaceuticals incurred in the first quarter of 2002, as well as the inclusion of the operations of The Althexis Company and Maret Pharmaceuticals in the first nine months of 2002, subsequent to their respective acquisitions in October 2001 and March 2002. Excluding the restructuring charge and the charge for in-process research and development discussed above, operating expenses were $23.9 million for the nine months ended September 30, 2002 as compared to $16.2 million for the same period of 2001. Net loss allocable to common shareholders for the first nine months of 2002 was $35.5 million or $1.99 per share as compared to $8.3 million or $0.73 per share in the comparable period in 2001. The Company had $40 million in cash and cash equivalents at September 30, 2002.
The Company also announced that it has initiated another Phase I trial for ETRX 101 utilizing a higher dose than the previous studies. The Company will use the results of this Phase I trial in determining whether it will take ETRX 101 into a Phase II program. If the Company moves into Phase II, trials would be initiated in the first half of 2003.
About Essential Therapeutics
Essential Therapeutics is committed to the development of breakthrough biopharmaceutical products for the treatment of life-threatening diseases. With an emerging pipeline of lead programs and product candidates in the anti-infective and hematology/oncology therapy areas, Essential Therapeutics is dedicated to commercializing novel small molecule products addressing important unmet therapeutic needs. Additional information on Essential Therapeutics can be obtained at essentialtherapeutics.com.
Statements contained herein that are not historical fact may be forward- looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are subject to a variety of risks and uncertainties. There are a number of important factors that could cause actual results to differ materially from those projected or suggested in any forward-looking statements made by the Company. These factors include, but are not limited to, the Company's ability to: (i) maintain appropriate cash reserves and fund operations; (ii) successfully take discovered compounds through pre-clinical development, clinical trials and commercialization; and (iii) obtain required governmental approvals. For a discussion of other risks and uncertainties affecting Essential Therapeutics' business, see the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2002. Actual results and timing of certain events could differ materially from those indicated in the forward-looking statements as a result of these or other factors.
Essential Therapeutics, Inc.
Condensed 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
Revenues:
Research revenue $1,267 $1,030 $5,131 $3,761
Milestone, licensing
and other revenue 570 1,893 2,086 3,677
Total revenues 1,837 2,923 7,217 7,438
Operating expenses:
Research and development 4,728 4,201 16,687 12,678
General and administrative 2,536 1,045 7,244 3,508
Purchased in-process
research and development -- -- 7,702 --
Restructuring charges -- -- 10,720 --
Total operating expenses 7,264 5,246 42,353 16,186
Loss from operations (5,427) (2,323) (35,136) (8,748)
Interest and other
income, net 348 69 863 406
Net loss (5,079) (2,254) (34,273) (8,342)
Accretion of deemed
dividend to Series B
preferred stockholders (426) -- (1,276) --
Net loss allocable
to common stockholders $(5,505) $(2,254) $(35,549) $(8,342)
Basic and diluted net
loss per common share: $(0.30) $(0.20) $(1.99) $(0.73)
Weighted-average
shares used in computing
basic and diluted net
loss per common share 18,481 11,519 17,821 11,497
Essential Therapeutics, Inc.
Balance Sheet Data
(in thousands)
(unaudited)
September 30,
2002
Cash, cash equivalents and investments $ 40,310
Total assets 50,275
Notes payable - current and long-term portions 1,659
Convertible redeemable preferred stock 53,051
Stockholders' deficit (11,707)
Total liabilities and stockholders' deficit 50,275<<
Cheers, Tuck |
