Aronex Pharmaceuticals, Inc. Reports Second Quarter 1997 Results
July 24, 1997 03:43 PM
THE WOODLANDS, Texas, July 24 /PRNewswire/ -- Aronex Pharmaceuticals, Inc. ARNX today reported its financial results for the second quarter ended June 30, 1997. The Company believes that its current cash position of $35.5 million and its expanded management team will allow the Company to continue to aggressively advance its pipeline of clinical and preclinical products. As expected, the Company reported a net loss of $3.2 million, or $0.22 per share, for the second quarter of 1997, compared with a net loss of $2.3 million, or $0.19 per share, for the second quarter of 1996. Total revenues for the quarter, comprised primarily of interest income, were $561,000 in 1997, compared with $793,000, comprised primarily of contract research, development and interest income, for the same period in 1996. Research and development expenditures for the second quarter of 1997 were $3.2 million, compared to $2.5 million for the same period in 1996. The Company attributed the majority of 1997 second quarter R&D expenditures to the expansion of its clinical programs.
For the six months ended June 30, 1997, Aronex reported a loss of $6.3 million, or $0.43 per share, compared with a net loss of $4.4 million, or $0.38 per share for the first six months of 1996. Total revenues for the six months ended June 30, 1997, comprised mostly of interest income, were $1,439,000 compared with $1,478,000 for the same period in 1996.
Clinical Programs Update:
Annamycin (novel anthracycline for breast cancer):
The evaluation of Annamycin continues in a clinical trial at M.D. Anderson Cancer Center in Houston, Texas. An additional Phase II trial to evaluate the effectiveness of Annamycin in treating breast cancer patients is anticipated to begin in the third quarter of 1997.
Atragen(TM) (liposomal formulation of all-trans retinoic acid for acute promyelocytic leukemia, or APL):
Progress continues toward the filing of a New Drug Application (NDA) by year end for Atragen. This is expected to be the Company's first NDA, and the first product to reach commercialization. The Company believes that the ongoing pivotal Phase II clinical trial continues to demonstrate efficacy in APL, and to achieve apparently durable and sustainable remissions.
Nyotran(TM) (liposomal formulation of nystatin for systemic fungal infections):
With its partner, Grupo Ferrer International, S.A., the Company is currently working on a targeted year-end filing of a Marketing Authorization Application (MAA) in Spain and Portugal. Approval of the MAA would permit commercialization of Nyotran in these two European countries. In compliance with a request from the Food and Drug Administration, the Company's Phase III trial in the United States comparing Nyotran to amphotericin B has been expanded to include an additional 200 patients. The Company anticipates completion of this expanded trial by year end 1998. The Company believes that the recent FDA Advisory Committee's unanimous approval of an empiric therapy fungal indication sets a favorable precedent for the FDA's consideration of the Nyotran development program.
Zintevir(TM) (inhibitor of HIV integrase):
A Phase I/II Zintevir trial is expected to begin in the third quarter of 1997 at New York Hospital -- Cornell Medical Center. Zintevir is the first HIV integrase inhibitor to enter clinical trials.
Preclinical Programs Update:
AR209 (binding ligand):
Two companies have licensed the AR209 binding ligand from Aronex. Prizm Pharmaceuticals, Inc. (San Diego, California) has purchased an option for an exclusive license of the AR209 binding ligand for therapeutic uses of proprietary antibodies for selected applications, including gene delivery. Neomarkers, Inc. (Fremont, California) has purchased an exclusive license of the AR209 binding ligand for sale of these antibodies as research reagents. In January 1997, the Company announced a licensing arrangement with Boehringer Mannheim GmbH for the development and commercialization of its AR209 preclinical antibody-toxin complex for breast cancer and other solid tumors. This arrangement excludes the specific right to the binding ligand of AR209.
Aronex Pharmaceuticals, Inc. is a leading biopharmaceutical company engaged in the identification and development of proprietary innovative medicines to treat cancer and life-threatening infectious diseases. Aronex currently has four products (Nyotran(TM), Atragen(TM), Annamycin and Zintevir(TM)) in various stages of ongoing clinical development and a number of products in preclinical development.
ARONEX PHARMACEUTICALS, INC.
(A development stage company)
CONDENSED STATEMENTS OF OPERATIONS
(all amounts in thousands, except loss per share data)
(unaudited)
Six Months Ended Three Months Ended
June 30, June 30,
1997 1996 1997 1996
Revenues:
Interest income $1,123 $470 $531 $328
Research and development
grants and contracts 316 1,008 30 465
Total revenues 1,439 1,478 561 793
Expenses:
Research and development 6,652 4,845 3,167 2,523
Purchase of in-process
research and development 0.00 191 --- 191
General and administrative 931 771 475 376
Interest expense and other 150 71 120 30
Total expenses 7,733 5,878 3,762 3,120
Net loss $(6,294) $(4,400) $(3,201) $(2,327)
Net loss per share $(0.43) $(0.38) $(0.22) $(0.19)
Weighted average common
shares outstanding 14,646 11,527 14,671 12,404
CONDENSED BALANCE SHEETS
June 30, December 31,
1997 1996
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $6,233 $4,179
Short-term investments 25,468 30,414
Prepaid expenses and other assets 841 741
Total current assets 32,542 35,334
Long-term investments 3,765 6,795
Furniture, equipment and leasehold
improvements, net 1,742 2,152
Other assets 147 ---
Total assets $38,196 $44,281
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $3,568 $3,658
Total long-term liabilities 18 146
Total stockholders' equity 34,610 40,477
Total liabilities and
stockholders' equity $38,196 $44,281
SOURCE Aronex Pharmaceuticals, Inc.
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