GPC Biotech Reports Strong Results for Fiscal Year 2002
Monday March 17, 1:45 am ET
* Strong cash reserves of EUR 117.9 million as of December 31, 2002 * Revenues increased 55 percent over FY2001 to EUR 21.5 million * Net loss from normal business operations reduced to EUR (27.2) million
MARTINSRIED/MUNICH, Germany, and U.S. RESEARCH FACILITIES IN WALTHAM/BOSTON, Mass., and PRINCETON, N.J., March 17 /PRNewswire/ --
GPC Biotech AG (Frankfurt Stock Exchange: GPC; Prime Standard segment) today
announced financial results for the fourth quarter and year ended December 31,
2002.
For fiscal year 2002, revenues increased 55% to EUR 21.5 million, compared to EUR 13.9 million for 2001. This increase was mainly due to the Company's multi-year alliance with ALTANA Pharma AG to establish the ALTANA Research Institute in the U.S., as well as the achievement of several milestones in other ongoing pharmaceutical alliances. Research and development (R&D) expenses rose 18% in 2002 to EUR 39.8 million, compared to EUR 33.8 million in 2001. The increase in R&D expenses reflects the Company's efforts to aggressively advance its drug development programs and further develop its technology base. General and administrative (G&A) expenses increased 13% in 2002 to EUR 11.2 million, compared to EUR 9.9 million in 2001, reflecting the Company's expanded business opera tions. Non-cash charges for stock options, which are included in R&D and G&A expenses, were EUR 3.3 million for 2002, compared to EUR 3.6 million for 2001. In order to ensure a high level of transparency, GPC Biotech has always expensed compensation costs for stock options in its income statement and has indicated the amounts. Earnings before interest and taxes (EBIT) was (38.6) million for 2002, compared to EUR (34.2) million for 2001.
Net loss from normal operations decreased to EUR (27.2) million or EUR (1.31) per share, basic and diluted, for 2002, compared to a net loss of EUR (29.4) million or EUR (1.59) per share for 2001. A change in U.S. GAAP accounting rules (SFAS 142) eliminated the quarterly amortization of certain intangible assets, such as goodwill, resulting from acquisitions. Effective January 1, 2002, all companies must carry out a yearly impairment analysis ofremaining goodwill positions. After performing this impairment analysis, GPC Biotech decided to write off at year-end 2002 the entire remaining goodwill position in the amount of EUR 7.3 million from its acquisition in 2000 of Mitotix, Inc., bringing the total goodwill position on the balance sheet to EUR 0. With this one-time, non-cash impairment charge for goodwill of EUR 7.3 million, the net loss for 2002 was EUR (34.5) million or (1.67) per share, basic and diluted.
As of December 31, 2002, cash, cash equivalents, restricted cash, short- term investments, and marketable securities totaled EUR 117.9 million, or EUR 5.69 per share, compared to EUR 143.6 million as of December 31, 2001. The available-for-sale securities represent highly rated and liquid bonds and investments in money market funds. The net cash burn (cash flow used in operating activities and investments in property and equipment) was EUR 25.2 million for 2002, well below the Company's guidance of EUR 32 million.
For the three months ended December 31, 2002, revenues increased 34% to EUR 6.2 million, compared to EUR 4.6 million for the same period in 2001. R&D expenses decreased 9% to EUR 9.6 million in the fourth quarter of 2002 compared to EUR 10.5 million for the same period in 2001. G&A expenses rose 5% to EUR 3.1 million in the fourth quarter of 2002, compared to EUR 3.0 million for the fourth quarter of 2001. Non-cash charges for stock options, which are included in R&D and G&A expenses, were EUR 0.8 million in the fourth quarter of 2002, compared to EUR 1.2 million in the fourth quarter of 2001. EBIT was EUR (14.5) million in the fourth quarter of 2002, compared to EUR (9.3) million for the same period in 2001. Net loss was EUR (13.3) million in the fourth quarter of 2002 compared to EUR (7.7) million for the same period in 2001. The increase in net loss in the fourth quarter of 2002 was attributable to the one-time, non-cash impairment charge for goodwill of EUR 7.3 million. Basic and diluted loss per share was EUR (0.65) in the fourth quarter of 2002, compared to EUR (0.36) for the same period in 2001.
Bernd R. Seizinger, M.D., Ph.D., President and Chief Executive Officer, said, "GPC Biotech met or surpassed all financial goals for 2002. Additionally, the Company's fundamentals were strengthened significantly by our achievements during the year, including the in-licensing of the late-stage anticancer compound, satraplatin; the expansion of our drug development team with the hiring of several senior level executives from the pharmaceutical industry; and the achievement of milestones in alliances with pharmaceutical partners." Dr. Seizinger continued, "We are already off to a strong start in 2003, including the introduction of a novel drug-target interaction screening technology, LeadCode(TM); the announcement of a collaboration with Eli Lilly and Company - our first LeadCode(TM) agreement and first technology collaboration with a U.S. pharmaceutical firm; and the inclusion in the TecDAX, the newly-formed index of the 30 largest stocks in the technology segment of the Frankfurt Stock Exchange."
Highlights during 2002 included:
Increased focus on oncology drug development:
* In-licensed late-stage compound, satraplatin
* Added key personnel to drug development senior management team
* Out-licensed antibacterials program
Continued strong track record in collaborations:
* Achieved milestones in drug discovery alliances with Aventis Pharma
and Boehringer Ingelheim
* Significant progress made in alliance with ALTANA Pharma toward
establishing the ALTANA Research Institute in the U.S.
Corporate:
* Patent position increased. Company held rights to over 100 issued
patents and over 200 patents pending at December 31, 2002.
* Adopted expanded corporate governance principles
* One of first companies to be listed on new Prime Standard segment of the
Frankfurt Stock Exchange
Dial-in numbers for today's press conference (11:00 A.M.-12:00 Noon CET; in German) and analyst meeting (14:30-15:30 P.M. CET/8:30-9:30 A.M. EST; in English):
Press conference (listen only):
European participants: +0049(0)69 22222 0408
U.S. participants: 011 800 7736 2663
Analyst meeting (listen only):
European participants: +0049 (0)69 22222 0560
U.S. participants: 011 800 7736 2663
Please dial in 10 minutes before the beginning of the conferences.
A replay of the analyst meeting will be available on the corporate Web site, www.gpc-biotech.com, beginning 3 hours after that event. Also, GPC Biotech's Annual Report can now be downloaded from the Web site. The printedversion will be available in mid-April.
GPC Biotech AG is a biotechnology company dedicated to discovering and developing new anticancer drugs through innovative discovery technologies and development approaches. The Company's lead product candidate - satraplatin - has successfully completed Phase 2 clinical trials and is expected to enter Phase 3 registrational studies during 2003. The Company is leveraging its drug discovery technologies in novel ways to elucidate the mechanisms-of-action of drug candidates and to support the growth of its drug pipeline. Drug discovery and development alliance partners include: ALTANA Pharma of ALTANA AG (ALT.FSE; NYSE: AAA), Aventis Pharma (PAVE.PSE), Boehringer Ingelheim International GmbH, Eli Lilly and Company (NYSE: LLY - News), MorphoSys AG (MOR.FSE), PanTherix Ltd., and Spectrum Pharmaceuticals, Inc. (Nasdaq: SPPI - News). GPC Biotech AG is headquartered in Martinsried/Munich (Germany). The Company's wholly owned U.S. subsidiary has research sites in Waltham, Massachusetts and Princeton, New Jersey. For additional information, please visit the Company's Web site at www.gpc-biotech.com.
The economic projections and forward-looking statements contained in this document relate to future facts. Such projections and forward-looking statements are subject to risks that cannot be foreseen and which are beyond the control of GPC Biotech AG. GPC Biotech AG is therefore not in a position to make any representation as to the accuracy of economic projections and forward-looking statements or their impact on the financial situation of GPC Biotech AG or the market in the shares of GPC Biotech AG.
For further information, please contact:
GPC Biotech AG
Fraunhoferstr. 20
82152 Martinsried/Munich, Germany
Phone/Fax: +49 (0)89 8565-2600/-2610
info@gpc-biotech.com |
