Sirna Therapeutics Reports Second Quarter Financial Results
Thursday August 14, 8:55 am ET
BOULDER, Colo., Aug. 14 /PRNewswire-FirstCall/ -- Sirna Therapeutics, Inc. (Nasdaq: RNAI - News) today reported a net loss applicable to common stock of $7.8 million, or $0.28 per share, for the quarter ended June 30, 2003 compared to a net loss applicable to common stock of $9.6 million, or $2.85 per share, for the same period in 2002. Net loss applicable to common stock for the first six months of 2003 was $13.3 million, or $.084 per share, compared to a net loss applicable to common stock of $18.1 million, or $5.40 per share, for the same period last year. Per share amounts have been adjusted to reflect the 1 for 6 reverse stock split which became effective on April 17, 2003.
The decrease in net loss for the period was primarily attributable to an increase in revenues from contract manufacturing plus lower operating expenses, reflecting the previously announced corporate restructuring and the Company's change in business strategy to focus primarily on RNA interference (RNAi) technology. Research and development expenses for the second quarter of 2003 were $4.3 million, compared to $7.9 million for the second quarter of 2002. Offsetting the revenue increase and savings in operating expenses, the Company took a one-time non-cash expense of $5.3 million in deferred patent costs for patents which do not directly support the Company's RNAi technology development focus.
The Company's cash, cash equivalents and securities available-for-sale were $43.8 million at June 30, 2003. On April 21, 2003 the company consummated a private placement of $48 million of its common stock and warrants exercisable for additional shares of common stock to several biotechnology venture capital investors to support the Company's research and development of RNAi-based therapeutics.
About Sirna Therapeutics
Sirna Therapeutics (Nasdaq: RNAI - News) is using its proprietary technology and expertise in nucleic acids to develop a new class of nucleic acid-based therapeutics involving RNA interference. Sirna Therapeutics is dedicated to engineering RNA-based molecules for therapeutic and diagnostic purposes. More information on Sirna Therapeutics is available on the Company's web site at www.sirna.com.
This press release contains forward-looking statements that involve risks and uncertainties, and actual events or results may differ materially. These risk factors include actions by the U.S. Food and Drug Administration, technological advances, ability to obtain rights to technology, ability to obtain and enforce patents, ability to commercialize and manufacture products and general economic conditions. These and additional risk factors are identified in the Company's Securities and Exchange Commission filings, including the Forms 10-K and 10-Q and in other SEC filings. Sirna undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
For further information, please contact: Marvin Tancer, CFO & V.P. Operations of Sirna Therapeutics, Inc., +1-303-449-6500; or Amy Sullivan, Senior Vice President of Euro RSCG Life NRP, +1-415-901-3705.
SIRNA THERAPEUTICS, INC.
CONDENSED BALANCE SHEET
June 30, December 31,
2003 2002
(unaudited)
Assets
Cash, cash equivalents and
securities available-for-sale $43,791,328 $8,820,978
Accounts receivable 378,729 483,645
Equipment & leasehold
improvements, net 3,948,372 4,523,809
Other assets, net 2,835,386 8,069,693
Total assets $50,953,815 $21,898,125
Liabilities and stockholders'
equity (deficit)
Current liabilities $3,627,689 $5,033,196
Long-term liabilities, long-term debt &
convertible debt 4,100,283 6,488,712
Convertible preferred stock -- 14,329,366
Stockholders' equity (deficit) 43,225,843 (3,953,149)
Total liabilities & stockholders' deficit $50,953,815 $21,898,125
SIRNA THERAPEUTICS, INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Six months ended
June 30, June 30,
2003 2002 2003 2002
Revenues
Collaborative
agreements $2,877,120 $1,039,814 $3,261,909 $1,966,222
Collaborative
agreements-
joint venture -- 424,998 2,283 850,810
Collaborative
agreements-
related parties 105,398 157,441 208,115 383,857
Total revenues 2,982,518 1,622,253 3,472,307 3,200,889
Expenses
Research and
development 4,276,230 7,886,618 8,052,993 14,627,233
General and
administrative 1,225,264 1,289,374 2,614,702 2,771,983
Deferred patent
cost write off 5,344,266 -- 5,344,266 --
Total expenses 10,845,760 9,175,992 16,011,961 17,399,216
Operating loss (7,863,242) (7,553,739) (12,539,654) (14,198,327)
Other income
(expense)
Interest income 190,440 111,931 210,977 266,338
Interest expense (83,633) (266,102) (208,099) (602,890)
Other income
(expense) (2,060) 740 (2,789) 70
Equity in loss of
unconsolidated
affiliate (76,765) (1,550,170) (209,448) (3,017,193)
Total other
income (expense) 27,982 (1,703,601) (209,359) (3,353,675)
Net loss (7,835,260) (9,257,340) (12,749,013) (17,552,002)
Accretion of
dividends on
preferred stock -- 300,856 562,388 503,772
Net loss
applicable
to common
stock $(7,835,260) $(9,558,196) $(13,311,401) $(18,055,774)
Net loss per
share (basic
and diluted) $(0.28) $(2.85) $(0.84) $(5.40)
Shares used
in computing
net loss
per share 28,273,448 3,352,333 15,895,980 3,344,132
Source: Sirna Therapeutics, Inc. |
