Kosan Reports Fourth Quarter and Year End Financial Results and Provides 2004 Financial Guidance Kosan Ends Year With $105 Million to Advance Clinical Candidates
PR Newswire, Thursday, February 26, 2004 at 07:30
HAYWARD, Calif., Feb 26, 2004 /PRNewswire-FirstCall via COMTEX/ -- Kosan Biosciences Incorporated (Nasdaq: KOSN) today reported financial results for the quarter and year ended December 31, 2003. Kosan reported revenues of $10.6 million and $31.4 million in the three and twelve months ended December 31, 2003, respectively, compared to $5.5 million and $9.6 million in the same periods in 2002. The $21.8 million increase in 2003 revenue was primarily driven by higher revenue associated with Kosan's epothilone global development and commercialization agreement with Roche, including $6.0 million in milestones.
Kosan reported a quarterly net loss of $0.5 million, or $0.02 per share, compared to $3.2 million, or $0.13 per share, in the same period for the prior year. For the year ended December 31, 2003, Kosan reported a net loss of $9.7 million, or $0.38 per share, compared to $20.9 million, or $0.84 per share, in the same period in 2002. At December 31, 2003, cash, cash equivalents and marketable securities totaled $105.3 million compared to $80.5 million at December 31, 2002. The increase in cash and investments reflects the $26.0 million in net proceeds received in connection with Kosan's December 2003 financing. Excluding the $26.0 million net proceeds of the financing, Kosan used only $1.2 million in cash in 2003, primarily due to non-recurring payments associated with the Roche collaboration, including the receipt of the second installment of the up-front fee.
Total operating expenses were $11.3 million and $41.9 million for the three and twelve months ended December 31, 2003, compared to $9.1 million and $33.3 million in the same periods last year. These increases were primarily attributable to the clinical development and production of the lead epothilone product candidate, KOS-862 (Epothilone D), higher personnel and other related costs associated with advancing our pipeline toward later stages of development and expenses associated with the settlement of a dispute with Sloan-Kettering.
Kosan's Financial Outlook for 2004
Kosan offers the following financial guidance for 2004, which is significantly impacted by the anticipated clinical progress of KOS-862.
-- Revenues: Kosan anticipates 2004 revenues in the range of $20 million
to $25 million.
-- Operating Expenses: Kosan expects 2004 operating expenses in excess of
$50 million. Such expenses reflect the anticipated clinical
advancement of KOS-862 and 17-AAG (geldanamycin analog).
-- Net Loss: Kosan expects to report a net loss in the range of $25
million to $30 million.
-- Cash and Investments: Kosan expects to end 2004 with cash and
investments in excess of $80 million, reflecting a net cash use in the
range of $20 million to $25 million.
Kosan Biosciences has two lead clinical programs: KOS-862 and 17-AAG. Both compounds are derived from an important class of natural products known as polyketides. KOS-862 is in Phase II clinical trials and is partnered with Roche in a global development and commercialization agreement. 17-AAG is being evaluated in multiple Phase I and Phase Ib clinical trials in collaboration with the National Cancer Institute. 17-AAG is a polyketide inhibitor of Hsp90 and interrupts several biological processes implicated in cancer cell growth and survival. By applying its gene engineering technologies to generate proprietary polyketide analogs and by increasing the production yields, Kosan has created a robust pipeline of potentially significant products for cancer, as well as for infectious disease and other therapeutic areas. For additional information on Kosan Biosciences, please visit the company's website at kosan.com. |
