Alteon Posts Wider Loss in 4Q
Tuesday March 15, 5:18 pm ET
Alteon's Loss Widens in Fourth Quarter As Clinical Trial Expenses Increase
PARSIPPANY, N.J. (AP) -- Alteon Inc. on Tuesday said its net widened during the fourth quarter as the biopharmaceutical firm spent more money on clinical trials for its leading drug candidate alagebrium.
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The quarterly loss applicable to common stockholders -- including a non-cash charge for a preferred dividend -- was $4.8 million, or 10 cents per share, on revenue of $61 million. Last year, the company reported a loss of $3.5 million, or 9 cents per share, on revenue of $39.5 million.
Alteon -- which went public in January -- said the wider loss was linked to expenses incurred for clinical trials of alagebrium as a treatment for systolic hypertension. The company had lower clinical study expenses during the year-ago period.
For the year, the company reported a loss applicable to common shareholders of $18.1 million, or 41 cents per share, compared to $18.2 million, or 50 cents, last year. Revenue was $334.4 million, up from $179 million in 2003. The narrower loss reflects reduced facility expenses in 2004 due to the company's relocation to Parsippany and higher patent expenses in 2003.
Alteon also said it has discovered that some of its accounting practices might have "material weaknesses" as part of its compliance with accounting rules within the Sarbanes-Oxley Act. The company said it is working with accountant J.H. Cohn LLP to resolve the issue, which revolves around information technology controls and process controls concerning processing outgoing checks.
Shares of Alteon fell 4 cents, or 5.7 percent, to 66 cents on the American Stock Exchange. |
