Sunesis Pharmaceuticals Reports Third Quarter 2005 Financial Results
SOUTH SAN FRANCISCO, Calif., Nov. 14 /PRNewswire-FirstCall/ -- Sunesis
Pharmaceuticals, Inc. (Nasdaq: SNSS), a clinical-stage biopharmaceutical
company focused on the discovery, development and commercialization of novel
small molecule therapeutics, today reported financial results for the quarter
ended September 30, 2005. Revenue for the third quarter was $3.3 million,
with a net loss of $5.6 million. As of September 30, 2005, cash, cash
equivalents and marketable securities totaled $55.0 million and debt totaled
$2.5 million.
Quarter Highlights
* The company completed enrollment of the first Phase I clinical trial of
SNS-595, Sunesis' lead novel cytotoxic anticancer drug. The trial is
an open-label, multi-center, dose-escalation study designed to examine
the safety, tolerability and pharmacokinetics of SNS-595. The results
of this trial will be presented at the upcoming European Organization
for Research and Treatment of Cancer ("EORTC") conference on November
17, 2005.
* On August 29, 2005, Sunesis announced the selection of SNS-314 as the
lead development candidate from the company's internal efforts to
discover novel Aurora kinase inhibitors. SNS-314 has shown promising
activity and pharmaceutical properties in animal models. Sunesis plans
to file an Investigational New Drug (IND) application for this compound
in 2006.
* On September 30, 2005, the company completed an initial public offering
("IPO") of common stock with gross proceeds of $42.0 million.
Financial Highlights
* Revenue from research collaborations totaled $3.3 million and $11.9
million for the three-month and nine-month periods ended September 30,
2005, respectively, compared to $2.8 million and $6.3 million for the
three-month and nine-month periods ended September 30, 2004,
respectively. This increase in revenue is primarily due to the signing
of the kinase collaboration with Biogen Idec in August 2004.
* Research and development (R&D) expense was $6.9 million and $28.3
million for the three-month and nine-month periods ended September 30,
2005, respectively. R&D expense for the three-month and nine-month
periods ended September 30, 2004, was $5.6 million and $17.5 million,
respectively. The $10.8 million increase in R&D expenses between the
nine-month periods ended September 30, 2004 and September 30, 2005 is
primarily due to an $8.9 million expense related to the in-licensing of
SNS-032 and related intellectual property from Bristol-Myers Squibb in
April 2005, of which $8.0 million represents a non-cash licensing fee,
and a $2.8 million increase in expense related to the development of
SNS-314, our Aurora kinase inhibitor.
* General and administrative (G&A) expense for the third quarter was $2.1
million, compared to $1.8 million for the prior year. For the nine-
month period ended September 30, 2005, these expenses were $6.1
million, compared to $5.5 million for the nine-month period ended
September 30, 2004. The increase is G&A expense is primarily due to an
increase in non-cash stock compensation expense.
* Sunesis reported a net loss of $5.6 million for the third quarter and
$22.2 million for the nine-month period ended September 30, 2005,
compared to a reported loss of $4.5 million and $16.5 million,
respectively, for the three-month and nine-month periods ended
September 30, 2004. The loss applicable to common shareholders was
$93.7 million for the third quarter, including a $88.1 million non-cash
deemed dividend related to the conversion of preferred stock into
common stock in conjunction with the IPO. This non-cash deemed
dividend results from the redistribution of pre-IPO ownership which
occurred in conjunction with the company's IPO.
Company Milestones
Sunesis anticipates the following milestones in its development programs
to occur over the next four months:
* Report results from a Phase I clinical trial of SNS-595 in patients
with advanced solid tumors at the EORTC conference on November 17.
* Initiate a multi-center open-label Phase I clinical trial of SNS-595 in
patients with acute leukemias.
* Initiate a multi-center, open-label Phase II second-line clinical trial
of SNS-595 in patients with non-small cell lung cancer.
* Initiate a multi-center, open-label Phase II second-line clinical trial
of SNS-595 in patients with small cell lung cancer.
* Initiate a multi-center, open-label Phase I/II clinical trial of SNS-
032, our inhibitor of CDK 2, 7 and 9, in patients with advanced solid
tumors.
Conference Call Information
Sunesis' management will host a conference call to review the results of
the quarter on Monday, November 14 at 1:30 pm PST. Individual and
institutional investors can access the call via (800) 310-6649 (domestic) or
(719) 457-2693 (international). To access the live audio broadcast or the
subsequent archived recording, visit the "Investors and Media - Calendar of
Events" section of the Sunesis website at sunesis.com. Please log
on to Sunesis' website several minutes prior to the start of the presentation
to ensure adequate time for any software download that may be necessary.
About Sunesis Pharmaceuticals
Sunesis is a clinical-stage biopharmaceutical company focused on the
discovery, development and commercialization of novel small molecule
therapeutics for oncology and other serious diseases. Sunesis has built a
broad product candidate portfolio through internal discovery and in-licensing
of novel cancer therapeutics. Sunesis is advancing its product candidates
through in-house research and development efforts and strategic collaborations
with leading pharmaceutical and biopharmaceutical companies. For additional
information on Sunesis Pharmaceuticals, please visit sunesis.com.
Safe Harbor Statement
This press release contains forward-looking statements that involve
substantial risks and uncertainties. Sunesis may not actually achieve the
plans, intentions or expectations contained in such forward-looking
statements. Actual results or events could differ materially from the plans,
intentions and expectations contained in such forward-looking statements.
Sunesis does not assume any obligation to update any such forward-looking
statements.
Sunesis Pharmaceuticals, Inc
Statements of Operations
Three months ended Nine months ended
September 30, September 30,
2005 2004 2005 2004
(unaudited) (unaudited)
Revenue:
Collaboration
revenue $1,685,537 $1,574,669 $5,028,923 $4,302,942
Collaboration
revenue from
related party 1,637,499 1,205,657 6,880,943 1,991,731
Grant and
fellowship
revenue 21,942 38,914 89,347 135,505
Total revenues 3,344,978 2,819,240 11,999,213 6,430,178
Operating expenses:
Research and
development 6,870,942 5,604,924 28,263,850 17,504,300
General and
administrative 2,067,215 1,779,898 6,056,145 5,477,888
Total operating
expenses 8,938,157 7,384,822 34,319,995 22,982,188
Loss from operations (5,593,179) (4,565,582) (22,320,782) (16,552,010)
Interest income 178,515 111,400 574,204 316,102
Interest expense (229,450) (88,755) (445,975) (299,494)
Other income
(expense), net 2,094 726 8,300 733
Net loss (5,642,020) (4,542,211) (22,184,253) (16,534,669)
Convertible
preferred stock
dividends (88,092,302) - (88,092,302) -
Loss applicable to
common
stockholders $(93,734,322) $(4,542,211) $(110,276,555) $(16,534,669)
Basic and diluted
net loss per
share applicable
to common
stockholders $(45.12) $(3.51) $(67.58) $(12.89)
Shares used in
computing basic
and diluted loss
per share
applicable to
common
stockholders 2,077,245 1,294,835 1,631,700 1,283,179
Sunesis Pharmaceuticals, Inc.
Condensed Balance Sheet
September 30, December 31,
2005 2004
(Unaudited)
Current assets:
Cash and cash equivalents $45,212,955 $7,587,512
Marketable securities 9,777,438 29,224,509
Other current assets 1,803,917 1,839,259
Total current assets 56,794,310 38,651,280
Note and interest receivable from officers
and employees - 85,350
Property and equipment, net 3,982,635 3,989,357
Deposits and other assets 300,000 300,000
Total assets 61,076,945 43,025,987
Current liabilities:
Short-term liabilities 9,642,547 9,653,051
Current portion of equipment financing 1,138,076 1,291,363
Total current liabilities 10,780,623 10,944,414
Other long term liabilities 5,742,446 8,874,093
Borrowings under debt facility with
related party - 3,200,000
Non current portion of equipment financing 1,351,785 1,238,430
Commitments
Convertible preferred stock - 108,812,619
Stockholders' equity (deficit):
Common stock 2,146 139
Additional paid-in capital and other 246,893,143 3,372,935
Accumulated deficit (203,693,198) (93,416,643)
Total stockholders' equity (deficit) 43,202,091 (90,043,569)
Total liabilities, convertible preferred
stock and stockholders' equity(deficit) 61,076,945 43,025,987
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