Lexicon Genetics Reports 2006 Third Quarter Financial Results
Tuesday October 31, 6:00 am ET
THE WOODLANDS, Texas, Oct. 31 /PRNewswire-FirstCall/ -- Lexicon Genetics Incorporated (Nasdaq: LEXG - News), a biopharmaceutical company focused on discovering and developing breakthrough treatments for human disease, today reported financial results for the three and nine months ended September 30, 2006.
"The advancement of our pipeline of novel drug discovery and development programs reflects the productivity of our target and drug discovery system," said Arthur T. Sands, M.D., Ph.D., Lexicon's president and chief executive officer. "Phase 1 clinical trials are underway for LX6171 for cognitive disorders, LX1031 for irritable bowel syndrome is on track for an IND filing this year and we are initiating IND-enabling studies for LX2931 for autoimmune disease. We also have multiple programs at earlier stages that are making significant progress in preclinical research."
Revenues: Lexicon's revenues for the three months ended September 30, 2006 increased 40 percent to $19.6 million from $14.0 million for the corresponding period in 2005. The increase was primarily attributable to revenue recognized under Lexicon's contract with the National Institutes of Health, expanded biotherapeutics drug discovery and development alliance with Genentech, Inc. and research grant from the United States Army related to spinal muscular atrophy. For the nine months ended September 30, 2006, revenues increased 36 percent to $56.7 million from $41.8 million for the corresponding period of 2005.
Research and Development Expenses: Research and development expenses for the three months ended September 30, 2006 increased 16 percent to $27.0 million from $23.3 million for the corresponding period in 2005. This was primarily due to increased personnel, external research costs related to Lexicon's drug development programs and non-cash, stock-based compensation expense of $1.1 million resulting from Lexicon's adoption of SFAS No. 123® on January 1, 2006. For the nine months ended September 30, 2006, research and development expenses increased 16 percent to $81.1 million, including $3.4 million in non-cash, stock-based compensation expense, from $69.8 million for the corresponding period in 2005.
General and Administrative Expenses: General and administrative expenses for the three months ended September 30, 2006 increased 14 percent to $5.3 million from $4.7 million for the corresponding period in 2005. This increase was almost entirely due to non-cash, stock-based compensation expense of $0.7 million resulting from Lexicon's adoption of SFAS No. 123® on January 1, 2006. For the nine months ended September 30, 2006, general and administrative expenses increased 17 percent to $16.3 million, including $2.0 million in non-cash, stock-based compensation expense, from $13.9 million for the corresponding period in 2005.
Net Loss: Net loss for the three months ended September 30, 2006 decreased to $12.8 million from a net loss of $14.1 million in the corresponding period in 2005. Net loss per share for the three months ended September 30, 2006 was $0.20, as compared to $0.22 for the corresponding period in 2005. For the three months ended September 30, 2006, net loss included non-cash, stock-based compensation expense of $1.8 million, or $0.03 per share. Net loss for the nine months ended September 30, 2006 decreased to $40.5 million, or $0.63 per share, from a net loss of $42.2 million, or $0.66 per share, in the corresponding period in 2005. For the nine months ended September 30, 2006, net loss included non-cash, stock- based compensation expense of $5.4 million, or $0.08 per share.
Cash and Investments: As of September 30, 2006, Lexicon had $53.0 million in cash and investments, including restricted cash and investments, as compared to $65.3 million as of June 30, 2006 and $99.7 million as of December 31, 2005.
Subsequent Event: On October 23, 2006, Lexicon announced that it raised $37.5 million in net proceeds through the sale of 10,582,011 shares of its common stock in a direct equity placement.
"We have successfully completed a financing to increase our flexibility in allocating resources to the advancement of our internal drug pipeline," said Julia P. Gregory, Lexicon's executive vice president, corporate development and chief financial officer.
Third Quarter 2006 Highlights
Initiated phase 1 clinical trial of LX6171 for cognitive disorders: Lexicon initiated a Phase 1 clinical trial for LX6171, a novel, orally administered small molecule compound for cognitive disorders. The Phase 1 clinical trial of LX6171 is being conducted to evaluate LX6171's safety, tolerability and pharmacokinetics in normal healthy volunteers. The trial was designed as a randomized, double-blind, ascending single dose study and expected to include approximately 40 subjects. It will be followed by a randomized, double-blind, ascending multiple dose study of similar size. Lexicon is developing LX6171 for potential application in the treatment of cognitive disorders such as Alzheimer's disease, schizophrenia and vascular dementia.
Awarded funding from DARPA: Lexicon announced it was awarded funding from the United States Defense Advanced Research Projects Agency (DARPA) for the identification of targets that may be important in the development of drugs to enhance the restorative benefits derived from sleep and offset problems associated with sleep deprivation. Under the award, Lexicon will be investigating the molecular and cellular basis of sleep, sleep pathways and the correlation between sleep architecture and performance, including under conditions of sleep deprivation.
Lexicon Conference Call:
Lexicon management will hold a conference call to discuss the company's results and provide financial guidance for the fourth quarter at 11:00 a.m. Eastern Time on October 31, 2006. The dial-in number for the conference call is 800-500-0177 (within the United States) or 719-457-2679 (international). The pass code for all callers is 6325154. Investors can access lexicon-genetics.com to listen to a live webcast of the call. The webcast will be archived and available for review through November 3, 2006. |
