OK, their resources weren't going to last much over a year had they kept all programs going, and financing at these levels would have sucked, but . . . seems they could have partnered something. Still don't agree with their methods of reprioritizing . . .
>>Kosan Announces Fourth Quarter and Full Year 2007 Financial Results and 2008 Outlook
Thursday February 28, 4:05 pm ET
HAYWARD, Calif., Feb. 28 /PRNewswire-FirstCall/ -- Kosan Biosciences Incorporated (Nasdaq: KOSN - News) today reported financial results for the quarter and year ended December 31, 2007.
Net losses for the quarter and year ended December 31, 2007 were $9.5 million and $28.7 million, or $0.22 and $0.69 per share, compared to $4.6 million and $29.5 million, or $0.13 and $0.88 per share, in the same periods for the prior year.
Revenues were $5.6 million and $22.7 million for the quarter and year ended December 31, 2007, compared to $5.7 million and $13.5 million in the same periods in 2006. Revenues for the quarter were for development activities under the Roche-Kosan global development and commercialization agreement for epothilones and included $4.2 million in amortization of the up-front fee from Roche.
Total operating expenses were $16.0 million and $55.4 million, including non-cash stock-based compensation expense of $0.6 million and $3.2 million, for the quarter and year ended December 31, 2007, compared to $10.9 million and $45.0 million for the same periods last year. Research and development expenses were $13.9 million for the quarter ended December 31, 2007, compared to $8.8 million in the same period in 2006. The increase for the fourth quarter is primarily due to increased clinical costs in the Hsp90 inhibitor and epothilone programs, including costs associated with the initiation of the clinical trials in the TIME registration program in multiple myeloma and preparation for the KOS-1584 Phase 2 clinical program. General and administrative expenses were $2.1 million for the quarter ended December 31, 2007, compared to $2.1 million in the same period in 2006.
At December 31, 2007, cash, cash equivalents, restricted cash and marketable securities totaled $71.0 million, compared to $64.1 million at December 31, 2006. Cash used in operating activities was $34.7 million for the year ended December 31, 2007.
"Today, Kosan announced a reprioritization of its clinical development portfolio to focus resources on product candidates with the highest near-term therapeutic potential and commercial value for the company," said Helen S. Kim, Kosan's President and Chief Business Officer. "Kosan's top priorities in 2008 are the advancement of the tanespimycin TIME program in multiple myeloma and the tanespimycin metastatic breast cancer clinical program, and the development of epothilone KOS-1584, which is entering Phase 2 in non-small cell lung cancer. We believe that focusing our resources and efforts on these promising later-stage programs now will bring the most benefit to Kosan and its shareholders in the near-term and support our ability to utilize our resources most effectively and to invest in those high-value programs that will be the key value drivers of our company. We enter 2008 with renewed focus, resolve and confidence in our ability to successfully transform these product candidates into meaningful commercial opportunities for our company."
2008 Financial Outlook
Kosan's outlook for 2008 excludes any potential collaborations, strategic alliances or financings Kosan may conclude this year. The Company anticipates that cash used in operating activities will be in the range of $40 million to $50 million.
Conference Call and Webcast Today
Simultaneous with this announcement of Kosan's fourth quarter and full year 2007 financial results, Kosan also announced a reprioritization of its clinical portfolio. Kosan will hold a conference call and webcast today to discuss both of these announcements. Access information is as follows:
Kosan will hold a conference call to discuss the Company's fourth quarter and full year 2007 financial results today at 1:30 p.m. Pacific / 4:30 p.m. Eastern. To access the live call, please dial 888.713.4213 (US) or 617.213.4865 (international), access code 10071927. Interested parties may listen to the webcast live at kosan.com by clicking on the "Webcasts" tab under the heading "Investors/Press." The webcast is also being distributed over Thomson's Investor Distribution Network to both institutional and individual investors. Individual investors can listen to the call through Thomson's individual investor center at earnings.com or by visiting any of the investor sites in Thomson's Individual Investor Network. Institutional investors can access the call via Thomson's password-protected event management site, StreetEvents, at streetevents.com. A telephonic replay will be available through March 6, 2008 by dialing 888.286.8010, access code: 51294639. International callers can dial 617.801.6888, access code: 51294639<<
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Cheers, Tuck |
