I think you all better hang on a bit longer! Earnings out today are up 100%! Not too shabby... pax et bonum, mxh
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Neurocrine Announces Its Financial Results for the Year Ended December 31, 1997
February 17, 1998 4:00 PM EST
SAN DIEGO, Feb. 17 /PRNewswire/ -- Neurocrine Biosciences, Inc. (Nasdaq: NBIX) today announced its financial results for the fourth quarter and year ended December 31, 1997. Neurocrine reported net income of $70,000 or less than $0.01 per share for the fourth quarter of 1997 compared to $4.5 million or $0.27 per share ($0.24 per share assuming dilution), for the same period in 1996. For the year ended December 31, 1997, the Company reported net income of $5.1 million or $0.30 per share ($0.28 per share assuming dilution), on revenues of $26.1 million, as compared to a net income of $5.9 million or $0.39 per share ($0.36 per share assuming dilution) on revenues of $19.2 million for the same period last year. Revenues for the fourth quarter were $6.2 million compared to $9.4 million for the comparable period last year.
The decreased fourth quarter revenues were primarily due to decreased license fee revenues under the Company's collaborations. Revenues for the year ended December 31, 1997 totaled $26.1 million, including $11.3 million in sponsored research payments, $10.2 million in milestone payments, and $4.6 million in other revenue. Prior year revenues were $19.2 million, including $7.3 million in sponsored research, $4.0 million in milestone payments, $5.0 million in license fees, and $2.9 million in other revenue. The increase in revenues for year ended December 31, 1997 was primarily the result of increased sponsored research and milestone revenues under the Company's collaborations.
Research and development expenses increased to $5.9 million for the fourth quarter and $19.9 million for the year ended December 31, 1997, compared to $4.2 million and $12.6 million for the same periods last year. Increased expenses resulted from additional scientific and clinical development personnel, and related support expenditures, as the Company increased its research and clinical development activities. General and administration expenses decreased slightly to $1.6 million during the quarter and increased to $5.7 million for the year ended, compared to $1.7 million and $3.7 million for the same periods last year. This increase for the year-ended December 31, 1997 resulted from additional administrative personnel, patent costs and related expenses to support the increased research effort.
The Company's balance sheet on December 31, 1997 reflected total assets of $88.6 million, including cash and marketable securities of $75.1 million, compared to total assets of $78.0 million, including cash and marketable securities of $69.9 million, at December 31, 1996. Cash and marketable securities excludes $6.3 million and $9.1 million available to the Company for certain of the Company's R&D programs from its Canadian collaborator, Neuroscience Pharma, Inc. (NPI) at December 31, 1997 and 1996, respectively.
"We are pleased to have ended 1997 in a position of financial strength to pursue our development path and to continue to build our research pipeline. We continued to receive support from our strategic corporate partners, Novartis, Lilly and Janssen, which enabled Neurocrine to make the transition into clinical development in 1997 as well as expand our research capabilities. Additionally, NPI continues to fund the ongoing neurosteroid clinical development program for Alzheimer's disease as well as the Company's neurogenomics program. We are pleased to have the validation and resource support available from these partnerships to fund our research and development programs. In 1998, Neurocrine expects to continue to utilize these resources and may seek additional partnerships to advance new research and development programs. In addition, the Company plans to utilize its cash reserves to fund proprietary programs through early clinical development at which time later stage collaborations will be considered," said Gary A. Lyons, president and chief executive officer.
"1997 was a pivotal year for Neurocrine with the advancement of three compounds into clinical development. Our partner, Janssen, initiated Phase I clinical trials with the Company's first corticotropin releasing factor (CRF) antagonist for anxiety and depression. We also began patient accrual for a Phase II randomized clinical trial with the Company's first altered peptide ligand (APL) for multiple sclerosis. Through NPI, an international Phase II/III study for Alzheimer's disease is underway in Canada, New Zealand, Australia, South Africa and Europe to evaluate the efficacy of our neurosteroid, DHEA. Neurocrine scientists continue to build our research pipeline and have identified further potential applications of our APL technology in the treatment of Type I diabetes. Neurocrine scientists also presented 12 abstracts on the progress of our CRF technology and neurogenomics effort at the 27th Annual Meeting of the Society for Neuroscience. Neurocrine is well positioned in 1998 with the financial, scientific and clinical development resources and expertise to expand and diversify our research and development pipeline focused on treating neuropsychiatric, neuroinflammatory and neurodegenerative diseases," added Lyons.
Neurocrine Biosciences, Inc. is a leading neuroimmunology company focused on the discovery and development of novel therapeutics to treat diseases and disorders of the central nervous and immune system such as anxiety, depression, stroke, Alzheimer's disease, obesity, and multiple sclerosis.
Neurocrine Biosciences, Inc. news releases are available free of charge though PR Newswire's Company News On-Call fax service. For a menu of Neurocrine's previous releases, or to receive a specific release via fax call: (800) 758-5804, ext. 604138, or use the Internet via prnewswire.com.
The statements in this press release that relate to the necessary resources for continued funding and progress of Neurocrine's programs, the continuation of the Company's existing strategic partnerships and potential future strategic partnerships, the continuation of clinical trials of the Company's development candidates, future development funding plans, and the potential development of commercial products are forward looking statements. Such forward looking statements involve risks and uncertainties, including, without limitation, that research funding and development will continue under Neurocrine's strategic partnerships and internal programs in a timely manner consistent with Neurocrine's objectives, that research and development candidates will successfully proceed through pre-clinical and early stage clinical trials, that development candidates will prove effective for treatment in humans in later stage clinical trials, the timely receipt of regulatory clearances required for clinical testing, manufacturing and marketing of products and the potential impact of competitive technologies and potential products. For a discussion of the other risks and uncertainties potentially affecting the Company's business, see the Company's Form 10-K for the year ending December 31, 1996. Actual results and the timing of certain events could differ materially from those indicated in the forward looking statements as a result of these and other factors.
NEUROCRINE BIOSCIENCES, INC.
Condensed Statement of Operations
(in thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
1997 1996 1997 1996
REVENUES
Sponsored research $2,988 $2,469 $11,250 $7,344
Milestones 2,500 1,000 10,250 4,000
License fees --- 5,000 --- 5,000
Other revenues 760 889 4,644 2,872
Total revenues 6,248 9,358 26,144 19,216
OPERATING COSTS AND EXPENSES
Research and development 5,861 4,230 19,888 12,569
General and
administration 1,608 1,684 5,664 3,697
Total operating
expenses 7,469 5,914 25,552 16,266
INCOME (LOSS) FROM
OPERATIONS (1,221) 3,444 592 2,950
Interest income 1,191 1,184 4,084 2,870
Interest expense (29) (74) (153) (272)
Other income 122 191 818 574
INCOME BEFORE INCOME TAXES 63 4,745 5,341 6,122
Income taxes (7) 248 214 248
NET INCOME $70 $4,497 $5,127 $5,874
EARNINGS PER SHARE
Basic $--- $0.27 $0.30 $0.39
Diluted $--- $0.24 $0.28 $0.36
COMMON SHARES AND EQUIVALENTS
OUTSTANDING
Basic 17,050 16,770 16,930 14,971
Diluted 18,095 18,378 18,184 16,127
Condensed Balance Sheet
(in thousands)
December 31, December 31,
1997 1996
Cash, cash equivalents and
marketable securities $75,092 $69,920
Other current assets 1,286 2,171
Total current assets 76,378 72,091
Property, plant and
equipment, net 5,361 3,546
Other assets 6,821 2,320
Total assets $88,560 $77,957
Current liabilities $8,500 $4,068
Long term liabilities 1,381 1,122
Stockholders' equity 78,679 72,767
Total liabilities and
stockholders' equity $88,560 $77,957 SOURCE Neurocrine Biosciences, Inc.
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