Wednesday February 19 8:32 AM EDT
Magainin Announces 1996 Financial Results
PLYMOUTH MEETING, Pa., Feb. 19 /PRNewswire/ -- Magainin Pharmaceuticals Inc
today announced its financial results for the year and fourth quarter ending December
31, 1996. Net loss for 1996 was $30.6 million or $(1.71) per share, as compared to a
net loss of $17.2 million or $(1.17) per share for 1995. The 1996 year-end loss includes
a non-cash earnings charge of $7.1 million recorded in the third quarter, relating to the
value of shares of Common Stock issued in a buyout of Cytolex(TM) royalties. The
Company's net loss for the quarter ended December 31, 1996 was $5.0 million, or
$(0.26) per share, versus a net loss of $5.7 million, or $(0.33) per share, for the same
quarter a year earlier.
The Company's research and development expenses increased for the year ended
December 31, 1996, as compared to the year ended 1995, due principally to increased
clinical and manufacturing development expenses associated with Cytolex, and
increased preclinical costs associated with other drug candidates. The Company's
research and development expenses decreased in the quarter ended December 31,
1996, as compared to the year earlier quarter, due principally to reduced clinical trial
costs associated with Cytolex, as well as a non-cash charge in the fourth quarter of
1995 relating to shares issued to a contract manufacturer.
"We are pleased with the progress in each of our three product development areas
during 1996," stated Jay Moorin, Chairman, President and Chief Executive Officer of
Magainin. "Successful Phase III clinical trial results led to a recent collaboration with
SmithKline Beecham for our lead product, Cytolex; our asthma genomics program was
advanced with the identification of two asthma genes, AAF1 and AAF2; and preclinical
activities have continued for our two aminosterol development programs."
The Company's cash and investment balance at December 31,1996 was $33.3 million.
Magainin Pharmaceuticals Inc. is a biopharmaceutical company engaged in the
development of breakthrough medicines for serious diseases. The Company isolates
and develops compounds from the host-defense systems of animals and uses
molecular techniques such as gene identification to understand the pathogenesis of
disease. Magainin's development efforts are focused on anti-infectives, oncology and,
pulmonary and allergic disorders.
This announcement contains certain forward-looking statements that are subject to risks
and uncertainties. Such statements reflect management's current views and are based
on certain assumptions. Actual results could differ materially from those currently
anticipated as a result of a number of factors, including, but not limited to, the risks and
uncertainties discussed under "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in the Company's Quarterly Report on Form 10-Q
for the quarter ended September 30, 1996 as filed with the Securities and Exchange
Commission and the following sections of Item 1 of the Company's Annual Report on
Form 10-K for the fiscal year ended December 31, 1995 as filed with the Securities and
Exchange Commission: "Synthesis Technology; Manufacturing;" "Product Development
and Research Programs;" "Government Regulation;" "Additional Regulatory Issues;"
"Patents and Proprietary Rights; Licensed Technology;" "Competition" and "Product
Liability and Insurance." The Company disclaims any intent or obligation to update
these forward-looking statements.
MAGAININ PHARMACEUTICALS INC.
Condensed Statement of Operations
(unaudited)
(amounts in thousands, except per share amounts)
Year Ended Three Months Ended
December 31, December 31,
1996 1995 1996 1995
Revenues $150 $2,336 $38 $1,257
Research and development
expenses 22,326 18,160 4,456 6,652
General and administrative
expenses 3,488 3,137 1,110 987
Charge for stock issuance
relating to royalty buyout 7,080 -- -- --
Total 32,894 21,297 5,566 7,639
Loss from operations (32,744) (18,961) (5,528) (6,382)
Interest income 2,172 1,778 524 689
Interest expense (48) (32) (30) (6)
Net loss $(30,620) $(17,215) $(5,034) $(5,699)
Net loss per share $(1.71) $(1.17) $(0.26) $(0.33)
Weighted average
shares outstanding 17,938 14,696 19,357 17,018
Condensed Balance Sheets
(unaudited)
(amount in thousands)
December 31, 1996 December 31, 1995
Cash and investments $33,340 $43,666
Prepaid expenses and
other current assets 454 509
Fixed assets, net 2,506 1,476
Other assets 76 76
Total assets $36,376 $45,727
Current liabilities $5,518 $4,230
Long-term liabilities 915 304
Total liabilities 6,433 4,534
Stockholders' equity 29,943 41,193
Total liabilities and
stockholders' equity $36,376 $45,727
SOURCE Magainin Pharmaceuticals Inc.
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