Microcide Pharmaceuticals Reports
First Quarter 1999 Financial Results
MOUNTAIN VIEW, Calif., May 3 /PRNewswire/ -- Microcide Pharmaceuticals, Inc. (Nasdaq:
MCDE - news) today announced a net loss for the first quarter ended March 31, 1999 of $2.7 million
or $0.25 per share which compares to a net loss of $2.6 million or $0.24 per share for the first quarter
ended March 31, 1998. Total revenues, largely derived from its three corporate partnerships with
Pfizer, Daiichi and two affiliates of Johnson & Johnson (''J&J''), were $2.7 million in the first quarter
of 1999 as compared to $3.0 million in 1998. The decline in comparative revenues during these periods
was due to lower revenues recognized from the Daiichi and J&J collaborations, partially offset by
increased revenues from Pfizer related to the initiation of research under the Pfizer Animal Health
agreement and the recording of $287,000 in revenues from the sale of molecular diversity to Iconix
Pharmaceuticals; these latter revenues were exactly offset by an equivalent increase in expenses
charged to Microcide as part of the antiviral research collaboration with Iconix. Operating expenses
decreased from $6.1 million in the first quarter of 1998 to $5.8 million in the first quarter of 1999
primarily due to lower spending for its diversity collection, research supplies and materials, and outside
consulting services to support the Company's corporate collaborations and its internal programs,
partially offset by higher research support expenses associated with the Company's antiviral discovery
program with Iconix.
Other highlights during the quarter:
* Microcide expanded its existing antibiotic research collaboration with
Pfizer to include a focused effort to discover and develop new classes
of antibiotics specifically designed for animal health applications.
Antibiotics play an important role in protecting both feed animals and
companion animals from bacterial infections. This program responds to
a strong interest in developing effective antibiotics for animal health
applications that are distinct from antibiotics used to treat bacterial
infections in humans. Under the terms of the multi-year animal health
agreement, Pfizer will provide research funding for research conducted
at Microcide related to this program, milestone payments for research
achievements, and royalties on worldwide sales of products resulting
from the collaboration.
* As of the end of the quarter, Microcide's bacterial efflux pump
collaboration with Daiichi, whose term had been extended by Daiichi for
an additional year from its original term, concluded. Microcide and
Daiichi are continuing chemistry efforts around compound leads
discovered during the research collaboration, with a goal of achieving
a development candidate in this program. In addition, Microcide now
has exploratory work underway with respect to several bacterial efflux
pump opportunities utilizing antibiotic classes that were not the main
focus of the Daiichi collaboration. The goal of these research efforts
is to achieve efflux pump inhibitor/antibiotic combination products for
both human and animal health applications.
Microcide is a biopharmaceutical company whose mission is to discover, develop and commercialize
novel antimicrobials for the improved treatment of serious bacterial, fungal and viral infections. The
Company's discovery and development programs address the growing problem of bacterial drug
resistance and the need for improved antifungal and antiviral agents through two principal themes: (i)
Targeted Antibiotics, which focuses on developing novel antibiotics and antibiotic potentiators to
directly address existing bacterial and fungal resistance problems, and (ii) Targeted Genomics, which
utilizes bacterial, fungal and viral genetics to discover new classes of antimicrobials and other novel
treatments for infectious diseases.
The statements in this press release that relate to Microcide developing new antibiotics for human or
animal health applications, and receiving future research funding, milestone payments or royalties are
forward-looking statements. Such forward-looking statements involve risks and uncertainties including,
without limitation, the following. There is no assurance that the research collaborations with Pfizer will
not be terminated prior to their expected terms or that the Company will receive future research
support payments, milestone payments or royalties from Pfizer, or that any compound identified in the
Pfizer or Daiichi collaborations, or from independent research programs, will be taken into development
and will then successfully proceed through pre-clinical development and clinical trials, obtain requisite
regulatory approvals for marketing or result in a commercially useful product. For a discussion of other
risks and uncertainties affecting Microcide's business, see the Company's annual report on Form 10-K
for the year ended December 31, 1999. Actual results and timing of certain events could differ
materially from those indicated in the forward-looking statements as a result of these or other factors.
Microcide Pharmaceuticals, Inc.
Summary Financial Information
(unaudited)
(in thousands, except per share data)
Three Months Ended
March 31
1999 1998
Revenues:
License, milestone and other revenues $299 $--
Research revenue 2,393 3,035
Total revenues 2,692 3,035
Operating expenses:
Research and development 4,748 4,975
General and administrative 1,005 1,144
Total operating expenses 5,753 6,119
Loss from operations (3,061) (3,084)
Interest income 409 526
Interest and other expense (71) (18)
Net loss $(2,723) $(2,576)
Net loss per share $(0.25) $(0.24)
Shares used in calculation of
net loss per share 11,041 10,929
March 31 December 31
1999 1998
Cash, cash equivalents and
short-term investments $29,149 $33,192
Total assets 41,521 44,490
Stockholders' equity 35,341 37,938
SOURCE: Microcide Pharmaceuticals, Inc.
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