license and royalty income for the quarter was $2.8 million.....
Wednesday August 11, 12:30 pm Eastern Time
Company Press Release
SOURCE: SIBIA Neurosciences, Inc.
SIBIA Neurosciences, Inc. Reports Financial Results
For Second Quarter 1999
LA JOLLA, Calif., Aug. 11 /PRNewswire/ -- SIBIA Neurosciences, Inc. (Nasdaq: SIBI - news) today reported financial
results for the second quarter ended June 30, 1999. For the quarter, SIBIA reported a net loss of $499,000, or $0.05 per
share, compared to a net loss of $2,451,000, or $0.26 per share, for the second quarter of 1998. SIBIA reported revenues of
$4,221,000 for the second quarter of 1999 compared to $2,361,000 for the same period in 1998.
For the six months ended June 30, 1999, SIBIA reported a net loss of $3,339,000, or $0.35 per share, compared to a net
loss of $6,503,000, or $0.69 per share, for the same period in 1998. SIBIA reported revenues of $6,736,000 for the first half
of 1999 compared to $3,895,000 for the same period in 1998.
Revenues for the second quarter and the six months ended June 30, 1999 were significantly higher than the comparable periods
in the prior year due primarily to license fees from agreements with American Home Products, Bristol-Myers Squibb, and
SmithKline Beecham and the initial revenues from a collaborative research agreement with Eli Lilly & Co. This increase was
partially offset by a decrease in revenue from a collaborative research program with Novartis AG that was completed in
September 1998.
Research and development expenses for the second quarter and the six months ended June 30, 1999 decreased from the
comparable periods in the prior year. This decrease was primarily due to reduced costs associated with the clinical studies for
the Company's two lead drug candidates (SIB-1508Y and SIB-1553A). General and administrative expenses also decreased
in the second quarter of 1999 and the six months ended June 30, 1999 from the comparable periods in 1998 due primarily to
decreased legal fees related to patent litigation.
On August 2, 1999, SIBIA and Merck & Co., Inc. (NYSE: MRK - news), a research- driven pharmaceutical company,
announced they have entered into a definitive agreement under which Merck will acquire SIBIA for $8.50 per share in cash.
Merck commenced a tender offer for SIBIA shares on or about August 6, 1999. The transaction will total approximately $87
million.
This press release contains forward-looking statements that involve risks and uncertainties. As a result, actual results could
differ materially from those discussed herein. These risks and uncertainties include SIBIA's reliance on corporate partnerships
and ability to enter into new corporate partnerships, whether SIBIA will be successful in demonstrating the safety and efficacy
of SIB-1508Y and SIB-1553A in humans, whether SIBIA will be able to meet its development goals with respect to its drug
candidates and proprietary targets, SIBIA's early stage of development, the new and uncertain state of SIBIA's technologies,
SIBIA's future capital needs and the uncertainty of receiving additional funding, uncertainties regarding patents, proprietary
rights and regulatory matters, whether the transactions contemplated by the merger agreement between SIBIA and Merck &
Co., Inc. are consummated, and other research, development and market risks. These and other risks and uncertainties are
more fully set forth in SIBIA's most recently filed Forms 10-Q and 10-K and SIBIA's current reports on Form 8-K dated July
30, 1999 and August 2, 1999.
SIBIA NEUROSCIENCES, INC.
CONDENSED STATEMENT OF OPERATIONS
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Revenue:
Contract $1,458,000 $2,276,000 $2,468,000 $3,810,000
License and royalty 2,763,000 85,000 4,268,000 85,000
Total revenue 4,221,000 2,361,000 6,736,000 3,895,000
Operating expenses:
Research and
development 3,951,000 4,514,000 8,453,000 9,310,000
General and
administrative 1,045,000 1,586,000 2,220,000 3,077,000
Total operating
expenses 4,996,000 6,100,000 10,673,000 12,387,000
(775,000) (3,739,000) (3,937,000) (8,492,000)
Other income
(expense):
Interest income 183,000 412,000 404,000 876,000
Interest expense (35,000) (24,000) (68,000) (47,000)
Gain on sale
of investment 105,000 900,000 239,000 1,160,000
Other 23,000 23,000 --
276,000 1,288,000 598,000 1,989,000
Net loss $(499,000) $(2,451,000) $(3,339,000) $(6,503,000)
Basic and diluted
net loss per
common share $(0.05) $(0.26) $(0.35) $(0.69)
Shares used in
computing basic
and diluted net
loss per
common share 9,661,653 9,391,243 9,592,874 9,378,271
SIBIA NEUROSCIENCES, INC.
CONDENSED BALANCE SHEET
June 30, 1999 December 31, 1998
(Unaudited)
ASSETS
Cash, cash equivalents
and investment securities $18,588,000 $17,187,000
Contract receivables,
prepaid and other current assets 2,351,000 1,184,000
Total current assets 20,939,000 18,371,000
Property and equipment, net 2,757,000 2,638,000
Other assets 12,000 190,000
$23,708,000 $21,199,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities 4,062,000 4,709,000
Contract advance 1,375,000 --
Long-term capital lease obligations 1,296,000 1,350,000
Total stockholders' equity 16,975,000 15,140,000
$23,708,000 $21,199,000
SOURCE: SIBIA Neurosciences, Inc. |
