Axys Pharmaceuticals Announces 1999 Third Quarter Financial Results
SOUTH SAN FRANCISCO, Calif.--(BW HealthWire)--Nov. 2, 1999--Axys
Pharmaceuticals, Inc. (Nasdaq:AXPH) today announced consolidated
financial results for the third quarter of 1999.
The Company reported a net loss of $19.9 million, or $0.66 per
share, including one-time charges of $8.1 million for the three
months ended September 30, 1999. The one-time charges include a
restructuring charge of $7.0 million related to the closing of the
Company's San Diego facility and a $1.1 million write-off of assets in
its inactive subsidiary Genos Biosciences. Excluding these one-time
charges, the net loss was $11.8 million, or $0.39 per share, as
compared to a net loss of $6.7 million, or $0.22 per share, for the
same period in 1998.
Total revenue for the 1999 third quarter was $9.0 million,
compared to $14.3 million for the same period in 1998. The decrease
was largely due to the previously announced termination of research
funding and milestones in certain gene finding and function
collaborations primarily performed at the Company's San Diego
facility.
Consolidated operating expenses for the 1999 third quarter were
$21.2 million, excluding a $7.0 million one-time restructuring charge
for the closing of the Company's San Diego operations. This compared
to operating expenses of $20.6 million for the same period in 1998.
The Company's affiliated businesses, which are independently funded by
third parties, contributed $2.6 million to the consolidated operating
expenses for 1999 third quarter. As of September 30, 1999, the
Company's cash, marketable securities and receivables totaled $47.4
million.
"Operating expenses for our core drug discovery and development
efforts decreased in third quarter 1999 as compared to both third
quarter 1998 and second quarter 1999, and will continue to decrease as
the San Diego operations are being phased out," commented John Walker,
Chairman and CEO of Axys Pharmaceuticals. "We have implemented several
initiatives in 1999 designed to produce a leaner, more focused
organization. We have reduced headcount in the core business by
approximately 170 positions since the beginning of the year and
progressed in developing our proprietary oncology pipeline, including
the recent in-license of an exciting program from Signal
Pharmaceuticals, Inc. In addition, we continue to see significant
value from our product-based drug discovery collaborations and our
affiliated companies." Walker went on to say, "As we exit 1999 and
look forward to 2000, we are focused on moving product candidates
forward as rapidly as possible in both our proprietary and partnered
programs."
The Company also highlighted significant events during the third
quarter of 1999:
-- Axys acquired exclusive, worldwide development and marketing
rights to Signal Pharmaceuticals' selective estrogen
receptor-beta modulators (SERM-beta) for the treatment of cancer.
-- Axys Advanced Technologies, the Company's combinatorial chemistry
subsidiary, signed two new customers during third quarter 1999
and continues to provide positive cash flow to fund Axys' drug
discovery efforts, with in excess of $22 million of backlog at
September 30, 1999.
-- Akkadix Corporation completed its acquisition of Global Agro and
is now a minority owned ag-bio subsidiary of the Company.
-- Axys and Memorial Sloan-Kettering agreed to close Genos
Biosciences and will be jointly sharing the intellectual property
developed by Genos Biosciences.
-- In September, Kathleen Stafford, formerly of Amgen, Inc., CV
Therapeutics and Onyx Pharmaceuticals joined Axys as senior vice
president and chief financial officer
Axys Pharmaceuticals is a drug discovery and development company
with a proprietary focus in oncology. Axys is building shareholder
value through (1) a broad and diversified pipeline of research and
development programs partnered with world-class pharmaceutical
companies; (2) expansion of a non-partnered research and development
franchise in oncology; and (3) the spin out of affiliated businesses
that leverage the company's technologies in order to provide capital
for Axys' drug discovery and development programs. Axys'
technology-leveraging businesses are: Axys Advanced Technologies, a
combinatorial chemistry oriented business; PPGx, a majority owned
pharmacogenomics company, and Akkadix, an agricultural biotechnology
company.
Except for the historical information contained herein, this
press release contains forward-looking statements that involve risks
and uncertainties which could cause Axys' actual results to differ
materially from those discussed here, including the reliance on the
efforts of collaborative partners, the risk that this or other Axys
collaborations will not be successful, the risk that clinical trials
will not proceed as anticipated or may not be successful, the risks
inherent in early stage development, the risk that Axys will not be
successful in entering into new collaborations, competition and
marketing risk, the risk of unexpected difficulties and delays in the
development of new technologies and in expanding its manufacturing
capabilities, and general economic conditions that may affect Axys'
actual results and developments. Additional factors that could cause
or contribute to such differences include, but are not limited to,
those discussed in the sections entitled "What Factors Could Cause Our
Results to Differ Significantly from Those You Might Expect?" and
"Additional Risk Factors" in the Axys' SEC Reports, including Axys'
report on Form 10-K for the fiscal year ended December 31, 1998.
For more information on Axys Pharmaceuticals, Inc., please visit
the company's website at axyspharm.com.
AXYS PHARMACEUTICALS, INC.
Consolidated Statements of Operations
(unaudited)
Three months Nine months
ended Sept. 30 ended Sept. 30
1999 1998(a) 1999 1998(a)
(in thousands, except per share amounts)
Revenues
Collaboration
and licensing
revenues $ 5,493 $ 9,761 $ 20,289 $ 26,411
Product and
service revenues 3,487 4,513 8,822 5,394
Total revenues 8,980 14,274 29,111 31,805
Operating expenses:
Cost of products
sold 1,394 391 2,844 778
Research and
development 14,706 15,710 47,371 44,697
General and
administrative 5,076 4,480 12,829 11,602
Restructuring charge 7,008 -- 7,008 --
Acquired in process
research &
development -- -- -- 124,888
Total operating
expenses 28,184 20,581 70,052 181,965
Operating loss (19,204) (6,307) (40,941) (150,160)
Interest income
(expense), net (57) 410 606 1,972
Equity interest
in loss of
joint venture (6) (788) (836) (1,690)
Minority interest 612 -- 1,522 --
Other income/
expense, net (1,285) -- (1,253) --
--------- --------- --------- ---------
Net loss $ (19,940) $ (6,685) $ (40,902) $(149,878)
--------- --------- --------- ---------
Basic and diluted
net loss per share $ (0.66) $ (0.22) $ (1.35) $ (5.06)
--------- --------- --------- ---------
Shares used in
computing basic
and diluted net
loss per share 30,414 30,095 30,364 29,625
Consolidated Balance Sheet Data
(in thousands)
September 30, December 31,
1999 1998
(unaudited)
Cash & marketable investments $ 43,217 $ 72,717
Accounts receivable 4,170 2,140
Total assets 73,767 107,262
Accumulated deficit (270,797) (229,895)
Total stockholders' equity 20,381 60,512
(a) Cost of products sold have been reclassified to conform to the
1999 presentation.
CONTACT:
Axys Pharmaceuticals, Inc.
John Walker, 650/829-1000 (Chairman and CEO)
Kathleen Stafford, 650/829-1000 (Senior VP and CFO) |
