$3.91/share, cash...........
Thursday August 2, 7:31 am Eastern Time
Press Release
SOURCE: Variagenics, Inc.
Variagenics Announces Second Quarter Financial
Results
CAMBRIDGE, Mass., Aug. 2 /PRNewswire/ -- Variagenics, Inc. (Nasdaq: VGNX - news), a leader in pharmacogenomics,
today announced results for the second quarter and six months ended June 30, 2001.
For the second quarter of 2001, revenues were $0.9 million, compared with $0.1 million for the same period in 2000. The
second quarter net loss excluding non-cash equity compensation was $4.2 million, or $0.18 per share (basic and diluted). This
compares with a net loss of $3.0 million, or $3.20 per share (basic and diluted), for the comparable quarter ended June 30,
2000.
For the six months ended June 30, 2001, Variagenics reported revenues of $2.0 million, compared with $0.3 million for the
same period in 2000. The net loss for the first six months of 2001 excluding non-cash equity compensation was $6.8 million, or
$0.29 per share (basic and diluted). For the comparable six-month period of 2000, the net loss excluding non-cash equity
compensation was $5.5 million, or $6.61 per share.
The Company ended the second quarter with $91.1 million in cash and marketable securities.
Taylor J. Crouch, Variagenics' President and CEO, said, ``We are directing the application of our pharmacogenomics platform
toward the development and commercialization of molecular diagnostics. Our approach is to discover a set of proprietary
genetic markers and validate their clinical utility to create patented gene-based tests predictive of drug response.''
``Much of our internal research is focused on cancer, an area where we believe the use of molecular diagnostics can
dramatically change treatment outcomes,'' continued Crouch. ``Today, for example, typical drugs used for colon cancer are
effective in less than thirty percent of patients. Variagenics has aggressively focused on generating a proprietary set of markers
that may change the way cancer chemotherapeutics are prescribed. We are developing marker sets that will go well beyond
SNPs and haplotypes to include indicators of LOH and mRNA expression.''
Recent Highlights:
Cancer Programs:
* In support of its focus on cancer research and its emphasis on genetic
pathways, Variagenics performed a comprehensive analysis of a critical
pathway involved in the efficacy and toxicity of leading cancer
therapeutics. This pathway, involving folate metabolism, covers a
class of chemotherapeutic agents based on 5-Fluorouracil (5-FU) used
for colon and rectal cancer. Variagenics will be showcasing its 5-FU
pathway analysis at the Drug Discovery Technology Conference in Boston
beginning August 13, 2001.
* As part of its cancer research platform, Variagenics devised
methodologies to correlate loss of heterozygosity (LOH) with drug
response and developed assays that may ultimately lead to molecular
diagnostic products for conducting LOH analysis.
* Variagenics announced the issuance of a second U.S. patent involving
Methylene-tetrahydrofolate Reductase (MTHFR). This patent plays an
important role in Variagenics' pathway strategy, which considers that
more than one gene is involved in an individual's response to drugs and
diagnostics. The patent was exclusively licensed from McGill
University, where Variagenics' advisor, Dr. Rima Rozen, has been
identifying variant forms of the gene that affect folate metabolism and
has been studying the importance of MTHFR in cancer and a variety of
other diseases.
Molecular Diagnostic Development:
* Intellectual property claiming the use of SNPs, haplotypes and other
genetic markers for predicting drug response is the basis for the
high-value molecular diagnostics that Variagenics is creating. The
Company has analyzed variation in over 5,000 genes believed to be
involved in drug response and has substantially increased the numbers
of functional genetic markers for which it has filed patents.
Variagenics now owns or has exclusive license to 18 U.S. patents and
has 108 U.S. patents pending.
* Variagenics announced the issuance of a third U.S. patent for
apolipoprotein E (ApoE) entitled "Methods for determining the
prognosis of a patient with neurological disease." The patent
describes a method for determining the prognosis of a patient diagnosed
with Parkinson's disease, multiple sclerosis, stroke and other brain
diseases. The claims in this patent extend Variagenics' rights to
nervous system disorders beyond dementia and cognitive impairment, and
articulate the clinical spectrum of pharmacogenomic utility from
clinical trials to diagnostic tests.
* Variagenics furthered its research involving a novel, proprietary
laboratory technique for measuring haplotypes. This molecular
haplotyping technology is Variagenics' high-throughput method for
defining haplotypes in clinical samples, and provides Variagenics with
a unique and powerful tool for the pharmacogenomic analysis of genetic
variation. Molecular haplotyping is an essential component of several
ongoing clinical research studies, including internal and partnered
(VIP) programs. One of Variagenics' in-house studies is aimed at
demonstrating the superiority of molecular haplotyping over simple SNP
analysis and computational haplotyping.
Variagenics will hold a conference call at 11:00 a.m. Eastern Time today. Taylor J. Crouch, President and CEO, will lead the
call. Richard P. Shea, Vice President, CFO and Treasurer, and Colin W. Dykes, Ph.D., Vice President, Research, also will
participate.
Date: Thursday, August 2, 2001
Time: 11:00 a.m. Eastern Time
Conference call numbers
Toll-free: (800) 479-9001
Toll/international: (719) 457-2618
Webcast: www.variagenics.com
There will be a replay (beginning at 3:00 p.m.) of the conference call for five days. To replay the call, please dial (888)
203-1112 in the U.S. and (719) 457-0820, internationally. The access code is 442969.
Variagenics, Inc. applies its pharmacogenomic technologies to the discovery, development and commercialization of
personalized drugs and companion molecular diagnostic products. Using a drug pathway approach, the Company identifies
therapeutically important genetic markers, including SNPs, haplotypes and LOH indicators. This information is then applied to
clinical programs to enhance drugs in development, and ultimately to the creation of diagnostics for predicting patient response
to drugs.
For more information, please visit the Company's website at www.variagenics.com .
This press release may contain forward-looking statements, including statements regarding the effect of pharmacogenomics on
therapeutic outcomes and the delivery of healthcare and the role that the Company will play in the field of pharmacogenomics.
Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that
may cause actual results, events and performance to differ materially from those referred to or implied in such statements. These
risks are identified in Variagenics' Annual Report on Form 10-K for the fiscal year ended December 31, 2000. The Company
does not intend to update any of the forward-looking statements after the date of this release to conform these statements to
actual results or to changes in our expectations, except as required by law.
Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three months ended Six months ended
June 30, June 30,
2001 2000 2001 2000
Revenue:
Revenue from collaborations $ 915 $ 149 $ 1,807 $ 276
Product sales -- -- 210 --
Total revenue 915 149 2,017 276
Costs and expenses:
Cost of product sold -- -- 186 --
Research and development 4,013 2,312 6,958 4,077
General and administrative 2,292 1,078 4,314 2,014
Non-cash equity compensation 1,381 1,279 2,440 3,484
Loss from operations (6,771) (4,520) (11,881) (9,299)
Other income (expense):
Interest income 1,241 290 2,689 405
Interest expense (36) (71) (78) (137)
Net loss $(5,566) $(4,301) $(9,270) $(9,031)
Dividends on redeemable
convertible preferred stock -- (1,116) -- (21,865)
Net loss attributable
to common stockholders $(5,566) $(5,417) $(9,270) $(30,896)
Net loss attributable
to common stockholders
per share (basic and diluted) $ (0.24) $ (5.73) $ (0.40) $(36.82)
Weighted average common shares
outstanding (basic and diluted) 23,299 946 23,234 839
Net loss before dividends
on redeemable convertible
preferred stock, excluding
non-cash equity compensation $(4,185) $(3,022) $(6,830) $(5,547)
Net loss per share before
dividends on redeemable
convertible preferred stock,
excluding non-cash equity
compensation $ (0.18) $ (3.20) $ (0.29) $ (6.61)
Balance Sheet Data
(in thousands)
(unaudited)
June 30, 2001 December 31, 2000
Cash, cash equivalents and
short-term marketable securities $ 91,071 $ 90,963
Working capital 89,264 88,182
Total cash and marketable securities 91,071 99,025
Total assets 101,742 106,244
Stockholders' equity 94,494 101,282
SOURCE: Variagenics, Inc. |
