NeoRx Reports First Quarter 2002 Results
SEATTLE--(BUSINESS WIRE)--April 19, 2002--NeoRx Corporation (Nasdaq:NERX - news) today reported results for the first quarter ended March 31, 2002. The Company reported a net loss of $7.1 million ($0.27 diluted per share loss after preferred dividends) for the first quarter of 2002, compared to a net loss of $3.6 million ($0.14 diluted per share loss after preferred dividends) for the first quarter of 2001.
Revenue for the first quarter of 2002 was $0.3 million, compared to $1.0 million for the first quarter of 2001. Revenue for the first quarter of 2002 consisted primarily of revenue from government grants and a facilities lease agreement. Revenue for the first quarter of 2001 was primarily from government grants.
Other income for the first quarter of 2002 was $0.4 million, compared to $0.9 million for the first quarter of 2001. Other income for the quarters ended March 31, 2002 and 2001 consisted primarily of interest income from investment securities.
Total operating expenses for the first quarter of 2002 increased 42% to $7.8 million from $5.5 million for the first quarter of 2001. Research and development expenses increased 54% to $6.0 million for the first quarter of 2002 from $3.9 million for the first quarter of 2001. The increase in research and development expenses for the first quarter of 2002 was predominantly due to the addition of the Company's radiopharmaceutical manufacturing facility in Denton, Texas. First quarter research and development expenses also increased from clinical activities relating to the Company's Pretarget® Lymphoma and Pretarget® Carcinoma clinical product development programs.
General and administrative expenses increased 11% to $1.7 million for the first quarter of 2002 from $1.6 million for the same time period in 2001. The increase in general and administrative costs during the first quarter of 2002 was due to increased staff, legal, and corporate communications expenses. Cash and investment securities as of March 31, 2001, were $26.4 million compared to $33.6 million at December 31, 2001.
``Patient enrollment and progress in our clinical trials continue to be our primary focus,'' said Douglass B. Given, MD, PhD, President and CEO. ``Our dosimetry trial for Skeletal Targeted Radiotherapy is open for enrollment and we are actively screening patients at three clinical sites. In parallel, we are in detailed discussions with the FDA on the design of our STR pivotal trials, with the goal of initiating the pivotal program by year-end. Patient enrollment also is ongoing in our Pretarget® Lymphoma and Pretarget® Carcinoma phase I/II programs.''
NeoRx is a cancer therapeutics company developing products for targeted delivery of cytotoxic agents, including radiopharmaceuticals, to tumor sites.
This release contains forward-looking statements relating to the development of the Company's products and future operating results that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words ``believe,'' ``expect,'' ``intend,'' ``anticipate,'' variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of clinical trials and the timing of regulatory approvals. Reference is made to the Company's latest Annual Report on Form 10-K filed with the Securities and Exchange Commission for a more detailed description of such factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update any forward-looking statement to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
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NeoRx and Pretarget are registered trademarks of NeoRx Corporation in the United States and/or foreign countries.
(c) 2002 NeoRx Corporation. All Rights Reserved.
NeoRx Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended March 31,
2002 2001
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REVENUES $ 310 $ 1,039
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OPERATING EXPENSES:
Research and development 6,041 3,920
General and administrative 1,739 1,566
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Total operating expenses 7,780 5,486
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Loss from operations (7,470) (4,447)
Other income, net 403 866
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Net loss $(7,067) $(3,581)
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Preferred stock dividends (125) (125)
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Net loss applicable to common shares $(7,192) $(3,706)
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Loss per share:
Basic and diluted $ (0.27) $ (0.14)
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Shares used in calculation of loss per share:
Basic and diluted 26,576 26,245
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Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
March 31, Dec. 31,
2002 2001
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ASSETS:
Cash and investment securities $26,360 $33,581
Facilities and equipment, net 15,136 15,222
Other assets 2,110 2,225
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Total assets $43,606 $51,028
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LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities $ 3,704 $ 3,542
Long-term liabilities 5,655 5,771
Shareholders' equity 34,247 41,715
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Total liabilities and shareholders' equity $43,606 $51,028
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Contact:
NeoRx Corporation
Melinda G. Kile, 206/281-7001 |
