Curis Reports First Quarter 2002 Results
CAMBRIDGE, Mass.--(BW HealthWire)--May 15, 2002--Curis, Inc. (NASDAQ: CRIS - News) today reported the results of its operations for the three-month period ended March 31, 2002.
Total revenues for the three-month period ended March 31, 2002 were $159,000 as compared to $249,000 for the same period in 2001; a decrease of 36%. Total operating expenses for the three-month period ended March 31, 2002 were $16,966,000 as compared to $20,346,000 for the same period in 2001; a decrease of 17%. Total operating expenses for the three-month period ended March 31, 2002 include a charge of $8,662,000 associated with the realignment announced by Curis in February 2002 of which $5,172,000 is a non-cash charge associated with the impairment of property and equipment. Excluding cash and non-cash charges associated with the 2002 realignment, amortization of intangibles of $60,000 and $5,824,000 in 2002 and 2001, respectively, and stock-based compensation of $697,000 and $3,831,000 in 2002 and 2001, respectively, total operating expenses for the three-month period ended March 31, 2002 were $7,547,000 as compared to $10,691,000 for the same period in 2001; a decrease of 30%.
On July 18, 2001, Curis formed a joint venture with Elan International Services, Inc. ("Elan"). During the three-month period ended March 31, 2002, Curis recognized a loss of $1,162,000 representing its pro rata share of the joint venture's loss for the period. Curis intends to fund such loss by drawing down on a funding facility provided by an affiliate of Elan.
The net loss applicable to common stockholders for the three-month period ended March 31, 2002 was $18,002,000 or ($0.56) per share as compared to a net loss of $17,807,000 or ($0.57) per share, for the three-month period ended March 31, 2001; an increase of 1% for the total. Excluding cash and non-cash charges associated with the 2002 realignment of $8,662,000, amortization of intangibles of $60,000 and $5,824,000 in 2002 and 2001, respectively, stock-based compensation of $697,000 and $3,831,000 in 2002 and 2001, respectively, and accretion of preferred stock dividend in 2002 of $182,000, the net loss applicable to common stockholders for the three-month period ended March 31, 2002 was $8,401,000 as compared to $8,152,000 for the same period in 2001; an increase of 3%.
As of March 31, 2002, Curis' cash and investments were $42,781,000. As of March 31, 2002, there were 32,329,228 shares of common stock and 1,000 shares of Series A convertible exchangeable preferred stock outstanding.
"Since announcing the realignment in February 2002, we have focused our efforts on those assets providing the greatest opportunity for creating shareholder value and have established a partnering strategy that will enhance our capacity to develop a diverse portfolio of product candidates while allowing us to reduce our net expenditures," said Daniel R. Passeri, President and Chief Executive Officer of Curis. "We continue to implement our realignment strategy and reposition the Company on a focused path of fiscal discipline and timely achievement of developmental milestones. Through the successful execution of our partnering strategy and increasing OP-1 royalty revenues, I believe we will be well positioned to launch several development programs while preserving our cash position for sustainable growth."
About Curis
Curis, Inc. is generating therapies that are designed to regulate the pathways used by the body to maintain and restore health. The company focuses on signaling pathways that govern the proliferation and differentiation of cells. These same pathways control maintenance, repair, and regeneration of tissues and organs from infancy through old age. This approach has created an approved product for bone regeneration and is being used to enable Curis to build a portfolio of product candidates in neurology, kidney disease, and cancer. For more information, please visit the Curis web site at www.curis.com.
This press release contains forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements address a variety of subjects, including, for example, projected net losses, generating stockholder value, operating capital requirements, operating efficiencies, strategic collaboration efforts and product development efforts. Statements in this press release that state Curis' or management's intentions, plans, expectations or predictions of future events are forward-looking statements. The matters discussed in this press release also involve risks and uncertainties that may cause Curis' actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: Curis' need for partnerships to move forward its programs, the early stage of product development of Curis' retained programs, uncertainties related to clinical trials run by our corporate partners, uncertainties related to Curis' ability to raise additional capital, changes in or an inability to execute Curis' realigned business strategy and other risk factors described from time to time in Curis' periodic reports and registration statements filed with the Securities and Exchange Commission, including, without limitation, Curis' Annual Report on Form 10-K for the year ended December 31, 2000 filed on March 28, 2002 and the Company's Post Effective Amendment No. 1 on Form S-3 to the Registration Statement on Form S-1 filed with the Securities and Exchange Commission on August 10, 2001. Curis cannot guarantee any future results, levels of activity, performance, or achievements. Moreover, neither Curis nor anyone else assumes responsibility for the accuracy and completeness of any forward-looking statements. Curis undertakes no obligation to update any of the forward-looking statements after the date of this press release.
CURIS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three-months ended
March 31,
2002 2001
Revenues $ 158,632 $ 249,165
Operating expenses:
Research and development 4,834,762 8,108,708
General and administrative 2,711,339 2,582,391
Stock-based compensation 697,462 3,831,439
Amortization of intangible assets 60,405 5,823,660
2002 realignment and impairment charge 8,661,945 --
Total operating expenses 16,965,913 20,346,198
Loss from operations (16,807,281) (20,097,033)
Equity in loss from joint venture (1,161,684) --
Other income, net 148,924 2,289,804
Net loss $ (17,820,041) $ (17,807,229)
Accretion on Series A redeemable
preferred stock (182,228) --
Net loss applicable to common
stockholders $ (18,002,269) $ (17,807,229)
Basic and diluted net loss per
common share $ (0.56) $ (0.57)
Weighted average common shares for basic
and diluted net loss computation 32,329,228 31,434,120
CURIS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31, December 31,
2002 2001
ASSETS
Cash, cash equivalents and marketable
securities $ 42,780,965 $ 52,107,328
Property and equipment, net 5,276,481 11,060,711
Intangible assets, net 73,746,720 73,807,125
Other assets 8,128,386 7,781,053
Total assets $ 129,932,552 $ 144,756,217
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses $ 11,864,982 $ 8,681,868
Debt and capital lease obligations 10,638,086 10,567,789
Deferred revenue 12,064,662 12,145,533
Total liabilities 34,567,730 31,395,190
Series A redeemable preferred stock 12,523,608 12,341,381
Total stockholders' equity 82,841,214 101,019,646
Total liabilities and stockholders'
equity $ 129,932,552 $ 144,756,217
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Contact:
Curis, Inc.
Henry W. McCusker, 617/503-6641
George A. Eldridge, 617/503-6515
or
Noonan Russo Presence Euro RSCG
Melissa Wainberg, 212/696-4455, ext. 220 (Media)
Sharon Weinstein, 212/696-4455, ext. 334 (Investors) |
