Hyseq Pharmaceuticals Announces First Quarter Financial Results
SUNNYVALE, Calif., April 25 /PRNewswire-FirstCall/ -- Hyseq Pharmaceuticals, Inc. (Nasdaq: HYSQ - news), today announced results for the quarter ended March 31, 2002.
Revenues for the first quarter of 2002 were $5.2 million, compared to revenues of $5.7 million for the same period in 2001. The company reported a net loss for the first quarter of $19.0 million or $1.01 per share. This net loss included a one-time non-cash expense of $10.0 million for the issuance of warrants to collaboration partner, Amgen, as part of Hyseq and Amgen's agreement to develop and market the novel thrombolytic drug, alfimeprase, for the treatment of peripheral arterial occlusion (PAO) and other cardiovascular indications.
Excluding the one-time non-cash charge, Hyseq reported a pro forma net loss of $9.0 million or $0.48 per share, compared to a net loss of $6.7 million or $0.49 per share for the same quarter in the prior year.
At March 31, 2002, Hyseq had approximately $6.5 million in cash compared to approximately $12.3 million at December 31, 2001.
``Achievements in the first quarter, including our collaboration with Amgen, reflect important progress in our continued goal to establish Hyseq's success in drug discovery and development,'' said Ted W. Love, president and chief executive officer of Hyseq Pharmaceuticals. ``We are extremely excited about beginning clinical trials with alfimeprase for the treatment of PAO. We have transferred the IND and expect to begin clinical trials shortly.''
Company Highlights
* Entered into a major collaboration with Amgen for the development andcommercialization of alfimeprase, a novel thrombolytic for the treatment of PAO and other cardiovascular indications.
* After the end of the first quarter, raised $15 million in a private placement involving new and existing institutional investors.
* Entered into collaboration with Genetastix Corporation, a privately held biotechnology company, through which Hyseq obtained access to Genetastix's HuMYTech(TM) technology to generate fully human monoclonal antibodies against a proprietary antigen.
* Expecting to initiate Phase I clinical trials with alfimeprase in the second quarter of this year, and proceed into Phase II studies by early next year.
Conference Call Information
Hyseq will hold a conference call today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss this announcement. To participate in the conference call, please dial 800/997-8642. A telephone replay of the conference call will be available through Thursday, May 9, 2002. To access the replay, please dial 800/428-6051 and reference pass code 239398.
This call is also being webcast by CCBN and can be accessed at Hyseq's Web site at www.hyseq.com, CCBN's individual investor center at www.companyboardroom.com or by visiting any of the investor sites in CCBN's Individual Investor Network. Institutional investors can access the call via CCBN's password-protected event management site, StreetEvents (www.streetevents.com).
Upcoming Events
Hyseq will hold its annual shareholder's meeting on Tuesday, August 6, 2002 at 11:00 a.m. (Pacific Standard Time) at 675 Almanor Avenue, Sunnyvale, CA 94085.
Hyseq Pharmaceuticals, Inc. is engaged in research and development of novel biopharmaceutical products from its collection of proprietary genes discovered using its high-throughput screening-by-hybridization platform. Hyseq's screening-by-hybridization platform provided a significant advantage in discovering novel, rarely-expressed genes, and assembly of one of the most important proprietary databases of full-length human gene sequences. Hyseq is expanding and accelerating its research activities to further elucidate the role of novel genes in its proprietary database. Hyseq's database includes genes which encode a number of therapeutically important classes of molecules including chemokines, growth factors, stem cell factors, interferons, integrins, proteases, hormones, receptors, and other potential protein therapeutics or drug targets.
Information about Hyseq Pharmaceuticals is available at www.hyseq.com or by phoning 408-524-8100.
Statements contained in this press release which are not historical in nature, are intended to be, and are hereby identified as ``forward-looking statements'' for purposes of the safe harbor provided by the Private Securities Litigation Act of 1995. Forward-looking statements may be identified by words such as ``believe,'' ``expect,'' ``anticipate,'' ``should,'' ``may,'' ``estimate,'' ``goals, and ''potential,`` among others. Such statements are based on our management's current expectations and involve risks and uncertainties. Actual results and performance could differ materially from those projected in the forward-looking statements as a result of many factors, including, without limitation, uncertainties relating to unanticipated difficulties and delays relating to gene identification, drug discovery and clinical development processes; changes in relationships with strategic partners and dependence upon strategic partners for the performance of critical activities under collaborative agreements; the impact of competitive products and technological changes; uncertainties relating to patent protection and regulatory approval; and uncertainties relating to our ability to obtain substantial additional funds required for progress in drug discovery and development. These and other factors are identified and described in more detail in our periodic reports filed from time to time with the SEC, including without limitation our Annual Report on Form 10-K for the year ended December 31, 2001. We disclaim any intent or obligation to update these forward-looking statements.
HYSEQ PHARMACEUTICALS, INC
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three months ended March 31,
2002 2001
Contract revenues $5,232 $5,668
Operating expenses:
Research and development 21,014 9,051
General and administrative 3,058 3,003
Total operating expenses 24,072 12,054
Loss from operations (18,840) (6,386)
Interest expense, net (229) (293)
Net loss before minority interest (19,069) (6,679)
Loss attributable to minority interest 112 --
Net loss (A)$(18,957) $(6,679)
Basic and diluted net loss per share (A)$ (1.01) $ (0.49)
Weighted average shares used
in computing basic and
diluted net loss per share 18,725 13,739
(A) Pro forma net loss was $(8,957) or $(.48) per share, excluding a one- time non-cash expense of $10.0 million on the issuance of warrants to collaboration partner Amgen, as part of Hyseq and Amgen's agreement to develop and market the novel acting thrombolytic drug alfimeprase for the treatment of peripheral arterial occlusion (PAO) and other cardiovascular indications.
CONSOLIDATED BALANCE SHEET AND OTHER DATA
(in thousands)
March 31, 2002 December 31, 2001*
(unaudited)
Cash $6,486 $12,329
Working capital (10,169) (1,717)
Cash on deposit 1,606 1,606
Total assets 32,406 39,904
Deferred revenue 2,668 3,702
Noncurrent portion of capital
lease and loan obligations 1,916 2,228
Note Payable 4,000 4,000
Accumulated deficit (127,352) (108,395)
Total stockholders' equity 6,737 15,421
The condensed consolidated balance sheet and other data at December 31, 2001 have been derived from the audited financial statements as of that date.
SOURCE: Hyseq Pharmaceuticals, Inc. |
