>>THE WOODLANDS, Texas, May 9 /PRNewswire-FirstCall/ -- Lexicon Genetics Incorporated (Nasdaq: LEXG - news), a biopharmaceutical company focused on the discovery of breakthrough treatments for human disease, today reported financial results for the three-month period ended March 31, 2002.
Revenues: Lexicon's revenues for the first quarter of 2002 increased 131 percent to $7.7 million from $3.3 million for the corresponding quarter of 2001. Revenues for the first quarter of 2002 included:
-- subscription and license fees of $3.4 million, consisting primarily
of access fees from the Company's LexVision(R) collaborations with
Bristol-Myers Squibb Company and Incyte Genomics, Inc. and
technology license fees from sublicensees of the Company's gene
targeting technology; and
-- collaborative research revenues of $4.3 million, consisting
primarily of revenues from functional genomics collaborations with
pharmaceutical and biotechnology companies and from Lexicon's
therapeutic protein collaboration with Incyte Genomics, Inc.
Research and Development Expenses: Research and development expenses for the three-month period ended March 31, 2002 increased 71 percent to $16.9 million from $9.9 million for the corresponding quarter of 2001. Excluding non-cash stock-based compensation, research and development expenses for the three-month period ended March 31, 2002 were $15.6 million, compared to $8.5 million for the corresponding quarter of 2001.
The increase in expenses in the first quarter of 2002 over those in the prior-year quarter primarily reflects increased investments toward the scale- up of the Company's drug discovery programs and its gene knockout and functional analysis programs to determine the function of 5,000 genes over five years for the discovery of new drug targets, as well as expenses of the Company's new medicinal chemistry operations. Consistent with the Company's focus on these programs, through the first quarter of 2002, Lexicon's total workforce grew to 505 people, including 398 scientific staff.
General and Administrative Expenses: General and administrative expenses for the three-month period ended March 31, 2002 increased 40 percent to $6.0 million from $4.3 million for the corresponding quarter of 2001. Excluding non-cash stock-based compensation, general and administrative expenses for the three-month period ended March 31, 2002 increased to $4.7 million, compared to $2.9 million for the corresponding quarter of 2001.
Interest and Other Income: Interest and other income decreased to $1.1 million in the three-month period ended March 31, 2002 from $2.9 million in the corresponding quarter of 2001 due to lower average cash and investment balances and lower average interest rates.
Net Loss: Net loss was $14.1 million, or $0.27 per share, in the three- month period ended March 31, 2002, compared to a net loss of $8.0 million, or $0.17 per share, in the corresponding quarter of 2001. Excluding non-cash stock-based compensation charges related to stock options granted before Lexicon's initial public offering, net loss for the three-month period ended March 31, 2002 was $11.5 million, or $0.22 per share, as compared to a net loss of $5.3 million, or $0.11 per share, for the corresponding quarter of 2001.
Cash and Investments: As of March 31, 2002, Lexicon had approximately $148.8 million in cash and investments, compared to $166.8 million as of December 31, 2001.
"Our continued financial strength and business growth during the first three months of 2002 demonstrates that our infrastructure is well-positioned to support the major scale-up of our drug discovery and gene knockout programs," said Arthur T. Sands, M.D., Ph.D., President and Chief Executive Officer of Lexicon. "We believe the combination of our patented technologies, world-class drug discovery team, strategically-designed genome pharmaceutical center and cash resources represent significant competitive strengths that are difficult to replicate. With this infrastructure now in place, we believe we are well-positioned to be the first to discover the medical applications of the largest number of new pharmaceutical targets for drug discovery in the post-genome era."
First Quarter 2002 Highlights:
Discovery of three drug targets for potential treatment of depression, heart disease and cancer: Lexicon announced the discovery of three new in vivo-validated drug targets for which the Company has initiated drug discovery programs in the first quarter 2002, bringing Lexicon's total number of drug discovery programs to eleven. LG527 is a new target for the development of potential treatments for depression. LG914 is a new target for the development of potential treatments for atherosclerosis. LG152 is a new target for the development of potential treatments for solid tumor cancers. All three targets were uncovered through the Company's industrialized gene knockout program in which specific genes are associated with desirable medical profiles. Our pipeline of targets in cardiology, immunology, neurology, oncology and metabolism demonstrates the broad applicability of our gene knockout technology for the discovery of new therapeutics.
Key addition to business development group: Lexicon hired Stephen J. McAndrew, Ph.D., as Vice President of Pharmaceutical Business Development. In his new role, Dr. McAndrew is focusing his business development expertise on the development of key collaborations and alliances to maximize the commercial potential of Lexicon's drug discovery programs. Dr. McAndrew brings more than 20 years of pharmaceutical industry expertise to Lexicon. Before joining Lexicon, he was Director of Biotechnology Licensing at the Bristol-Myers Squibb Pharmaceutical Research Institute. In this position, he was primarily responsible for identifying, evaluating and negotiating numerous pre-clinical lead compound collaborations and platform technology alliances.
Genome Pharmaceutical Center: Lexicon recently completed its new Genome Pharmaceutical Center in The Woodlands, Texas. With the completion of the new facility, Lexicon tripled the size of its physical plant to approximately 300,000 square feet. Lexicon believes that its new facilities provide the Company with significant competitive advantages in the discovery of new in vivo-validated drug targets and the advancement of its drug discovery programs based on those targets.
Lexicon Genetics Incorporated is a biopharmaceutical company focused on the discovery of breakthrough treatments for human disease. Lexicon is using gene knockout technology to systematically discover the physiological functions and medical uses of genes. The Company's gene function discoveries fuel therapeutic discovery programs in cardiovascular disease, diabetes, obesity, immune disorders, neurological disease and cancer. Lexicon has established drug discovery alliances and functional genomics collaborations with leading pharmaceutical and biotechnology companies, research institutes and academic institutions throughout the world to commercialize its technology and further develop its discoveries. Additional information about the Company is available through Lexicon's corporate website, www.lexicon-genetics.com .
This press release contains "forward-looking statements," including statements about Lexicon's growth and future operating results, discovery and development of products, strategic alliances, and intellectual property, as well as other matters that are not historical facts or information. These forward-looking statements are based on management's current assumptions and expectations and involve risks, uncertainties and other important factors, specifically including those relating to Lexicon's ability to develop drug candidates from its discoveries, achieve its operational objectives, obtain patent protection for its discoveries and establish strategic alliances, that may cause Lexicon's actual results to be materially different from any future results expressed or implied by such forward-looking statements. Information identifying such important factors is contained under "Factors Affecting Forward-Looking Statements" and "Business - Risk Factors" in Lexicon's annual report on Form 10-K for the year ended December 31, 2001, as filed with the Securities and Exchange Commission. Lexicon undertakes no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
Lexicon Genetics Incorporated
Selected Financial Data
Consolidated Statements of Operations Data Three Months Ended
(In thousands, except per share data) March 31,
2002 2001
(unaudited)
Revenues:
Subscription and license fees $3,395 $1,747
Collaborative research 4,256 1,524
Compound libraries 5 ---
Other revenue --- 40
Total revenues 7,656 3,311
Operating expenses:
Research and development, including
stock-based compensation of $1,307 and
$1,396, respectively 16,864 9,863
General and administrative, including
stock-based compensation of $1,282 and
$1,342, respectively 5,969 4,271
Total operating expenses 22,833 14,134
Loss from operations (15,177) (10,823)
Interest and other income 1,120 2,896
Interest expense 2 81
Net loss $(14,059) $(8,008)
Net loss per common share, basic and diluted $(0.27) $(0.17)
Net loss per common share, excluding
stock-based compensation $(0.22) $(0.11)
Shares used in computing net loss per common
share 52,126 48,343
Consolidated Balance Sheet Data As of As of
(In thousands) March 31, December 31,
2002 2001
(unaudited)
Cash and investments $148,821 $166,840
Property and equipment, net 33,522 26,707
Goodwill 25,798 25,798
Intangible assets, net 5,140 5,440
Total assets 226,523 239,990
Deferred revenue 11,343 13,095
Deferred stock compensation (19,362) (22,260)
Accumulated deficit (104,133) (90,075)
Total stockholders' equity 206,770 218,372<<
Cheerss, Tuck |
