Here's the press release:
Allergan Ligand Retinoid Therapeutics, Inc. Reports Third Quarter Results
SAN DIEGO, Nov. 13 /PRNewswire/ -- Allergan Ligand Retinoid Therapeutics,
Inc. (ALRT) (Nasdaq: ALRI) today reported operating results for the quarter
ended September 30, 1997. Net loss was $10.8 million or $3.22 per share for
the quarter and $29.2 million or $8.99 per share for the nine months ended
September 30,1997. In 1996 ALRT incurred a net loss of $8.9 million or $2.73
per share for the quarter and $20.3 million or $6.24 per share for the nine
months ended September 30, 1996.
Interest income was $0.2 million in the third quarter and $1.3 million in
the first nine months of 1997 compared to $0.9 million in the third quarter
and $3.0 million in the first nine months of 1996. R&D expenses were
$10.3 million in the third quarter and $29.4 million for the first nine months
of 1997 compared to $9.4 million in the third quarter and $22.1 million in the
first nine months of 1996. R&D was performed primarily by Allergan, Inc. and
Ligand Pharmaceuticals Incorporated under contracts with ALRT. General and
administrative expenses were $0.3 million in the second quarter and
$1.1 million in the first nine months of 1997 compared to $0.4 million in the
third quarter and $1.2 million in the first nine months of 1996.
ALRT had cash and cash equivalents and marketable securities of
$22.0 million as of September 30, 1997.
ALRT, on February 3, 1997, announced a more rapid discovery and
development program for a significantly larger library of viable retinoid
compounds than anticipated at the time of formation of ALRT. This plan will
result in accelerated spending and the Company anticipates the acceleration in
spending could result in the use of substantially all of the funds available
for research and development remaining in ALRT in late 1997 or early 1998.
On September 24, 1997, Ligand and Allergan announced that they had
exercised their respective options to purchase the Callable Common Stock and
certain assets of ALRT. Ligand's notice of exercise of the Stock Purchase
Option included a stock purchase option exercise price of $21.97 per share of
outstanding Callable Common Stock (in the aggregate, "Stock Purchase Option
Exercise Price"), the original exercise price designated for the exercise of
the Stock Purchase Option at any time prior to June 3, 1998. Ligand has filed
a registration statement with the Securities and Exchange Commission
registering the issuance of up to $46,410,000 in Ligand Common Stock as
partial payment of the Stock Purchase Option Exercise Price. Ligand has
reserved the right, at any time prior to the closing of the exercise of the
Stock Purchase Option, to make payment of a greater amount of the Stock
Purchase Option Exercise Price in cash than set forth in its notice of
exercise.
Allergan's notice of exercise of its Asset Purchase Option included an
aggregate asset purchase price of $8.9 million (Asset Purchase Option Exercise
Price), the original exercise price designated for the exercise of the Asset
Purchase Option at any time prior to June 3, 1998 under the governing asset
purchase agreement. The Asset Purchase Option Exercise Price will be paid in
cash to ALRT concurrently with the payment to holders of Callable Common Stock
of the Stock Purchase Option Exercise Price and may be used to pay a portion
of such Stock Purchase Option Exercise Price.
The record date for the purchase of the Callable Common Stock is October
14, 1997, and the scheduled closing date was November 3, 1997, pending an
effective registration statement.
Allergan Ligand Retinoid Therapeutics, Inc. is a company whose primary
purpose is to discover and develop drugs based on retinoids. Retinoids have a
broad range of biological actions, and evidence suggests that retinoids may be
useful in the treatment of skin diseases, metabolic disease, a variety of
cancers, including kidney cancer, certain forms of leukemia and other cancers,
as well as eye diseases.
This press release may contain certain forward looking statements and
actual results could differ materially from those described as a result of
factors, including, but not limited to, the following. There can be no
assurance: (a) that the purchase option of Ligand and Allergan over ALRT
Callable Common Stock and the assets of ALRT will be successfully completed;
(b) that the Company's products will be successfully developed, that
regulatory approvals will be granted, or patient and physician acceptance of
these products will be achieved; (c) that if a need for additional financing
occurs, such financing will be available to the Company when required or that
such financing would be available under favorable terms; or (d) that changes
in the existing collaborative research relationships will not occur, including
their early termination. In addition, patent positions of pharmaceutical and
biotechnology firms, including the Company, are uncertain and involve complex
legal and factual questions for which some important legal principles are
largely unresolved.
ALLERGAN LIGAND RETINOID THERAPEUTICS, INC.
(In thousands, except share data)
Statements of Operations
Three months Nine months
Ended Ended
September 30, September 30,
1997 1996 1997 1996
Interest income $211 $926 $1,323 $3,014
Research &
development 10,331 9,379 29,426 22,089
General and
administrative 341 404 1,111 1,192
Total costs and
expenses 10,672 9,783 30,537 23,281
Net loss $(10,461) $(8,857) $(29,214) $(20,267)
Net loss per callable
common share $(3.22) $(2.73) $(8.99) $(6.24)
Condensed Balance Sheets
September 30, December 31,
1997 1996
Assets
Cash and equivalents $21,969 $29,897
Marketable securities --- 20,394
Other assets 148 720
Total assets $22,117 $51,011
Liabilities and stockholders' equity
Payable to Allergan, Inc. and Ligand
Pharmaceuticals Incorporated $3,911 $3,889
Accounts payable
and accrued liabilities 389 261
Total current liabilities 4,300 4,150
Stockholders' equity 17,817 46,861
Total liabilities and
stockholders' equity $22,117 $51,011
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SOURCE Allergan Ligand Retinoid Therapeutics, Inc.
CONTACT: Susan Atkins of Allergan Ligand Retinoid Therapeutics,
Inc., 619-535-3900 |
