Progenitor Announces 1st Quarter 1998 Financial Results
MENLO PARK, Calif.--(BW HealthWire)--Feb. 12, 1998--Progenitor, Inc.
(NASDAQ:PGEN - news, PGENW - news) today announced its financial results
for the quarter ended December 31, 1997. The company reported a net loss
of $3,312,000 on revenues of $130,000 for the current quarter, compared
to a net loss of $955,000 on revenues of $676,000 for the quarter ended
December 31, 1996. The basic and diluted net loss per common share for
the quarter ended December 31, 1997 was $0.25, compared to $0.33 for the
corresponding quarter last year.
Research and development expenses increased to $2,661,000 in the quarter
ended December 31, 1997 from $1,066,000 in the comparable quarter of the
prior year. The increase was due primarily to an increased level of
research resulting from the company's acquisition of Mercator Genetics,
Inc. in August 1997.
''Revenues and expenses were on plan for the past quarter, in which we
completed the integration of company R&D operations, channeling
activities into four promising preclinical development opportunities,
plus two broad-based programs in asthma and angiogenesis genomics,''
said Douglass B. Given, M.D., Ph.D., President and Chief Executive
Officer. ''The asthma and angiogenesis operating teams have generated
important data in recent months. We believe the teams have created
competitive and attractive programs for corporate partnerships.''
General and administrative expenses increased to $965,000 in the current
quarter from $445,000 in the prior year, due to an increased headcount
from the Mercator acquisition, as well as incremental corporate expenses
as a result of operating as a public company.
Revenues in 1997 were related to a grant from the U.S. Department of
Commerce's National Institute of Standards and Technology Advanced
Technology Program (''ATP grant''). Revenues in 1996 included a $500,000
milestone payment received from Chiron Corp. [Nasdaq:CHIR - news] and
payments on the ATP grant. As of December 31, 1997, Progenitor had
approximately $15,236,000 in cash and cash equivalents.
Progenitor discovers and develops genomic leads and targets for new
pharmaceuticals using a unique technology platform that combines
developmental biology and disease genetics to identify, characterize and
utilize key genes responsible for health or disease. Progenitor's
genomic discoveries provide multiple product opportunities which the
company pursues through a combination of partnerships, licenses and
retained rights for internal development programs.
Except for the descriptions of historical facts contained herein, this
news release contains forward-looking statements that involve risks and
uncertainties as detailed from time to time in Progenitor's SEC filings
under the Securities and Exchange Act of 1934, including the early stage
of development of Progenitor's technology; need for additional funds;
patent, regulatory and competitive risks; dependence on third parties;
product liability; and other risks.
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Progenitor, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
Amounts in thousands
ASSETS December 31, September 30,
1997 1997
----------- -------------
Current assets:
Cash and cash equivalents $ 15,236 $ 19,673
Other current assets 672 551
----------- -------------
Total current assets 15,908 20,224
Property and equipment, net 2,077 1,920
Notes receivable 290 480
Intangible assets, net 884 961
----------- -------------
Total assets $ 19,159 $ 23,585
=========== =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued liabilities $ 4,382 $ 5,941
Capital lease obligations-current 808 762
--------- -----------
Total current liabilities 5,190 6,703
--------- -----------
Capital lease obligations-long term 835 942
Total stockholders' equity 13,134 15,940
--------- -----------
Total liabilities and
stockholders' equity $ 19,159 $ 23,585
========= ===========
Progenitor, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
Amounts in thousands, except per share data
Three Months Ended December 31,
--------------------------------
1997 1996
Revenues $ 130 $ 676
Operating Expenses:
Research and development 2,661 1,066
General and administrative 965 445
---------- ----------
Total operating expenses 3,626 1,511
---------- ----------
Loss from operations (3,496) (835)
Interest and other income 233 --
Interest expense-related party -- (111)
Interest expense-other (49) (9)
---------- ----------
Net loss $ (3,312) $ (955)
========== ==========
Net loss per common share:
Basic and diluted $ (0.25) $ (0.33)
========== ==========
Shares used in computing net
loss per common share:
Basic and diluted 13,411 2,886
========== ==========
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Contact:
Progenitor
Mark N.K. Bagnall, 650/614-7057
or
Burns McClellan
Ruth Markowitz, 212/213-0006 |
