Aronex Pharmaceuticals, Inc. Reports Fourth Quarter and Year End
1997 Results
THE WOODLANDS, Texas, Feb. 24 /PRNewswire/ -- Aronex Pharmaceuticals, Inc. (Nasdaq: ARNX - news), today
reported financial results for the fourth quarter and year ended December 31, 1997. The Company's year end results
reflect a strong financial position with $30.O million in cash and investments at year end.
The net loss for the fourth quarter was $4.7 million, or $0.31 per share, compared with a net loss of $1.6 million, or
$0.11 per share, for the fourth quarter of 1996. Total revenues, comprised of interest income and research and
development grants and revenues, were $677,000 in the fourth quarter compared with $1.5 million in the similar period in
1996.
In commenting on the 1997 operating results, Geoffrey F. Cox, Ph.D., Chairman and CEO of Aronex Pharmaceuticals
said, ''Our year end 1997 results were in line with expectations, and our strong cash position gives us confidence that we
can progress our clinical programs. Our vision is to rapidly transition Aronex Pharmaceuticals into a commercial
biopharmaceutical company. In pursuit of this vision, in 1997 we added significant strength to our management team with
experienced professionals from successful pharmaceutical companies who will be invaluable as we continue to drive
Aronex Pharmaceuticals toward regulatory approval and commercialization of its products. In December 1997, a
Marketing Authorization Application was filed in Spain for Nyotran(TM). In 1998, we plan to intensively focus on the
progression of Nyotran(TM) and ATRAGEN(R). Both of these products address large and under-served markets.''
For fiscal 1997, Aronex reported a net loss of $17.0 million, or $1.14 per share, compared with a net loss of $8.0 million,
or $0.62 per share, for fiscal 1996. Total 1997 revenues, comprised of interest income and contract research, were $2.9
million compared with $4.4 million in 1996, reflecting a reduction in external research contracts. Research and
development expenses for fiscal 1997 were $14.0 million, compared with $10.4 million for 1996, reflecting the
progression and expansion of our clinical programs toward regulatory submission. The Company continues to expend the
majority of its research and development expenses on the advancement of its two lead products, ATRAGEN(R) and
Nyotran(TM). General and administrative expenses increased in 1997 due mainly to increased salaries and payroll costs.
Aronex Pharmaceuticals, Inc. is a biopharmaceutical company that develops and commercializes proprietary innovative
medicines to treat cancer and infectious diseases. Aronex currently has two products in advanced clinical development
(Nyotran(TM) for systemic fungal infections and ATRAGEN(R) for hematologic and other cancers) and a pipeline of
additional products in various phases of preclinical and clinical studies.
Any statements which are not historical facts contained in this release are forward looking statements that involve risks and
uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, the effect of
economic conditions, intellectual property rights and litigation, clinical trials, governmental regulation, competitive
products, risks in product and technology development, the results of financing efforts, the ability to complete transactions
and other risks identified in the Company's Securities and Exchange Commission filings.
ARONEX PHARMACEUTICALS, INC.
(a development stage company) CONDENSED STATEMENTS OF OPERATIONS
(all amounts in thousands, except loss per share data) (unaudited)
Year Ended Three Months Ended
December 31, December 31,
1997 1996 1997 1996
Revenues:
Interest income $2,059 $1,692 $427 $627
Research and development
Grants & revenue from
affiliates 841 2,670 250 859
Total revenues 2,900 4,362 677 1,486
Expenses:
Research and development 13,993 10,357 4,129 2,543
Charge for purchase of
in-process research and
development 3,000 242 --- 51
General and administrative 2,641 1,620 1,164 423
Interest expense and other 257 173 97 77
Total expanses 19,891 12,392 5,390 3,094
Net loss $(16,991) $(8,030) $(4,713) $(1,608)
Basic and diluted
net loss per share $(1.14) $(0.62) $(0.31) $(0.11)
Shares used in computing
basic and diluted
net loss per share 14,896 13,048 15,438 14,580
CONDENSED BALANCE SHEETS
(unaudited)
December 31, December 31,
1997 1996
ASSETS
Current assets:
Cash and cash equivalents $2,029 $4,179
Short-term investments 17,783 30,414
Prepaid expenses and other assets 574 741
Total current assets 20,386 35,334
Long-term investments 10,142 6,795
Furniture, equipment and leasehold
improvements, net 1,107 2,152
Other assets 490 ---
Total assets $32,125 $44,281
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $4,740 $3,658
Total long-term liabilities 6 146
Total stockholders' equity 27,379 40,477
Total liabilities and
stockholders' equity $32,125 $44,281
SOURCE: Aronex Pharmaceuticals, Inc. |
