Speaking of earnings:
Seragen, Inc. Reports First Quarter 1998 Financials
PR Newswire - May 15, 1998 17:13
SRGN %MTC %ERN LGND V%PRN P%PRN
HOPKINTON, Mass., May 15 /PRNewswire/ -- Seragen, Inc. (OTC Bulletin Board: SRGN) reported
today that the net loss for the first quarter ended March 31, 1998 was $3.6 million, or $0.15 per share on
23,243,684 common shares outstanding as compared to a net loss of $4.6 million, or $0.25 per share on
17,936,675 common shares outstanding for the first quarter of 1997.
Seragen's total operating expenses for the first quarter of 1998 were $2.8 million compared to $4.6 million
for the same period of 1997. The decrease in operating expenses in 1998 was primarily due to savings
associated with the sale of the company's operating division. Seragen's continuing net loss reflects
expenditures associated with ongoing research and clinical trials in the development of its fusion proteins.
Seragen and Ligand Pharmaceuticals Incorporated (Nasdaq: LGND) announced on May 11, 1998 that
they have signed a definitive agreement under which a wholly owned subsidiary of Ligand will merge
with Seragen. The merger agreement has been approved by the board of directors of each company and
is subject to approval by a majority of Seragen's stockholders.
Seragen is a biopharmaceutical company developing a proprietary portfolio of therapeutic products. The
company's unique receptor-active fusion proteins consist of a toxin fragment genetically fused to a
hormone, or growth factor, that targets specific receptors on the surface of disease-causing cells.
Seragen's current focus is on cancer and dermatology. The company has filed a biologic license
application with the U.S. Food and Drug Administration (FDA) requesting clearance to market
ONTAK(TM) (DAB389IL-2 or denileukin diftitox) for advanced cutaneous T-cell lymphoma. The
application has been designated for "priority" review and is scheduled for discussion at the June 2, 1998
meeting of the Oncologic Drugs Advisory Committee, a panel of advisors to the FDA. Seragen is
conducting clinical trials of the same molecule for psoriasis. A second product, EGF Fusion Protein, is
currently in a Phase I/II clinical trial for solid tumors.
Safe Harbor Information
Some of the statements contained in this document are forward-looking, including statements relating
directly or by implication to Seragen's products, operations, strategic partnerships, financial condition, and
to Seragen's ability to fund its operations, and Seragen's ability to consummate the transactions
contemplated by its agreements with Ligand Pharmaceuticals Incorporated and related agreements.
These statements are based on current expectations and involve a number of uncertainties and risks,
including (but not limited to) Seragen's ability to proceed with successful development, testing, and
licensing of its products, Seragen's ability to continue to fund its operations, and Seragen's ability to
consummate the transactions contemplated with Ligand Pharmaceuticals Incorporated and related
agreements. For further information, refer to the "Business Outlook" section in Seragen's Form 10-K as
filed with the Securities and Exchange Commission. Actual results may differ materially from such
expectations. SERAGEN, INC. BALANCE SHEETS
Assets December 31, 1997 March 31, 1998
(Unaudited)
Current assets:
Cash and cash equivalents $5,328,535 $4,588,786
Restricted cash 175,000 200,000
Contract receivable 208,190 634,233
Unbilled contract
receivable 944,063 1,014,994
Prepaid expenses and
other current assets 72,065 71,442
Total current assets 6,727,853 6,509,455
Property and equipment, net 15,064 13,054
Deferred commission 2,060,000 2,060,000
Other assets 8,648 9,324
Total assets 8,811,565 8,591,833
Liabilities and Stockholders' (Deficit)
Current liabilities:
Accounts payable 447,008 264,206
Related Party Payable 3,422,833 5,887,835
Dividend Payable - Series B
Preferred Stock 2,943,136 3,528,383
Accrued expenses 2,240,435 1,678,640
Preferred stock
redemption liability --- 4,530,461
Short-term obligation. 800,000 800,000
Total current liabilities 9,853,412 16,689,525
Non-current liabilities:
Deferred revenue 10,000,000 10,000,000
Long-term obligation 1,450,000 1,450,000
Canadian affiliate put
option liability 2,400,000 2,400,000
Total non-current
liabilities 13,850,000 13,850,000
Commitments and contingencies
Stockholders' (deficit);
Convertible preferred stock,
Series B, $.01 par value;
issued and outstanding
23,800 shares at
December 31, 1997 and
March 31, 1998, respectively
$23,800,000 at
liquidation preference 23,800,000 23,800,000
Convertible preferred stock,
Series C, $.01 par value;
issued and outstanding
5,000 and 0 shares at
December 31, 1997, and
March 31, 1998,
respectively at
$5,500,000 liquidation
preference 5,500,000 ---
Convertible preferred stock,
Series D, $.01 par value;
issued and outstanding
908 and 310 shares at
December 31, 1997, and
March 31, 1998, at
$1,023,231 and $354,926
respectively,
liquidation preference 1,023,231 354,926
Common stock, $.01 par value;
70,000,000 shares authorized;
issued 21,444,894 and
27,273,857 shares at
December 31,1997
and March 31, 1998,
respectively 214,448 272,731
Additional paid in capital 160,957,800 163,571,997
Accumulated deficit (206,384,995) (209,945,015)
(14,889,516) (21,945,361)
Less-treasury stock
(777 shares at cost at
December 31,1997 and
March 31, 1998,
respectively) (2,331) (2,331)
Total stockholders'
(deficit) (14,891,847) (21,947,692)
Total liabilities and
stockholders' (deficit) $8,811,565 $8,591,833
SERAGEN, INC.
STATEMENT OF OPERATIONS
(Unaudited)
For the three months
ended March 31,
1997 1998
Revenue:
Contract revenue and
license fees $911,625 $747,174
Operating expenses:
Cost of contract revenue 882,034 747,098
Research and development 2,516,840 1,494,661
General and
administrative 1,189,803 606,281
4,588,677 2,848,040
Loss from operations (3,677,052) (2,100,866)
Interest income 14,703 44,145
Interest expense 172,366 ---
Net loss (3,834,715) (2,056,721)
Preferred stock
dividends and accretion 720,703 1,503,299
Net loss applicable
to common stockholders ($4,555,418) ($3,560,020)
Net loss per
common share $(0.25) $(0.15)
Weighted average
common shares used in
computing net loss
per share 17,936,675 23,243,684
SOURCE Seragen, Inc.
/CONTACT: Lora Maurer of Seragen, Inc., 508-435-2331/
(SRGN) |
