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News today:
Company Press Release
Cell Pathways, Inc. Reports Third Quarter Financial Results
HORSHAM, Pa.--(BW HealthWire)--Nov. 11, 1998--Cell Pathways, Inc. (Nasdaq:CLPA - news) today reported financial results for the third quarter and nine months ended September 30, 1998. Cell Pathways became a publicly traded company on November 4, 1998 following the financial acquisition of Tseng Labs, Inc. (''Tseng'').
The Company reported a net loss from operations in the third quarter of 1998 of $5.5 million, an increase of $2.1 million from the third quarter of 1997. Research and development expenses were $5.0 million or $2.6 million higher in 1998 from 1997. Research and development activities associated with the Company's clinical development of PREVATAC(TM)(exisulind), its lead product candidate to prevent and treat cancer, and personnel to support increased activities in research and new product development resulted in the higher expenses in the third quarter of 1998 from 1997. Such increase was partially offset by a $1.0 million charge recorded in the third quarter of 1997 for the redemption of redeemable preferred stock. The Company ended the quarter with cash and cash equivalents of $14.4 million, and $41.9 million on a pro forma basis including the cash of Tseng.
For the first nine months of 1998, the Company reported a net loss from operations of $14.1 million, an increase of $6.9 million from the first nine months of 1997. Research and development expenses were $11.9 million in 1998, an increase of $6.3 million from 1997 primarily due to the clinical development of PREVATAC(TM)(exisulind) and personnel to support increased activities in research and new product development. General and administrative expenses were $2.8 million in 1998, an increase of $2.2 million from 1997. The increase in G&A was primarily due to a one-time charge in 1998 for expenses related to the Company's initial public offering which was not undertaken, increases in personnel, consulting expenses for information systems, marketing research, and public and investor relations activities, and higher facility costs associated with the Company's new facility in Horsham, Pa. The increase in R&D and G&A expenses were partially offset by a $1.0 million charge recorded in the third quarter of 1997 for the redemption of redeemable preferred stock.
''On November 4, the Company completed the financial acquisition of Tseng and began trading on the NASDAQ National Market System as CLPA,'' said Robert J. Towarnicki, President and CEO of the Company. ''This transaction brought the Company substantial financial resources, which when combined with the $21.6 million raised by the Company in May 1998, provide the funds necessary to implement the planned commercialization of PREVATAC(TM)(exisulind), in 1999.''
Towarnicki continued, ''We are moving aggressively forward with the clinical development of PREVATAC(TM)(exisulind). We meanwhile plan to file an Investigational New Drug application for a second compound for the treatment and prevention of cancer by the end of 1998. PREVATAC(TM)(exisulind) is completing a pivotal Phase III trial for the treatment of precancerous adenomatous polyposis coli (''APC''), a heritable condition that places those affected at great risk of colon cancer. We expect to complete this trial in January 1999 and, based on the results, we plan to file a New Drug Application (''NDA'') in the first half of 1999 for marketing approval of PREVATAC(TM) (exisulind) as a treatment for the reduction in the development of new polyps in patients with APC.
''We are also conducting human clinical studies of PREVATAC(TM) (exisulind) in four additional indications, with plans for clinical trials in two other indications by the end of 1998. Current trials include a pivotal Phase II/III study for the prevention of disease recurrence in prostate cancer patients. Also, ongoing are a pivotal Phase II/III study for treatment of precancerous sporadic colonic polyps, a pivotal Phase II/III study for the prevention of disease recurrence in breast cancer patients, and a pilot study in lung cancer patients. We plan to initiate trials by year end in Barrett's Esophagus and bronchial dysplasia.''
Cell Pathways, Inc., headquartered in Horsham, Pa., is a pharmaceutical company focused on the development and commercialization of products to prevent and treat cancer.
Certain statements in this press release are forward-looking statements that involve risks and uncertainties including, but not limited to, the regulatory approval process, obtaining and enforcing patents, projected earnings and financial results, private health care provider reimbursement, product liability, and other risks detailed in Cell Pathways, Inc. reports filed under the Securities Exchange Act, including a Registration Statement on Form S-4 filed in September 1998. For additional information on Cell Pathways, Inc., please visit the Company's Web site at cellpathways.com.
Note to Editors: PREVATAC(TM)(exisulind) is a registered trademark of Cell Pathways, Inc.
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