ENTREMED INC files 0331 qtr 10-Q. Reports $1.4 mil tot rev and $-0.55 EPS.
Excerpted from 10-Q filed on 05/17 by ENTREMED INC:
ENTREMED INC files 0331 qtr 10-Q. Reports $1.4 mil tot rev and $-0.55 EPS.
RESULTS OF OPERATIONS
Three Months Ended March 31, 1999 and March 31, 1998
Revenues increased approximately 25% from approximately $1,155,000 for
the three months ended March 31, 1998 ("1998 Three Months") to approximately
$1,444,000 for the three months ended March 31, 1999 ("1999 Three Months"). This
increase is due to an increase in grant revenue earned under a Small Business
Innovative Research program from the National Institutes of Health awarded to
the Company in May 1997 and royalty income from Celgene Corporation on the sale
of thalidomide. The collaborative research and development fees relate to the
amortization over five years of a one-time payment from BMS, of $2,500,000
received in December 1995 and the amortization of semi-annual payments of
$1,835,000 under the BMS collaboration agreement. The license fee represents the
amortization over five years of a one-time $1,000,000 license fee received in
December 1995 under the BMS collaboration agreement.
Research and development expenses increased by approximately 103% from
approximately $3,500,000 in the 1998 Three Months to approximately $7,107,000 in
the 1999 Three Months. Research and development expenditures include sponsored
research payments to academic collaborators, including a $1,000,000 payment to
Children's Hospital in both 1999 and 1998 Three Months and expenses related to
the Company's internal research programs. The increase in research and
development costs reflects increased efforts in the Company's internal and
sponsored research and product development programs related to its
antiangiogenesis technologies. Overall, research personnel increased from 40 as
of March 31, 1998 to 45 as of March 31, 1999. Research and development
expenses are expected to continue to increase as the Company continues to expand
its research and development efforts.
General and administrative expenses increased from approximately
$1,306,000 in the 1998 Three Months to approximately $1,896,000 in the 1999
Three Months, a 45% increase. The 1999 Three Months increase resulted primarily
from the increase in administrative costs associated with adding administrative
staff to support the research scientists and collaborative efforts the Company
is conducting, investigating potential strategic relationships, and obtaining
professional services. Investment income decreased approximately 24% from
approximately $538,000 in the 1998 Three Months to approximately $410,000 in the
1999 Three Months. This decrease in investment income is due to the reduction
of the Company's cash and short term investments as such working capital
components are used to fund the Company's operations.
(End of Item Excerpt)
----------FINANCIAL DATA SCHEDULE--------
PERIOD-TYPE 3-MOS
FISCAL-YEAR-END DEC-31-1999
PERIOD-END MAR-31-1998
CASH 26,090,813
SECURITIES 1,506,815
RECEIVABLES 302,779
ALLOWANCES 0
INVENTORY 0
CURRENT-ASSETS 28,037,838
DEPRECIATION 1,679,608
TOTAL-ASSETS 32,579,740
CURRENT-LIABILITIES 6,309,293
BONDS 0
PREFERRED-MANDATORY 0
PREFERRED 0
COMMON 131,474
OTHER-SE 26,246,575
TOTAL-LIABILITY-AND-EQUITY 32,579,740
SALES 0
TOTAL-REVENUES 1,444,039
CGS 0
TOTAL-COSTS 0
OTHER-EXPENSES 9,003,293
LOSS-PROVISION 0
INTEREST-EXPENSE 0
INCOME-PRETAX (7,148,840)
INCOME-TAX 0
INCOME-CONTINUING 9,464
DISCONTINUED 0
EXTRAORDINARY 0
CHANGES 0
NET-INCOME (7,148,840)
EPS-PRIMARY (0.55)
EPS-DILUTED (0.55)
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