ANN ARBOR, Mich., Jan. 22 /PRNewswire-FirstCall/ -- Esperion Therapeutics,
Inc. (Nasdaq: ESPR), a biopharmaceutical company dedicated to the discovery,
development and commercialization of therapies to improve the treatment of
cardiovascular disease, today reported financial results for the quarter and
year ended December 31, 2003.
Esperion reported a net loss of $9.3 million, or $0.27 per share, for the
quarter ended December 31, 2003, compared to a net loss of $6.6 million, or
$0.23 per share, for the fourth quarter of 2002. Total operating expenses for
the fourth quarter of 2003 were $8.6 million, compared to $6.2 million for the
fourth quarter of 2002, representing an increase of 39 percent primarily due
to expenses related to the Company's pending acquisition by Pfizer, Inc.,
which was announced on December 21, 2003. These expenses, which totaled $1.5
million, are included in general and administrative expenses. Research and
development expenses totaled $4.8 million for the fourth quarter of 2003, or
56 percent of total operating expenses.
As of December 31, 2003, Esperion had $86.3 million in cash and
investments, compared with $44.9 million at December 31, 2002. Long-term
debt, including the current portion, was $9.7 million at December 31, 2003,
compared with $8.8 million at December 31, 2002. There were approximately 34
million shares outstanding as of December 31, 2003.
The net loss for the twelve months ended December 31, 2003 was $31.7
million, or $1.01 per share, compared to a net loss of $28.7 million, or $0.98
per share, for 2002. Operating expenses totaled $29.7 million for 2003
compared to $27.9 million for 2002, representing an increase of 6%. As a
development stage company, Esperion has not reported any revenue since its
inception.
The status of each of the Company's four product candidates in clinical
development is as follows:
* ETC-588 (LUV) - Enrollment complete for both a multiple-dose Phase 2
clinical trial in patients with carotid atherosclerosis and a multiple-dose
Phase 2 clinical trial in patients with acute coronary syndromes.
* ETC-216 (AIM or ApoA-I Milano/phospholipid complex) - Full results for
a multiple-dose Phase 2 clinical trial demonstrating statistically significant
regression of atherosclerosis at the end of six weeks published in the
November 5 issue of the Journal of the American Medical Association.
* ETC-642 (RLT Peptide) - Positive initial results for a second single-
dose Phase 1 clinical trial in patients with stable cardiovascular disease
announced on December 16, 2003. Enrollment complete for a multiple-dose Phase
1 clinical trial in patients with stable cardiovascular disease.
* ETC-1001 - Positive initial results for a single-dose Phase 1 clinical
trial in healthy volunteers announced on December 4, 2003.
In addition, Esperion recently announced the execution of a license
agreement with Nippon Chemiphar to develop new small molecule therapies based
on PPAR (peroxisome proliferator activated receptor) delta agonists.
On January 8, 2004, Esperion announced that it had settled litigation
against Durus Life Sciences Master Fund, Ltd. and related parties to recover
short-swing profits under the Securities Exchange Act of 1934. The parties
obtained dismissal of the complaint by the U.S. District Court of Connecticut
on January 13, 2004 and, under the terms of the settlement, Durus will pay
Esperion $32.2 million and certain interest payments. This payment has been
placed in an escrow account pending payout under the terms of the settlement
agreement, at which time it will be included in the Company's financial
statements.
Due to the Company's pending acquisition by Pfizer, Inc., Esperion will
not host a conference call to discuss fourth quarter financial results.
Esperion Therapeutics
Esperion Therapeutics, Inc. discovers and develops pharmaceutical products
for the treatment of cardiovascular disease. Esperion intends to
commercialize a novel class of drugs that focuses on a new treatment approach
called "HDL Therapy," which is based on the Company's understanding of high-
density lipoprotein, or HDL, function. HDL is the primary facilitator of the
reverse lipid transport, or RLT, pathway by which excess cholesterol and other
lipids are removed from artery walls and other tissues and are transported to
the liver for elimination from the body. Esperion's goal is to develop drugs
that exploit the beneficial functions of HDL within the RLT pathway. Esperion
currently has four product candidates in clinical development. Esperion is
listed on the Nasdaq National Market under the symbol "ESPR."
Safe Harbor Statement
The information contained in this press release includes "forward-looking
statements." These forward-looking statements are often identified by words
such as "hope," "may," "believe," "anticipate," "plan," "expect," "require,"
"intend," "assume" and similar expressions. Forward-looking statements speak
only as of the date of this press release, reflect management's current
expectations, estimations and projections and involve certain factors, such as
risks and uncertainties, that may cause actual results, performance or
achievements to be far different from those suggested by Esperion's forward-
looking statements. These factors include, but are not limited to, risks
associated with: uncertainty as to whether Esperion's acquisition by Pfizer
will be completed; Esperion's ability to successfully execute its business
strategies, including entering into strategic partnerships or other
transactions if the transaction with Pfizer is not completed; the progress and
cost of development of Esperion's product candidates; the extent and timing of
market acceptance of new products developed by Esperion or its competitors;
Esperion's dependence on third parties to conduct clinical trials for
Esperion's product candidates; the extent and timing of regulatory approval,
as desired or required, for Esperion's product candidates; Esperion's
dependence on licensing arrangements and strategic relationships with third
parties; clinical trials; manufacturing; Esperion's dependence on patents and
proprietary rights; the procurement, maintenance, enforcement and defense of
Esperion's patents and proprietary rights; competitive conditions in the
industry; business cycles affecting the markets in which any of Esperion's
future products may be sold; extraordinary events and transactions; seeking
and consummating business acquisitions, including the diversion of
management's attention to the assimilation of the operations and personnel of
any acquired business; fluctuations in foreign exchange rates; and economic
conditions generally or in various geographic areas. Because all of the
foregoing factors are difficult to forecast, you should not place undue
reliance on any forward-looking statement. More detailed information about
some of these and other risk factors is set forth in Esperion's filings with
the Securities and Exchange Commission. Esperion does not intend to update
any of these factors or to publicly announce the results of any revisions to
any of these forward-looking statements other than as required under the
federal securities laws.
ESPERION THERAPEUTICS, INC. AND SUBSIDIARIES
(A Company in the Development Stage)
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, December 31,
in thousands 2003 2002
Assets:
Current assets:
Cash and cash equivalents $32,378 $40,499
Short-term investments 38,886 4,354
Prepaid expenses and other 1,183 410
Total current assets 72,447 45,263
Long-term investments 15,020 -
Property and equipment, net 2,311 3,001
Goodwill 3,108 3,108
Deposits and other assets 5 35
Total assets $92,891 $51,407
Liabilities and Stockholders' Equity:
Current liabilities:
Current portion of long-term debt $2,556 $1,061
Accounts payable 3,205 1,687
Accrued liabilities 3,778 2,185
Total current liabilities 9,539 4,933
Long-term debt, less current portion 7,094 7,731
Stockholders' equity:
Preferred stock - -
Common stock 34 29
Additional paid-in capital 201,901 133,411
Notes receivable - (3)
Accumulated deficit during the
development stage (125,701) (94,046)
Deferred stock compensation - (589)
Accumulated other comprehensive income 24 (59)
Total stockholders' equity 76,258 38,743
Total liabilities and stockholders' equity $92,891 $51,407
ESPERION THERAPEUTICS, INC. AND SUBSIDIARIES
(A Company in the Development Stage)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Year Ended Inception to
December 31, December 31, December 31,
in thousands, except share
and per share data 2003 2002 2003 2002 2003
(unaudited)
Operating expenses:
Research and
development $4,833 $4,992 $21,037 $21,991 $97,485
General and
administrative 3,770 1,205 8,708 5,955 25,824
Goodwill amortization - - - - 1,089
Purchased in-process
research and
development - - - - 4,000
Total operating
expenses 8,603 6,197 29,745 27,946 128,398
Loss from operations (8,603) (6,197) (29,745) (27,946) (128,398)
Other income (expense):
Interest income 274 209 714 1,070 7,911
Interest expense (344) (301) (1,304) (1,119) (3,689)
Other, net (578) (330) (1,320) (731) (1,525)
Total other income
(expense) (648) (422) (1,910) (780) 2,697
Loss before income
taxes (9,251) (6,619) (31,655) (28,726) (125,701)
Provision for income
taxes - - - - -
Net loss (9,251) (6,619) (31,655) (28,726) (125,701)
Beneficial conversion
feature on preferred
stock - - - - (22,870)
Net loss attributable to
common stockholders ($9,251) ($6,619) ($31,655) ($28,726)($148,571)
Basic and diluted net
loss per share ($0.27) ($0.23) ($1.01) ($0.98)
Shares used in
computing basic
and diluted net
loss per share 34,095,715 29,340,257 31,343,302 29,260,930
ESPERION THERAPEUTICS, INC. AND SUBSIDIARIES
(A Company in the Development Stage)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended Inception to
December 31, December 31,
in thousands 2003 2002 2003
Cash flows from operating activities:
Net loss ($31,655) ($28,726) ($125,701)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Purchased in-process research and
development - - 4,000
Depreciation and amortization 1,153 1,291 5,966
Stock-based compensation expense 589 771 4,239
Decrease in notes receivable 3 12 126
Loss on sale of property and
equipment 3 169 194
Non-cash interest expense
included in long-term debt 503 384 1,290
Changes in assets and liabilities:
Prepaid expenses and other (768) 596 (2,006)
Other assets 30 599 550
Accounts payable 1,514 (1,242) 3,470
Accrued liabilities 1,554 (418) 3,736
Net cash used in operating
activities (27,074) (26,564) (104,136)
Cash flows from investing activities:
Purchases of property and equipment (451) (1,155) (7,954)
Acquisition of Talaria Therapeutics, Inc. - - (233)
Proceeds from sale of property and
equipment - 30 32
Purchases of short-term investments (44,382) (37,215) (81,597)
Purchases of long-term investments (15,020) - (15,020)
Maturities of short-term investments 9,850 32,861 42,711
Net cash used in investing
activities (50,003) (5,479) (62,061)
Cash flows from financing activities:
Proceeds from issuance of
convertible preferred stock - - 42,200
Proceeds from the issuance of
common stock 68,495 384 147,606
Proceeds from long-term debt 117 2,132 10,288
Repayments of long-term debt (1,064) (1,075) (3,861)
Net cash provided by financing
activities 67,548 1,441 196,233
Effect of exchange rate changes on cash 1,408 815 2,342
Net increase (decrease) in cash and
cash equivalents (8,121) (29,787) 32,378
Cash and cash equivalents at
beginning of period 40,499 70,286 -
Cash and cash equivalents at end of
period $32,378 $40,499 $32,378
Company Frank Thomas
Contact: VP, Finance & Chief Financial Officer
Esperion Therapeutics, Inc.
(734) 222-1831
fthomas@esperion.com
Media Jim Wetmore
Contact: Berry & Company Public Relations
(212) 253-8881
jwetmore@berrypr.com
SOURCE Esperion Therapeutics, Inc.
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Related links:
http://www.esperion.com
CONTACT:
Company Contact: Frank Thomas, VP, Finance &
Chief Financial Officer of Esperion Therapeutics, Inc.,
+1-734-222-1831, or fthomas@esperion.com ; Media Contact: Jim
Wetmore of Berry & Company Public Relations, +1-212-253-8881, or
jwetmore@berrypr.com , for Esperion Therapeutics, Inc.
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