ANN ARBOR, Mich., Jan. 27 /PRNewswire-FirstCall/ --
Esperion Therapeutics, Inc. (Nasdaq: ESPR), a biopharmaceutical company
focused on discovering and developing HDL-targeted therapies for the treatment
of cardiovascular and metabolic diseases, today reported financial results for
the fourth quarter and year ended December 31, 2002.
For the fourth quarter ended December 31, 2002, Esperion reported a net
loss of $6.6 million, or $0.23 per share, compared to a net loss of $6.3
million, or $0.22 per share, for the fourth quarter of 2001. Total operating
expenses for the fourth quarter of 2002 were $6.2 million, compared to $6.7
million for the fourth quarter of 2001, representing a 6.8% decrease.
Research and development expenses represented 81% of operating expenses
during the fourth quarter of 2002, and these expenses decreased by
approximately $159,000, or 3.1%, compared to the corresponding period in 2001.
The magnitude of the Company's operating expenses on a quarterly basis is
largely dependent upon the progress, timing and size of its clinical trials
and related manufacturing activities in support of the ongoing clinical
development. The Company currently has three biopharmaceuticals in clinical
development and plans to initiate a Phase I clinical study for our lead oral
small molecule product candidate in the near future.
"In all three of our biopharmaceutical product candidates for acute
treatment and our oral small molecule program for chronic treatment of
cardiovascular disease, we made many important advances in 2002," said Roger
S. Newton, Ph.D., president and chief executive officer of Esperion. He
added, "With progress on a range of products in our pipeline and a solid
financial base, Esperion is positioned for even greater successes in 2003."
The net loss for the year ended December 31, 2002 was $28.7 million, or
$0.98 per share compared to a net loss of $24.9 million, or $0.91 per share,
in 2001. Results for the year ended December 31, 2002 include operating
expenses of $27.9 million, compared to $27.3 million for the corresponding
period in 2001, an increase of 2.3%.
As of December 31, 2002, Esperion had approximately $44.9 million in cash
and short-term investments, compared with $70.3 million at December 31, 2001.
Long-term debt increased to $7.7 million at December 31, 2002 from $5.5
million at December 31, 2001. Net cash used in operations during 2002 was
$26.6 million compared to $22.8 million in 2001. As a development stage
company, Esperion has not reported any revenue since its inception.
Esperion Therapeutics
Esperion Therapeutics, Inc. discovers and develops pharmaceutical products
for the treatment of cardiovascular and metabolic diseases. 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 arteries 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 several product candidates under development
for the treatment of cardiovascular and metabolic diseases. 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" within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are often identified by words such
as "hope," "may," "believe," "anticipate," "plan," "expect," "intend,"
"assume," and similar expressions. Forward-looking statements speak only as
of the date of this press release, reflect management's current expectations
and involve certain factors, such as risks and uncertainties, which may cause
actual results to be far different from those suggested by the Company's
forward-looking statements. These factors include, but are not limited to,
risks associated with: management's ability to successfully execute its
business strategies; the progress and cost of development of the Company's
product candidates; the extent and timing of market acceptance of the
Company's product candidates; dependence on third parties to conduct clinical
trials for these product candidates; the extent and timing of regulatory
approval, as desired or required, for the Company's product candidates; the
Company's dependence on licensing arrangements and strategic relationships
with third parties; clinical trials; manufacturing; the Company's dependence
on patents and proprietary rights; the procurement, maintenance, enforcement
and defense of the Company's patents and proprietary rights; competitive
conditions in the industry; business cycles affecting the markets in which the
Company's products may be sold; extraordinary events and transactions; the
timing and extent of the Company's financing needs; economic conditions
generally or in various geographic areas; and other factors. These factors
are discussed in more detail in the Company's filings with the Securities and
Exchange Commission. The Company 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
law.
ESPERION THERAPEUTICS, INC. AND SUBSIDIARIES
(A Company in the Development Stage)
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, December 31,
in thousands 2002 2001
Assets:
Current assets:
Cash and cash equivalents $40,499 $70,286
Short-term investments 4,354 0
Prepaid expenses and other 410 1,000
Total current assets 45,263 71,286
Property and equipment, net 3,001 3,313
Goodwill, net 3,108 3,108
Deposits and other assets 35 633
Total assets $51,407 $78,340
Liabilities and Stockholders' Equity:
Current liabilities:
Current portion of long-term debt $1,061 $863
Accounts payable 1,687 2,925
Accrued liabilities 2,185 2,572
Total current liabilities 4,933 6,360
Long-term debt, less current portion 7,731 5,482
Stockholders' equity:
Preferred stock - -
Series A, Junior Participating
Preferred Stock - -
Common stock 29 29
Additional paid-in capital 133,411 133,143
Notes receivable (3) (15)
Accumulated deficit during the
development stage (94,046) (65,320)
Deferred stock compensation (589) (1,476)
Accumulated other comprehensive
income (loss) (59) 137
Total stockholders' equity 38,743 66,498
Total liabilities and stockholders'
equity $51,407 $78,340
ESPERION THERAPEUTICS, INC. AND SUBSIDIARIES
(A Company in the Development Stage)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Year Ended
December 31, December 31,
in thousands except share
and per share data 2002 2001 2002 2001
Operating expenses: (Unaudited)
Research and development $4,992 $5,151 $21,991 $21,454
General and administrative 1,205 1,291 5,955 5,023
Goodwill amortization - 209 - 839
Purchased in-process
research and development - - - -
Total operating expenses 6,197 6,651 27,946 27,316
Loss from operations (6,197) (6,651) (27,946) (27,316)
Other income (expense):
Interest income 209 473 1,070 2,824
Interest expense (301) (226) (1,119) (766)
Other, net (330) 60 (731) 327
Total other income
(expense) (422) 307 (780) 2,385
Loss before income taxes (6,619) (6,344) (28,726) (24,931)
Provision for income
taxes - - - -
Net loss (6,619) (6,344) (28,726) (24,931)
Beneficial conversion
feature on preferred
stock - - - -
Net loss attributable to
common stockholders ($6,619) ($6,344) ($28,726) ($24,931)
Basic and diluted net
loss per share ($0.23) ($0.22) ($0.98) ($0.91)
Weighted average shares 29,340,257 29,173,660 29,260,930 27,309,502
ESPERION THERAPEUTICS, INC. AND SUBSIDIARIES
(A Company in the Development Stage)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Inception to
December 31,
in thousands except share and per share data 2002
Operating expenses:
Research and development $76,448
General and administrative 17,116
Goodwill amortization 1,089
Purchased in-process research
and development 4,000
Total operating expenses 98,653
Loss from operations (98,653)
Other income (expense):
Interest income 7,197
Interest expense (2,385)
Other, net (205)
Total other income (expense) 4,607
Loss before income taxes (94,046)
Provision for income taxes -
Net loss (94,046)
Beneficial conversion feature on
preferred stock (22,870)
Net loss attributable to
common stockholders ($116,916)
Basic and diluted net loss per share
Weighted average shares
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 2002 2001 2002
Cash flows from operating activities:
Net loss ($28,726) ($24,931) ($94,046)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Purchased in-process research and
development - - 4,000
Depreciation and amortization 1,291 2,014 4,813
Stock-based compensation expense 771 898 3,650
Decrease in notes receivable 12 52 123
Loss on sale of property and
equipment 169 22 191
Non-cash interest included in
long-term debt 384 243 787
Changes in assets and
liabilities:
Prepaid expenses and other 596 (440) (1,238)
Other assets 599 6 520
Accounts payable (1,242) (816) 1,956
Accrued liabilities (418) 185 2,182
Net cash used in operating
activities (26,564) (22,767) (77,062)
Cash flows from investing activities:
Purchases of property and equipment (1,155) (2,130) (7,503)
Proceeds from sale of property and
equipment 30 2 32
Acquisition of Talaria Therapeutics, Inc. - - (233)
Purchases of short-term investments (37,215) - (37,215)
Maturities of short-term investments 32,861 - 32,861
Net cash used in investing
activities (5,479) (2,128) (12,058)
Cash flows from financing activities:
Net proceeds from issuance of
convertible preferred stock - - 42,200
Proceeds from the issuance of
common stock 384 22,449 79,111
Proceeds from long-term debt 2,132 3,523 10,171
Repayments of long-term debt (1,075) (956) (2,797)
Net cash provided by financing
activities 1,441 25,016 128,685
Effect of exchange rate changes on
cash 815 (63) 934
Net increase (decrease) in cash and
cash equivalents (29,787) 58 40,499
Cash and cash equivalents at
beginning of period 70,286 70,228 -
Cash and cash equivalents at end of
period $40,499 $70,286 $40,499
Esperion Therapeutics, Inc. Berry & Company
Frank Thomas Jim Wetmore
Vice President, Finance and Investor Relations (212) 253-8881
(734) 222-1831 jwetmore@berrypr.com
fthomas@esperion.com
SOURCE Esperion Therapeutics, Inc.
 back to top
Related links:
http://www.esperion.com
CONTACT:
Jim Wetmore of Berry & Company,
+1-212-253-8881, jwetmore@berrypr.com ; or Frank Thomas, Vice
President, Finance and Investor Relations of Esperion
Therapeutics, Inc., +1-734-222-1831, fthomas@esperion.com
|
