Company Provides Updated Financial and Operational Information for 2002
DURHAM, N.C., Feb. 7, 2002 /PRNewswire-FirstCall/ --
Triangle Pharmaceuticals, Inc. (Nasdaq: VIRS) today reported financial
results for the fourth quarter and year ended December 31, 2001 and provided
updated 2002 financial and operational information.
For the year ended December 31, 2001, the Company reported a net loss of
$75,926,000, or ($1.40) per share, compared to a net loss of $109,525,000, or
($2.87) per share for the year ended December 31, 2000. Excluding the
$2.3 million restructuring charge taken in August 2001 to account for
severances and other costs related to its reorganization, the Company's
reported fiscal 2001 net loss per share was ($1.36). For the fourth quarter
ended December 31, 2001, the Company reported a net loss of $13,708,000, or
($0.18) per share, compared to a net loss of $25,325,000, or ($0.66) per share
for the fourth quarter of 2000.
Revenues for 2001 were $5,795,000 for the year and $1,035,000 for the
fourth quarter, as compared to $7,294,000 and $1,744,000, respectively, in
2000. Revenue represents the amortization of non-contingent research and
development payments made to Triangle from its collaborative partner, Abbott
Laboratories. Total operating expenses were $84,410,000 in 2001 compared to
$124,144,000 in 2000, and $14,619,000 for the fourth quarter of 2001 compared
to $28,400,000 for the fourth quarter of 2000. The significant decrease in
2001 operating expenses, both in the fourth quarter and for the year, were
primarily the result of the significant cost reduction efforts announced in
the third quarter of 2001 which included a reduction in headcount, reduced
selling, general and administrative costs and reduced expenditures related to
the development of earlier stage compounds and to basic research and
development activities.
Cash, cash equivalents and investments were $108,155,000 on
December 31, 2001, compared to $62,931,000 on December 31, 2000. The Company
raised approximately $133 million of gross proceeds through private equity
financings during the year.
Exclusive of net proceeds from equity financings and including
approximately $3 million of new borrowings, the Company's cash usage was
reduced to approximately $36 million in the last six months of 2001,
consistent with the targeted amount previously announced.
Robert Amundsen, CFO of Triangle, commented, "The cost reduction program
we announced in August 2001 has been fully implemented. Triangle has
successfully streamlined its operations, as evidenced by the reduction in
operating costs in the second half of 2001. These efforts, along with the
financing we completed in the second half of last year, put us in a strong
financial position going into 2002."
Triangle plans to submit an NDA in the third quarter of 2002 for
Coviracil(R) for the treatment of HIV. The Company expects Coviracil to
become its first product for which an NDA is submitted, marking a critical
milestone in the Company's history. Triangle stands to receive potential
reimbursement milestone payments from Abbott Laboratories of up to $85 million
upon obtaining regulatory approval and the launch of Coviracil for the
treatment of HIV in the U.S. and Europe.
"We are very pleased to be in a position to submit the NDA for Coviracil
in the third quarter of this year. This will be a significant focus for the
Company in the coming year," stated Chris Rallis, President and COO of
Triangle. "We also continue to be pleased with the progress made in the
clinical development programs for Triangle's other key drug candidates,
including Coviracil for hepatitis B, amdoxovir and clevudine. In light of the
encouraging clinical progress and the significant market potential of these
drugs, our strengthened financial position and the prospect for earlier than
expected milestone payments on Coviracil for HIV, we have decided to
accelerate the development plans for amdoxovir and clevudine. We believe that
the additional investment in the development programs for these compounds, if
successful, will allow us to speed our time to market. We expect to
accomplish these important goals with only a modest increase in our targeted
cash usage in 2002."
The Company is targeting a net loss in 2002 of approximately $55 million
compared to the 2001 net loss of approximately $76 million, a reduction of
28%. It is now targeting cash usage for 2002 (excluding potential additional
equity financings) of $61 million, a moderate increase over the previously
announced target of $54 million. This moderate increase in targeted cash
usage includes the following:
* additional pre-commercialization and regulatory costs associated with
the NDA submission of Coviracil for the treatment of HIV, now planned
for the third quarter of 2002; and
* the acceleration and enhancement of the Company's development programs
for its earlier stage compounds, including the Phase II programs for
amdoxovir and clevudine.
These additional expenditures are expected to be partially offset by the
receipt of a key-man life insurance payment in early 2002. The Company is now
projecting a peak 2002 headcount, including independent contractors, of
approximately 150, still well below the Company's total headcount just prior
to the reduction in our work force implemented last year.
Chris Rallis added, "We believe 2002 will be an important year for
Triangle Pharmaceuticals. We are working hard to submit our first NDA for
Coviracil for HIV. In addition, we plan to make significant advances in the
clinical development of amdoxovir, clevudine and Coviracil for HBV. We are
enthusiastic about our compounds and the challenge of achieving the important
milestones ahead of us."
"On a personal note, we are saddened by the loss of Dr. Barry, who
provided such outstanding leadership to our Company and who created the vision
which we are determined to fulfill. However, we want to assure our investors
that the management team which Dr. Barry established is both capable and
committed to executing the objectives established for 2002, most importantly
the NDA submission of Coviracil in the third quarter of this year. We look
forward to the opportunity to discuss our financial and operational plans in
more detail in the conference call planned for tomorrow morning."
A conference call to discuss the information contained in this press
release will be held Friday, February 8 at 11:30 a.m. EST. Interested parties
in the U.S. may join the call toll free by dialing 877-679-9051.
International callers may join the call by dialing 952-556-2804. The
confirmation number is 5821185.
The call will be Webcast on the Triangle Pharmaceuticals website at
http://www.tripharm.com and archived for replay on the site for one week after the
call.
Triangle Pharmaceuticals, Inc. is a specialty pharmaceutical company
engaged in the development of new antiviral drug candidates, with a particular
focus on therapies for the human immunodeficiency virus (HIV), and hepatitis.
Triangle's proprietary drug candidates under development for HIV and/or
hepatitis include Coviracil(R) (emtricitabine), amdoxovir (formerly DAPD) and,
clevudine (formerly L-FMAU). Triangle is also developing immunotherapies for
HIV and hepatitis in collaboration with Dynavax Technologies Corporation
(Dynavax) utilizing Dynavax' immunostimulatory sequence (ISS) technology.
More information about Triangle's portfolio, management and product
development strategy is available on Triangle's website at:
http://www.tripharm.com
Statements in this press release that are not historical facts are
forward-looking statements and are subject to numerous risks and
uncertainties, including the fact that cash usage and operating results
targets may not be met for a number of reasons, including the risk that other
future events or changes in our drug development strategies may impact the
timing and degree of actual spending. Additionally, other risks include the
fact that clinical trials for our drug candidates may not proceed as planned
and regulatory submissions for those drug candidates may be delayed, the
Company may be unable to successfully complete pivotal clinical trials or that
its trials could be halted or terminated by regulatory authorities, regulatory
submissions may be delayed, its inability to commercialize Coviracil,
amdoxovir and ISS-based therapies due to patent rights held by third parties,
the Company's ability to obtain additional funding (including contingent
contractual milestone payments), patent protection and required regulatory
approvals for its drug candidates, the development of competitive products by
others, the cost of coactive therapy and the extent to which coactive therapy
achieves market acceptance, the Company's success in identifying new drug
candidates, acquiring rights to the candidates on favorable terms and
developing any candidates to which the Company acquires any rights, and that
the Company's collaborations with third parties may not prove successful.
These and other risks are discussed in detail from time to time in the
Company's filings with the Securities and Exchange Commission. As a result of
these and other risks and uncertainties, actual results may differ materially
from those predicted in this press release. The Company disclaims any
obligations to update any forward-looking statements in this press release.
-Financial chart follows-
TRIANGLE PHARMACEUTICALS, INC.
(A Development Stage Company)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
Three Months Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
Total revenues $ 1,035 $ 1,744 $ 5,795 $ 7,294
Operating expenses:
License fees (762) 713 1,691 4,530
Development 13,486 24,627 71,601 101,364
Purchased research
and development -- -- 320 5,350
Selling, general and
administrative 1,895 3,060 8,456 12,900
Restructuring -- -- 2,342 --
Total operating
expenses 14,619 28,400 84,410 124,144
Loss from operations (13,584) (26,656) (78,615) (116,850)
Gain (loss) on
investments (1,000) 17 (924) (334)
Interest income, net 876 1,314 3,613 7,659
Net loss $ (13,708) $ (25,325) $ (75,926) $ (109,525)
Basic and diluted net
loss before
restructuring charge
per common share $ (0.18) $ (0.66) $ (1.36) $ (2.87)
Basic and diluted
net loss per
common share $ (0.18) $ (0.66) $ (1.40) $ (2.87)
Shares used in
computing basic and
diluted net loss
per common share 74,998 38,359 54,084 38,118
SELECTED CONSOLIDATED BALANCE SHEET INFORMATION
(In Thousands)
December 31,
2001 2000
Cash, cash equivalents and investments $ 108,155 $ 62,931
Working capital 54,148 15,727
Total assets 114,165 71,061
Total stockholders' equity 63,953 13,781
Shares of common stock 76,829 38,529
SOURCE Triangle Pharmaceuticals, Inc.
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Related links:
http://www.tripharm.com
CONTACT:
Robert Amundsen, Executive Vice President,
Chief Financial Officer, or Chris Rallis, President, Chief
Operating Officer of Triangle Pharmaceuticals, Inc.,
+1-919-493-5980
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