SAN DIEGO, March 11 /PRNewswire/ -- Trega Biosciences, Inc. (Nasdaq: TRGA)
today reported financial results for the fourth-quarter and the year ended
December 31, 1998. Total revenues for the year increased to $10.8 million in
1998 compared with $7.8 million in 1997. The net loss for 1998 increased to
$12.8 million, or $0.89 per share, compared with a net loss of $9.4 million,
or $0.69 per share, reported for the year ended December 31, 1997. Trega
ended the year with $16.3 million is cash, cash equivalents and short-term
investments compared with $19.4 million at the end of 1997.
The increase in revenues for the year was due primarily to revenues
derived from the Company's collaboration with Novartis Pharma AG entered into
in November 1998 as well as revenues received under the Company's continuing
collaboration with Ono Pharmaceuticals Co., Ltd. Offsetting these revenues
were increases in related research and development and sales, general and
administrative expenses associated with supporting the Company's partnered
drug discovery and melanocortin programs, along with expansion of
combinatorial chemistry libraries. Additionally, a $1 million write off
associated with the acquisition of NaviCyte in November 1998 was charged to
in-process research & development.
"Trega has achieved significant milestones in 1998," said Michael G. Grey,
Trega's president and chief executive officer. "We are most proud of the
acquisition of NaviCyte, Inc., the expansion of our drug discovery
partnerships and the launching of our Chem.Folio(TM) product. These
accomplishments helped us achieve a 39 percent revenue increase in 1998 over
the previous year as well as maintain a healthy cash position."
For the fourth quarter 1998, total revenues increased to $3.6 million from
$2.4 million in the same period for 1997. The net loss for the quarter was
$3.3 million, or $0.21 per share, compared with $2.4 million or $0.17 per
share for the same period in 1997. Excluding the one time charge for
in-process research and development and other costs related to the NaviCyte
acquisition aggregating $1.6 million, the net loss for quarter ended December
31, 1998 was $1.8 million. The increase in revenues for the quarter was due
primarily to the Company's collaboration with Novartis Pharma AG, discussed
above, and shipments of combinatorial libraries under the Warner Lambert
agreement.
Corporate milestones since January 1998 include:
-- Procter and Gamble exercises their license to Trega combinatorial
chemistry compounds.
-- Trega and IRORI enter into a Licensing Agreement for Trega's Tea-Bag
Technology.
-- Trega and Ono Pharmaceuticals expand Research & Development agreement.
-- Novartis and Trega establish Research and Development Collaboration
focused on Obesity and Diabetes, potentially valued at $39 million.
-- Stephen F. Flaim, Ph.D., joins Trega as Vice President of Biological
Research and Development.
-- Trega identifies lead compounds in first phase of Research &
Development program with Ono Pharmaceuticals.
-- Biogen, Inc. becomes a Chem.Folio(TM)customer.
-- Trega exercises Stock Put option with Novartis for $7 million.
-- Michael G. Grey becomes Trega's President and Chief Executive Officer.
-- Trega acquires NaviCyte, Inc.
-- Warner-Lambert becomes a Chem.Folio(TM) customer.
-- Gerard A. Wills is appointed Chief Financial Officer.
-- Isis Pharmaceuticals becomes a Chem.Folio(TM) customer.
-- Schering-Plough joins NaviCyte's IDEA(TM) Pk-Informatics(TM)
Consortium.
Trega Biosciences is focused on accelerating the process of drug discovery
from disease targets to clinical candidates by using small molecule
combinatorial chemistry, high throughput screening and predictive
bio-informatics to rapidly create novel drugs having greater chances of
clinical success. In combination with its wholly owned subsidiary, NaviCyte,
Trega offers integrated products and services spanning the drug discovery
process -- beginning with synthesizing novel compounds to providing uniquely
qualified drug leads -- to the pharmaceutical and biopharmaceutical
industries. Trega also uses its drug discovery technologies in its internal
development programs, which are focused on discovering small molecules acting
on melanocortin receptors, which may be important in the treatment of
inflammatory and metabolic diseases.
Except for the historical information contained herein, the matters
discussed in this news release are forward-looking statements that involve
risks and uncertainties, including whether the results reported are indicative
of future results, whether the Company's resources are sufficient to enable it
to reach its business objectives, any research to be conducted as described
will be successful, any additional collaborations or alliances will be agreed
to, formed or expanded, whether regulatory approvals can be obtained for
products discovered and developed, if any, whether any such products can be
successfully marketed, the impact of competitive products and pricing, in
marketing success, whether any other corporate collaborations or alliances
will be successful, and other risks detailed from time to time in Trega's
Securities and Exchange Commission filings. These forward-looking statements
represent Trega's judgment as of the date of this release. Actual results may
differ materially from those projected. Trega disclaims, however, any intent
or obligation to update these forward-looking statements.
Trega's releases are on the World Wide Web at http://www.trega.com and
PR Newswire's fax-on-demand service at 1-800-758-5804, extension 374050.
Trega Biosciences, Inc.
Condensed Consolidated Balance Sheet
(in thousands)
December 31, December 31,
1998 1997
ASSETS (unaudited)
Current assets:
Cash, cash equivalents and
short-term investments $16,262 $19,427
Accounts receivable and
other current assets 778 676
Total current assets 17,040 20,103
Property and equipment, net 4,123 2,741
Other assets 8,372 2,275
$29,535 $25,119
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,539 $211
Accrued liabilities 2,399 1,976
Current portion of debt obligations 1,251 2,123
Deferred revenue 3,794 3,002
Total current liabilities 8,983 7,312
Long-term debt obligations 2,912 1,589
11,895 8,901
Stockholders' equity:
Common stock 18 14
Additional paid-in capital 86,661 73,103
Deferred compensation (609) (1,270)
Accumulated deficit (68,430) (55,629)
Total stockholders' equity 17,640 16,218
$29,535 $25,119
Trega Biosciences, Inc.
Condensed Consolidated Statement of Operations
(in thousands, except per share data)
Three Months Ended For The Year Ended
December 31, December 31,
1998 1997 1998 1997
(unaudited) (unaudited)
Revenues:
Contract research and
license fees $3,552 $2,383 $10,769 $7,334
Net sales 21 -- 21 430
Total revenues 3,573 2,383 10,790 7,764
Operating expenses:
Cost of sales 7 -- 7 341
Research and development 4,402 4,725 17,934 14,819
In-process research and
development 1,000 -- 1,000 --
Selling, general and
administrative 1,562 249 5,181 4,346
Total operating expenses 6,971 4,974 24,122 19,506
Loss from operations (3,398) $(2,591) (13,332) (11,742)
Interest and other
income, net 102 240 531 2,370
Net loss $(3,296) $(2,351) $(12,801) $(9,372)
Basic and diluted
loss per share $(0.21) $(0.17) $(0.89) $(0.69)
Shares used in computing
basic and diluted net loss
per share 15,662 13,842 14,380 13,603
SOURCE Trega Biosciences, Inc.
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Related links:
http://www.trega.com
Company News On-Call:
http://www.prnewswire.com/comp/374050.html or fax,
800-758-5804, ext. 374050
CONTACT:
Gerard A. Wills, Chief Financial Officer,
619-410-6695, or Vince Reardon, Director, Corporate
Communications, 619-410-6555, both of Trega Biosciences, Inc.
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