LA JOLLA, Calif., March 26 /PRNewswire/ -- SIBIA Neurosciences, Inc.
(Nasdaq: SIBI) today reported financial results for the year and fourth
quarter ended December 31, 1998.
    For the year ended December 31, 1998, SIBIA reported revenue of $7,043,000
compared to revenue of $11,197,000 for the year ended December 31, 1997.  The
Company's net loss for the year ended December 31, 1998 was $15,807,000, or
$1.68 per share, versus a net loss of $7,593,000, or $0.82 per share, for the
year ended December 31, 1997.  Net loss for the year ended December 31, 1998
included gains on the sale of investment securities of $1,305,000.
    For the fourth quarter ended December 31, 1998, SIBIA reported revenue of
$1,395,000 compared to revenue of $2,145,000 for the same period in 1997.  The
net loss for the fourth quarter of 1998 was $5,107,000 or $0.54 per share
compared to a net loss of $2,478,000 or $0.27 per share for the same period in
1997.
    Revenues for the year ended December 31, 1998 were lower than the prior
year due primarily to a one-time license fee of $3,000,000 recognized in 1997
related to the Company's agreement with Meiji Seika Kaisha, Ltd. for
development of SIB-1508Y, SIBIA's lead compound for Parkinson's disease, and
to the completion of the research support phase of collaborations with Eli
Lilly & Company and Novartis AG in October 1997 and September 1998,
respectively.  Revenues for the quarter ended December 31, 1998 were lower
than the comparable period in the prior year due primarily to the completion
of the collaboration with Novartis.
    Total expenses for the year and fourth quarter ended December 31, 1998
increased to $25,587,000 and $6,914,000 from $20,965,000 and $5,090,000,
respectively, for the comparable periods in 1997.  Research and development
expenses for the year ended December 31, 1998 increased to $18,247,000 from
$15,819,000 for the year ended December 31, 1997 due to increased research and
development costs related to expanded drug discovery programs, including
psychiatric disorders, chronic pain, neuroprotection and apoptosis, and an
increase in expenses related to the Company's ongoing clinical trials.
Research and development expenses for the fourth quarter ended December 31,
1998 increased to $4,626,000 from $3,659,000 for the corresponding period in
1997 due to expanded drug discovery programs.  The Company's two compounds in
clinical development are SIB-1508Y, currently in Phase 2 clinical studies for
Parkinson's disease, and SIB-1553A, currently in Phase 2 clinical studies for
Alzheimer's disease.  In addition to the increased research and development
expenses, general and administrative expenses for the year and quarter ended
December 31, 1998 increased to $7,340,000 and $2,288,000, respectively, from
$5,146,000 and $1,431,000 in the comparable periods in 1997 due primarily to
the Company's ongoing patent litigation with Cadus Pharmaceutical Corporation.
In December 1998, SIBIA was awarded an $18.0 million jury verdict that Cadus
is expected to appeal.
    On December 31, 1998 SIBIA had cash, cash equivalents and short-term
investments totaling $17,187,000.
    "This past year SIBIA has been quite successful both in advancing clinical
development of our lead compounds for Parkinson's and Alzheimer's disease, and
in extending our platforms of potential product candidates," said William T.
Comer, Ph.D., President and CEO.  "We are pleased with the many successes of
our dedicated employees and the major progress made in identifying compounds
which selectively modulate ion channels and proteases that relate to treating
neurologic and psychiatric disorders."
    SIBIA Neurosciences, Inc. is engaged in the discovery and development of
novel small molecule therapeutics for the treatment of neurodegenerative,
neuropsychiatric and neurological disorders, many of which have large patient
populations and represent critical unmet medical needs.  SIBIA is a leader in
the development of proprietary drug discovery platforms that combine key tools
necessary for modern drug discovery, including genomics, high throughput
screening, advanced combinatorial chemistry techniques and pharmacology.  The
Company's proprietary molecular targets and drug candidates, together with its
drug discovery technologies and research expertise, have enabled the Company
to establish several corporate collaborations, which include Bristol-Myers
Squibb Company, Eli Lilly and Company, Meiji Seika Kaisha, Ltd. and Novartis
AG and multiple technology licensing arrangements.

    This press release contains forward-looking statements that involve risks
and uncertainties.  As a result, actual results could differ materially from
those discussed herein.  These risks and uncertainties include SIBIA's
reliance on corporate partnerships and ability to enter into new corporate
partnerships, litigation risks, whether SIBIA will be successful in
demonstrating the safety and efficacy of SIB-1508Y and SIB-1553A in humans,
whether SIBIA will be able to meet its development goals with respect to its
drug candidates and proprietary targets, SIBIA's early stage of development,
the new and uncertain state of SIBIA's technologies, SIBIA's future capital
needs and the uncertainty of receiving additional funding, uncertainties
regarding patents, proprietary rights and regulatory matters, and other
research, development and market risks.  These and other risks and
uncertainties are more fully set forth in SIBIA's most recently filed
Forms 10-Q and 10-K.


                            SIBIA NEUROSCIENCES, INC.
                        CONDENSED STATEMENT OF OPERATIONS

                           Three Months Ended           Twelve Months Ended
                               December 31,                December 31,
                           1998          1997           1998         1997
    Revenue:
     Contract          $1,075,000    $1,708,000     $6,613,000    $7,537,000
     License and royalty  320,000       437,000        430,000     3,660,000
        Total revenue   1,395,000     2,145,000      7,043,000    11,197,000
     Operating expenses:
     Research and
      development       4,626,000     3,659,000     18,247,000    15,819,000
     General and
      administrative    2,288,000     1,431,000      7,340,000     5,146,000
     Total operating
      expenses          6,914,000     5,090,000     25,587,000    20,965,000
                       (5,519,000)   (2,945,000)   (18,544,000)   (9,768,000)

    Other income (expense):
     Interest income      289,000       484,000      1,523,000     2,231,000
     Interest expense     (22,000)      (16,000)       (91,000)      (59,000)
     Gain on sale
      of investment       145,000                    1,305,000
     Other                               (1,000)                       3,000
                          412,000       467,000      2,737,000     2,175,000

    Net loss          $(5,107,000)  $(2,478,000)  $(15,807,000)  $(7,593,000)

    Basic and diluted
     net loss per
     common share          $(0.54)       $(0.27)        $(1.68)       $(0.82)
    Shares used in
     computing basic and
     diluted net loss
     per common share   9,483,628     9,316,085      9,421,057     9,247,521


                            SIBIA NEUROSCIENCES, INC.
                             CONDENSED BALANCE SHEET

                                                    December 31,  December 31,
                                                        1998         1997
    ASSETS
    Cash, cash equivalents and investment
     securities                                     $17,187,000   $33,347,000
    Prepaid expenses and other current
     assets                                           1,184,000     1,138,000
    Total current assets                             18,371,000    34,485,000
    Property and equipment, net                       2,638,000     1,599,000
    Other assets                                        190,000        96,000
                                                    $21,199,000   $36,180,000

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Total current liabilities                         4,709,000     3,271,000
    Long-term debt, less current portion              1,350,000       695,000
    Total stockholders' equity                       15,140,000    32,214,000
                                                    $21,199,000   $36,180,000

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