ANN ARBOR, Mich., April 17 /PRNewswire-FirstCall/ --
Esperion Therapeutics, Inc. (Nasdaq: ESPR), a biopharmaceutical company
focused on discovering and developing HDL-targeted therapies for the treatment
of cardiovascular disease, today reported financial results for the quarter
ended March 31, 2003.
For the quarter ended March 31, 2003, Esperion reported a net loss of $7.4
million, or $0.25 per share, compared to a net loss of $7.3 million, or $0.25
per share, for the first quarter of 2002. Despite the higher net loss for the
quarter as compared to the corresponding period in 2002, total operating
expenses decreased by 3.6%, from $7.4 million to $7.1 million. The lower
operating expenses were more than offset by an increase in other non-operating
items, including higher interest expense, lower interest income and higher
foreign currency transaction losses.
Research and development expenses represented 77% of operating expenses
during the first quarter of 2003, and these expenses decreased by
approximately $245,000, or 4.3%, compared to the corresponding period in 2002.
The magnitude of the Company's operating expenses each quarter is largely
dependent upon the progress, timing, number, nature and size of the Company's
clinical trials and related manufacturing activities. The development status
of each of the Company's current product candidates is as follows:
* ETC-588, or LUV (Phase II) -- Currently enrolling patients in two
multiple-dose Phase II clinical trials: one trial in patients with carotid
atherosclerosis and one trial in patients with acute coronary syndromes.
* ETC-216, or AIM (Phase II) -- Completed enrollment in March 2003 for a
multiple-dose Phase II clinical trial in patients with acute coronary
syndromes.
* ETC-642, or RLT Peptide (Phase I) -- Currently enrolling patients with
stable cardiovascular disease in a second Phase I single-dose clinical trial.
* ETC-1001 (formerly ESP 31015) (Pre-clinical) -- Expecting to initiate
the first clinical trial in the second quarter of 2003.
"While our performance was on track with projections for the quarter and
the year, we also note two important events for our Company in this period,"
said Roger S. Newton, Ph.D., President and CEO of Esperion. "First, we
completed enrollment in the Phase II study of ETC-216. Second, we unveiled
our oral small molecule platform, a unique discovery platform for the
development of lipid regulating agents, at an Esperion event in Chicago on
March 30. In addition to being milestones for Esperion, these events have the
potential to be significant value creating opportunities for our shareholders
in the months ahead."
As of March 31, 2003, Esperion had approximately $38 million in cash and
short-term investments, compared with $45 million at December 31, 2002,
representing a decrease in net cash of approximately $7.0 million. Long-term
debt was largely unchanged at approximately $8.8 million in December 31, 2002
and March 31, 2003. 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 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 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 product candidates under development for the treatment of
cardiovascular disease. 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, including entering into any strategic partnerships or
other transactions; the progress and cost of development of the Company's
product candidates; the extent and timing of market acceptance of new products
developed by the Company or its competitors; dependence on third parties to
conduct clinical trials for the Company's 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 any of the Company's future products may be sold;
extraordinary events and transactions; the timing and extent of the Company's
financing needs and the Company's access to funding, including through the
equity market; fluctuations in foreign exchange rates; and economic conditions
generally or in various geographic areas. 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 laws.
ESPERION THERAPEUTICS, INC. AND SUBSIDIARIES
(A Company in the Development Stage)
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31,
in thousands 2003 2002
Assets: (Unaudited)
Current assets:
Cash and cash equivalents $31,605 $40,499
Short-term investments 6,253 4,354
Prepaid expenses and other 590 410
Total current assets 38,448 45,263
Property and equipment, net 2,710 3,001
Goodwill, net 3,108 3,108
Deposits and other assets 6 35
Total assets $44,272 $51,407
Liabilities and Stockholders' Equity:
Current liabilities:
Current portion of long-term debt $1,081 $1,061
Accounts payable 1,878 1,687
Accrued liabilities 1,999 2,185
Total current liabilities 4,958 4,933
Long-term debt, less current portion 7,721 7,731
Stockholders' equity:
Preferred stock - -
Common stock 29 29
Additional paid-in capital 133,517 133,411
Notes receivable - (3)
Accumulated deficit during the
development stage (101,452) (94,046)
Deferred stock compensation (442) (589)
Accumulated other comprehensive loss (59) (59)
Total stockholders' equity 31,593 38,743
Total liabilities and stockholders'
equity $44,272 $51,407
ESPERION THERAPEUTICS, INC. AND SUBSIDIARIES
(A Company in the Development Stage)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Inception to
March 31, March 31,
in thousands except share and 2003 2002 2003
per share data
Operating expenses:
Research and development $5,460 $5,705 $81,908
General and administrative 1,629 1,645 18,745
Goodwill amortization - - 1,089
Purchased in-process research
and development - - 4,000
Total operating expenses 7,089 7,350 105,742
Loss from operations (7,089) (7,350) (105,742)
Other income (expense):
Interest income 149 320 7,346
Interest expense (310) (252) (2,695)
Other, net (156) (21) (361)
Total other income (expense) (317) 47 4,290
Loss before income taxes (7,406) (7,303) (101,452)
Provision for income taxes - - -
Net loss (7,406) (7,303) (101,452)
Beneficial conversion feature
on preferred stock - - (22,870)
Net loss attributable to common
stockholders ($7,406) ($7,303) ($124,322)
Basic and diluted net loss per
share ($0.25) ($0.25)
Shares used in computing basic
and diluted net loss per
share 29,395,549 29,197,523
ESPERION THERAPEUTICS, INC. AND SUBSIDIARIES
(A Company in the Development Stage)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended Inception to
March 31, March 31,
in thousands 2003 2002 2003
Cash flows from operating
activities:
Net loss ($7,406) ($7,303) ($101,452)
Adjustments to reconcile net
loss to net cash used in
operating activities:
Purchased in-process research
and development - - 4,000
Depreciation and amortization 316 361 5,129
Stock-based compensation expense 147 208 3,797
Decrease in notes receivable 3 3 126
Loss on sale of property and
equipment 1 1 192
Non-cash interest expense
included in long-term debt 115 82 902
Changes in assets and liabilities:
Prepaid expenses and other (180) 112 (1,418)
Other assets 29 (25) 549
Accounts payable 191 44 2,147
Accrued liabilities (190) (741) 1,992
Net cash used in operating
activities (6,974) (7,258) (84,036)
Cash flows from investing
activities:
Purchases of property and
equipment (25) (666) (6,971)
Deposits on equipment - - (557)
Acquisition of Talaria
Therapeutics, Inc. - - (233)
Proceeds from sale of property
and equipment - 2 32
Purchases of short-term
investments (2,001) - (39,216)
Maturities of short-term
investments 102 - 32,963
Net cash used in investing
activities (1,924) (664) (13,982)
Cash flows from financing
activities:
Proceeds from issuance of
convertible preferred stock - - 42,200
Proceeds from the issuance of
common stock 106 36 79,217
Proceeds from long-term debt - 1,834 10,171
Repayments of long-term debt (258) (325) (3,055)
Net cash provided by (used in)
financing activities (152) 1,545 128,533
Effect of exchange rate changes
on cash 156 14 1,090
Net increase (decrease) in cash
and cash equivalents (8,894) (6,363) 31,605
Cash and cash equivalents at
beginning of period 40,499 70,286 -
Cash and cash equivalents at end
of period $31,605 $63,923 $31,605
CONTACT:
Esperion Therapeutics, Inc.
Frank Thomas
Vice President, Finance and Investor Relations
(734) 222-1831
fthomas@esperion.com
Berry & Company
Jim Wetmore
(212) 253-8881
jwetmore@berrypr.com
SOURCE Esperion Therapeutics, Inc.
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Related links:
http://www.esperion.com
CONTACT:
Frank Thomas, Vice President, Finance and
Investor Relations of Esperion Therapeutics, Inc.,
+1-734-222-1831, fthomas@esperion.com ; or Jim Wetmore of Berry &
Company, +1-212-253-8881, jwetmore@berrypr.com
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