Richard B. Brewer Resumes Day-to-Day Management of Company
SUNNYVALE, Calif., April 18 /PRNewswire-FirstCall/ --
Scios Inc. (Nasdaq: SCIO) announced today its financial results for the first
quarter ended March 31, 2002.
Scios previously reported that net sales for its lead product Natrecor(R)
(nesiritide) for the first quarter of 2002 were $15.4 million, a 60 percent
increase over the prior quarter. Based on this outstanding sales performance,
Scios announced that it is raising its full year 2002 net sales forecast for
Natrecor from $55 to $60 million to $75 to $80 million.
The Company also announced that President and Chief Executive Officer,
Richard B. Brewer, has resumed day-to-day management of operations after
successfully completing treatment for multiple myeloma.
"I am delighted to be back as our team continues to meet and exceed the
performance milestones we have laid out to increase value for our
shareholders," said Mr. Brewer. "We look forward to expanding U.S. sales for
Natrecor as the medical community continues its adoption of the drug based on
its many benefits in a variety of clinical settings. SCIO-469, our oral p38
kinase inhibitor, continues moving ahead in Phase II clinical trials. We
believe a safe, effective p38 kinase inhibitor represents a multi-billion
dollar product opportunity and we are one of the leaders in this area of
development. In addition, our research organization has identified a new
product candidate from our TGF-beta program that further builds our growing
pipeline behind Natrecor."
Additional First Quarter Achievements:
-- Lead article on pivotal VMAC study and editorial were published in
Journal of the American Medical Association (JAMA) supporting
first-line use of Natrecor for acute heart failure;
-- First annual meeting of ADHERE registry, which has enrolled almost
6,000 patients at nearly 100 medical centers to date, was held to
review national data results and discuss current heart failure
treatment and registry goals;
-- Natrecor received pass-through payment code from Medicare, allowing
reimbursement in outpatient setting;
-- Enrollment began in Phase IIa clinical trial evaluating safety and
tolerability of escalating doses of SCIO-469 for treatment of
rheumatoid arthritis;
-- New drug candidate was advanced from research to preclinical
development that could become the first inhibitor of transforming
growth factor (TGF)-beta.
First Quarter Financial Results
First quarter 2002 net revenues were $16.4 million compared to
$11.9 million in the first quarter of 2001. This increase was primarily due
to Natrecor product revenue. In the prior year the Company had $1.5 million
in product sales related to the psychiatric sales and marketing division,
which ceased operations in the first quarter of 2001, and a gain on the sale
of marketing rights to these products of $9.4 million.
Total costs and expenses for the first quarter of 2002 were $40.6 million
compared to $16.0 million in the first quarter of 2001. The increase in costs
and expenses was largely attributable to building a marketing and sales
infrastructure for Natrecor, clinical development of the p38 kinase inhibitor
program and preclinical development of the TGF-beta program.
Net loss for the quarter was $25.2 million, or $0.55 per diluted share,
compared to a net loss of $4.2 million, or $0.11 per diluted share, for the
same period last year. Per share amounts were based on 46.1 million weighted
average diluted shares in the first quarter of 2002, compared to 39.3 million
weighted average diluted shares in the same quarter last year.
Cash, cash equivalents and marketable securities (both current and
non-current) balances at March 31, 2002 were $111.0 million.
First Quarter Conference Call Details
The company will discuss additional details when it releases first quarter
2002 financial results on Thursday, April 18. The customary quarterly
conference call will be held at 7:00 a.m. PT / 10:00 a.m. ET. The call will
also be broadcast live and archived on Scios' web site at http://www.sciosinc.com.
To access the conference call, dial 800-364-4174 (domestic) / 706-634-5159
(international) with passcode 3539525. For those unable to listen to the live
events, the webcast will be archived for 15 business days following the event.
A replay of the conference call will be available by dialing 800-642-1687
(domestic) / 706-645-9291 (international) with passcode 3539525 beginning
approximately 2 hours after the event and lasting through May 3, 2002.
Scios Inc.
Scios is a biopharmaceutical company developing novel treatments for
cardiovascular and inflammatory disease. The Company's disease-based
technology platform integrates expertise in protein biology with computational
and medicinal chemistry to identify novel targets and rationally design small
molecule compounds for large markets with unmet medical needs.
Forward-Looking Safe Harbor Statement
This news release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. We generally identify such forward-looking statements
using words like "believe," "intend," "expect," "may," "should," "plan,"
"project," "contemplate," "anticipate" or similar statements. Statements that
are not historical facts are forward-looking statements based on current
assumptions that involve risks and uncertainties. These risks and
uncertainties may include the sales penetration and success of Natrecor, the
success of clinical trials of Natrecor and our pipeline products, including
SCIO-469 and inhibitors to TGF-beta, as well as other risks detailed from time
to time in the reports filed by Scios with the SEC, including the Company's
quarterly reports and annual report on Form 10-K. Actual results, performance
or achievements of Scios may differ significantly from those described in
these forward-looking statements. Scios disclaims any intention or obligation
to update or revise any financial projections or forward-looking statements,
whether as a result of new information, future events or otherwise.
SCIOS INC.
Consolidated Balance Sheets
(in thousands, except share data and per share data)
March 31, December 31,
2002 2001
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $44,032 $58,296
Marketable securities 15,484 7,351
Accounts receivable, net 9,582 6,943
Inventory 1,196 1,158
Prepaid expenses and other assets 4,122 4,214
Total current assets 74,416 77,962
Marketable securities, non-current 51,440 63,669
Property and equipment, net 10,148 10,424
Other assets 1,592 4,123
Total assets $137,596 $156,178
Liabilities and stockholder's equity
Current liabilities:
Accounts payable $5,835 $9,625
Accrued employee compensation 7,647 9,685
Other accrued liabilities 9,128 7,206
Current portion of long-term debt 40,922 33,035
Total current liabilities 63,532 59,551
Deferred contract revenue 4,873 --
Long-term debt 11,085 15,479
Total liabilities 79,490 75,030
Stockholders' equity:
Preferred stock; $.001 par value;
20,000,000 shares authorized; 4,991 issued
and outstanding -- --
Common stock; $.001 par value;
150,000,000 shares authorized; issued
and outstanding 46,226,867 and 46,015,167,
respectively 46 46
Additional paid-in capital 562,888 561,352
Treasury stock; shares of 40,000 at
March 31, 2002 and 30,000 at
December 31, 2001, respectively (644) (445)
Deferred warrant costs (5,520) (6,794)
Deferred compensation (106) (106)
Accumulated other comprehensive income 568 999
Accumulated deficit (499,126) (473,904)
Total stockholders' equity 58,106 81,148
Total liabilities and stockholders'
equity $137,596 $156,178
SCIOS INC.
Consolidated Statements of Operations
(in thousands, except share and per share data)
Three months ended
March 31,
2002 2001
(Unaudited)
Revenues:
Product sales $15,373 $--
Research and development contracts
and royalties 1,071 1,097
Psychiatric product sales and co-promotion
commissions, net of expenses -- 1,483
Gain on sale of marketing rights -- 9,363
16,444 11,943
Costs and expenses:
Cost of product sales 1,011 --
Research and development 14,855 9,480
Selling, general and administration 24,714 6,480
40,580 15,960
Loss from operations (24,136) (4,017)
Other income (expense):
Interest income 808 812
Interest expense (1,944) (849)
Realized gains (losses) on securities (77) 254
Other income (expense) 127 (423)
(1,086) (206)
Net loss $(25,222) $(4,223)
Loss per common share:
Basic and diluted $(0.55) $(0.11)
Weighted average number of common shares
outstanding used in calculation of:
Basic and diluted 46,091,188 39,290,982
SOURCE Scios Inc.
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Related links:
http://www.sciosinc.com
CONTACT:
David Gryska of Scios Inc., +1-408-616-8303;
or Jim Weiss of WeissCom Partners, Inc., +1-415-203-0328, for
Scios Inc.
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