SAN DIEGO, Calif., May 4 /PRNewswire/ -- Trega Biosciences, Inc.
(Nasdaq: TRGA) today reported that revenues for its first quarter ending
March 31, 1999 increased approximately seventy-five percent to $2.1 million.
This compares with revenues of $1.2 million for the same period in 1998.
Increased revenues in the first quarter resulted from sales of the Company's
Chem.Folio(TM) combinatorial libraries and sales through Trega's wholly owned
subsidiary, NaviCyte, Inc., acquired in November 1998, as well as revenues
from research conducted under new and existing collaborative agreements.
The net loss for the first quarter of 1999 was $2.7 million, or $0.15 per
share, compared with a net loss of $3.4 million, or $0.25 per share, in the
comparable period in 1998. Included in other income in the first quarter of
1999 is a gain of $1.5 million on the sale of the assets of Trega's wholly
owned subsidiary, ChromaXome Corporation. Revenues were not recognized in
connection with this sale.
"We are pleased with our accomplishments in the first quarter," said
Michael G. Grey, president and chief executive officer. "We achieved a major
milestone in our melanocortin research program with the announcement that
Trega's lead compound, HP 228, significantly reduced post-surgical pain in a
Phase II clinical trial."
"We also added two new members, Schering-Plough and R.W. Johnson
Pharmaceutical Research Institute, to NaviCyte's predictive bioinformatics
Consortium, IDEA(TM), where they join SmithKline Beecham, Genentech and
Parke-Davis. NaviCyte is in the advanced stages of producing a physiological
model of absorption utilizing clinical data provided by Consortium members,"
Mr. Grey continued. "Finally, Trega sold substantially all its assets in
ChromaXome Corporation to TerraGen Diversity, Inc. in order to stay focused on
our core business strengths -- drug discovery, selection and early stage
development of novel drug therapies."
Research and development expenses increased to $4.6 million in the first
quarter of 1999, compared with $3.6 million in the same quarter last year.
The increase in expenses was due to increased funding of Chem.Folio(TM) and
external drug discovery programs as well as the addition of research expenses
of NaviCyte. Selling, general and administrative expenses increased to
$1.8 million, compared with $1.2 million for the same period last year. Trega
ended the quarter with approximately $11.7 million in cash, cash equivalents
and short-term investments.
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
bioinformatics to rapidly create novel drug candidates 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, whether any research to be conducted as
described will be successful, whether 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 Sheets
(in thousands, except per share data)
March 31, December 31,
1999 1998
ASSETS (unaudited)
Current assets:
Cash, cash equivalents
and short-term investments $ 11,676 $ 16,262
Accounts receivable and
other current assets 1,338 778
Total current assets 13,014 17,040
Property and equipment, net 3,756 4,123
Other assets 8,138 8,372
Total assets $ 24,908 $ 29,535
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $ 794 $ 1,539
Accrued compensation &
other accrued liabilities 2,637 2,399
Current portion of debt
obligations 1,160 1,251
Deferred revenue 2,454 3,794
Total current liabilities 7,045 8,983
Debt obligations 2,693 2,912
Total liabilities 9,738 11,895
Stockholders' equity:
Common stock 18 18
Additional paid-in capital 86,690 86,645
Common stock issuable 16 16
Deferred compensation, net (444) (609)
Accumulated deficit (71,110) (68,430)
Total stockholders' equity 15,170 17,640
Total liabilities and
stockholders' equity $ 24,908 $ 29,535
TREGA BIOSCIENCES, INC.
Condensed Consolidated Statement of Operations
(in thousands, except per share data)
Three Months Ended
March 31,
1999 1998
(unaudited)
Revenues:
Contract research and
license fees $ 2,030 $ 1,168
Net sales 105 --
Total revenues 2,135 1,168
Operating expenses:
Cost of sales 59 --
Research and development 4,587 3,575
Selling, general and
administrative 1,796 1,169
Total operating expenses 6,442 4,744
Loss from operations (4,307) (3,576)
Other income:
Interest income (expense), net 114 155
Gain on sale of CXC 1,513 --
Net loss $ (2,680) $ (3,421)
Basic and diluted net loss
per share $ (0.15) $ (0.25)
Shares used in computing
basic and diluted net loss
per share 17,853 13,910
SOURCE Trega Biosciences, Inc.
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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 of
Trega, 619-410-6695
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