CAMBRIDGE, Mass., May 5 /PRNewswire-FirstCall/ --
Transkaryotic Therapies, Inc. (Nasdaq: TKTX) reported today consolidated
financial results for the three months ended March 31, 2003. For the first
quarter of 2003, Replagal(TM) (agalsidase alfa) sales were approximately $12.2
million. Sales increased by approximately 101% over the first quarter of
2002, which totaled approximately $6.1 million. The net loss for the first
quarter was approximately $25.9 million, or $0.75 per share, compared to a net
loss of approximately $18.5 million, or $0.54 per share, for the corresponding
period in 2002.
Included in the net loss for the first quarter of 2003 is an expense of
approximately $1.4 million, or $0.04 per share, relating to an intellectual
property agreement with Cell Genesys, Inc. During the quarter, TKT also
announced a major reorganization in an effort to reduce costs and narrow the
scope of its research initiatives. As a result, TKT recorded an initial
restructuring charge of approximately $3.6 million, or $0.10 per share,
consisting primarily of employee related severance costs as well as charges
related to facility consolidation. The company expects to record additional
restructuring charges during the remaining quarters of 2003, relating
primarily to facility consolidation.
At March 31, 2003, TKT had approximately $212 million in cash and
marketable securities.
"To date, Replagal has been the product of choice in Europe for Fabry
disease, and we believe that clinical experience continues to confirm the
benefits described in its European product label," said Michael J. Astrue,
President and Chief Executive Officer of TKT. "We regret that patients in the
United States do not have access to this important treatment option, and we
will be consulting with the FDA in the coming months to determine our best
opportunity for making Replagal available in the United States."
Conference Call and Webcast
In connection with this announcement, TKT will host a conference call and
live webcast today, Monday, May 5, 2003, at 10:00 a.m. Eastern Time.
Participants may access the call by dialing (973) 317-5319. The live webcast
may be accessed in the Investor Information section of TKT's website at
http://www.tktx.com. A replay of this conference call will be available beginning
today, May 5, 2003, at 1:00 p.m. Eastern Time, by dialing (973) 709-2089 and
using the access code 291927. A replay of the webcast will be archived on the
TKT website in the Investor Information section.
About TKT
TKT is a biopharmaceutical company developing therapeutics for the
treatment of rare genetic diseases caused by protein deficiencies. The company
currently markets one product, Replagal(TM) (agalsidase alfa) for the
treatment of Fabry disease in the European Union and certain other countries.
TKT is headquartered in Cambridge, Massachusetts and has a majority-owned
subsidiary in Sweden, TKT Europe-5S AB, which is responsible for European
sales and marketing activities of Replagal. Additional information on TKT is
available on the company's website at http://www.tktx.com.
This press release contains forward-looking statements that involve a
number of risks and uncertainties, including statements regarding Replagal, as
well as statements containing the words "believes," "anticipates," "plans,"
"expects," "estimates," "intends," "should," "could," "will," "may," and
similar expressions. There are a number of important factors that could cause
the company's actual results to differ materially from those indicated by such
forward-looking statements, including whether the FDA and other equivalent
regulatory agencies will approve Replagal on a timely basis, or at all;
whether Replagal will achieve commercial success; and other factors set forth
under the caption "Certain Factors That May Affect Future Results" in the
company's Annual Report on Form 10-K for the year ended December 31, 2002,
which is on file with the Securities and Exchange Commission and which factors
are incorporated herein by reference. While the company may elect to update
forward-looking statements at some point in the future, the company
specifically disclaims any obligation to do so, even if its expectations
change.
Replagal(TM) is a trademark of Transkaryotic Therapies, Inc.
- Financial Charts Follow -
Condensed Consolidated Statements of Operations
(unaudited)
Three Months Ended
March 31,
2003 2002
(in thousands, except per share amounts)
Revenues:
Product sales $12,183 $6,058
License and research revenues - 552
12,183 6,610
Operating expenses:
Cost of goods sold 3,501 548
Research and development 20,982 20,409
Intellectual property license expense 1,350 -
Selling, general and administrative 9,166 6,423
Restructuring charge 3,602 -
38,601 27,380
Operating loss (26,418) (20,770)
Interest income 776 2,303
Minority interest in net income of
consolidated subsidiary (303) -
Net loss ($25,945) ($18,467)
Basic and diluted net loss per share ($0.75) ($0.54)
Shares used to compute basic
and diluted net loss per share 34,550 34,331
Condensed Consolidated Balance Sheets
(unaudited)
March 31, December 31,
2003 2002
(in thousands)
Cash and marketable securities $212,079 $256,708
Other current assets 43,064 41,784
Property and equipment, net 61,807 59,372
Other assets 1,863 1,942
Total assets $318,813 $359,806
Total current liabilities 22,262 35,939
Minority interest 303 -
Total stockholders' equity 296,248 323,867
Total liabilities and stockholders' equity $318,813 $359,806
Contact:
Justine E. Koenigsberg
Director, Corporate Communications
(617) 349-0271
SOURCE Transkaryotic Therapies, Inc.
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http://www.tktx.com
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CONTACT:
Justine E. Koenigsberg, Director, Corporate
Communications of TKT, +1-617-349-0271
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