LA JOLLA, Calif., May 7 /PRNewswire/ -- SIBIA Neurosciences, Inc.
(Nasdaq: SIBI) today reported financial results for the first quarter ended
March 31, 1999.
For the first quarter ended March 31, 1999, SIBIA reported revenue of
$2,515,000 compared to revenue of $1,534,000 for the same period in 1998. The
net loss for the first quarter of 1999 was $2,840,000 or $0.30 per share
compared to a net loss of $4,052,000 or $0.43 per share for the same period in
1998.
Revenues for the quarter ended March 31, 1999 were higher than the
comparable period in the prior year due primarily to the signing in March 1999
of a non-exclusive license agreement with Bristol-Myers Squibb to use the
Company's patented transcription-based assay technology.
Total expenses for the first quarter ended March 31, 1999 decreased to
$5,677,000 from $6,287,000 for the comparable period in 1998. Research and
development expenses for the first quarter ended March 31, 1999 decreased to
$4,502,000 from $4,796,000 for the corresponding period in 1998 due primarily
to decreases in clinical and non-clinical costs related to the development of
SIB-1508Y, SIBIA's lead compound for Parkinson's disease, and SIB-1553A,
SIBIA's lead compound for Alzheimer's disease; however, research costs
increased related to expanded drug discovery programs for chronic pain,
apoptosis, psychiatric disorders and neuroprotection.
General and administrative expenses for the quarter ended March 31, 1999
decreased to $1,175,000 from $1,491,000 in the comparable period of 1998 due
primarily to decreased legal fees related to the Company's patent litigation
with Cadus Pharmaceutical Corporation.
On March 31, 1999 SIBIA had cash, cash equivalents and short-term
investments totaling $14,343,000.
"SIBIA has made significant progress over the past few months in licensing
our patented TBA technology and in identifying several new promising drug
leads," said William T. Comer, Ph.D., President and CEO of SIBIA. "Looking
ahead, we are accelerating our drug discovery efforts and continue to leverage
our unique technology platforms to attract major strategic collaborations with
pharmaceutical and biotechnology companies."
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 research collaborations, which currently
include Bristol-Myers Squibb Company and Meiji Seika Kaisha, Ltd., 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, risks relating to SIBIA's ability to enter into additional TBA
patent licenses or generate substantial licensing revenue from its patents or
other technologies, the risk that license revenue could be significantly
reduced as a result of future developments relating to the Cadus litigation,
other 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
March 31,
1999 1998
Unaudited
Revenue:
Contract $1,010,000 $1,534,000
License and royalty 1,505,000
Total revenue 2,515,000 1,534,000
Operating expenses:
Research and development 4,502,000 4,796,000
General and administrative 1,175,000 1,491,000
Total operating expenses 5,677,000 6,287,000
(3,162,000) (4,753,000)
Other income (expense):
Interest income 221,000 464,000
Interest expense (33,000) (23,000)
Gain on sale of investment 134,000 260,000
322,000 701,000
Net loss $(2,840,000) $(4,052,000)
Basic and diluted net
loss per common share $(0.30) $(0.43)
Shares used in computing basic and
diluted net loss per common share 9,523,330 9,365,155
SIBIA NEUROSCIENCES, INC.
CONDENSED BALANCE SHEET
March 31, December 31,
1999 1998
Unaudited
ASSETS
Cash, cash equivalents
and investment securities $14,343,000 $17,187,000
Prepaid expenses and
other current assets 2,105,000 1,184,000
Total current assets 16,448,000 18,371,000
Property and equipment, net 2,539,000 2,638,000
Other assets 188,000 190,000
$19,175,000 $21,199,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities 5,618,000 4,709,000
Long-term debt, less current portion 1,280,000 1,350,000
Total stockholders' equity 12,277,000 15,140,000
$19,175,000 $21,199,000
SOURCE SIBIA Neurosciences, Inc.
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Related links:
http://www.sibia.com
CONTACT:
Thomas A. Reed, Chief Financial Officer of
SIBIA Neurosciences, Inc., 619-452-5892, ext. 235
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