SAN DIEGO, May 15 /PRNewswire/ -- Trega Biosciences, Inc. (Nasdaq: TRGA)
today reported revenues of $1.2 million in the first quarter, up from
$0.9 million in the same period for 1997. The revenue increase in the first
quarter resulted primarily from license fees and collaborative agreements
related to the Company's combinatorial libraries, which are used by
pharmaceutical and biotechnology companies as a source of potential new drug
leads.
The Company had a net loss of $3.4 million, or $0.25 per share, for the
first quarter of 1998, compared to a net loss of $1.4 million, or $0.11 per
share, for the same period in 1997, due to an extraordinary, one-time gain
from the sale of a non-strategic asset.
"The first quarter was very important strategically to Trega's continued
growth," said Robert S. Whitehead, chairman and chief executive officer. "We
reached a milestone with Warner-Lambert. We also achieved a milestone with
Procter & Gamble and announced our first license of selected aspects of our
combinatorial chemistry technologies. In addition, yesterday we completed an
expanded collaboration with Ono Pharmaceuticals. These are important
accomplishments and successes of existing agreements, which we believe will
have a positive financial impact on the organization later this year."
Research and development expenses increased to $3.6 million in the first
quarter of 1998, compared with $2.8 million in the same quarter last year.
The increase in expenses was due to increased funding for the combinatorial
chemistry, automation and robotics synthesis programs and internal discovery
programs focused on inflammatory and metabolic diseases. Selling, general and
administrative expenses remained relatively unchanged at $1.2 million in the
first quarter of both 1998 and 1997.
Trega Biosciences is a drug discovery company, utilizing combinatorial
chemistry and other technologies to pursue the discovery of novel, small-
molecule drug therapies. The company leverages its technology platform by
entering into pharmaceutical alliances, which provide partners with access to
Trega's technologies in exchange for licensing fees and potential milestones
and royalties, or by establishing joint-discovery alliances with
pharmaceutical and biotechnology companies. Trega also uses its drug
discovery technologies in its internal development programs, which are focused
today on discovering small molecules acting on melanocortin receptors.
Melanocortins are a newly discovered class of 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 any proposed product can be
successfully formulated, scaled-up, developed, and commercialized, whether
regulatory approvals can be obtained, the impact of competitive products and
pricing, the financial condition of the Company in the future, whether any
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,
1998 1997
ASSETS (unaudited)
Current assets:
Cash, cash equivalents and short-term investments $14,984 $19,427
Accounts receivable and other current assets 1,066 676
Total current assets 16,050 20,103
Property and equipment, net 2,936 2,741
Other assets 2,332 2,275
Total assets $21,318 $25,119
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $759 $211
Accrued liabilities 1,251 1,976
Current portion of debt obligations 2,213 2,123
Deferred revenue 2,340 3,002
Total current liabilities 6,563 7,312
Debt obligations 1,655 1,589
Total liabilities 8,218 8,901
Stockholders' equity:
Common stock 14 14
Additional paid-in capital 73,225 73,087
Common stock issuable 16 16
Deferred compensation, net (1,105) (1,270)
Accumulated deficit (59,050) (55,629)
Total stockholders' equity 13,100 16,218
Total liabilities and stockholders' equity $21,318 $25,119
TREGA BIOSCIENCES, INC.
Condensed Consolidated Statement of Operations
(in thousands, except per share data)
Three Months Ended
March 31,
1998 1997
(unaudited)
Revenues:
Contract research and license fees $1,168 $946
Net sales -- 430
Total revenues 1,168 1,376
Operating expenses:
Cost of sales -- 319
Research and development 3,575 2,849
Selling, general and administrative 1,169 1,224
Total operating expenses 4,744 4,392
Loss from operations (3,576) (3,016)
Other income:
Interest income (expense), net 155 314
Gain on sale of MPS -- 1,259
Net loss $(3,421) $(1,443)
Basic and diluted net loss per share $(0.25) $(0.11)
Shares used in computing basic and
diluted net loss per share 13,910 13,412
SOURCE Trega Biosciences, Inc.
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Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 374050
Related links:
http://www.trega.com
CONTACT:
Robert S. Whitehead, Chairman & CEO,
619-410-6631, or Vince Reardon, Director, Corporate
Communications, 619-410-6555, both of Trega Biosciences
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