ANN ARBOR, Mich., July 16 /PRNewswire-FirstCall/ -- Esperion Therapeutics,
Inc. (Nasdaq: ESPR), a biopharmaceutical company dedicated to the discovery,
development and commercialization of therapies to improve the treatment of
cardiovascular disease, today reported financial results for the quarter and
six months ended June 30, 2003.
For the quarter ended June 30, 2003, Esperion reported a net loss of $8.4
million, or $0.29 per share, compared to a net loss of $7.8 million, or $0.27
per share, for the second quarter of 2002. Total operating expenses for the
second quarter of 2003 were $7.8 million, compared to $7.3 million for the
second quarter of 2002, representing a 7.2% increase.
Research and development expenses totaled $6.3 million for the second
quarter of 2003, or 80.1% of total operating expenses. This amount includes
the accrual of a $1.0 million milestone payment under an agreement relating to
one of our product candidates. The magnitude of the Company's operating
expenses each quarter is largely dependent upon the progress, timing, number,
nature and size of the Company's clinical trials and related manufacturing
activities.
The development status of each of the Company's current product candidates
is as follows:
* ETC-588, or LUV (Phase II) -- Currently enrolling patients in a
multiple-dose Phase II clinical trial in patients with carotid
atherosclerosis. Completed enrollment in July 2003 for a multiple-dose Phase
II clinical trial in patients with acute coronary syndromes.
* ETC-216, or AIM (Phase II) -- Completed a multiple-dose Phase II
clinical trial in patients with acute coronary syndromes. Announced initial
results in June 2003.
* ETC-642, or RLT Peptide (Phase I) -- Currently enrolling patients with
stable cardiovascular disease in a second Phase I single-dose clinical trial
and a Phase I multiple-dose trial.
* ETC-1001 (Phase I) -- Currently enrolling healthy volunteers in a Phase
I single escalating dose trial.
The net loss for the six months ended June 30, 2003 was $15.8 million, or
$0.54 per share compared to a net loss of $15.1 million, or $0.52 per share,
in the first six months of 2002. Results for the six months ended June 30,
2003 include operating expenses of $14.9 million compared to $14.7 million for
the corresponding period in 2002, an increase of 1.8%.
As of June 30, 2003, Esperion had $32.2 million in cash and short-term
investments, compared with $44.9 million at December 31, 2002, representing a
decrease in net cash of $12.7 million. Long-term debt, including the current
portion, was $9.1 million at June 30, 2003 compared with $8.8 million at
December 31, 2002. As a development stage company, Esperion has not reported
any revenue since its inception.
Esperion Therapeutics
Esperion Therapeutics, Inc. discovers and develops pharmaceutical products
for the treatment of cardiovascular disease. Esperion intends to
commercialize a novel class of drugs that focuses on a new treatment approach
called "HDL Therapy," which is based on the Company's understanding of high-
density lipoprotein, or HDL, function. HDL is the primary facilitator of the
reverse lipid transport, or RLT, pathway by which excess cholesterol and other
lipids are removed from artery walls and other tissues and are transported to
the liver for elimination from the body. Esperion's goal is to develop drugs
that exploit the beneficial functions of HDL within the RLT pathway. Esperion
currently has product candidates under development for the treatment of
cardiovascular disease. Esperion is listed on the Nasdaq National Market
under the symbol "ESPR."
Safe Harbor Statement
The information contained in this press release includes "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are often identified by words such
as "hope," "may," "believe," "anticipate," "plan," "expect," "require,"
"intend," "assume" and similar expressions. Forward-looking statements speak
only as of the date of this press release, reflect management's current
expectations, estimations and projections and involve certain factors, such as
risks and uncertainties, that may cause actual results, performance or
achievements to be far different from those suggested by the Company's
forward-looking statements. These factors include, but are not limited to,
risks associated with: the Company's ability to successfully execute its
business strategies, including entering into any strategic partnerships or
other transactions; the progress and cost of development of the Company's
product candidates; the extent and timing of market acceptance of new products
developed by the Company or its competitors; dependence on third parties to
conduct clinical trials for the Company's product candidates; the extent and
timing of regulatory approval, as desired or required, for the Company's
product candidates; the Company's dependence on licensing arrangements and
strategic relationships with third parties; clinical trials; manufacturing;
the Company's dependence on patents and proprietary rights; the procurement,
maintenance, enforcement and defense of the Company's patents and proprietary
rights; competitive conditions in the industry; business cycles affecting the
markets in which any of the Company's products may be sold; extraordinary
events and transactions; the timing and extent of the Company's financing
needs and the Company's access to funding, including through the equity
market; fluctuations in foreign exchange rates; and economic conditions
generally or in various geographic areas. These factors are discussed in more
detail in the Company's filings with the Securities and Exchange Commission.
The Company does not intend to update any of these factors or to publicly
announce the results of any revisions to any of these forward-looking
statements other than as required under the federal securities laws.
ESPERION THERAPEUTICS, INC. AND SUBSIDIARIES
(A Company in the Development Stage)
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
in thousands 2003 2002
Assets: (Unaudited)
Current assets:
Cash and cash equivalents $28,206 $40,499
Short-term investments 4,019 4,354
Prepaid expenses and other 378 410
Total current assets 32,603 45,263
Property and equipment, net 2,432 3,001
Goodwill 3,108 3,108
Deposits and other assets 10 35
Total assets $38,153 $51,407
Liabilities and Stockholders' Equity:
Current liabilities:
Current portion of long-term debt $1,102 $1,061
Accounts payable 1,389 1,687
Accrued liabilities 4,041 2,185
Total current liabilities 6,532 4,933
Long-term debt, less current portion 7,948 7,731
Stockholders' equity:
Preferred stock - -
Common stock 29 29
Additional paid-in capital 133,890 133,411
Notes receivable - (3)
Accumulated deficit during the
development stage (109,887) (94,046)
Deferred stock compensation (295) (589)
Accumulated other comprehensive loss (64) (59)
Total stockholders' equity 23,673 38,743
Total liabilities and stockholders' equity $38,153 $51,407
ESPERION THERAPEUTICS, INC. AND SUBSIDIARIES
(A Company in the Development Stage)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
June 30,
in thousands, except share and per
share data 2003 2002
Operating expenses:
Research and development $6,272 $5,878
General and administrative 1,561 1,428
Goodwill amortization - -
Purchased in-process research and
development - -
Total operating expenses 7,833 7,306
Loss from operations (7,833) (7,306)
Other income (expense):
Interest income 100 284
Interest expense (318) (278)
Other, net (384) (524)
Total other income (expense) (602) (518)
Loss before income taxes (8,435) (7,824)
Provision for income taxes - -
Net loss (8,435) (7,824)
Beneficial conversion feature on
preferred stock - -
Net loss attributable to common stockholders ($8,435) ($7,824)
Basic and diluted net loss per share ($0.29) ($0.27)
Shares used in computing basic and
diluted net loss per share 29,456,532 29,237,360
Inception
Six Months Ended to
June 30, June 30,
in thousands, except share and per
share data 2003 2002 2003
Operating expenses:
Research and development $11,732 $11,583 $88,180
General and administrative 3,190 3,073 20,306
Goodwill amortization - - 1,089
Purchased in-process research and
development - - 4,000
Total operating expenses 14,922 14,656 113,575
Loss from operations (14,922) (14,656) (113,575)
Other income (expense):
Interest income 249 604 7,446
Interest expense (628) (530) (3,013)
Other, net (540) (545) (745)
Total other income (expense) (919) (471) 3,688
Loss before income taxes (15,841) (15,127) (109,887)
Provision for income taxes - - -
Net loss (15,841) (15,127) (109,887)
Beneficial conversion feature on
preferred stock - - (22,870)
Net loss attributable to common
stockholders ($15,841) ($15,127) ($132,757)
Basic and diluted net loss per share ($0.54) ($0.52)
Shares used in computing basic and
diluted net loss per share 29,425,766 29,217,352
ESPERION THERAPEUTICS, INC. AND SUBSIDIARIES
(A Company in the Development Stage)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended Inception to
June 30, June 30,
in thousands 2003 2002 2003
Cash flows from operating activities:
Net loss ($15,841) ($15,127) ($109,887)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Purchased in-process research and
development - - 4,000
Depreciation and amortization 636 731 5,449
Stock-based compensation expense 294 389 3,944
Decrease in notes receivable 3 6 126
Loss on sale of property and equipment 1 101 192
Non-cash interest expense
included in long-term debt 240 177 1,027
Changes in assets and liabilities:
Prepaid expenses and other 34 862 (1,204)
Other assets 25 (17) 545
Accounts payable (299) (647) 1,657
Accrued liabilities 1,844 (739) 4,026
Net cash used in operating
activities (13,063) (14,264) (90,125)
Cash flows from investing activities:
Purchases of property and equipment (65) (698) (7,011)
Deposits on equipment - - (557)
Acquisition of Talaria
Therapeutics, Inc. - - (233)
Proceeds from sale of property and
equipment - 2 32
Purchases of short-term investments (4,773) (34,252) (41,988)
Maturities of short-term investments 5,108 23,168 37,969
Net cash provided by (used in)
investing activities 270 (11,780) (11,788)
Cash flows from financing activities:
Proceeds from issuance of
convertible preferred stock - - 42,200
Proceeds from the issuance of
common stock 479 152 79,590
Proceeds from long-term debt - 1,834 10,171
Repayments of long-term debt (521) (653) (3,318)
Net cash provided by (used in)
financing activities (42) 1,333 128,643
Effect of exchange rate changes on cash 542 103 1,476
Net increase (decrease) in cash and
cash equivalents (12,293) (24,608) 28,206
Cash and cash equivalents at
beginning of period 40,499 70,286 -
Cash and cash equivalents at end of
period $28,206 $45,678 $28,206
Company Contact:
Frank Thomas
VP, Finance and Investor Relations
Esperion Therapeutics, Inc.
(734) 222-1831
fthomas@esperion.com
Media Contact:
Jim Wetmore
Berry & Company Public Relations
(212) 253-8881
jwetmore@berrypr.com
SOURCE Esperion Therapeutics, Inc.
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Related links:
http://www.esperion.com
CONTACT:
Company Contact: Frank Thomas, VP, Finance
and Investor Relations of Esperion Therapeutics, Inc.,
+1-734-222-1831, fthomas@esperion.com ; or Media Contact: Jim
Wetmore of Berry & Company Public Relations, +1-212-253-8881,
jwetmore@berrypr.com , for Esperion Therapeutics, Inc.
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