SAN DIEGO, Aug. 10 /PRNewswire/ -- Trega Biosciences, Inc. (Nasdaq: TRGA)
today announced financial results for the second quarter ended June 30, 1999.
Revenues for the second quarter were $2.6 million, compared with revenues of
$2.1 million for the preceding quarter of this year representing an increase
of 24%. The increase in revenues over the prior quarter resulted from
increased shipments of the Company's Chem.Folio(TM) combinatorial chemistry
libraries.
Excluding a one-time $2 million payment received from Novartis Pharma AG
in the second quarter of 1998, revenues increased $638,000, or 31%, in the
second quarter of 1999 over the same quarter in the prior year. This increase
was due primarily to an increase in revenues from the sale of the Company's
Chem.Folio combinatorial libraries. The net loss for the second quarter of
1999 was $3.5 million, or $0.19 per share, compared with a net loss of $2.4
million, or $0.17 per share, in the comparable period in 1998.
Revenues for the six months ended June 30, 1999 increased $1.6 million, or
50%, to $4.8 million from $3.2 million for same period last year (when
excluding the $2.0 million one-time payment from Novartis). The increase in
revenues for the six-month period was due primarily to increased sales of the
Company's Chem.Folio combinatorial libraries. The net loss for the six months
was $6.2 million, or $0.34 per share, compared with $5.8 million, or $0.42 per
share, for the six months ended June 30, 1998. Trega ended the quarter with
approximately $8.6 million in cash, cash equivalents and short-term
investments.
Today the Company also announced that it had entered into a line of credit
with Imperial Bank for $1.5 million which provides funds to be used primarily
for working capital purposes.
"We are pleased with the progress of all our programs," said Michael G.
Grey, president and CEO of Trega. "Our sales of Chem.Folio compounds have
increased and we announced that our lead compound, HP 228, was effective in a
Phase II study of pain management in patients recovering from hip replacement
surgery. Trega is actively seeking a partner for this program. Additionally,
we have strengthened our commercial capabilities with the addition of Mark
Schwartz, V.P. of Commercial Operations, to our management team to focus on
generating revenues via sales of Chem.Folio compounds and our NaviCyte
selection technologies."
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 Statements of Operations
(unaudited)
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Revenues
Contract research and
licenses fees $1,365 $3,893 $3,031 $4,905
Compound revenues 1,196 114 1,561 270
Net sales 84 -- 189 --
Total revenues 2,645 4,007 4,781 5,175
Operating expenses
Cost of sales 99 -- 158 --
Research and
development 4,353 5,300 8,941 8,875
Selling, general and
administrative 1,709 1,224 3,505 2,392
Total operating
expenses 6,161 6,524 12,604 11,267
Loss from operations (3,516) $(2,517) $(7,823) $(6,092)
Interest and other
income, net 27 132 1,654 287
Net loss $(3,489) $(2,385) $(6,169) $(5,805)
Basic and diluted
net loss per share (0.19) $(0.17) $(0.34) (0.42)
Shares used in computing
basic and diluted net
loss per share 18,053 13,950 17,953 13,930
TREGA BIOSCIENCES, INC.
Condensed Consolidated Balance Sheet
(in thousands)
June 30, December 31,
1999 1998
(unaudited)
Cash, cash equivalents and
short-term investments $8,592 $16,262
Accounts receivable and
other current assets 1,849 778
Property and equipment, net 3,860 4,123
Other assets 7,948 8,372
Total assets $22,249 $29,535
Current liabilities $7,589 $8,983
Long-term liabilities 2,808 2,912
Stockholders equity 11,852 17,640
Total liabilities and
stockholders' equity $22,249 $29,535
SOURCE Trega Biosciences, Inc.
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http://www.trega.com
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http://www.prnewswire.com/comp/374050.html or fax,
800-758-5804, ext. 374050
CONTACT:
Gerard A Wills, Vice President of Finance and
CFO of Trega Biosciences, Inc., 619-410-6695
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