SAN DIEGO, Aug. 14 /PRNewswire/ -- Trega Biosciences, Inc. (Nasdaq: TRGA)
today reported financial results for the second quarter and the six-month
period ended June 30, 1998. Revenues for the second quarter increased to
$4.0 million, compared with revenues of $2.6 million in the same period for
1997. The net loss for the second quarter of 1998 was $2.4 million, or $0.17
per share, compared with a net loss of $2.1 million, or $0.16 per share, in
the comparable period in 1997. Trega ended the quarter with approximately
$11 million in cash, cash equivalents and short-term investments. In
addition, the Company holds commitments from current or former partners to
purchase Company stock, the timing of which is to be determined by Trega.
For the six months ended June 30, 1998, total revenues increased to
$5.2 million, compared with $3.9 million for same period last year. The net
loss for the six months was $5.8 million, or $0.42 per share, compared with
$3.6 million, or $0.27 per share, for the six months ended June 30, 1997.
Increased revenues in the second quarter resulted primarily from
collaborative agreements related to the company's combinatorial libraries and
research conducted under new and existing collaborative agreements, including
an upfront payment from Novartis Pharma AG, as well as milestone and licensing
payments.
"In the second quarter, we established one of our most significant
alliances to date as well as the expansion of another very important
partnership," stated Robert S. Whitehead, chairman and chief executive
officer. "Our agreement with Novartis, focused on discovering compounds to
treat obesity and diabetes, has resulted in substantial commitments by
Novartis to fund Trega research as well as milestones and royalties for
discovered products which may reach development and commercialization. We
also expanded our relationship with Ono Pharmaceutical Co., Ltd. Trega will
optimize and screen Ono's compounds in targets of interest to Ono."
Research and development expenses increased to $5.3 million in the second
quarter of 1998, compared with $3.5 million in the same quarter last year.
The increase in expenses was due to increased funding of the Company's
internal drug discovery program and the Company's combinatorial chemistry,
automation and robotics synthesis programs, all reflecting Trega's shift away
from mixture-based combinatorial chemistry libraries to those formatted in
single-based small molecule compound arrays. Selling, general and
administrative expenses decreased to $1.2 million in the second quarter of
1998 from $1.5 million in the comparable period last year.
For the six months ended June 30, 1998, research and development expenses
increased to $8.9 million, compared with $6.5 million for the same period last
year. Selling, general and administrative expenses decreased to $2.4 from
$2.6 million in the comparable period last year.
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 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 the Company's resources are
sufficient to enable it to reach its business objectives, any research to be
conducted as described will be successful, 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 BIOSCIENCES, INC.
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
June 30, December 31,
1998 1997
ASSETS (unaudited)
Current assets:
Cash, cash equivalents and
short-term investments $10,984 $19,427
Accounts receivable and other current assets 1,905 676
Total current assets 12,889 20,103
Property and equipment, net 4,262 2,741
Other assets 2,187 2,275
Total assets $19,338 $25,119
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,062 $211
Accrued liabilities 2,253 1,976
Current portion of debt obligations 870 2,123
Deferred revenue 2,521 3,002
Total current liabilities 6,706 7,312
Obligations under capital leases 192 298
Long-term equipment notes payable 1,484 1,159
Long-term notes payable 67 132
Total liabilities 8,449 8,901
Stockholders' equity:
Common stock 14 14
Additional paid-in capital 73,233 73,087
Common stock issuable 16 16
Deferred compensation, net (940) (1,270)
Accumulated deficit (61,434) (55,629)
Total stockholders' equity 10,889 16,218
Total liabilities and stockholders' equity $19,338 $25,119
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,
1998 1997 1998 1997
Revenues:
Contract research and
licenses fees $4,007 $2,568 $5,175 $3,514
Net sales -- -- -- 430
Total revenues 4,007 2,568 5,175 3,944
Operating expenses:
Cost of revenues -- 22 -- 341
Research and development 5,300 3,498 8,875 6,508
Selling, general and
administrative 1,224 1,506 2,392 2,569
Total operating expenses 6,524 5,026 11,267 9,418
Loss from operations (2,517) $(2,458) $(6,092) $(5,474)
Interest and other income/
(expense), net 132 332 287 1,905
Net loss $(2,385) $(2,126) $(5,805) $(3,569)
Net loss per share $(0.17) $(0.16) $(0.42) $(0.27)
Shares used in computing
basic and diluted
net loss per share 13,950 13,466 13,930 13,439
SOURCE Trega Biosciences, Inc.
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fax, 800-758-5804, ext. 374050
CONTACT:
Vince Reardon, Director, Corporate
Communications of Trega Biosciences, Inc., 619-410-6555
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