ANN ARBOR, Mich., Oct. 20 /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
nine months ended September 30, 2003.
Esperion reported a net loss of $6.6 million, or $0.20 per share, for the
quarter ended September 30, 2003 compared to a net loss of $7.0 million, or
$0.24 per share, for the third quarter of 2002. Total operating expenses for
the third quarter of 2003 were $6.2 million, compared to $7.1 million for the
third quarter of 2002, representing a decline of 12.3%, primarily due to lower
research and development expenses.
Research and development expenses totaled $4.5 million for the third
quarter of 2003, or 71.9% of total operating expenses. 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 process development and production activities.
The third quarter was highlighted by the completion of enrollment in the
following four ongoing clinical trials:
* ETC-588-004 - Phase 2 trial in approximately 32 patients with carotid
atherosclerosis using magnetic resonance imaging to evaluate changes in plaque
volume;
* ETC-588-005 - Phase 2 trial in approximately 150 patients with acute
coronary syndromes evaluating safety and tolerability and following each
patient for six months to monitor adverse events, including the collection of
cardiovascular event data;
* ETC-642-002 - Phase 1 single escalating dose trial in up to 32 patients
with stable atherosclerosis evaluating safety and tolerability; and
* ETC-1001-001 - Phase 1 single escalating dose trial in up to 36 healthy
volunteers evaluating safety and tolerability.
The Company expects to report initial results from each of these studies
in the months ahead.
In addition, Esperion completed a follow-on stock offering during the
third quarter of 2003 resulting in net proceeds of approximately $66.7 million
through the issuance of approximately 4.4 million shares of common stock.
As of September 30, 2003, Esperion had $92.4 million in cash and short-
term investments, compared with $44.9 million at December 31, 2002. Long-term
debt, including the current portion, was $9.1 million at September 30, 2003,
compared with $8.8 million at December 31, 2002. There were approximately
34.1 million shares outstanding as of September 30, 2003.
The net loss for the nine months ended September 30, 2003 was $22.4
million, or $0.74 per share compared to a net loss of $22.1 million, or $0.76
per share, for the first nine months of 2002. Operating expenses totaled
$21.1 million for the first nine months of 2003 compared to $21.7 million for
the corresponding period in 2002, representing a decline of 2.8%. As a
development stage company, Esperion has not reported any revenue since its
inception.
Based upon current development plans, the Company projects 2004 operating
expenses in the range of $38 to $42 million and a net loss between $39 and $42
million. This guidance does not include the effect of any potential corporate
collaboration or any other activities that might affect our financial position
next year. We estimate that research and development expenses will increase
next year, particularly in the second half of the year.
Webcast
Esperion management will host a conference call and webcast to review
financial results, recent accomplishments and upcoming milestones today at
4:30 p.m. (EDT). The live webcast may be accessed on Esperion's website at
http://www.esperion.com . To participate by telephone, you can call
800-901-5241 or 617-786-2963 and use the passcode "Esperion." A replay of the
call will also be available on Esperion's website or by calling 888-286-8010
or 617-801-6888 and entering the passcode "95449008."
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 four product candidates in clinical development. 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 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; the Company's 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;
litigation, proceedings, investigations and other disruptions of management's
time resulting from the acquisition of the Company's common stock by various
persons associated with Scott Sacane; 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 future products may be sold; extraordinary
events and transactions; seeking and consummating business acquisitions,
including the diversion of management's attention to the assimilation of the
operations and personnel of any acquired business; the timing and extent of
the Company's financing needs and the Company's access to funding, including
through the equity market, particularly in light of the impact on the market
value of the Company's common stock of matters outside of the Company's
control, such as trading activities by third parties; fluctuations in foreign
exchange rates; and economic conditions generally or in various geographic
areas. Because all of the foregoing factors are difficult to forecast, you
should not place undue reliance on any forward-looking statement. More
detailed information about some of these and other risk factors is set forth
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.
Company Frank Thomas
Contact: VP, Finance and Investor Relations
Esperion Therapeutics, Inc.
(734) 222-1831
fthomas@esperion.com
Media Jim Wetmore
Contact: Berry & Company Public Relations
(212) 253-8881
jwetmore@berrypr.com
ESPERION THERAPEUTICS, INC. AND SUBSIDIARIES
(A Company in the Development Stage)
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, December 31,
in thousands 2003 2002
Assets: (Unaudited)
Current assets:
Cash and cash equivalents $64,685 $40,499
Short-term investments 27,707 4,354
Prepaid expenses and other 1,426 410
Total current assets 93,818 45,263
Property and equipment, net 2,498 3,001
Goodwill 3,108 3,108
Deposits and other assets 6 35
Total assets $99,430 $51,407
Liabilities and Stockholders' Equity:
Current liabilities:
Current portion of long-term debt $1,052 $1,061
Accounts payable 1,110 1,687
Accrued liabilities 4,136 2,185
Total current liabilities 6,298 4,933
Long-term debt, less current portion 8,074 7,731
Stockholders' equity:
Preferred stock - -
Common stock 34 29
Additional paid-in capital 201,677 133,411
Notes receivable - (3)
Accumulated deficit during the
development stage (116,450) (94,046)
Deferred stock compensation (148) (589)
Accumulated other comprehensive
loss (55) (59)
Total stockholders' equity 85,058 38,743
Total liabilities and stockholders'
equity $99,430 $51,407
ESPERION THERAPEUTICS, INC. AND SUBSIDIARIES
(A Company in the Development Stage)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
September 30,
in thousands, except share and per share data 2003 2002
Operating expenses:
Research and development $4,473 $5,416
General and administrative 1,748 1,677
Goodwill amortization - -
Purchased in-process research and development - -
Total operating expenses 6,221 7,093
Loss from operations (6,221) (7,093)
Other income (expense):
Interest income 191 258
Interest expense (331) (289)
Other, net (202) 144
Total other income (expense) (342) 113
Loss before income taxes (6,563) (6,980)
Provision for income taxes - -
Net loss (6,563) (6,980)
Beneficial conversion feature on
preferred stock - -
Net loss attributable to common
stockholders ($6,563) ($6,980)
Basic and diluted net loss per share ($0.20) ($0.24)
Shares used in computing basic and
diluted net loss per share 32,373,833 29,268,023
Nine Months Ended Inception to
September 30, September 30,
in thousands, except share and per
share data 2003 2002 2003
Operating expenses:
Research and development $16,204 $16,999 $92,652
General and administrative 4,938 4,750 22,054
Goodwill amortization - - 1,089
Purchased in-process research and
development - - 4,000
Total operating expenses 21,142 21,749 119,795
Loss from operations (21,142) (21,749) (119,795)
Other income (expense):
Interest income 440 862 7,637
Interest expense (960) (819) (3,345)
Other, net (742) (401) (947)
Total other income (expense) (1,262) (358) 3,345
Loss before income taxes (22,404) (22,107) (116,450)
Provision for income taxes - - -
Net loss (22,404) (22,107) (116,450)
Beneficial conversion feature on
preferred stock - - (22,870)
Net loss attributable to common
stockholders ($22,404) ($22,107) ($139,320)
Basic and diluted net loss per share ($0.74) ($0.76)
Shares used in computing basic and
diluted net loss per share 30,408,455 29,234,243
ESPERION THERAPEUTICS, INC. AND SUBSIDIARIES
(A Company in the Development Stage)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended Inception to
September 30, September 30,
in thousands 2003 2002 2003
Cash flows from operating activities:
Net loss ($22,404) ($22,107) ($116,450)
Adjustments to reconcile net loss
to net cash used in operating activities:
Purchased in-process research and
development - - 4,000
Depreciation and amortization 872 1,021 5,685
Stock-based compensation expense 441 611 4,091
Decrease in notes receivable 3 9 126
Loss on sale of property and equipment 1 170 192
Non-cash interest expense
included in long-term debt 365 277 1,152
Changes in assets and liabilities:
Prepaid expenses and other (1,018) 724 (2,256)
Other assets 29 (15) 549
Accounts payable (578) (1,431) 1,378
Accrued liabilities 2,063 (208) 4,245
Net cash used in operating
activities (20,226) (20,949) (97,288)
Cash flows from investing activities:
Purchases of property and equipment (354) (715) (7,857)
Acquisition of Talaria
Therapeutics, Inc. - - (233)
Proceeds from sale of property and
equipment - 29 32
Purchases of short-term investments (30,411) (34,221) (67,626)
Maturities of short-term investments 7,058 25,861 39,919
Net cash used in investing
activities (23,707) (9,046) (35,765)
Cash flows from financing activities:
Proceeds from issuance of
convertible preferred stock - - 42,200
Proceeds from the issuance of
common stock 68,147 168 147,258
Proceeds from long-term debt - 1,834 10,171
Repayments of long-term debt (788) (885) (3,585)
Net cash provided by financing
activities 67,359 1,117 196,044
Effect of exchange rate changes
on cash 760 (22) 1,694
Net increase (decrease) in cash and
cash equivalents 24,186 (28,900) 64,685
Cash and cash equivalents at
beginning of period 40,499 70,286 -
Cash and cash equivalents at end of
period $64,685 $41,386 $64,685
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
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