SAN DIEGO, Nov. 3 /PRNewswire/ -- Trega Biosciences, Inc. (Nasdaq: TRGA)
today announced financial results for the third quarter ended September 30,
1999. Revenues for the third quarter were $4.0 million, compared with
revenues of $2.6 million for the preceding quarter of this year representing
an increase of 54%. This increase over the prior quarter was a result of
increased shipments of the Company's Chem.Folio(TM) combinatorial chemistry
libraries. Revenues increased approximately $2.0 million, or almost 100%, in
the third quarter of 1999 over the same quarter in the prior year. The net
loss for the third quarter of 1999 was $2.3 million, or $0.13 per share,
compared with a net loss of $3.7 million, or $0.26 per share, in the
comparable period in 1998.
Revenues for the nine months ended September 30, 1999 increased to
$8.8 million from $7.2 million for same period last year. The increase in
revenues for the nine-month period is attributed to increased Chem.Folio
sales, which increased to $4.4 million as compared to $400,000 for the same
period last year. The net loss for the nine months was $8.5 million, or
$0.47 per share, compared with $9.5 million, or $0.68 per share, for the nine
months ended September 30, 1998. Trega ended the quarter with approximately
$6.5 million in cash, cash equivalents and short-term investments.
"It has been our intention to build revenues and decrease cash burn," said
Michael G. Grey, president and CEO of Trega. "Trega has achieved this by
increasing its sales of Chem.Folio combinatorial chemistries almost ten-fold
from the first quarter total, and reducing our cash burn from $4.5 million in
the first quarter to $2.0 million this quarter."
"During the third quarter, we began a relationship with ChemNavigator.com,
Inc. to add an additional distribution channel for Chem.Folio. Through this
strategy we can make our chemistry available to a much wider range of users,
including bench level scientists who are interested in obtaining quality
chemistry with important additional data available," continued Mr. Grey.
"Trega has also completed an important milestone, the third of four, in the
development of the absorption module of the IDEA(TM) simulation system, which
is a predictive model for determining the rate of absorption of a compound
following oral administration. This important product, which we plan to
launch this month, provides a valuable tool to address a major bottleneck -
lead optimization - faced by all who are involved in drug discovery."
Trega Biosciences is a information-based technology company 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 Nine Months Ended
September 30,
September 30,
1999 1998 1999 1998
Revenues:
Compound revenues $ 2,822 $ 132 $ 4,383 $ 402
Contract research
and licenses fees 1,102 1,911 4,133 6,815
Net sales 76 -- 265 --
Total revenues 4,000 2,043 8,781 7,217
Operating expenses:
Cost of sales 83 -- 242 --
Research and
development 4,593 4,658 13,534 13,533
Selling, general
and administrative 1,682 1,227 5,187 3,619
Total operating
expenses 6,358 5,885 18,963 17,152
Loss from operations
before equity
in losses
of affiliates (2,358) $ (3,842) $ (10,182) $ (9,935)
Equity in losses
of affiliates (16) -- (16) --
Loss from operations (2,374) (3,842) (10,198) (9,935)
Interest and other
income, net 32 142 1,687 429
Net loss $ (2,342) $ (3,700) $ (8,511) $ (9,506)
Basic and diluted
net loss
per share $ (0.13) $ (0.26) $ (0.47) $ (0.68)
Shares used in
computing basic
and diluted
net loss per share 18,537 13,982 18,150 13,948
TREGA BIOSCIENCES, INC.
Condensed Consolidated Balance Sheet
(in thousands)
September 30, December 31,
1999 1998
(unaudited)
Cash, cash equivalents
and short-term investments $6,467 $16,262
Accounts receivable
and other current assets 2,295 778
Property and equipment, net 3,999 4,123
Other assets 9,561 8,372
Total assets $ 22,322 $ 29,535
Current liabilities $ 8,579 $ 8,983
Long-term liabilities 2,580 2,912
Stockholders' equity 11,163 17,640
Total liabilities
and stockholders' equity $ 22,322 $ 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, 858-410-6695
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