- Conference Call/Webcast to be held today at 10:00 AM EST -
TARRYTOWN, N.Y., Nov. 6 /PRNewswire-FirstCall/ -- Emisphere
Technologies, Inc. (Nasdaq: EMIS) today announced its financial results for
the third quarter ended September 30, 2007.
Emisphere Technologies, Inc. will host a conference call to discuss
third quarter results at 10:00 AM EST today. A live Webcast of the
conference call can be accessed through the company's Web site at:
http://www.emisphere.com. The live conference call dial-in number is:
1-888-278-8446 (US and Canada) or 1- 913-312-0835 (International). In
addition, an archive of the Webcast can be accessed through the same link;
an audio replay of the call will be available following the conference call
by calling 1-888-203-1112 (US and Canada) or 1- 719-457-0820
(International). The conference replay PIN is 4223593.
Third Quarter Financial Results
-- Operating expenses for the third quarter of 2007 were $9.0 million,
compared to $8.8 million in the third quarter of 2006
-- Net proceeds from the settlement of lawsuit of $11.9 million in the
three months ended September 30, 2007 is the result of the settlement
of the litigation against Eli Lilly and Company
-- Other expense third quarter 2007 was $0.5 million, compared to income
of $0.5 million in the third quarter of 2006
-- Third quarter 2007 operating income of $3.5 million, compared to an
operating loss of $8.7 million for the third quarter of 2006
-- Third quarter 2007 net income was $3.0 million, or $0.10 per basic and
$0.09 per diluted share, compared to a net loss of $8.2 million, or
$0.29 per basic and $0.30 diluted share for the third quarter of 2006
-- As of September 30, 2007, Emisphere had $21.4 million in cash and
investments
Corporate and Product Developments
Emisphere has two Phase III products based on the compound salmon
calcitonin in partnership with Novartis Pharma AG and its development
partner, Nordic Bioscience:
-- One product relates to the prevention of osteoporosis and the other
product relates to the prevention of osteoarthritis
-- Osteoarthritis product has the potential to be the first disease-
modifying drug that halts progression of the illness rather than
treating symptoms
-- Both products use Emisphere's eligen(R) delivery technology to provide
salmon calcitonin for the first time as a convenient oral medication
Emisphere has three products in Phase II:
-- Development of recombinant human growth hormone ("rhGH") in
collaboration with Novartis Pharma AG
-- Continuing the development of oral heparin; discussions with the US
Food and Drug Administration ("FDA") established a pathway for
registration to proceed into complete Phase III for the use of oral
heparin in the prevention of deep-vein thrombosis following elective
total hip replacement. Emisphere is in current discussions with a
potential partner to complete the development of oral heparin in a
collaborative arrangement. Two chronic toxicology studies have been
initiated for the heparin carrier.
-- Continuing clinical development of oral insulin; insulin/glucose clamp
and oral glucose challenge studies testing a new formulation are being
planned over a three month period beginning early next year.
Collaborative partnerships will then be investigated.
Emisphere has five products in Phase I:
-- An Investigational New Drug application ("IND") was filed by Genta
Incorporated on gallium on July 31, 2007
-- A program continues on an improved oral formulation of the antiviral
compound acyclovir with a pharmaceutical company outside of the United
States
-- Satiety and oral glucose challenge studies for both GLP-1 and PYY will
be undertaken later this year at University Hospital, Switzerland
-- Parathyroid hormone continues on a progressive clinical development
path in collaboration with Novartis Pharma AG
Emisphere has 11 products in preclinical development:
-- Six projects with partners in obesity, osteoporosis, infectious disease
and diabetes
-- Five pre-clinical projects are in development without established
collaborations for a variety of therapeutic areas
-- Following completion of these pre-clinical projects, decisions would
then be taken to possibly proceed into future collaborations with each
of the partners for further pre-clinical or clinical development;
projects without established collaborations will be assessed for
continued development to the next step with or without a partner
"The technology that we are developing has proven to provide a solution
that improves the delivery of existing molecules and treatment modalities.
It also has an equally important application to new molecular entities
where use may be restricted due to poor bioavailability," said Michael V.
Novinski, President and Chief Executive Officer of Emisphere Technologies,
Inc. "We are seeking to move our patented technology into a broad array of
disease states and we anticipate the ability to dramatically increase the
quality of life of a multitude of people."
About Emisphere Technologies, Inc.
Emisphere Technologies, Inc. is a biopharmaceutical company that
focuses on a unique and improved delivery of therapeutic molecules and
pharmaceutical compounds using its eligen(R) technology. These molecules
and compounds could be currently available or are in pre-clinical or
clinical development. Such molecules or compounds usually cannot be
delivered by the oral route of administration or the benefits of these
compounds are limited due to poor bioavailability, slow on-set of action or
variable absorption. The eligen(R) technology can be applied to the oral
route of administration as well other delivery pathways, such as buccal,
per rectum, pulmonary, intra-vaginal or transdermal. The Web site is:
http://www.emisphere.com.
Safe Harbor Statement Regarding Forward-Looking Statements
The statements in this release and oral statements made by
representatives of Emisphere relating to matters that are not historical
facts (including without limitation those regarding future performance or
financial results, the timing or potential outcomes of research
collaborations or clinical trials, any market that might develop for any of
Emisphere's product candidates and the sufficiency of Emisphere's cash and
other capital resources) are forward-looking statements that involve risks
and uncertainties, including, but not limited to, the likelihood that
actual performance or results could materially differ, that future research
will prove successful, the likelihood that any product in the research
pipeline will receive regulatory approval in the United States or abroad,
the ability of Emisphere and/or its partners to develop, manufacture and
commercialize products using Emisphere's drug delivery technology, or
Emisphere's ability to fund such efforts with or without partners.
Emisphere undertakes no obligation to update any of these statements.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as to the date hereof. Accordingly any
forward-looking statements should be read in conjunction with the
additional risks and uncertainties detailed in Emisphere's filings with the
Securities and Exchange Commission, including those factors discussed under
the caption "Risk Factors" in Emisphere's Annual Report on Form 10-K (file
no. 000-17758) filed on March 6, 2007, and our Quarterly Report on Form
10-Q for the quarter ended March 31, 2007, filed on May 7, 2007 (file no.
000-17758) and for the quarter ended June 30, 2007, filed on August 7, 2007
(file No. 000-17758).
EMISPHERE TECHNOLOGIES, INC.
Condensed Statements of Operations (Unaudited)
For the Three and Nine Months ended September 30, 2007 and 2006
(in thousands, except share and per share data)
For the three months ended For the nine months ended
September 30, September 30,
2007 2006 2007 2006
Revenue $ 571 $60 $3,778 $6,976
Costs and expenses:
Research and
development 5,364 4,790 16,848 14,165
General and
administrative
expenses 3,412 3,039 11,196 8,654
Depreciation and
amortization 232 922 815 2,884
Total costs and expenses 9,008 8,751 28,859 25,703
Income from settlement of
lawsuit
Proceeds from settlement
of lawsuit 18,000 - 18,000 -
Expenses from settlement
of lawsuit (6,110) - (6,110) -
Income from settlement
of lawsuit, net 11,890 - 11,890 -
Operating income (loss) 3,453 (8,691) (13,191) (18,727)
Other income and (expense):
Beneficial conversion
of convertible security - - - (12,215)
Investment and other
income 188 466 985 884
Change in fair value
of derivative
instruments (21) 656 1,102 (6,964)
Interest expense (664) (589) (1,931) (1,730)
Total other income and
(expense) (497) 533 156 (20,025)
Net income (loss) $2,956 $(8,158) $(13,035) $(38,752)
Net (loss) income per
share, basic $0.10 $(0.29) $(0.46) $(1.50)
Net (loss) income per
share, diluted $0.09 $(0.30) $(0.50) $(1.50)
Weighted average
shares outstanding,
basic 29,187,151 28,006,828 28,602,819 25,891,085
Weighted average
shares outstanding,
diluted 32,375,805 29,069,951 28,728,063 25,891,085
EMISPHERE TECHNOLOGIES, INC.
Condensed Balance Sheets (Unaudited)
As of September 30, 2007 and December 31, 2006
(in thousands)
September 30, December 31,
2007 2006
Assets:
Cash, cash equivalents, restricted cash and
investments $21,357 $21,533
Accounts receivable 248 216
Prepaid expenses and other current assets 948 1,082
Total current assets 22,553 22,831
Equipment and leasehold improvements, net 2,126 2,652
Purchased technology, net 1,615 1,794
Other assets 788 815
Total Assets $27,082 $ 28,092
Liabilities and stockholders' deficit:
Current liabilities $10,649 $9,454
Notes payable 26,648 24,744
Other long-term liabilities 243 -
Stockholders' deficit (10,458) (6,106)
Total liabilities and stockholders' deficit $27,082 $ 28,092
SOURCE Emisphere Technologies, Inc.
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Related links:
http://www.emisphere.com
CONTACT:
Bob Madison, Corporate Communications, of
Emisphere Technologies, Inc., +1-914-593-8360
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