LA JOLLA, Calif., Nov. 10 /PRNewswire/ -- SIBIA Neurosciences, Inc.
(Nasdaq: SIBI) today reported financial results for the third quarter and
nine-month period ended September 30, 1998.
    For the third quarter of 1998, SIBIA reported revenue of $1,753,000
compared to revenue of $2,103,000 for the third quarter of 1997.  The
Company's net loss for the third quarter of 1998 was $4,197,000 or $0.44 per
share, versus a net loss of $2,495,000, or $0.27 per share, for the third
quarter of 1997.
    For the nine months ended September 30, 1998, SIBIA reported revenue of
$5,648,000 compared to revenue of $9,052,000 for the first nine months of
1997.  The net loss for the first nine months of 1998 was $10,700,000 or
$1.14 per share compared to a net loss of $5,115,000 or $0.55 per share for
the same period in 1997.  Net loss for the nine months ended September 30,
1998 included gains on the sale of investment securities of $1,160,000.
    Revenues for the third quarter of 1998 were lower than the comparable
period in the prior year due primarily to the completion in October 1997 of
the research support phase of SIBIA's collaboration with Eli Lilly & Company.
Revenues for the nine months ended September 30, 1998 were lower than the
comparable period in the prior year due primarily to a one-time license fee of
$3,000,000 recognized in 1997 related to the Company's agreement with Meiji
Seika Kaisha, Ltd. for development of SIB-1508Y, SIBIA's lead compound for
Parkinson's disease and the completion of the research support phase of the
collaboration with Eli Lilly & Company.
    Expenses for the third quarter of 1998 increased to $6,286,000 from
$5,163,000 for the corresponding period in 1997 due to increased research and
development expenses related to expanded drug discovery programs including
psychiatric disorders, chronic pain, neuroprotection and apoptosis.  Expenses
for the first nine months of 1998 increased to $18,673,000 from $15,875,000
for the corresponding period in 1997 due to increased research and development
costs related to expanded drug discovery programs and a net increase in
expenses related to clinical trials of SIB-1508Y, currently in Phase 2
clinical studies for Parkinson's disease, and SIB-1553A, currently in
Phase 1 clinical studies for Alzheimer's disease.  In addition, general and
administrative expenses for the quarter and first nine months of 1998
increased to $1,975,000 and $5,052,000, respectively, from $1,073,000 and
$3,715,000 in the comparable periods in 1997 due primarily to the Company's
ongoing patent litigation.
    On September 30, 1998 SIBIA had cash, cash equivalents and short-term
investments totaling $22,148,000.
    "SIBIA continues to make progress in the clinical development of SIB-1508Y
for Parkinson's disease and has carried out two Phase 1 studies on SIB-1553A
for Alzheimer's dementia," said William T. Comer, Ph.D., President and CEO.
"These early stage clinical programs validate our capabilities to transition
from discovery research into drug development.  Through our collaborations
with major pharmaceutical companies, SIBIA has validated several ion channel
subtypes as drug discovery targets for the novel treatment of neurological and
psychiatric disorders.  We remain focused on leveraging our drug discovery and
early development programs to the pharmaceutical and biotechnology industry."
    SIBIA Neurosciences, Inc. is engaged in the discovery and development of
novel small molecule therapeutics for the treatment of neurodegenerative,
neuropsychiatric and neurological disorders, many of which have large patient
populations and represent critical unmet medical needs.  SIBIA is a leader in
the development of proprietary drug discovery platforms that combine key tools
necessary for modern drug discovery, including genomics, high throughput
screening, advanced combinatorial chemistry techniques and pharmacology.  The
Company's proprietary molecular targets and drug candidates, together with its
drug discovery technologies and research expertise, have enabled the Company
to establish several corporate partnerships, which include Eli Lilly &
Company, Novartis, Bristol-Myers Squibb Company and Meiji Seika Kaisha, Ltd.,
and multiple technology licensing arrangements.

    This press release contains forward-looking statements that involve risks
and uncertainties.  As a result, actual results could differ materially from
those discussed herein.  These risks and uncertainties include SIBIA's
reliance on corporate partnerships and ability to enter into new corporate
partnerships, whether SIBIA will be successful in demonstrating the safety and
efficacy of SIB-1508Y and SIB-1553A in humans, whether SIBIA will be able to
meet its development goals with respect to its drug candidates and proprietary
targets, SIBIA's early stage of development, the new and uncertain state of
SIBIA's technologies, SIBIA's future capital needs and the uncertainty of
receiving additional funding, uncertainties regarding patents, proprietary
rights and regulatory matters, and other research, development and market
risks.  These and other risks and uncertainties are more fully set forth in
SIBIA's most recently filed Forms 10-Q and 10-K.

                            SIBIA NEUROSCIENCES, INC.
                        CONDENSED STATEMENT OF OPERATIONS
                                   (UNAUDITED)

                            Three Months Ended         Nine Months Ended
                               September 30,              September 30,
                            1998          1997         1998          1997
    Revenue:
     Contract           $1,728,000    $2,053,000   $5,538,000    $5,942,000
     License and
      royalty               25,000        50,000      110,000     3,110,000
       Total revenue     1,753,000     2,103,000    5,648,000     9,052,000
    Operating expenses:
     Research and
      development        4,311,000     4,090,000   13,621,000    12,160,000
     General and
      administrative     1,975,000     1,073,000    5,052,000     3,715,000
       Total operating
        expenses         6,286,000     5,163,000   18,673,000    15,875,000
                        (4,533,000)   (3,060,000) (13,025,000)   (6,823,000)

    Other income (expense):
     Interest income       358,000       579,000    1,234,000     1,747,000
     Interest expense      (22,000)      (14,000)     (69,000)      (43,000)
     Gain on sale of
      investment                --            --    1,160,000            --
     Other                      --            --           --         4,000
                           336,000       565,000    2,325,000     1,708,000
    Net loss           $(4,197,000)  $(2,495,000)$(10,700,000)  $(5,115,000)

    Basic and diluted
     net loss per
     common share           $(0.44)      $(0.27)       $(1.14)       $(0.55)
    Shares used in
     computing basic
     and diluted net
     loss per common
     share               9,442,663     9,256,339    9,399,971     9,224,416


                            SIBIA NEUROSCIENCES, INC.
                             CONDENSED BALANCE SHEET

                          September 30, 1998       December 31, 1997
                              (Unaudited)
    ASSETS

    Cash, cash equivalents
     and investment
     securities               $22,148,000             $33,347,000
    Prepaid expenses and
     other current assets       1,005,000               1,138,000
    Total current assets       23,153,000              34,485,000
    Property and
     equipment, net             1,969,000               1,599,000
    Other assets                  810,000                  96,000
                              $25,932,000             $36,180,000


    LIABILITIES AND STOCKHOLDERS' EQUITY

    Total current liabilities   4,777,000               3,271,000
    Long-term capital lease
     obligations                  932,000                 695,000
    Total stockholders' equity 20,223,000              32,214,000
                              $25,932,000             $36,180,000

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