SAN DIEGO, Nov. 11 /PRNewswire/ -- Trega Biosciences, Inc. (Nasdaq: TRGA)
today reported financial results for the third quarter and the nine-month
period ended September 30, 1998. Revenues for the third quarter increased to
$2.0 million, compared with revenues of $1.4 million in the same period for
1997. The net loss for the third quarter of 1998 was $3.7 million, or
$0.26 per share, compared with a net loss of $3.5 million, or $0.25 per share,
in the comparable period in 1997. For the nine months ended September 30,
1998, total revenues increased to $7.2 million, compared with $5.4 million for
same period last year. The net loss for the nine months was $9.5 million, or
$0.68 per share, compared with $7.0 million, or $0.52 per share, for the nine
months ended September 30, 1997.
Trega ended the quarter with approximately $10.5 million in cash, cash
equivalents and short-term investments, which does not included $7.0 million
in proceeds that the Company received in November from the sale of common
stock at $3.75 per share to Novartis Pharma AG.
"It has been an important third quarter," said Robert S. Whitehead,
chairman and chief executive officer. "We reached critical milestones in our
agreement with Ono Pharmaceuticals, we continued to make progress on the
clinical study of HP 228 and we had two important broad drug discovery patents
issued to our ChromaXome subsidiary. Most recently, we completed the first of
our Chem.Folio partnerships with Biogen and announced the receipt of
$7 million from Novartis, our metabolic diseases partner in exchange for
approximately 1.9 million shares of Trega stock."
Increased revenues in the third quarter and nine month period ended
resulted primarily from collaborative agreements related to the company's
combinatorial libraries and research conducted under new and existing
collaborative agreements. Research and development expenses increased to
$4.7 million in the third quarter of 1998, compared with $4.0 million in the
same quarter last year. The increase in expenses was due to increased funding
of the Company's external drug discovery programs and the Company's
combinatorial chemistry, automation and robotics synthesis programs. Selling,
general and administrative expenses of $1.2 million remained unchanged from
the comparable period last year. For the nine months ended September 30,
1998, research and development expenses increased to $13.5 million, compared
with $10.5 million for the same period last year. Selling, general and
administrative expenses decreased to $3.6 from $3.8 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'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 Balance Sheets
(in thousands, except per share data)
September 30, December 31,
1998 1997
ASSETS (unaudited)
Current assets:
Cash, cash equivalents
and short-term
investments $10,535 $19,427
Accounts receivable
and other current assets 1,407 676
Total current assets 11,942 20,103
Property and equipment, net 4,292 2,741
Other assets 2,032 2,275
Total assets $18,266 $25,119
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,981 $211
Accrued liabilities 1,523 1,976
Current portion of debt
obligations 1,005 2,123
Deferred revenue 4,050 3,002
Total current liabilities 8,559 7,312
Obligations under capital
leases 144 298
Long-term equipment notes
payable 1,942 1,159
Long-term notes payable 34 132
Deferred rent 139 --
Total liabilities 10,818 8,901
Stockholders' equity:
Common stock 14 14
Additional paid-in capital 73,327 73,087
Common stock issuable 16 16
Deferred compensation,
net (774) (1,270)
Accumulated deficit (65,135) (55,629)
Total stockholders' equity 7,448 16,218
Total liabilities and
stockholders' equity $18,266 $25,119
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,
1998 1997 1998 1997
Revenues:
Contract research
and licenses fees $2,043 $1,437 $7,217 $4,951
Net sales -- -- -- 430
Total revenues 2,043 1,437 7,217 5,381
Operating expenses:
Cost of sales -- -- -- 341
Research and
development 4,658 3,963 13,533 10,471
Selling, general
and administrative 1,227 1,238 3,619 3,807
Total operating expenses 5,885 5,201 17,152 14,619
Loss from operations (3,842) $(3,764) $(9,935) $(9,238)
Interest and other
income/(expense), net 142 312 429 2,217
Net loss $(3,700) $(3,452) $(9,506) $(7,021)
Basic and Diluted
Net loss per share $(0.26) $(0.25) $(0.68) $(0.52)
Shares used in
computing basic
and diluted net
loss per share 13,982 13,685 13,948 13,522
SOURCE Trega Biosciences, Inc.
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http://www.trega.com
Company News On-Call:
http://www.prnewswire.com/comp/374050.html or fax,
800-758-5804, ext. 374050
CONTACT:
Vince Reardon, Director, Corporate
Communications of Trega Biosciences, Inc., 619-410-6555
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