LA JOLLA, Calif., July 31 /PRNewswire/ -- SIBIA Neurosciences, Inc.
(Nasdaq: SIBI) today reported financial results for the second quarter ended
June 30, 1998. For the quarter, SIBIA reported a net loss of $2,451,000, or
$0.26 per share, compared to a net loss of $20,000 for the second quarter of
1997. SIBIA reported revenues of $2,361,000 for the second quarter of 1998
compared to $5,006,000 for the same period in 1997.
For the six-months ended June 30, 1998, SIBIA reported a net loss of
$6,503,000, or $0.69 per share, compared to a net loss of $2,620,000, or $0.28
per share, for 1997. SIBIA reported revenues of $3,895,000 for the first half
of 1998 compared to $6,949,000 for the same period in 1997.
Net loss for the quarter and six-months ended June 30, 1998 includes gains
on the sale of investment securities of $900,000 and $1,160,000, respectively.
Revenues for the quarter and six-months were lower than the comparable
period in the prior year due primarily to one-time license fees of $3,000,000
recognized in 1997 related to the Company's agreement with Meiji Seika Kaisha,
Ltd. ("Meiji") for the development of SIB-1508Y, SIBIA's lead compound for
Parkinson's disease.
Research and development expenses for the second quarter and six-months
increased from the comparable prior year periods due to the Company's
progression of its two lead drug candidates, 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. General and administrative expenses
were also higher in the second quarter and six-months ended June 30, 1998 than
in the comparable periods in 1997 due primarily to increased legal fees
related to patent litigation.
On June 30, 1998 SIBIA had cash, cash equivalents and investment
securities totaling $25,924,000, compared to $33,347,000 at December 31, 1997.
"During the last quarter SIBIA reached another important milestone with
the initiation of Phase 1 clinical studies on SIB-1553A, SIBIA's lead compound
for Alzheimer's dementia," said William T. Comer, Ph.D., President and Chief
Executive Officer of SIBIA. "Looking ahead, we expect to accelerate our
efforts and continue to leverage our unique drug discovery programs and
technology platforms to attract major strategic collaborations with
pharmaceutical and biotechnology companies."
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 collaborations, which currently include
Novartis AG, 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 Six Months Ended
June 30, June 30,
1998 1997 1998 1997
Revenue:
Contract $2,276,000 $1,842,000 $3,810,000 $3,623,000
License and royalty 85,000 3,164,000 85,000 3,326,000
Total revenue 2,361,000 5,006,000 3,895,000 6,949,000
Operating expenses:
Research and development 4,514,000 4,111,000 9,310,000 8,070,000
General and administrative1,586,000 1,487,000 3,077,000 2,642,000
Total operating expenses6,100,000 5,598,000 12,387,000 10,712,000
(3,739,000) (592,000) (8,492,000) (3,763,000)
Other income (expense):
Interest income 412,000 584,000 876,000 1,168,000
Interest expense (24,000) (14,000) (47,000) (29,000)
Gain on sale of investment 900,000 1,160,000
Other 2,000 4,000
1,288,000 572,000 1,989,000 1,143,000
Net loss $(2,451,000) $(20,000)$(6,503,000) $(2,620,000)
Basic and diluted net loss
per common share $(0.26) $(0.00) $(0.69) $(0.28)
Shares used in computing basic
and diluted net loss
per common share 9,391,243 9,236,512 9,378,271 9,208,189
Condensed Balance Sheet
June 30, 1998 December 31, 1997
(Unaudited)
Assets
Current assets:
Cash, cash equivalents
and investment securities $25,924,000 $33,347,000
Prepaid expenses and other current assets 860,000 1,138,000
Total current assets 26,784,000 34,485,000
Property and equipment - net 2,106,000 1,599,000
Other assets 740,000 96,000
$29,630,000 $36,180,000
Liabilities and Stockholders' Equity
Total current liabilities $4,306,000 $ 3,271,000
Long-term capital lease obligations 1,057,000 695,000
Total stockholders' equity 24,267,000 32,214,000
$29,630,000 $36,180,000
SOURCE SIBIA Neurosciences, Inc.
 back to top
Related links:
http://www.sibia.com
CONTACT:
Thomas A. Reed, Chief Financial Officer of
SIBIA, 619-452-5892, ext. 235; or Rhonda Chiger (investors), or
Susan Farley (media), sfarley@dewerogerson.com, both of Dewe
Rogerson, 212-688-6840
|
