SAN DIEGO, May 15 /PRNewswire/ -- Trega Biosciences, Inc. (Nasdaq: TRGA)
(formerly Houghten Pharmaceuticals, Inc.; Nasdaq: HPIP) today reported
financial results for the first quarter ended March 31, 1997. Revenues for
the first quarter were $1.4 million, compared with revenues of $1.6 million in
the same period for 1996. The net loss for the first quarter of 1997 was $1.4
million, or $0.11 per share, based on 13.4 million weighted shares
outstanding, compared with a net loss of $1.8 million, or $0.19 per share,
based on 9.7 million weighted shares outstanding, in the comparable period in
1996. The results for the first quarter of 1997 include a gain of $1.3
million, or $0.09 per share, in connection with the sale of Multiple Peptide
Systems, Inc. (MPS). Trega ended the quarter with $25.7 million in cash, cash
equivalents and short-term investments.
Revenues in the first quarter resulted primarily from collaborative
agreements related to the company's combinatorial libraries, which are used by
pharmaceutical and biotechnology companies as a source of potential new drug
leads. Additional revenues were generated by Trega's former subsidiary, MPS,
which manufactures and markets custom peptides.
"During the quarter, we signed a drug discovery agreement with Chugai
Biopharmaceuticals, Inc.," noted Robert S. Whitehead, president and chief
executive officer. "This partnership with Chugai is unique in that we
combined the best of our funding and joint discovery business strategies with
technology transfer to create an alliance that provides near-term revenues and
a range of potential long-term benefits."
"We also have continued the aggressive development of our internal
melanocortin receptor screening program and have begun screening our inventory
of over 2.3 million small-molecules to discover additional drug leads,"
continued Whitehead. "Our research indicates that melanocortin receptors may
be important for the identification of drugs for the treatment of
inflammatory, metabolic and other diseases."
Research and development expenses increased to $2.8 million in the first
quarter of 1997, compared with $2.2 million in the same quarter last year.
The increase in expenses was due principally to increased funding for the
company's combinatorial chemistry program. Selling, general and
administrative expenses increased to $1.3 million in the first quarter of 1997
from $0.8 million in the comparable period last year, due primarily to higher
legal costs and increased costs associated with being a public company.
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, enabling partners to access Trega's
technologies in exchange for licensing fees and potential milestone payments
and royalties, or by establishing joint-discovery alliances with biotechnology
companies. Trega also uses its drug discovery technologies in its internal
development programs. HP 228, the company's lead compound, is in Phase II
trials for 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 any proposed product can be
successfully formulated, scaled-up, developed and commercialized, whether
regulatory approvals can be obtained, the impact of competitive products and
pricing, whether any corporate collaborations or alliances will be successful,
and other risks detailed from time to time in Trega's Securities and Exchange
Commission (SEC) 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 BIOSCIENCES, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended
March 31,
1997 1996
(unaudited)
Revenues:
Net sales $430 $561
Contract research 946 1,004
Total revenues 1,376 1,565
Operating expenses:
Cost of sales 319 467
Research and development 2,845 2,166
Acquired in-process R&D 4 -
Selling, general and administrative 1,291 795
Total operating expenses 4,459 3,428
Loss from operations (3,083) (1,863)
Other income:
Other income 67 -
Interest income, net 314 52
Gain on sale of MPS 1,259 -
Net loss $(1,443) $(1,811)
Net loss per share $(0.11) $(0.19)
Weighted average shares 13,412 9,698
TREGA BIOSCIENCES, INC.
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
March 31, Dec. 31,
1997 1996
ASSETS (unaudited)
Current assets:
Cash, cash equivalents and short-term investments $25,692 $27,443
Accounts receivable 703 481
Notes receivable 1,000 -
Other current assets 58 282
Total current assets 27,453 28,206
Property and equipment, net 1,702 1,745
Notes receivable (long-term) 541 -
Other assets 555 562
Total assets $30,251 $30,513
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $886 $810
Accrued liabilities 1,102 2,720
Current portion of capital lease obligations 367 433
Deferred revenue 4,290 1,761
Total current liabilities 6,645 5,724
Obligations under capital leases 492 633
Total liabilities 7,137 6,357
Stockholders' equity:
Common stock 13 13
Additional paid-in capital 71,285 71,050
Common stock issuable 1,281 1,281
Deferred compensation, net (1,766) (1,931)
Accumulated deficit (47,699) (46,257)
Total stockholders' equity 23,114 24,156
Total liabilities and stockholders' equity $30,251 $30,513
SOURCE Trega Biosciences Inc.
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CONTACT:
Noel M. Byczek, Director of Corporate
Communications for Trega Biosciences, 619-455-2877
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