SAN DIEGO, Aug. 13 /PRNewswire/ -- Houghten Pharmaceuticals, Inc. (HPI)
(Nasdaq: HPIP) today reported financial results for its second quarter ended
June 30, 1996. The net loss for the second quarter 1996 was $3.0 million, or
$0.23 per share, compared with a net loss of $2.1 million, or $0.22 per share
reported for the second quarter 1995. For the six months ended June 30, 1996,
the company reported a net loss of $4.9 million, or $0.43 per share, compared
with $3.7 million, or $0.38 per share for the comparable period in 1995. The
change in net loss for both periods reported was primarily due to increased
research and development expenses used to fund the expansion of HPI's internal
combinatorial chemistry program and costs associated with continued
development of HPI's lead compound, HP 228, currently in clinical trials for
the treatment of diabetes and obesity.
"During the quarter we made significant advancements toward enhancing our
position in the molecular diversity field," noted Robert S. Whitehead,
president and chief executive officer. He continued, "We expanded our
technical expertise by adding experienced pharmaceutical industry scientists
to design advanced generation robotics systems for automated synthesis of
small molecule combinatorial libraries. We also increased the depth of our
diversity capabilities by signing an agreement to acquire the ChromaXome
Corporation. ChromaXome's combinatorial biology technology positions HPI to
be a leading resource for potentially very diverse compounds, especially those
created from natural sources that historically have been too expensive and
difficult to access."
Revenues for the second quarter 1996 were $0.9 million compared with
revenues of $0.5 million in the second quarter 1995. For the six months ended
June 30, 1996 revenues increased to $2.5 million compared with $0.5 million
for the six month period ended June 30, 1995. Growth in revenues, on a year-
to-date basis, resulted primarily from higher shipments of combinatorial
chemistry libraries to HPI's corporate collaborators for use in their drug
discovery programs as well as from HPI's wholly owned subsidiary, Multiple
Peptide Systems (MPS), which manufactures and markets custom peptides to the
research community. Figures for the first six months of 1995 include only
three months of operating results from MPS.
HPI ended the quarter with $32 million in cash and short-term investments.
HPI utilizes combinatorial chemistry to pursue the discovery of novel,
small-molecule drug therapies. Combinatorial chemistry is a technology for
the synthesis, identification and optimization of lead compounds that can
significantly shorten the time required for, and reduce the costs associated
with, drug discovery. The company uses its molecular diversity technologies
for internal discovery programs, as well as in collaboration with
pharmaceutical companies in exchange for fees and potential milestone payments
and royalties. In addition, HPI develops joint-discovery alliances with
biotechnology firms and retains certain product ownership rights.
Except for the historical information contained herein, the matters
discussed in the 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 will be successful, and other
risks detailed from time to time in HPI's Securities and Exchange Commission
(SEC) filings. These forward-looking statements represent HPI's judgment as
of the date of this release. Actual results may differ materially from those
predicted. HPI disclaims, however, any intent or obligation to update these
forward-looking statements.
HOUGHTEN PHARMACEUTICALS, INC.
Condensed Statement of Operations
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
Revenues:
Net sales $890,429 $521,045 $2,455,481 $534,045
Operating expenses:
Cost of sales 482,552 406,398 949,403 412,398
Research and development3,002,911 1,579,227 5,169,083 3,116,909
Selling, general and
administrative 866,512 639,509 1,661,602 1,130,453
Total operating expenses4,351,975 2,625,134 7,780,088 4,659,760
Loss from operations (3,461,546) (2,104,089) (5,324,607) (4,125,715)
Interest and other
income/(expense), net 413,807 25,170 466,287 430,348
Net loss $(3,047,739) $(2,078,919)$(4,858,320) $(3,695,367)
Net loss per share $(0.23) $(0.22) $(0.43) $(0.38)
Weighted average common
and common equivalent
shares 13,000,939 9,658,302 11,349,378 9,631,426
HOUGHTEN PHARMACEUTICALS, INC.
Condensed Balance Sheet
June 30, December 31,
1996 1995
(unaudited)
ASSETS
Current assets:
Cash, cash equivalents and short
term investments $32,157,062 $1,160,776
Accounts receivable 419,225 241,076
Other current assets 395,037 131,921
Total current assets 32,971,324 1,533,773
Property and equipment, net 836,875 934,586
Other assets 438,762 277,097
$34,246,961 $2,745,456
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $469,811 $216,307
Accrued liabilities 1,992,472 1,297,907
Current portion of capital lease obligations 361,842 361,151
Other liabilities 2,711,772 2,003,532
Total current liabilities 5,535,897 3,878,897
Obligations under capital leases 315,587 470,301
Redeemable preferred stock --- 2,772,000
Total liabilities 5,851,484 7,121,198
Stockholders' equity (deficit):
Convertible preferred stock --- 15,931
Common stock 13,145 310
Additional paid-in capital 69,685,024 30,366,418
Deferred compensation, net (1,875,151) (236,000)
Accumulated deficit (39,427,541) (34,522,401)
Total stockholders' equity (deficit) 28,395,477 (4,391,673)
$34,246,961 $2,729,525
SOURCE Houghten Pharmaceuticals, Inc.
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CONTACT:
Terence E. McMorrow, CFO, 619-455-2864, or
Noel M. Byczek, Manager of Corporate Communications of Houghten
Pharmaceuticals, 619-455-2877
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