SAN DIEGO, Nov. 14 /PRNewswire/ -- Houghten Pharmaceuticals, Inc. (HPI)
(Nasdaq: HPIP) today reported financial results for the third quarter ended
September 30, 1996. Total revenues for the quarter increased to $4.6 million,
from $0.5 million in the same period for 1995. The net loss for the third
quarter was $1.1 million, or $0.08 per share, compared with a net loss of $2.6
million, or $0.27 per share, reported for the third quarter of 1995. HPI
ended the quarter with $31.4 million in cash and short-term investments.
Revenue growth for the period was primarily attributable to the receipt of
common stock of Magainin Pharmaceuticals, the shipment of combinatorial
libraries to collaborators and sales generated by the company's subsidiary,
Multiple Peptide Systems (MPS). As previously announced, the third quarter
results reflect HPI's receipt of 275,000 shares of Magainin common stock, with
a then-current fair market value of approximately $3.37 million, in exchange
for a royalty interest in Magainin's lead compound, MSI-78.
"We are pleased with the progress we have made in the last several
months," said Robert S. Whitehead, HPI's president and chief executive
officer. "We've substantially increased the number of small-molecule
compounds in our combinatorial libraries, we completed the scientific
integration of ChromaXome and its combinatorial biology program with HPI and
are proceeding on schedule with our clinical trial for HP 228 in obese
diabetics. In addition, the Magainin transaction and today's announcement of
the proposed sale of MPS result in increased revenues and contribute funding
towards the expansion of our technical platform."
For the nine months ended September 30, 1996, total revenues were $7.0
million, compared with $1.0 million for the same period last year. The net
loss for the nine months was $5.9 million, or $0.49 per share, compared with
$6.3 million, or $0.65 per share, for the nine months ended September 30,
1995.
HPI is a drug discovery company which utilizes combinatorial chemistry and
combinatorial biology technologies to create novel small-molecule drug
candidates. The company leverages its technology platform by entering into
pharmaceutical alliances, enabling partners to access HPI's technologies in
exchange for licensing fees, potential milestone payments and royalties, or by
establishing joint-discovery alliances with biotechnology companies. HPI 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 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
combinatorial libraries of the company will have utility or value to potential
partners or internally, 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 are represent HPI's judgement 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.
HPI's releases are on the World Wide Web at http://www.prnewswire.com. and
PR Newswire's fax-on-demand service at 1-800-758-5804, extension 374050.
Houghten Pharmaceuticals, Inc.
Condensed Consolidated Statement of Operations
(unaudited)
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
Revenues:
Net sales $1,200 $499 $3,655 $1,033
License fees 3,369 - 3,369 -
Total revenues 4,569 499 7,024 1,033
Operating expenses:
Cost of sales 479 508 1,429 921
Research and development 3,241 1,969 8,410 5,086
In process research and
development 1,303 - 1,303 -
Selling, general and
administrative 994 657 2,654 1,786
Total operating expenses 6,017 3,134 13,796 7,793
Loss from operations (1,448) (2,635) (6,772) (6,760)
Interest and other
income/(expense), net 382 32 848 462
Net loss $(1,066) $(2,603) $(5,924) $(6,298)
Net loss per share $(0.08) $(0.27) (0.49) $(0.65)
Weighted average common and
common equivalent shares 13,274 9,669 11,996 9,644
Houghten Pharmaceuticals, Inc.
Condensed Consolidated Balance Sheet
(in thousands)
September 30, December 31,
1996 1995
ASSETS (unaudited)
Current assets:
Cash, cash equivalents and short
term investments $31,441 $1,161
Accounts receivable 383 241
Other current assets 669 132
Total current assets 32,493 1,534
Property and equipment, net 1,424 935
Other assets 646 277
$34,563 $2,746
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities.
Accounts payable $567 $216
Accrued liabilities 2,268 1,298
Current portion of capital lease obligations455 361
Other liabilities
(primarily deferred revenue) 2,245 2,004
Total current liabilities 5,535 3,879
Obligations under capital leases 549 470
Long-term notes payable 49 -
Redeemable Preferred stock - 2,772
6,133 7,121
Stockholders' equity (deficit):
Convertible preferred stock - 16
Common stock 13 -
Additional paid-in capital 70,652 30,367
Deferred compensation, net (1,742) (236)
Accumulated deficit (40,493) (34,522)
Total stockholders'equity (deficit) 28,430 (4,375)
$34,563 $2,746
SOURCE Houghten Pharmaceuticals Inc.
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CONTACT:
Terence E. McMorrow, CFO, 619-455-2864, or
Noel M. Byczek, Manager, Corporate Communications, 619-455-2877,
both of Houghten Pharmaceuticals
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