SAN DIEGO, Calif., Aug. 14 /PRNewswire/ -- Trega Biosciences, Inc.
(Nasdaq: TRGA) today reported financial results for the second quarter and the
six-month period ended June 30, 1997. Revenues for the second quarter were
$2.6 million, compared with revenues of $0.9 million in the same period for
1996. The net loss for the second quarter of 1997 was $2.1 million, or $0.16
per share, compared with a net loss of $3.0 million, or $0.23 per share, in
the comparable period in 1996. Trega ended the quarter with $24.2 million in
cash, cash equivalents and short-term investments.
Revenues in the second 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.
"During the quarter, we signed a milestone agreement with Ono
Pharmaceuticals of Osaka, Japan," stated Robert S. Whitehead, president and
chief executive officer. "This is the first collaboration that links our
combinatorial chemistry expertise with our expanding research in the area of
melanocortin receptors. Using our dual chemistry and biology capabilities, we
are working with Ono to discover orally active, melanocortin-1-receptor
specific, small-molecule drugs for inflammatory disorders. We look forward to
structuring additional agreements with pharmaceutical companies surrounding
other melanocortin receptors, such as melanocortin 4, which has been linked to
diabetes and obesity."
Research and development expenses increased to $3.4 million in the second
quarter of 1997, compared with $3.0 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 $1.6 million in the second quarter of
1997 from $0.9 million in the comparable period last year, due primarily to
higher legal costs incurred for litigation, patents and corporate development
activities.
For the six months ended June 30, 1997, total revenues were $3.9 million,
compared with $2.5 million for same period last year. The net loss for the
six months was $3.6 million, or $0.27 per share, compared with $4.9 million,
or $0.43 per share, for the six months ended June 30, 1996.
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 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 Balance Sheets
(in thousands, except per share data)
June 30, December 31,
1997 1996
ASSETS (unaudited)
Current assets:
Cash, cash equivalents and
short-term investments $24,176 $27,443
Accounts receivable 56 481
Notes receivable 516 ---
Other current assets 737 282
Total current assets 25,485 28,206
Property and equipment, net 2,147 1,745
Notes receivable (long-term) 549 ---
Other assets 1,833 562
Total assets $30,014 $30,513
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $741 $810
Accrued liabilities 1,774 2,720
Current portion of capital
lease obligations 171 433
Current portion of notes 268 ---
Deferred revenue 3,841 1,761
Total current liabilities 6,795 5,724
Obligations under capital leases 428 633
Long-term notes payable 1,522 ---
Total liabilities 8,745 6,357
Stockholders' equity:
Common stock 13 13
Additional paid-in capital 71,402 71,050
Common stock issuable 1,281 1,281
Deferred compensation, net (1,601) (1,931)
Accumulated deficit (49,826) (46,257)
Total stockholders' equity 21,269 24,156
Total liabilities and
stockholders' equity $30,014 $30,513
TREGA BIOSCIENCES, INC.
Condensed Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
Revenues:
Net sales $--- $553 $430 $1,113
Contract research and
licenses fees 2,568 337 3,514 1,342
Total revenues 2,568 890 3,944 2,455
Operating expenses:
Cost of revenues 22 483 341 949
Research and development 3,384 3,003 6,229 5,169
In process research
and development --- --- 4 ---
Selling, general and
administrative 1,620 866 2,911 1,662
Total operating expenses 5,026 4,352 9,485 7,780
Loss from operations (2,458) $(3,462) $(5,541) $(5,325)
Interest and other
income/(expense), net 332 414 1,972 467
Net loss $(2,126) $(3,048) $(3,569) $(4,858)
Net loss per share $(0.16) $(0.23) $(0.27) $(0.43)
Weighted average common and
common equivalent shares 13,466 13,001 13,439 11,349
SOURCE Trega Biosciences, Inc.
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CONTACT:
Noel M. Wheeler, Director, Corporate
Communications for Trega Biosciences, Inc., 619-455-2877
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