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| 3-Dimensional Pharmaceuticals Reports Financial Results for the Quarter and Year Ended December 31, 2002 |
YARDLEY, Pa., Feb. 28 /PRNewswire-FirstCall/ -- 3-Dimensional Pharmaceuticals, Inc. (3DP) (Nasdaq: DDDP), a drug discovery and development company, today reported its financial results for the fourth quarter and fiscal year ended December 31, 2002. Revenue for the fourth quarter of 2002 was $6.3 million, compared to $10.2 million for the fourth quarter of 2001. Net loss for the quarter was $6.1 million, or $0.27 per share, compared to a net loss of $1.7 million, or $0.08 per share, for the fourth quarter of 2001. For the year ended December 31, 2002, revenues were $24.5 million, compared to revenues of $28.4 million for the same period in 2001. Net loss for the year ended December 31, 2002 was $29.8 million, or $1.33 per share, compared to a net loss of $11.4 million, or $0.53 per share, for the same period in 2001. Included in the results for the year ended December 31, 2002 was a non-cash in-process research and development charge of $4.1 million, which was incurred during the first quarter of 2002 and was in connection with the acquisition of the pre-IND compound, 3DP-3534. 3DP ended the year with $66.2 million in cash, cash equivalents and marketable securities. The differences in revenue for the quarter and year were primarily attributable to a $4.0 million milestone payment that the Company received from Johnson & Johnson Pharmaceutical Research & Development, L.L.C. in the fourth quarter of 2001 in connection with their ongoing thrombin collaboration. Revenue resulting from the achievement of milestone events stipulated in the Company's agreements is recognized when the milestone is achieved and, as a result, operating results may vary from quarter to quarter. 3DP's collaboration with Bristol-Myers Squibb Company, which provided three years of research and development funding upon its commencement in July 2000, was the largest source of revenue for each of the years. Research and development expenses increased by $0.6 million to $9.3 million for the fourth quarter of 2002, compared to $8.7 million for the same period in 2001. Research and development expenses increased by $7.6 million to $37.2 million for the year ended December 31, 2002, compared to $29.6 million for the same period in 2001. "3DP announced on January 16, 2003 that it had entered into an agreement to be acquired by Johnson & Johnson," said David C. U'Prichard, Ph.D., Chief Executive Officer of 3DP. The proposed transaction is expected to close as promptly as possible after our special meeting of stockholders which is scheduled to be held on March 27, 2003, subject to regulatory approvals and other closing conditions. 3DP (http://www.3dp.com) is an integrated bio-pharmaceuticals company dedicated to revolutionizing small molecule drug discovery and development. 3DP's proprietary platform, DiscoverWorks(R), has the potential to produce drug candidates suitable for faster development, with fewer resources and a higher probability of success than using conventional drug discovery methods. 3DP is developing its own drug pipeline and collaborates with other pharmaceutical companies in discovery and development. In connection with the above-described transactions, 3DP filed a definitive proxy statement on February 27, 2003 with the Securities and Exchange Commission. The definitive proxy statement was mailed to 3DP security holders on February 27, 2003. Security holders are urged to read the definitive proxy statement when they receive it in the mail because it will contain important information. Security holders may obtain a free copy of the definitive proxy statement, as well as other materials filed with the Securities and Exchange Commission concerning 3DP at the Securities and Exchange Commission's web site at http://www.sec.gov. Security holders of 3DP may also obtain for free the definitive proxy statement and other documents filed by 3DP with the Securities and Exchange Commission in connection with the above-described transactions when they become available by directing a request to 3DP at 1020 Stony Hill Road, Suite 300 Yardley, PA 19067; Attention: Investor Relations. 3DP and its directors and executive officers may be deemed to be participants in the solicitation of proxies from 3DP stockholders with respect to the merger. Information regarding these directors and executive officers and their ownership of 3DP common stock is contained in the proxy statement for 3DP's 2002 annual meeting of stockholders. Additional information regarding these directors and executive officers and their interests is included in the definitive proxy statement. Statements in this press release that are not historical are "forward- looking" statements that involve a high degree of risk and uncertainty. Such statements are only predictions, and the actual events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, risks associated with the satisfaction of closing conditions to the completion of the acquisition by Johnson & Johnson, our new and uncertain technologies, clinical trials and product development, the long and arduous process of obtaining regulatory approval, our dependence on existing strategic alliances and new collaborations, our dependence on patents and proprietary rights, our ability to protect and enforce our patents and proprietary rights, the development and availability of competitive products or technologies, our ability to attract and retain talented employees, our cash burn and our ability to manage our efforts as a company increasingly focused on internal product research and development. These risks and uncertainties are discussed in the section of the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission entitled "Factors Affecting the Company's Prospects." Selected Financial Information Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited) Three Months Year Ended December 31, Ended December 31, 2002 2001 2002 2001 Research and grant revenue $6,269 $10,172 $24,505 $28,399 Costs and expenses: Research and development 9,340 8,667 37,161 29,614 Non-cash in-process research and development - - 4,050 - General and administrative 3,649 4,254 15,711 15,334 Total costs and expenses 12,989 12,921 56,922 44,948 Loss from operations (6,720) (2,749) (32,417) (16,549) Interest income 667 1,027 3,104 5,344 Interest expense (197) (20) (639) (237) (Loss) before income taxes (6,250) (1,742) (29,952) (11,442) Income tax benefit 120 120 Net loss $(6,130) $(1,742) $(29,832) $(11,442) Basic and diluted net loss per common share $(0.27) $(0.08) $(1.33) $(0.53) Weighted average common shares outstanding 22,548 21,891 22,472 21,626 Condensed Balance Sheets (in thousands) (unaudited) December 31, December 31, 2002 2001 Cash, cash equivalents and marketable securities $66,214 $100,389 Other current assets 3,510 3,087 Property and equipment, net 12,381 11,735 Other assets 1,163 1,908 Total assets $83,268 $117,119 Current liabilities $9,183 $11,825 Current portion of deferred revenue 3,429 9,601 Long-term liabilities 4,383 161 Deferred revenue, less current portion - 3,286 Stockholders' equity 66,273 92,246 Total liabilities and stockholders' equity $83,268 $117,119SOURCE 3-Dimensional Pharmaceuticals, Inc.
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CONTACT:
Corporate Contact: Scott Horvitz, Chief
Financial Officer of 3-Dimensional Pharmaceuticals,
+1-267-757-7208 or horvitz@3dp.com; or Investor and Media
Inquiries: Melody Carey of Rx Communications, +1-917-322-2571 or
mcarey@rxir.com, for 3-Dimensional Pharmaceuticals
