Neose Technologies Reports First Quarter Financial Results
HORSHAM, Pa., May 3 /PRNewswire-FirstCall/ -- Neose Technologies, Inc. (NASDAQ:NTEC) today announced financial results for the quarter ended March 31,
2005.
For the quarter ended March 31, 2005, the Company reported a net loss of
$11,267,000, or $0.40 per basic and diluted share, compared to a net loss of
$9,503,000, or $0.48 per basic and diluted share, for the same period in 2004. The increased net loss for the 2005 period was primarily due to increased
research and development expenses of $1,747,000, resulting from higher
personnel costs, increased preclinical study and the operating expenses
associated with the Company's Horsham, Pennsylvania laboratory facility, which
was occupied in April 2004. The Company reported revenues of $1,348,000 for the
first quarter of 2005, compared to $1,250,000 for the first quarter of 2004. The increase in revenues for the 2005 period was largely due to revenues
recognized under the Company's BioGeneriX agreements, neither of which was in
effect during the first quarter of 2004.
The Company's general and administrative expenses were $2,978,000 for the
quarter ended March 31, 2005 compared to $2,862,000 for the same period last
year. The increase for the 2005 period is due to higher consulting and
accounting fees, partially offset by lower personnel costs.
The Company ended the first quarter with $64,275,000 in cash and cash
equivalents. In February 2005, we offered and sold 8,050,000 shares of our
common stock at a public offering price of $4.00 per share, generating net
proceeds of $30,006,000. In March 2005, we implemented measures to reduce the
rate of our cash utilization. Previously, we had estimated that our average
quarterly net cash utilization for 2005 would be approximately $11 million,
based on estimates of revenues from collaborations and operating expenses. As a
result of these actions, we now estimate that our average quarterly net cash
utilization will be approximately $9 million, starting in the second quarter of
2005. The actions included modifying the cash bonus program for officers,
reducing officers' base salaries for one year, reducing planned operating
expenses and capital expenditures, and effectively limiting headcount during
2005.
Conference Call The Company will host a conference call at 5:00 p.m. (EDT) on May 3, 2005, to
discuss the first quarter financial results and update investors on company
developments. The dial-in number for domestic callers is (888) 855-5428. The
dial-in number for international callers is (719) 457-2665. A replay of the
call will be available for 7 days beginning approximately three hours after the
conclusion of the call. The replay number for domestic callers is (888)
203-1112 using the passcode 5542196. The replay number for international
callers is (719) 457-0820, also using the passcode 5542196. Live audio of the
conference call will be simultaneously broadcast over the Internet through
First Call Events, which can be accessed via the following link: http://phx.corporate-ir.net/phoenix.zhtml?c=60494&p=irol-calendar To listen to the live call, please go to the web site at least fifteen minutes
early to register, download, and install any necessary audio software. For
those who cannot listen to the live broadcast, a replay will be available
shortly after the call. The call will also be available on the Investor
Relations/Audio Archives page of the Neose website at http://www.neose.com/.
About Neose Neose is a biopharmaceutical company using its proprietary enzymatic
technologies to develop improved drugs, focusing primarily on therapeutic
proteins. Neose uses its GlycoAdvance(R) and GlycoPEGylation(TM) technologies
to develop improved versions of drugs with proven safety and efficacy. Neose
intends to apply its technologies to products it is developing on its own and
to products it co-develops and co-owns with others. It also expects to make
its technologies available, through strategic partnerships, to improve the
products of other parties. Neose's first two proprietary candidates are
GlycoPEG-EPO (NE-180), a long-acting version of erythropoietin, and GlycoPEG-
GCSF, a long-acting version of granulocyte colony stimulating factor (G-CSF). It is expected that an investigational new drug application (IND) for NE-180
will be submitted to the U.S. Food and Drug Administration (FDA) during the
second quarter of 2005. In addition, it is expected that the equivalent of an
IND will be submitted in an EU country by the end of 2005 for GlycoPEG-GCSF.
Statements of Operations
(in thousands, except per share data)
(unaudited) Three months
ended March 31,
2005 2004 Revenue from collaborative agreements $1,348 $1,250 Operating expenses:
Research and development 9,625 7,878
General and administrative 2,978 2,862
Total operating expenses 12,603 10,740 Operating loss (11,255) (9,490) Other income 22 -
Interest income 304 105
Interest expense (338) (118) Net loss $(11,267) $(9,503) Basic and diluted net loss per share $(0.40) $(0.48) Weighted-average shares outstanding
used in computing basic and
diluted net loss per share 27,947 19,943
Condensed Balance Sheets
(in thousands)
(unaudited) Assets March 31, December 31,
2005 2004 Cash and cash equivalents $64,275 $45,048
Accounts receivable and other current assets 1,989 2,768
Total current assets 66,264 47,816 Property and equipment, net 40,219 41,133 Intangible and other assets, net 1,519 1,782 Total assets $108,002 $90,731 Liabilities and Stockholders' Equity Current liabilities $11,178 $11,897
Long-term debt and capital lease obligations 12,700 13,759
Deferred revenue, net of current portion 3,495 3,688
Other liabilities 518 533
Total liabilities 27,891 29,877 Stockholders' equity 80,111 60,854
Total liabilities and stockholders'
equity $108,002 $90,731
CONTACTS: Neose Technologies, Inc. A. Brian Davis
Sr. Vice President and Chief Financial Officer
(215) 315-9000
Barbara Krauter
Manager, Investor Relations
(215) 315-9004 For more information, please visit http://www.neose.com/.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Statements in this press release regarding our business that are not
historical facts are "forward-looking statements" that involve risks and
uncertainties. For a discussion of these risks and uncertainties, any of which
could cause the Company's actual results to differ from those contained in the
forward-looking statement, see the section entitled "Factors Affecting the
Company's Prospects" in the Company's Annual Report on Form 10-K for the year
ended December 31, 2004, and discussions of risk factors in the Company's
subsequent SEC filings. DATASOURCE: Neose Technologies, Inc.
CONTACT: A. Brian Davis, Sr. Vice President and Chief Financial Officer, +1-215-315-9000, or Barbara Krauter, Manager, Investor Relations, +1-215-315-9004, both of Neose Technologies Web site: http://www.neose.com/
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