HORSHAM, Pa., Aug. 4 /PRNewswire-FirstCall/ -- Neose Technologies, Inc. (NASDAQ:NTEC) today announced financial results for the second quarter and six months ended June 30, 2005.
For the quarter ended June 30, 2005, the Company reported a net loss of $10,285,000, or $0.31 per basic and diluted share, compared to a net loss of $10,326,000, or $0.47 per basic and diluted share, for the same period in 2004. The decreased net loss for the 2005 period was primarily due to increased revenues of $529,000, decreased general and administrative expenses of $518,000, and increased interest income of $288,000, all of which were partially offset by $1,199,000 of increased research and development expenses during the 2005 period.
The Company reported revenues of $1,420,000 for the second quarter of 2005, compared to $891,000 for the second quarter of 2004. The increase in revenues for the 2005 period was primarily due to revenues recognized under the Company's collaboration with BioGeneriX AG, which began late in the second quarter of 2004. The increase in research and development expenses during the 2005 period resulted from higher personnel costs, and increased purchases of outside services, including preclinical studies, and research supplies associated with the Company's proprietary drug development programs. Also contributing to the 2005 increase was higher depreciation expenses relating to improvements made at the Company's leased facility in Horsham, Pennsylvania, which was occupied in April 2004. General and administrative costs decreased by $518,000 during the 2005 period due to lower patent legal and consulting fees. The $288,000 increase in interest income during the 2005 period was due to a higher average cash balance, as well as higher interest rates.
For the six months ended June 30, 2005, the Company reported a net loss of $21,552,000, or $0.71 per basic and diluted share, compared to a net loss of $19,829,000, or $0.94 per basic and diluted share, for the same period in 2004. The Company reported revenues of $2,768,000 for the first six months of 2005, compared to $2,141,000 for the same period in 2004. The increase in revenues for the 2005 period was primarily due to revenues recognized under the Company's collaboration with BioGeneriX, which began late in the second quarter of 2004.
Operating expenses for the six months ended June 30, 2005 were $24,396,000, compared to $21,852,000 for the same period in 2004. Research and development expenses for the six months ended June 30, 2005 increased to $18,612,000 from $15,666,000 in the comparable 2004 period. The increase was primarily due to higher personnel costs, as well as increased purchases of outside services, including preclinical studies and consulting. Also contributing to the 2005 increase was higher depreciation expenses relating to improvements made at the Company's leased facility in Horsham, Pennsylvania, which was occupied in April 2004.
The Company's marketing, general, and administrative expenses were $5,784,000 for the six months ended June 30, 2005, compared to $6,186,000 for the same period last year. The decrease for the 2005 period was primarily due to lower patent legal expenses.
The Company ended the second quarter with $54,107,000 in cash, cash equivalents, and marketable securities.
Conference Call The Company will host a conference call at 5:00 p.m. (EDT) on August 4, 2005, to discuss the second quarter financial results and update investors on company developments. The dial-in number for domestic callers is (888) 202- 2422. The dial-in number for international callers is (913) 981-5592. 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 4009646. The replay number for international callers is (719) 457-0820, also using the passcode 4009646. 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 NE- 180 (GlycoPEG-EPO), a long-acting version of erythropoietin, and GlycoPEG- GCSF, a long-acting version of granulocyte colony stimulating factor (G-CSF).
Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three months Six months
ended June 30, ended June 30,
2005 2004 2005 2004 Revenue from collaborative
agreements $1,420 $891 $2,768 $2,141 Operating expenses:
Research and development 8,987 7,788 18,612 15,666
General and administrative 2,806 3,324 5,784 6,186
Total operating expenses 11,793 11,112 24,396 21,852 Operating loss (10,373) (10,221) (21,628) (19,711) Other income - - 22 -
Interest income 419 131 723 236
Interest expense (331) (236) (669) (354) Net loss $(10,285) $(10,326) $(21,552) $(19,829) Basic and diluted net loss per
share $(0.31) $(0.47) $(0.71) $(0.94) Weighted-average shares
outstanding used in
computing basic and diluted net
loss per share 32,782 22,146 30,378 21,050
Condensed Balance Sheets
(in thousands)
(unaudited)
Assets June 30, 2005 December 31, 2004 Cash and cash equivalents $54,107 $45,048
Accounts receivable and other current
assets 1,889 2,768
Total current assets 55,996 47,816 Property and equipment, net 39,015 41,133 Intangible and other assets, net 1,257 1,782 Total assets $96,268 $90,731 Liabilities and Stockholders' Equity Current liabilities $10,426 $11,897
Long-term debt and capital lease
obligations 11,714 13,759
Deferred revenue, net of current
portion 3,526 3,688
Other liabilities 502 533
Total liabilities 26,168 29,877 Stockholders' equity 70,100 60,854
Total liabilities and stockholders'
equity $96,268 $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/. 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/
|