Management Will Host Conference Call at 4:30 p.m. EST SOUTH SAN
FRANCISCO, Calif., Feb. 23 /PRNewswire-FirstCall/ -- Corgentech
Inc. (NASDAQ:CGTK) today reported financial results for the fourth
quarter and year ended December 31, 2005. "In 2005, we successfully
revitalized the company by advancing our portfolio of four novel
drug candidates for pain and inflammation toward the market, most
notably ALGRX 3268 for which we plan to file a New Drug Application
(NDA) with the FDA mid-year," said John P. McLaughlin, Corgentech's
chief executive officer. "Our powerful pipeline of differentiated,
mid- to late-stage product candidates addresses multiple potential
indications and can be readily and cost-effectively commercialized
by a focused specialty sales force. Appropriately managing moderate
to severe pain remains a significant problem for many physicians
and their patients. We are making excellent progress to address
these and other major unmet needs." Fourth Quarter 2005 Financial
Results The financial results for the fourth quarter of 2005 and
year ended December 31, 2005 reflect the completion of the merger
of AlgoRx Pharmaceuticals, Inc. and Corgentech on December 15,
2005. AlgoRx's financial statements are primarily the basis for the
merged company's financials for 2004 and 2005. Total operating
expenses were $15.1 million in the fourth quarter of 2005, compared
to $10.0 million in the fourth quarter of 2004. The increase in
operating expenses was primarily due to costs associated with the
execution and completion of two Phase 3 clinical trials for ALGRX
3268, the company's lead product candidate for the reduction of
pain associated with venipunctures and intravenous line placements
and for ongoing, multiple clinical trials for ALGRX 4975, an
anesthetic for site-specific, moderate to severe pain. For the
fourth quarter of 2005, the net loss was $12.7 million, or $2.82
loss per share, versus a net loss of $9.8 million, or $9.64 loss
per share, in the fourth quarter of 2004. The net loss in the
fourth quarter of 2005 is after an extraordinary gain of $1.8
million related to the purchase accounting for the AlgoRx and
Corgentech merger. For the year ended December 31, 2005, the
company had a net loss of $33.0 million, or $16.90 loss per share,
compared to a net loss of $23.0 million, or $27.68 loss per share
for 2004. As of December 31, 2005, cash, cash equivalents and
short-term investments were $94.9 million compared to $39.9 million
at December 31, 2004. Common shares outstanding after the merger
and one-for-four reverse stock split were 20.1 million shares at
December 31, 2005. Financial Guidance for 2006 -- The company
expects net loss for the full year of 2006 to be between $45
million and $50 million before non-cash stock compensation expense
of approximately $12 million. -- The company anticipates ending
2006 with between $35 million and $40 million in cash and cash
equivalents. Revenue projections are not included in the company's
financial guidance for 2006. 2006 Anticipated Clinical Milestones
Corgentech plans to achieve the following during 2006: -- File an
NDA with the FDA for ALGRX 3268 in mid-2006 to address the
pediatric hospital market where more than 18 million venipunctures
and intravenous line placements are performed each year. -- Report
results from multiple Phase 2 trials of ALGRX 4975, our innovative
non-opioid drug candidate for site-specific, moderate to severe
pain. -- Initiate clinical trials of ALGRX 1207, a new class of
local anesthetic, for cutaneous neuropathic pain, such as
chemotherapy-induced neuropathy. -- Define further clinical
development of Avrina(TM), a potential treatment for eczema, which
recently completed Phase 1/2 clinical trials. -- Prepare to launch
ALGRX 3268 in 2007. Conference Call Details Corgentech will conduct
a webcast conference call with the investment community at 4:30
p.m. EST / 1:30 p.m. PST, today, February 23, 2006 to discuss the
fourth quarter and year-end 2005 financial results, and to review
the company's progress and pipeline. The call will be available via
live audio broadcast over the Internet on the Corgentech website at
http://www.corgentech.com/ from the Investor Information page. For
those unable to participate via the Internet, a 24-hour replay will
be available for seven days after the call by calling 800-642-1687
(international dial: 706-645-9291) and giving the following pass
code: 5359384. The webcast will be available until the company's
next quarterly financial results conference call. About Corgentech
Corgentech is a late-stage biopharmaceutical company focused on the
development and commercialization of novel therapeutic treatments
for pain and inflammation. The company has four drug candidates in
clinical development for multiple potential indications, the most
advanced of which, ALGRX 3268, has completed Phase 3 clinical
trials. Corgentech is based in South San Francisco, CA. For more
information on the company, please visit
http://www.corgentech.com/. Forward Looking Statements This press
release includes "forward-looking statements" within the meaning of
the safe harbor provisions of the United States Private Securities
Litigation Reform Act of 1995. Words such as "expect," "estimate,"
"project," "budget," "forecast," "anticipate," "intend," "plan,"
"may," "will," "could," "should," "believes," "predicts,"
"potential," "continue," and similar expressions are intended to
identify such forward-looking statements. Forward-looking
statements in this press release include, without limitation,
projected timing of FDA filings and clinical data announcements and
other matters that involve known and unknown risks, uncertainties
and other factors that may cause actual results, levels of
activity, performance or achievements to differ materially from
results expressed or implied by this press release. Such risk
factors include, among others: whether Corgentech can successfully
develop new products and the degree to which these gain market
acceptance. Actual results may differ materially from those
contained in the forward-looking statements in this press release.
Additional information concerning these and other risk factors is
contained in Corgentech's Form S-4 as well as Corgentech's Form
10-K/A for the year ended December 31, 2004 and most recently filed
Form 10-Q. Corgentech undertakes no obligation and does not intend
to update these forward-looking statements to reflect events or
circumstances occurring after this press release. You are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date of this press release. All
forward-looking statements are qualified in their entirety by this
cautionary statement. Corgentech Inc. Statements of Operations (In
thousands, except share and per share amounts) Three months ended
Twelve months ended December 31, December 31, 2005 2004 2005 2004
(unaudited) (unaudited) (unaudited) (unaudited) Operating expenses:
Research and development $6,390 $6,486 $19,222 $17,168 General and
administrative 8,757 3,555 16,915 6,469 Total operating expenses
(15,147) (10,041) (36,137) (23,637) Loss from operations (15,147)
(10,041) (36,137) (23,637) Interest and other income, net 671 199
1,285 604 Loss before extraordinary gain (14,476) (9,842) (34,852)
(23,033) Extraordinary gain 1,804 -- 1,804 -- Net loss $(12,672)
$(9,842) $(33,048) $(23,033) Basic and diluted net loss per common
share $(2.82) $(9.64) $(16.90) $(27.68) Shares used to compute
basic and diluted net loss per common share 4,493,606 1,020,898
1,955,380 832,024 Corgentech Inc. Condensed Balance Sheets (In
thousands) December 31, December 31, 2005 2004 (unaudited) (Note)
Assets Cash, cash equivalents and short-term investments $94,913
$39,858 Other current assets 1,464 391 Total current assets 96,377
40,249 Property and equipment, net 871 1,370 Other assets,
non-current 669 1,635 Total assets $97,917 $43,254 Liabilities and
stockholders' equity Liabilities $8,491 $3,444 Convertible
preferred stock -- 87,687 Total stockholders' equity 89,426
(47,877) Total liabilities and stockholders' equity $97,917 $43,254
(Note): Derived from audited financial statements at that date.
DATASOURCE: Corgentech Inc. CONTACT: Jennifer Cook Williams, Vice
President, Investor Relations, +1-650-624-9600, or Web site:
http://www.corgentech.com/
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