ARIAD Reports Fourth Quarter and Full Year 1998 Financial Results.CAMBRIDGE, Mass.--(BUSINESS WIRE)--March 9, 1999--ARIAD Pharmaceuticals, Inc. (Nasdaq:ARIA) today reported total revenues of $2.6 million for the fourth quarter of 1998, a decrease of $385,000 from the $3.0 million reported for the fourth quarter of 1997. The Company reported a net loss of $7.0 million or $.32 per share for the fourth quarter of 1998, up $1.9 million from the net loss of $ 5.1 million or $.27 per share reported for the fourth quarter of 1997. For the full year 1998, ARIAD ARIAD Allison Research Index of Art and Design reported revenues of $13.1 million, a 20% increase over the $11.0 million reported for the year ended December 31, 1997. The Company incurred a net loss of $26.2 million or $1.25 per share for the year ended December 31, 1998, up $13.6 million from the net loss of $12.6 million or $.66 per share reported for the prior year. The reduction in revenue for the fourth quarter was due primarily to a $259,000 reduction in interest income. Research revenue was substantially unchanged. The 20% increase in total revenue for the year was due primarily to a 31% increase in research revenue resulting from increased services provided to the Hoechst-ARIAD Genomics Center (the "Genomics Center"), a 50/50 joint venture between ARIAD and Hoechst Marion Roussel, Inc. ("Hoechst Marion Roussel"). Research and development expenses for the fourth quarter increased to $8.4 million from $7.1 million reported for the fourth quarter of 1997 and for the full year increased from $20.3 million to $35.5 million. These increases are due to the expanded research services provided to the Genomics Center and increased drug development costs for ARIAD's graft-versus-host disease graft-versus-host disease n. A type of incompatibility reaction of transplanted cells against host tissues that possess an antigen not possessed by the donor. Also called graft-versus-host reaction. ("GvHD") product based on ARIAD's Regulated Gene Expression Technology ("ARGENT ar·gent n. 1. Heraldry The metal silver, represented by the color white. 2. Archaic Silver or something resembling it. (tm)"). These costs include manufacturing, process development and other preclinical preclinical /pre·clin·i·cal/ (-klin´i-k'l) before a disease becomes clinically recognizable. pre·clin·i·cal adj. 1. development activities in preparation for clinical trials of AP 1903, which commenced in December 1998. AP 1903 is a proprietary small-molecule drug developed to treat GvHD, a complication complication /com·pli·ca·tion/ (kom?pli-ka´shun) 1. disease(s) concurrent with another disease. 2. occurrence of several diseases in the same patient. com·pli·ca·tion n. experienced by certain patients undergoing allogeneic allogeneic /al·lo·ge·ne·ic/ (-je-ne´ik) 1. having cell types that are antigenically distinct. 2. in transplantation biology, denoting individuals (or tissues) that are of the same species but antigenically bone marrow transplantation Bone Marrow Transplantation Definition The bone marrow—the sponge-like tissue found in the center of certain bones—contains stem cells that are the precursors of white blood cells, red blood cells, and platelets. . At December 31, 1998, the Company reported cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has of $14.2 million. Subsequently, on January 5, 1999, the Company completed the sale of 478,120 shares of its Series B Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. to Hoechst Marion Roussel and received proceeds of $5,747,000. In addition, on February 23, 1999, the Company received a $2,000,000 milestone payment from Hoechst Marion Roussel from its 1995 bone disease collaboration. "We are pleased with the progress made at ARIAD in the fourth quarter," said Harvey J. Berger, M.D., chairman and chief executive officer at ARIAD. "During the quarter, we announced the first ARIAD product to enter human clinical trials. In addition, we strengthened our intellectual property base with the award of four patents, as well as the publication in Science of key ARIAD technology. We also were able to improve our cash position with the issuance of $5 million of Series C Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". , and subsequently, in January with the issue of $5.7 million of Series B Preferred Stock and the award of a $2 million milestone payment from Hoechst Marion Roussel." ARIAD Pharmaceuticals (www.ariad.com) is a leader in the discovery and development of orally administered therapeutics therapeutics Treatment and care to combat disease or alleviate pain or injury. Its tools include drugs, surgery, radiation therapy, mechanical devices, diet, and psychiatry. based on signal transduction Signal transduction The transmission of molecular signals from a cell's exterior to its interior. Molecular signals are transmitted between cells by the secretion of hormones and other chemical factors, which are then picked up by different cells. technology. ARIAD is developing diverse products in multiple businesses, including signal transduction inhibitors, gene and cell therapy (based on ARGENT(tm)) and functional genomics Noun 1. functional genomics - the branch of genomics that determines the biological function of the genes and their products genomics - the branch of genetics that studies organisms in terms of their genomes (their full DNA sequences) . ARIAD recently announced the commencement of Phase 1 human clinical trials on its small-molecule drug (AP1903) to treat GvHD using ARGENT(tm) in patients undergoing allogeneic bone marrow transplants bone marrow transplant: see bone marrow. . Some of the matters discussed in this news release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties, including, but not limited to, risks and uncertainties regarding the success of the Company's operations, as well as risks and uncertainties relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc economic conditions, markets, products, competition, intellectual property, services and prices, key employees, future capital needs, dependence on our collaborators and other factors discussed under the heading "Cautionary Statement Regarding Forward-Looking Statements" in ARIAD's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended December 31, 1997 filed with the Securities Exchange Commission.
ARIAD PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Year Ended
December 31, December 31,
1998 1997 1998 1997
Revenue:
Research revenue
(principally $ 2,409,922 $ 2,535,360 $ 12,143,192 $ 9,233,708
related parties)
Interest income 169,071 428,160 998,743 1,757,327
Total revenue 2,578,993 2,963,520 13,141,935 10,991,035
Operating expenses:
Research and
development 8,351,435 7,089,763 35,515,270 20,286,945
General and
administrative 628,293 849,221 2,633,923 2,924,972
Interest expense 106,984 145,883 480,627 410,072
Total operating
expenses 9,086,712 8,084,867 38,629,820 23,621,989
Equity in net loss
of Genomics Center 436,679 660,295
Net loss (6,944,398) (5,121,347) (26,148,180) (12,630,954)
Preferred dividends 35,616 35,616
Net loss attributable
to common
stockholders $(6,980,014) $(5,121,347)$(26,183,796) $(12,630,954)
Net loss per share
(basic and diluted) $ (.32) $ (.27) $ (1.25) $ (.66)
Weighted average
number of shares of
common stock
outstanding 21,929,483 19,303,783 20,966,586 19,252,885
ARIAD PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
December 31, December 31,
1998 1997
Cash and marketable securities $ 14,176,136 $ 29,359,457
Net fixed assets 8,049,673 11,439,370
Other assets 8,560,131 6,610,349
Total assets $ 30,785,940 $ 47,409,176
Debt $ 1,861,021 $ 1,816,583
Other liabilities 8,860,876 11,762,556
Total liabilities 10,721,897 13,579,139
Long-term debt 3,295,139 5,156,219
Deferred revenue 300,000
Redeemable preferred stock 5,035,616
Stockholders' equity 11,733,288 28,373,818
Total liabilities and
stockholders' equity $ 30,785,940 $ 47,409,176
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