ARIAD Reports Second Quarter 1999 Financial Results.CAMBRIDGE Cambridge, city, Canada Cambridge (kām`brĭj), city (1991 pop. 92,772), S Ont., Canada, on the Grand River, NW of Hamilton. It was formed in 1973 with the amalgamation of Galt, Hespeler, and Preston, all founded in the early 19th cent. , Mass.--(BUSINESS WIRE)--Aug. 13, 1999-- ARIAD ARIAD Allison Research Index of Art and Design Pharmaceuticals, Inc. (Nasdaq: ARIA) today reported total revenues of $2.9 million for the second quarter of 1999, a decrease of 17% or $.6 million from the $3.5 million reported for the second quarter of 1998. The Company reported a net loss of $6.4 million or $.29 per share for the second quarter of 1999, up $.1 million from the net loss of $6.3 million or $.30 per share reported for the second quarter of 1998. The decrease in revenue for the second quarter was due primarily to a reduction in the amortization of deferred revenue recognized in the prior year under the Company's 1995 collaborative research and development agreement with Hoechst Hoechst may refer to:
1 City (1990 pop. 14,545), seat of Williamson co., S Ill.; inc. 1841. It is the commercial and retail center of a farm and coal area and has a large soft drink bottling plant. A maximum-security federal prison is nearby. Roussel The Roussel was a French automobile manufactured from 1908 to 1914. The company produced light cars, voiturettes, and cabs at a factory in Charleville-Mezières; it offered four-cylinder 10 and 12 hp engines. , Inc. (the "1995 HMR HMR Hazardous Materials Regulations HMR Human Resources HMR Home Meal Replacement HMR Hamrun (postal locality, Malta) HMR Hôpital Maisonneuve-Rosemont (Montréal, Canada) Osteoporosis osteoporosis (ŏs'tēō'pərō`sĭs), disorder in which the normal replenishment of old bone tissue is severely disrupted, resulting in weakened bones and increased risk of fracture; osteopenia Agreement") offset by an 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. Research and development expenses for the second quarter decreased to $7.8 million from $9.0 million reported for the second quarter of 1998. This decrease was due primarily to decreased manufacturing development costs and other preclinical preclinical /pre·clin·i·cal/ (-klin´i-k'l) before a disease becomes clinically recognizable. pre·clin·i·cal adj. 1. costs incurred in the prior period offset by expanded research services provided to the Genomics Center in the current period. For the six-month period ended June 30, 1999, ARIAD reported revenues of $7.6 million, an increase of $.9 million over the $6.7 million reported for the same period in 1998. For the six-month period ended June 30, 1999, ARIAD reported research and development expenses of $16.0 million, down $.7 million from the $16.7 million reported for the same period in 1998. At June 30, 1999, 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 $11.0 million. The Company reported a net loss, before the cumulative effect of change in accounting principle, of $10,925,000 for the six months ended June 30, 1999 and $11,677,000 for the corresponding period in 1998 or $(.50) and $(.58) per share, respectively. After such cumulative effect, the Company incurred losses of $11,290,000 for the six months ended June 30, 1999 and $11,677,000 for the corresponding period in 1998, or $(.52) and $(.58) per share, respectively. 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 ar·gent n. 1. Heraldry The metal silver, represented by the color white. 2. Archaic Silver or something resembling it. (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 successful completion of Phase 1 human clinical trials on its small-molecule drug (AP1903) to treat GvHD using ARGENT(TM) in 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 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, 1998 filed with the Securities Exchange Commission. -0-
ARIAD PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------- --------------------------
1999 1998 1999 1998
------------ ----------- ----------- ------------
Revenue:
Research
revenue
(principally
related
parties) $ 2,723,576 $ 3,227,883 $ 7,306,473 $ 6,074,469
Interest
income 143,405 295,702 316,296 608,747
------------ ------------ ------------ ------------
Total
revenue 2,866,981 3,523,585 7,622,769 6,683,216
------------ ------------ ------------ ------------
Operating
expenses:
Research
and
development 7,824,038 8,989,688 15,970,466 16,725,643
General
and
admini-
strative 884,343 677,020 1,614,590 1,376,049
Interest
expense 91,465 127,542 197,246 258,124
------------ ------------ ------------ ------------
Total
operating
expenses 8,799,846 9,794,250 17,782,302 18,359,816
Equity in
net loss
of Genomics
Center 427,711 765,750
------------ ------------ ------------ ------------
Loss before
cumulative
effect of
change in
accounting
principle (6,360,576) (6,270,665) (10,925,283) (11,676,600)
------------ ------------ ------------ ------------
Cumulative
effect of
change in
accounting
principle 364,388
------------ ------------ ------------ ------------
Net loss (6,360,576) (6,270,665) (11,289,671) (11,676,600)
Preferred
dividend 62,329 123,973
------------ ------------ ------------ ------------
Net loss
attributable
to common
stockholders $(6,422,905) $(6,270,665) $(11,413,644) $(11,676,600)
============ ============ ============ ============
Per common
share
(basic and
diluted):
Loss before
cumulative
effect of
change in
accounting
principle $ (.29) $ (.30) $ (.50) $ (.58)
Cumulative
effect of
change in
accounting
principle (.02)
------------ ------------ ------------ ------------
Net loss $ (.29) $ (.30) $ (.52) $ (.58)
============ ============ ============ ============
Weighted
average
number of
shares of
common stock
outstanding 22,004,467 20,732,321 21,984,138 20,025,138
ARIAD PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
(Unaudited)
June 30, December 31,
1999 1998
-------------------------------
Cash and marketable securities $11,049,370 $14,176,136
Net fixed assets 6,956,627 8,049,673
Other assets 9,354,955 8,560,131
----------- -----------
Total assets $27,360,952 $30,785,940
=========== ===========
Debt $ 5,467,052 $ 5,156,160
Other liabilities 10,507,872 8,860,876
----------- -----------
Total liabilities 15,974,924 14,017,036
----------- -----------
Redeemable preferred stock 5,159,589 5,035,616
Stockholders' equity 6,226,439 11,733,288
----------- -----------
Total liabilities and
stockholders' equity $27,360,952 $30,785,940
----------- -----------
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