Alkermes reports financial results for third quarter.CAMBRIDGE, Mass.--(BUSINESS WIRE)--Feb. 10, 1995--Alkermes, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ALKS ALKS Alkermes, Inc. (stock symbol) ) today reported its financial results for the three and nine month periods ended December 31, 1994. The net loss for the three and nine months ended December 31, 1994 was $1,884,805 and $8,662,776, or $0.14 and $0.64 per share, compared to a net loss of $4,981,810 and $13,369,127, or $0.37 and $1.00 per share, for the same periods in 1993. The decrease in net loss is primarily the result of funding provided to Alkermes pursuant to a development agreement between Alkermes and Boehringer Mannheim and the increased revenues related to the product development agreement with Alkermes Clinical Partners, L.P. (the partnership) coupled with a decrease in operating costs operating costs npl → gastos mpl operacionales as a result of the company's decision in September 1994 to increase its focus on its two lead technologies, RMP-7 and ProLease ProLease Drug delivery A technology that places injectable formulations in a sustained-release format. See Sustained release. . Total revenues for the three and nine months ended December 31, 1994 were $3,958,204 and $9,920,923, compared with $1,673,566 and $7,464,452 for the same periods last year. Research and development revenues under a collaborative arrangement with a related party were $2,832,772 and $6,498,213 versus $1,198,866 and $5,983,648 for the same periods last year. The increased revenues are the result of the increased reimbursable re·im·burse tr.v. re·im·bursed, re·im·burs·ing, re·im·burs·es 1. To repay (money spent); refund. 2. To pay back or compensate (another party) for money spent or losses incurred. costs incurred by the company. Research and development revenues under collaborative arrangements with unrelated parties were $765,813 and $2,349,107 for the three and nine months ended December 31, 1994 compared with $88,284 and $226,511 for the same periods last year. The increase is primarily the result of the development agreement with Boehringer Mannheim entered into in November 1994. Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the three and nine months ended December 31, 1994 included $4,423,175 and $14,107,942 in research and development expenses and $1,289,438 and $4,059,488 in general and administrative expenses. This compares with $4,458,335 and $16,080,295 in research and development expenses and $2,134,393 and $4,569,280 in general and administrative expenses for the same periods last year. Research and development expenses were lower in the three and nine months ended December 31, 1994 due to the Company's decision in September 1994 to increase its focus on its core technologies and the completion of certain preclinical preclinical /pre·clin·i·cal/ (-klin´i-k'l) before a disease becomes clinically recognizable. pre·clin·i·cal adj. 1. and clinical studies and the bulk purchase of the final dosage form A dosage form is the physical form of a dose of medication, such as a capsule or injection. The route of administration is dependent on the dosage form of a given drug. of RMP-7 for use in clinical trials in the prior year. General and administrative expenses for the three and nine months ended December 31, 1994 were lower primarily as a result of non-cash compensation charges incurred relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the grant of certain stock options in fiscal 1994, offset by a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. for the Company's share of the losses incurred by the partnership in fiscal 1995. At December 31, 1994, Alkermes had total cash and investments of $24.9 million, of which $1.4 million is restricted. This figure does not include up to $16.7 million of additional funds to be provided by the Partnership at the company continues to progress in the clinical development of RMP-7 or the proceeds of the $3.5 million loan received from Genentech pursuant to the development agreement signed in January 1995. Commenting on the quarter, Richard F. Pops, Chief Executive Officer, said, "The Company's decreasing quarter to quarter losses is the result of executing on our strategy announced in September 1994 of focusing the Company on our two lead technologies, RMP-7 and ProLease, and attracting corporate partners. This strategy was further strengthened by the ProLease collaboration with Genentech which we announced in January 1995." RMP-7 is being developed by Alkermes for the Partnership, a limited partnership which raised $46 million in 1992 to develop RMPs. Alkermes has the option to purchase the Partnership's technology. Alkermes, Inc. is developing sophisticated products based on innovative drug delivery technologies. In addition to its Cambridge, Massachusetts This article is about the city of Cambridge in Massachusetts. For the English university town, see Cambridge, England. For other places, see Cambridge (disambiguation). Cambridge, Massachusetts is a city in the Greater Boston area of Massachusetts, United States. headquarters, the Company operates a medical affairs office in Cambridge, England. The Company currently employs approximately 100 people worldwide. CONTACT: Alkermes Michael J. Landine, 617/494-0171 or Burns McClellan, Clarence Swearngan, Jr., 212/505-1919 |
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