Athena Neurosciences, Inc. Reports Financial Results For Fiscal 1995 And Fourth Quarter.SOUTH SAN FRANCISCO--(BUSINESS WIRE)--Feb. 8, 1996--Athena Neurosciences, Inc. ("Athena") (Nasdaq: ATHN) reported a 29% increase in total revenue for the fourth quarter ended December 31, 1995 to $14.6 million from $11.4 million for the same period of 1994. Net revenue from sales of products and services in the quarter grew by 45% to $13.0 million over the same period of 1994 but was partially offset by a decrease in collaborative income to $1.6 million from $2.4 million in the fourth quarter of 1994. For the year ended December 31, 1995, total revenue grew to $53.4 million compared to $39.9 million in 1994, an increase of 34%. Net revenue from sales of products and services in 1995 totaled $43.6 million, up 35% from the $32.2 million recorded in 1994. This growth was primarily attributable to increased sales of Permax (pergolide mesylate per·go·lide mesylate n. An ergot derivative with dopaminergic properties. ), which grew to $27.7 million, or 53% more than in 1994. Collaborative income and contract revenue for 1995 totaled $9.8 million, an increase of 27% over the $7.7 million in 1994. The net loss for the fourth quarter of 1995 was $6.9 million, $0.26 per share, compared to a net loss of $8.3 million, $0.38 per share, for the fourth quarter of 1994. For fiscal 1995, the net loss totaled $29.8 million, $1.21 per share, versus a net loss of $24.1 million, $1.12 per share, in 1994. The net loss for 1995 included milestone payments totaling $1.5 million related to Diastat (diazepam diazepam /di·az·e·pam/ (di-az´e-pam) a benzodiazepine used as an antianxiety agent, sedative, antipanic agent, antitremor agent, skeletal muscle relaxant, anticonvulsant, and in the management of alcohol withdrawal symptoms. rectal gel), along with non-recurring charges totaling $5.5 million related to the acquisition of certain in-process technology and product rights from Elan Corporation plc ("Elan") and Exemplar ex·em·plar n. 1. One that is worthy of imitation; a model. See Synonyms at ideal. 2. One that is typical or representative; an example. 3. An ideal that serves as a pattern; an archetype. 4. Corporation, and expenses resulting from the acquisition by merger with Genica Pharmaceuticals Corporation ("Genica"). The financial data for all periods presented have been restated to include Genica's historical results. Genica has been renamed Athena Diagnostics, Inc. and operates as a wholly-owned subsidiary of Athena. John Groom, president and chief executive officer, noted, "1995 was a year marked by many important developments. In research, we broadened our Alzheimer's disease Alzheimer's disease (ăls`hī'mərz, ôls–), degenerative disease of nerve cells in the cerebral cortex that leads to atrophy of the brain and senile dementia. collaboration with Eli Lilly and Company Eli Lilly and Company (NYSE: LLY) is a global pharmaceutical company and one of the world's largest corporations. Eli Lilly's global headquarters is located in Indianapolis, Indiana, in the United States. ("Lilly") to incorporate our PDAPP transgenic mouse model of Alzheimer's disease. This model, which mimics the plaque pathology of Alzheimer's disease, was the subject of considerable scientific acclaim during the year. We also extended our cell trafficking collaboration with Wyeth-Ayerst Laboratories, a division of American Home For the American mortgage lender, see . The American Home is a center of intercultural exchange located in Vladimir, Russia. The home is designed to model a typical American suburban home and its main focus is the ESL school that provides lessons for Russian students. Products Corporation, to December 31, 1996. "Five new therapeutic products are at various stages of clinical and pharmaceutical development. These include Zanaflex (tizanidine hydrochloride tizanidine hydrochloride Zanaflex Pharmacologic class: Alpha-adrenergic agonist (centrally acting) Therapeutic class: Skeletal muscle relaxant Pregnancy risk category C Action) and Diastat, for which New Drug Applications ("NDAs") have been filed. In September, we submitted a detailed response to the objections raised by the Food and Drug Administration ("FDA FDAabbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. ") in its non-approvable letter for Zanaflex, and we await the results of the FDA's further review. Zanaflex is indicated in the treatment of spasticity spasticity /spas·tic·i·ty/ (spas-tis´i-te) the state of being spastic; see spastic (2). spas·tic·i·ty n. 1. A spastic state or condition. 2. Spastic paralysis. of spinal cord spinal cord, the part of the nervous system occupying the hollow interior (vertebral canal) of the series of vertebrae that form the spinal column, technically known as the vertebral column. origin. As recently reported, our NDA (Non Disclosure Agreement) An agreement signed between two parties that have to disclose confidential information to each other in order to do business. In general, the NDA states why the information is being divulged and stipulates that it cannot be used for any submission for Diastat is now under review at the FDA. Diastat is designed to treat patients with acute repetitive seizures, a severe form of epilepsy. We have completed enrollment in a double-blind, placebo-controlled, dose determination study with BotB (Botulinum Toxin Type B botulinum toxin type B Myobloc, NeuroBloc (UK) Pharmacologic class: Neurotoxin Therapeutic class: Neuromuscular blocker Pregnancy risk category C Action), our potential treatment for cervical dystonia cervical dystonia Spasmodic torticollis, see there . Antegren, our humanized monoclonal antibody monoclonal antibody, an antibody that is mass produced in the laboratory from a single clone and that recognizes only one antigen. Monoclonal antibodies are typically made by fusing a normally short-lived, antibody-producing B cell (see immunity) to a fast-growing , has completed dosing in a Phase I clinical study. Antegren is a potential treatment for flare in multiple sclerosis. In March 1995, we entered into a strategic alliance with Elan to jointly develop new products and formulations in the area of neurology. Development of the first product from this collaboration, Atamet LQ, a liquid form of carbidopa/levodopa for Parkinson's disease Parkinson's disease or Parkinsonism, degenerative brain disorder first described by the English surgeon James Parkinson in 1817. When there is no known cause, the disease usually appears after age 40 and is referred to as Parkinson's disease. , is underway."Mr. Groom added, "We were encouraged by the 35% growth in 1995 of our product and service revenues, led by Permax. In total, gross profits after cost of sales increased to nearly $25 million, up 40% over 1994. In January 1996, we introduced our Alzheimer's disease diagnosis service, the ADmark Profile. We believe this panel of three tests can provide important information to the neurologist to help include or exclude a more definitive diagnosis of Alzheimer's disease in elderly patients presenting with dementia. "In 1995, we received $26 million of net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). through the public sale of 3,000,000 shares of common stock and raised a further $22 million through a series of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. financings. These funds, net of the final payment of $9 million made to Lilly for Permax in April, enabled us to end 1995 with a cash position in excess of $46 million, compared to $35 million at the end of 1994." Athena Neurosciences, Inc. was founded in 1986, to discover, develop and market products to be used primarily by neurologists for the treatment and diagnosis of neurological disorders This is a list of major and frequently observed neurological disorders (e.g. Alzheimer's disease), symptoms (e.g.back pain), signs (e.g. aphasia) and syndromes (e.g. Aicardi syndrome). . -0-
ATHENA NEUROSCIENCES, INC.
Condensed Consolidated Statement of Operations (In thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
1995 1994 1995 1994
(unaudited)
Product sales and service revenue $13,007 $8,963 $43,605 $32,232 Contract revenue 1,613 2,395 9,814 7,687 Total revenue 14,620 11,358 53,419 39,919
Operating costs and
expenses:
Cost of product sales
and service revenue 5,391 4,006 18,696 14,501
Amortization of
intangible assets 573 573 2,292 2,292
Research and development 8,882 8,660 34,158 27,512
Marketing, general and
administrative 5,931 4,892 20,986 18,177
Total operating costs
and expenses 20,777 18,131 76,132 62,482
Loss before technology acquisition and merger costs (6,157) (6,773) (22,713) (22,563) Technology acquisition and merger costs (750) (1,500) (7,037) (1,500) Net loss $(6,907) $(8,273) $(29,750) $(24,063) Net loss per share $(0.26) $(0.38) $(1.21) $(1.12) Shares used in computation of net loss per share 26,544 21,573 24,569 21,535 Condensed Consolidated Balance Sheet (in thousands)
December 31, December 31,
1995 1994
Assets:
Cash, cash equivalents and short-term
investments $46,289 $35,066
Other current assets 8,416 5,529
Total current assets 54,705 40,595
Net property and equipment 4,695 5,355
Product license and other assets, net 28,774 31,775
Total assets $88,174 $77,725
Liabilities and stockholders' equity:
Current portion of indebtedness $1,856 $9,220
Other current liabilities 9,114 11,766
Total current liabilities 10,970 20,986
Non-current portion of indebtedness 19,148 335
Stockholders' equity 58,056 56,404
Total liabilities and stockholders'
equity $88,174 $77,725
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