Cell Pathways, Inc. Reports First Quarter 1999 Financial Results.HORSHAM Horsham (hôr`shəm), town (1991 pop. 38,356) and district, West Sussex, SE England. Horsham is known primarily for its agricultural and merchandising activities, but it also serves as an engineering center. , Pa.--(BW HealthWire)--May 4, 1999-- Cell Pathways, Inc. (Nasdaq:CLPA CLPA CC-Link Partner Association CLPA Club Loisirs et Plein Air (Montpellier, France) CLPA Child Labour Programme of Action (national plan to eliminate child labour in South Africa) ) today reported financial results for the first quarter ended March 31, 1999. The Company reported a net loss from operations in the first quarter of 1999 of $5.3 million, or $0.22 per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. common share on approximately 24.3 million common shares outstanding. In comparison, the net loss from the first quarter of 1998 was $4.8 million, or $1.60 per basic and diluted common share on approximately 3.0 million common shares outstanding. Research and development ("R&D") expenses were $4.5 million in the first quarter of 1999, an increase of $982,000 or 27.7% from the same period in 1998. General and administrative ("G&A") expenses were $1.1 million, a decrease of $171,000 or 13% in the first quarter of 1999 from the comparable period of 1998. The Company ended the first quarter of 1999 with $31.5 million in cash and cash equivalents. "The first quarter results are in line with the Company's expectations," said President and Chief Executive Officer Bob Towarnicki. "The higher R&D expenses were due to the purchase of raw materials, increased clinical trial activity and personnel expenses associated with building our in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. staff to support the research and product development efforts." The decrease in G&A expenses resulted primarily from a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge recorded in the first quarter of 1998 related to expenses for an initial public offering which was not undertaken. Partially offsetting the effect of this one-time charge were higher expenses for administrative personnel, the expenses for the Company's new and expanded facility, and marketing expenses related to commercialization preparations for exisulind Exisulind is a drug used to treat cancer. It acts by inhibiting the enzyme cyclic guanosine monophosphate phosphodiesterase. Tademark by OSI Pharmaceuticals is Aptosyn. . "During the second quarter of 1998 we began expanding our administrative activities and building a team to prepare the Company for the commercialization of exisulind, the effects of which are shown in the first quarter 1999 results," commented Towarnicki. Interest income was $368,000, an increase of $284,000 due to higher cash balances from funds raised through a private placement and a financing transaction through the acquisition of Tseng Labs (Tseng Labs, Inc., Newtown, PA) A company that manufactured chipsets and display adapters for PCs. Founded in 1983, it provided products that enhanced PC display standards, and its ET3000 and ET4000 chips have been used in millions of display adapters. , Inc. in the second and fourth quarters of 1998, respectively. As previously announced, the Company is continuing to evaluate the data from its Phase III clinical trial Noun 1. phase III clinical trial - a large clinical trial of a treatment or drug that in phase I and phase II has been shown to be efficacious with tolerable side effects; after successful conclusion of these clinical trials it will receive formal approval from the of exisulind for the indication of adenomatous polyposis coli adenomatous polyposis coli Familial adenomatous polyposis, see there. See APC gene, APC protein. . Cell Pathways, Inc., headquartered in Horsham, Pennsylvania Horsham is a census-designated place (CDP) in Montgomery County, Pennsylvania, United States. The population was 14,779 at the 2000 census. Horsham is located entirely within Horsham Township, Pennsylvania. , is a pharmaceutical company focused on the research, development and commercialization of products to prevent and treat cancer. Certain Statements made herein, and oral statements made in respect hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , constitute "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. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such statements are those which express plan, anticipation, intent, estimation estimation In mathematics, use of a function or formula to derive a solution or make a prediction. Unlike approximation, it has precise connotations. In statistics, for example, it connotes the careful selection and testing of a function called an estimator. , belief, contingency contingency n. an event that might not occur. or future development and/or otherwise are not statements of historical fact. These statements are subject to risks and uncertainties, known and unknown, which could cause actual results and developments to differ materially from those expressed or implied in such statements. Such risks and uncertainties relate to, among other factors, the costs, delays and uncertainties inherent in basic pharmaceutical research, drug development and clinical trials; the uncertainty of obtaining regulatory approval, and the timing and scope of any approval received; acceptance by providers of healthcare reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. ; the validity, scope and enforceability of patents; the actions of competitors; dependence upon third parties; product liability; and other risks detailed in the Company's reports filed under the Securities and Exchange Act of 1934, including the sections entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Business" and "Risk Factors" in the Company's 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 year ended December 31, 1998. The Company undertakes no obligation to update or revise the statements made herein. Financial Tables Follow. -0-
CELL PATHWAYS, INC.
(A development stage company)
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31,
1999 1998
(Unaudited)
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and Cash Equivalents $ 31,477,396 $ 37,232,404
Other Current Assets 603,053 512,474
------------ ------------
Total Current Assets 32,080,449 37,744,878
OTHER ASSETS: 2,631,871 2,487,821
------------ ------------
$ 34,712,320 $ 40,232,699
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES: $ 3,511,679 $ 3,940,684
LONG TERM LIABILITIES: 129,697 159,897
------------ ------------
STOCKHOLDERS' EQUITY
Common Stock 243,150 242,796
Additional paid-in capital 81,499,157 81,256,094
Stock subscription receivable
from issuance of Common Stock (37,000) (37,000)
Deficit accumulated during the
development stage (50,634,363) (45,329,772)
------------ ------------
Total stockholders' equity 31,070,944 36,132,118
------------ -----------
$34,712,320 $40,232,699
============ ============
CELL PATHWAYS, INC.
(A development stage company)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the three months ended
March 31,
---------------------------
1999 1998
------------ ------------
EXPENSES:
Research and development $ 4,527,893 $ 3,545,830
General and administrative 1,144,544 1,315,623
------------ ------------
Total expenses 5,672,437 4,861,453
INTEREST INCOME 367,846 83,446
------------ ------------
NET LOSS $ (5,304,591) $ (4,778,007)
============ ============
Basic and diluted net loss per
common share $ (0.22) $ (1.60)
============ ============
Shares used in computing basic and
diluted net loss per common share 24,309,333 2,990,095
============ ============
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