Cell Pathways Inc. Reports Second 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)--July 23, 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 second quarter and six months ended June June: see month. 30, 1999. The company reported a net loss from operations in the second quarter of 1999 of $4.3 million, or $0.18 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 ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 24.3 million Common Shares outstanding. In comparison, the net loss from the second quarter of 1998 was $3.8 million, or $1.29 per basic and diluted Common Share on approximately 3.0 million Common Shares outstanding. Research and development ("R&D") expenses were $3.6 million in the second quarter of 1999, an increase of $239,000 or 7.1% from the same period in 1998 due primarily to an increase in personnel to support research and product development activities. General and administrative ("G&A") expenses were $1.1 million, an increase of $415,000 or 63.7% due primarily to an increase in expenses associated with the company's new and expanded facility, marketing expenses related to the 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. , the company's lead product candidate and an increase in administrative personnel. Interest income was $325,000, an increase of $166,000 due to higher average cash balances in the second quarter of 1999 from the same period in 1998. For the first six months of 1999, the company reported a net loss from operations of $9.6 million, an increase of $1.0 million, or 11.8%, from the first six months of 1998. Basic and diluted net loss per Common Share was $0.40 for the first six months of 1999 on approximately 24.3 million Common Shares outstanding versus a net loss of $2.88 per Common Share on approximately 3.0 million Common Shares outstanding for the same period in 1998. R&D expenses were $8.1 million in the first six months of 1999, an increase of $1.2 million or 17.7% from the same period in 1998 due primarily to an increase in research and product development activities and the purchase of raw materials in preparation for the anticipated commercialization of exisulind. G&A expenses for the first six months of 1999 were $2.2 million, an increase of $246,000 or 12.5% from the same period in 1998 primarily due to increased expenses associated with the company's new and expanded facility, marketing expenses related to commercialization preparations for exisulind and an increase in administrative personnel, partially offset by 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. Interest income was $693,000, an increase of $450,000 due primarily to higher average cash balances in the first six months of 1999 from the same period in 1998. The company ended the second quarter of 1999 with $26.9 million in cash and cash equivalents. Cell Pathways Inc., headquartered in Horsham, 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, contingency contingency n. an event that might not occur. or future development and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. in such statements. Such risks and uncertainties relate to, among other factors, the absence of approved products; history of operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. ; early stage of development; the costs, delays and uncertainties inherent in basic pharmaceutical research, drug development and clinical trials, with respect to both the company's current product candidates and its future product candidates, if any; dependence on development of exisulind; the limitations on, or absence of, the predictive value pre·dic·tive value n. The likelihood that a positive test result indicates disease or that a negative test result excludes disease. predictive value a measure used by clinicians to interpret diagnostic test results. of data obtained in laboratory tests, animal models and human clinical trials when planning additional steps in product development; the uncertainty of obtaining regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approval, whether in connection with the adequacy of the data generated in the clinical trials of exisulind or otherwise, 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; the need for further financing; and other risks detailed in Cell Pathways Inc. reports filed from time to time under the Securities Act of 1933 and/or the Securities 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 Dec. 31, 1998. Given these uncertainties, current and prospective investors are cautioned not to place undue reliance on any such forward-looking statements. The company undertakes no obligation to update or revise the statements made herein or the factors which may relate thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. . -0-
CELL PATHWAYS INC.
(A development stage company)
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, 1999 December 31, 1998
(unaudited)
------------------ -----------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 26,912,345 $ 37,232,404
Other current assets 496,698 512,474
------------ ------------
Total current assets 27,409,043 37,744,878
OTHER ASSETS 2,441,487 2,487,821
============ ============
$ 29,850,530 $ 40,232,699
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES $ 2,541,781 $ 3,940,684
LONG TERM LIABILITIES 98,787 159,897
------------ ------------
STOCKHOLDERS' EQUITY
Common Stock 244,251 242,796
Additional paid-in capital 81,969,785 81,256,094
Stock subscription receivable
from issuance of Common Stock (37,000) (37,000)
Deficit accumulated during the
development stage (54,967,074) (45,329,772)
------------ ------------
Total stockholders' equity 27,209,962 36,132,118
------------ ------------
$ 29,850,530 $ 40,232,699
============ ============
CELL PATHWAYS INC.
(A development stage company)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the three months ended For the six months ended
June 30, June 30,
------------------------- ---------------------
1999 1998 1999 1998
---------- ------------ ---------- ---------
EXPENSES
Research and
development $ 3,590,342 $ 3,351,715 $ 8,118,235 $ 6,897,545
General and
administrative 1,067,752 652,348 2,212,296 1,966,372
----------- ------------ ------------ -----------
Total expenses 4,658,094 4,004,063 10,330,531 8,863,917
INTEREST INCOME 325,383 159,808 693,229 243,254
----------- ------------ ------------ -----------
NET LOSS $ (4,332,711) $ (3,844,255) $ (9,637,302) $(8,620,663)
=========== ============ ============ ============
Basic and diluted
net loss per
Common Share $ (0.18) $ (1.29) $ (0.40) $ (2.88)
=========== ============ ============ ============
Shares used in
computing basic
and diluted
net loss per
Common Share 24,340,270 2,990,095 24,324,887 2,990,095
============ ============ ============ ============
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