Connective Therapeutics Reports Third Quarter Results.PALO ALTO, Calif.--(BUSINESS WIRE)--Oct. 30, 1996--Connective Therapeutics 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 :CNCT CNCT Connect CNCT Certified Network Computer Technician ) today reported its financial results for the third quarter ended Sept. 30, 1996. The net loss was $5.3 million, or $0.71 per share, in the third quarter of 1996 compared to a net loss of $2.4 million, or $0.54 per share, for the third quarter of 1995. The increase in net loss as anticipated was primarily due to a $2.4 million increase in research and development expenses in the third quarter of 1996 as the company funded advanced-stage clinical trials. For the nine months ended Sept. 30, 1996, the company's net loss was $12.5 million, or $1.91 per share, compared to a net loss of $7.7 million or $1.73 per share, reported for the same period last year. The quarter and nine months results were consistent with company expectations. As of Sept. 30, 1996, the company had $20.3 million in cash and short-term investments. "As planned, the third quarter was a period of aggressive clinical development of our products for the treatment of connective tissue disorders," said Thomas Wiggans, president and chief executive officer. "We initiated our first 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 , a study of gamma interferon for the treatment of atopic dermatitis Atopic Dermatitis Definition Eczema is a general term used to describe a variety of conditions that cause an itchy, inflamed skin rash. Atopic dermatitis, a form of eczema, is a non-contagious disorder characterized by chronically inflamed skin and , and shortly after, completed enrollment in a Phase II clinical trial Noun 1. phase II clinical trial - a clinical trial on more persons than in phase I; intended to evaluate the efficacy of a treatment for the condition it is intended to treat; possible side effects are monitored phase II of ConXn (human recombinant relaxin re·lax·in n. A female hormone secreted by the corpus luteum that helps soften the cervix and relax the pelvic ligaments in childbirth. relaxin, n H2) for the treatment of scleroderma scleroderma or progressive systemic sclerosis Chronic disease that hardens the skin and fixes it to underlying structures. Swelling and collagen buildup lead to loss of elasticity. The cause is unknown. . "We expect to continue to advance our late-stage products in the clinic and seek to in-license marketed products which can generate near-term revenues and build market franchises within our focus areas of dermatology and rheumatology rheumatology /rheu·ma·tol·o·gy/ (-tol´ah-je) the branch of medicine dealing with rheumatic disorders, their causes, pathology, diagnosis, treatment, etc. rheu·ma·tol·o·gy n. ." Connective Therapeutics Inc., headquartered in Palo Alto, is focused on the development of novel therapeutics for serious connective tissue disorders. The company has four products in development: gamma interferon for atopic dermatitis and keloids Keloids Definition Keloids are overgrowths of fibrous tissue or scars that can occur after an injury to the skin. These heavy scars are also called cheloid or hypertrophic scars. ; betamethasone betamethasone /be·ta·meth·a·sone/ (ba?tah-meth´ah-son) a synthetic glucocorticoid, the most active of the antiinflammatory steroids; used topically as the benzoate, dipropionate, or valerate salts as an antiinflammatory, topically or mousse for scalp psoriasis and other scalp dermatoses; relaxin for scleroderma and other fibrotic indications; and TCR TCR T cell receptor. vaccines for rheumatoid arthritis rheumatoid arthritis Chronic, progressive autoimmune disease causing connective-tissue inflammation, mostly in synovial joints. It can occur at any age, is more common in women, and has an unpredictable course. and multiple sclerosis. This news release contains forward-looking statements that involve risks and uncertainties that could cause actual results or events to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, without limitation, those mentioned in Connective's prospectus dated January 31, 1996 under the heading "Risk Factors" and in Connective's Report on Form 10-Q for the quarter ended March 31, 1996 under the heading "Additional Factors That May Affect Future Results." -0-
CONNECTIVE THERAPEUTICS INC.
Condensed Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
1996 1995 1996 1995
Operating Expenses:
Research and development $4,212 $1,860 $9,221 $6,527
General and administrative 1,100 532 3,419 1,182
Total operating expenses 5,312 2,392 12,640 7,709
Interest income, net 53 (15) 165 35
Net loss $(5,259) $(2,407) $(12,475) $(7,674)
Net loss per share $(0.71) $(0.54) $(1.91) $(1.73)
Shares used to calculate
net loss per share 7,402,797 4,434,751 6,524,574 4,433,874
Condensed Balance Sheets
(In thousands)
Sept. 30, Dec. 31,
1996 1995
(Unaudited)
Assets
Assets:
Cash, short-term investments and other $20,496 $ 9,177
Property and equipment, net 1,539 1,367
Long-term assets 597 1,252
Total assets $22,632 $11,796
Liabilities and Stockholders' Equity
Liabilities and stockholders' equity:
Current liabilities $ 5,233 $ 3,333
Other liabilities 4,692 8,400
Stockholders' equity 12,707 63
Total liabilities and stockholders'
equity $22,632 $11,796
-0- CONTACT: Connective Therapeutics Inc., Palo Alto Sylvia Wheeler, 415/843-2857 |
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