CuraGen Reports Second Quarter 1998 Results.NEW HAVEN New Haven, city (1990 pop. 130,474), New Haven co., S Conn., a port of entry where the Quinnipiac and other small rivers enter Long Island Sound; inc. 1784. Firearms and ammunition, clocks and watches, tools, rubber and paper products, and textiles are among the many , Conn.--(BUSINESS WIRE)--July 30, 1998--CuraGen Corporation (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 : CRGN) today announced results for the quarter ended June 30, 1998. Revenues for the three months ended June 30, 1998 were $2,715,626, up 65% from $1,647,094 for the same period in 1997. The Company reported a net loss attributable to common stockholders of $2,499,017, or ($0.19) per share for the quarter ended June 30, 1998, as compared to $1,477,192, or ($0.18) per share, for the same period in 1997. Revenues for the six-month period ended June 30, 1998 were $4,705,198, up 63% from first half-year revenues of $2,879,632 in 1997. These increases in revenue for the three- and six-month periods were primarily due to additional collaboration revenue received under the Company's collaborative research and development arrangements with Pioneer Hi-Bred Pioneer Hi-Bred is one of the largest U.S. companies which produces hybrid seeds for agriculture. History In 1926, farm journal editor and future U.S. Vice President Henry A. Wallace, along with a group of Des Moines, Iowa businessmen, started the "Hi-Bred Corn Company". International, Inc. and Biogen, Inc. For the six-month period ended June 30, 1998, the Company reported a net loss attributable to common stockholders of $6,174,965, or ($0.55) per share as compared to $2,030,782, or ($0.29) per share for the same period last year. 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. were $5,785,697 for the three months ended June 30, 1998, compared to $3,050,064 for the same period in 1997. For the first six months of 1998, operating expenses were $10,979,393, up $6,251,564 from $4,727,829 for the same period in 1997. The increase in total operating expenses for the three- and six-month periods of 1998, as compared to the same periods in 1997, resulted primarily from the hiring of additional research and development personnel, related costs and increased general and administrative expenses in support of the Company's growth. At June 30, 1998, the Company had approximately $54 million in cash and cash equivalent investments. Commenting on the Company's advancement, Jonathan M. Rothberg The creator of this article, or someone who has substantially contributed to it, may have a conflict of interest regarding its subject matter. It may require cleanup to comply with Wikipedia's content policies, particularly neutral point of view. , Ph.D., CuraGen's Chairman, President and Chief Executive Officer said, "This quarter we made great progress in positioning ourselves as a technology, process and discovery leader in the area of genomics. Our GeneCalling(R) process has produced more than 100 million data points on the expression of genes related to disease and agricultural products for our collaborators Biogen, Genentech, and Pioneer, as well as ourselves." Dr. Rothberg added, "We believe this is one of the largest, most comprehensive and valuable collection of information on the expression and function of genes in the industry." "In addition, we made great strides in integrating gene expression data with pathway information in our PathCalling(tm) database," said Dr. Rothberg. "We are creating a precious resource for the elucidation e·lu·ci·date v. e·lu·ci·dat·ed, e·lu·ci·dat·ing, e·lu·ci·dates v.tr. To make clear or plain, especially by explanation; clarify. v.intr. To give an explanation that serves to clarify. of important biological and disease pathways, and we are helping to identify critical targets for drug development." Validating the power of CuraGen's technologies, the Company and Pioneer Hi-Bred International, Inc., recently announced a promising new discovery that helps eliminate fumonisin residues in corn. Fumonisin is a toxin toxin, poison produced by living organisms. Toxins are classified as either exotoxins or endotoxins. Exotoxins are a diverse group of soluble proteins released into the surrounding tissue by living bacterial cells. produced by a mold mold, name for certain multicellular organisms of the various classes of the kingdom Fungi, characteristically having bodies composed of a cottony mycelium. The colors of molds are caused by the spores, which are borne on the mycelium. that develops in corn under certain conditions and can prove fatal to livestock. Using GeneCalling(R), Pioneer scientists working with researchers from CuraGen identified and cloned a gene that degrades the toxins produced by the mold, making corn grain safer for livestock. Also in July 1998, CuraGen announced a collaboration agreement with DuPont Agricultural Enterprise, a unit of E.I. du Pont de Nemours Du Pont de Ne·mours , Pierre Samuel 1739-1817. French-born economist and politician who took part in negotiations after the American Revolution (1783) and in the acquisition of the Louisiana Territory (1803). and Company. Under the agreement, CuraGen will use its suite of proprietary processes, technologies, and bioinformatics Using computers in biological research to analyze or predict the composition of molecules (nucleic acids, proteins, etc.) and model biologic systems. Bioinformatics is most prominent in the Human Genome Project, which has recorded the three billion chemical base pairs that make up the to elucidate e·lu·ci·date v. e·lu·ci·dat·ed, e·lu·ci·dat·ing, e·lu·ci·dates v.tr. To make clear or plain, especially by explanation; clarify. v.intr. To give an explanation that serves to clarify. and characterize the genetic components and metabolic pathways underlying the action of highly promising new DuPont crop protection products. The Company also announced that since its initial public offering it has filed eight (8) additional patent applications on potential therapies and technologies arising from its own internal programs. Commenting on the progress, Gregory T. Went, Ph.D., CuraGen's co-founder and Executive Vice President said, "Our portfolio of internal and partnered research programs has yielded promising discoveries, with significant patent filings and, in some cases, in vitro in vitro /in vi·tro/ (in ve´tro) [L.] within a glass; observable in a test tube; in an artificial environment. in vi·tro adj. In an artificial environment outside a living organism. validation See validate. validation - The stage in the software life-cycle at the end of the development process where software is evaluated to ensure that it complies with the requirements. ." In June 1998, Jonathan M. Rothberg, Ph.D., founder of CuraGen, was selected as the winner of the prestigious Ernst & Young Entrepreneur of the Year competition for Emerging Companies in Southern New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. . This award recognizes entrepreneur-owners of fast-growing companies who have demonstrated excellence and extraordinary success in such areas as innovation, financial performance, and personal commitment to their businesses and communities. Rothberg will participate in the national Entrepreneur of the Year competition. Previous winners include Michael Dell Michael Saul Dell (born February 23, 1965, in Houston, Texas) is the founder and CEO of Dell, Inc. Biography Early life and education The son of an orthodontist, Dell was born in to an upper-class Jewish family and attended Herod Elementary School in Houston, of Dell Computer, Howard Schultz  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. of Starbucks Coffee, and Steve Case Steve Case (born August 21, 1958) is a businessman best known as the co-founder and former chief executive officer and chairman of America Online (AOL). He reached his highest profile when he played an instrumental role in AOL's merger with Time Warner in 2000. of America Online See AOL. . CuraGen Corporation is revolutionizing the discovery and development of life science products through the systematic application of genomics. CuraGen's fully-integrated genomics technologies, processes, and information systems are designed to rapidly generate comprehensive information about gene expression, biological pathways, and potential products that affect these pathways, each on a scale not previously undertaken. CuraGen is headquartered in New Haven, CT, with additional facilities in Branford, CT, and greater-Gainesville, FL. The Company employs over 230 people. Additional Company information is available at www.curagen.com. Except for the historical information contained herein, the matters set forth in this press release are 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 "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions 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. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. Such risks and uncertainties may include, but are not limited to, the following: the Company's early stage of development, technological uncertainty and product development risks, uncertainty of additional funding, reliance on research collaborations, competition, the Company's ability to protect its patents and proprietary rights and uncertainties relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc commercialization rights. For a discussion of factors that may cause results to differ, see CuraGen's SEC filing and prospectus dated March 18, 1998. These forward-looking statements speak only as of the date 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" . CuraGen disclaims any intent or obligation to update these forward-looking statements. -0-
CURAGEN CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
----- ----- ----- -----
Revenue:
Grant revenue $1,090,626 $1,158,761 $2,080,198 $1,891,049
Collaboration
revenue 1,625,000 488,333 2,625,000 988,583
============ ========== ========= =========
Total revenue 2,715,626 1,647,094 4,705,198 2,879,632
============ ========== ========= =========
Operating expenses:
Grant research 435,546 1,411,686 1,107,699 2,467,561
Collaborative
research
and development 3,653,524 954,422 6,796,077 1,279,777
General and
administrative 1,696,627 683,956 3,075,617 980,491
============ ========== ========= =========
Total operating
expenses 5,785,697 3,050,064 10,979,393 4,727,829
============ ========== ========= =========
Loss from
operations (3,070,071) (1,402,970) (6,274,195) (1,848,197)
Interest income
(expense), net 571,054 (57,116) 607,665 (148,373)
============ ========== ========= =========
Net loss (2,499,017) (1,460,086) (5,666,530) (1,996,570)
Preferred dividends - (17,106) (508,435) (34,212)
========== =========== ========== ============
Net loss attributable
to common
stockholders ($2,499,017)($1,477,192)($6,174,965) ($2,030,782)
========== =========== ========== ============
Basic and diluted
net loss per share
attributable to
common stockholders ($0.19) ($0.18) ($0.55) ($0.29)
========== =========== ========== ============
Weighted average number
of shares used in
computing
basic and diluted
net loss per share
attributable
to common
stockholders 13,059,502 8,239,913 11,134,192 6,888,476
========== =========== ========== ==========
SELECTED BALANCE SHEET INFORMATION
June 30, December 31,
1998 1997
======= =======
(unaudited) (audited)
Cash and cash equivalents $ 53,980,805 $ 17,417,161
Working capital 48,245,386 14,738,672
Total assets 67,781,413 26,519,029
Stockholders' equity 54,479,662 13,682,175
CONTACT: David M. Wurzer Executive Vice President and Chief Financial Officer CuraGen Corporation 1-888-GENOMICS Email: investors@curagen.com |
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