Curis Reports Second Quarter 2004 Results.CAMBRIDGE, Mass. -- Curis, 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 :CRIS), a therapeutic drug development company, today reported its financial results for the quarter ended June 30, 2004. For the second quarter of 2004, the Company reported a net loss applicable to common stockholders of $4,301,000 or ($0.10) per share, as compared to a net loss of $5,039,000 or ($0.15) per share for the prior year period. Revenues for the second quarter of 2004 were $1,120,000 as compared to $549,000 in the same period of 2003, an increase of $571,000, or 104%. The increase was due to revenues recognized by the Company under its ongoing collaborations with Genentech, Inc. (NYSE NYSE See: New York Stock Exchange :DNA DNA: see nucleic acid. DNA or deoxyribonucleic acid One of two types of nucleic acid (the other is RNA); a complex organic compound found in all living cells and many viruses. It is the chemical substance of genes. ) and Wyeth Pharmaceuticals, a division of Wyeth (NYSE:WYE). In the prior year period, revenues were principally generated under the Company's collaboration with ES Cell International that has since concluded. 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. for the second quarter of 2004 were $5,477,000 as compared to $5,759,000 for the second quarter of 2003, a decrease of $282,000 or 5%. Within operating expenses, the Company recorded general and administrative expenses of $2,239,000 for the second quarter of 2004 as compared to $1,638,000 for the same period in the prior year, an increase of $601,000 or 37%. The increase principally resulted from expenses associated with a planned equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. that has been postponed, expenses associated with technology acquisition evaluation and increases in personnel costs. The increase in general and administrative expenses was offset by a decrease in research and development expenses. Research and development expenses for the second quarter of 2004 were $2,830,000 as compared to $3,447,000 for the second quarter of 2003, a decrease of $617,000 or 18%. This decrease was primarily caused by a reduction in amounts spent on outside services, including sponsored research agreements and other laboratory services. For the six-month period ended June 30, 2004, the Company reported revenue of $1,976,000 and a net loss applicable to common stockholders of $8,339,000 or ($0.20) per share, versus revenue of $984,000 and a net loss of $9,509,000 or ($0.29) share for the six-month period ended June 30, 2003. As of June 30, 2004, cash and investments were $34,825,000, and there were 41,560,290 shares of common stock outstanding. Cash and Investment Positions Remain Strong Management noted that its cash and investment position remains stable. In addition to the $34,825,000 in cash and investments held by Curis at June 30, in July 2004 the Company received a license maintenance fee of $2,000,000 from Genentech. Daniel Passeri, Curis' President and Chief Executive Officer, stated, "Curis continues to seek to execute on its strategic plan for growth, supported by a number of business and product development accomplishments of the past quarter, and certainly the past 18 months. We also remain focused on the strategically important collaborations we have formed with Genentech for cancer, Ortho Biotech bi·o·tech n. Informal Biotechnology. biotech Noun short for biotechnology Noun 1. Products, L.P. (a subsidiary of Johnson & Johnson) for kidney disease Kidney Disease Definition Kidney disease is a general term for any damage that reduces the functioning of the kidney. Kidney disease is also called renal disease. and Wyeth for 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). ; as well as the products we are developing ourselves in the areas of cardiovascular disease Cardiovascular disease Disease that affects the heart and blood vessels. Mentioned in: Lipoproteins Test cardiovascular disease and alopecia alopecia (ăl'əpē`shēə): see baldness. ." Second Quarter 2004 Highlights --In May, Curis was added to the NASDAQ Biotechnology Index The NASDAQ Biotechnology Index includes securities of NASDAQ-listed companies classified according to the Industry Classification Benchmark as either Biotechnology or Pharmaceuticals which also meet other eligibility criteria. . All securities on the NASDAQ Biotechnology Index are listed on the NASDAQ National Market and meet minimum requirements, including market value, average daily share volume, and seasoning as a public company. --Results published in the Journal of Oral Pathology oral pathology n. The branch of dentistry concerned with the diseases of oral and paraoral structures, including oral soft tissues and mucous membranes and the teeth, jaws, and salivary glands. and Medicine cited that the Hedgehog hedgehog, Old World insectivorous mammal of the family Erinaceidae, related to moles and shrews. The spiny hedgehogs are found in Africa and Eurasia, except SE Asia. They have rounded bodies up to 13 in. pathway had been detected in ameloblastomas, rare but aggressive tumors of the jaw. Abnormal Hedgehog pathway activation has been implicated im·pli·cate tr.v. im·pli·cat·ed, im·pli·cat·ing, im·pli·cates 1. To involve or connect intimately or incriminatingly: evidence that implicates others in the plot. 2. in the progression of several cancers. --Results in the Journal of Molecular Medicine cited that administration of BMP-7 reverses the effects of a certain cause of kidney scarring or fibrosis fibrosis /fi·bro·sis/ (fi-bro´sis) formation of fibrous tissue.fibrot´ic congenital hepatic fibrosis , thereby promoting restoration of kidney function. Kidney fibrosis is one of the leading causes of end-stage kidney disease. --In April, Curis was issued a new patent, 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: , "Methods and compositions for the treatment of motor neuron motor neuron n. A neuron that conveys impulses from the central nervous system to a muscle, gland, or other effector tissue. Motor neuron injury and neuropathy neuropathy Disorder of the peripheral nervous system. It may be genetic or acquired, progress quickly or slowly, involve motor, sensory, and/or autonomic (see autonomic nervous system) nerves, and affect only certain nerves or all of them. ."
CURIS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three months ended Six months ended
June 30, June 30,
2004 2003 2004 2003
------------ ------------ ------------ ------------
Revenues $1,120,068 $548,942 $1,975,874 $984,300
------------ ------------ ------------ ------------
Operating expenses:
Research and
development 2,829,862 3,447,303 5,637,699 6,187,101
General and
administrative 2,239,299 1,637,596 4,154,447 3,345,871
Stock-based
compensation 388,918 655,328 690,619 919,194
Amortization of
intangible
assets 18,768 18,771 37,535 37,542
------------ ------------ ------------ ------------
Total operating
expenses $5,476,847 $5,758,998 $10,520,300 $10,489,708
------------ ------------ ------------ ------------
Net loss from
operations $(4,356,779) $(5,210,056) $(8,544,426) $(9,505,408)
------------ ------------ ------------ ------------
Other income, net 55,407 262,264 205,238 267,812
------------ ------------ ------------ ------------
Net loss (4,301,372) (4,947,792) (8,339,188) (9,237,596)
Accretion on
Series A
convertible
exchangeable
preferred stock - (91,081) - (271,306)
------------ ------------ ------------ ------------
Net loss
applicable to
common
stockholders $(4,301,372) $(5,038,873) $(8,339,188) $(9,508,902)
============ ============ ============ ============
Basic and diluted
net loss per
common share $(0.10) $(0.15) $(0.20) $(0.29)
============ ============ ============ ============
Basic and diluted
weighted average
common shares
outstanding 41,467,665 33,501,511 41,286,705 32,621,151
============ ============ ============ ============
CURIS, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30, December 31,
2004 2003
-------------- --------------
ASSETS
Cash, cash equivalents, marketable
securities and long-term investments $34,824,594 $37,537,993
Cash equivalents - restricted 190,688 190,661
Accounts and notes receivable 4,521,940 4,184,973
Property and equipment, net 2,699,876 2,500,703
Intangible assets, net 9,121,658 9,159,193
Other assets 1,901,191 2,162,967
-------------- --------------
Total assets $ 53,259,947 $ 55,736,490
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses $4,087,093 $2,884,643
Capital lease and debt obligations 599,613 322,884
Convertible debt 5,521,370 5,333,733
Deferred revenue 9,092,294 8,330,017
-------------- --------------
Total liabilities 19,300,370 16,871,277
Total stockholders' equity 33,959,577 38,865,213
-------------- --------------
Total liabilities and stockholders'
equity $53,259,947 $55,736,490
============== ==============
About Curis, Inc. Curis, Inc. is a therapeutic drug development company. Curis' technology focus is on regulatory pathways that control repair and regeneration. Curis' product development program involves using proteins, small molecules and other approaches to modulate To insert a data signal into a carrier wave or direct current. See modulation. these pathways. Curis has successfully used this technology and product development strategy to produce several promising product candidates in the fields of kidney disease, neurological disorders, cancer, and hair growth regulation. Curis is based in Cambridge, Massachusetts This article is about the city of Cambridge in Massachusetts. For the English university town, see Cambridge, England. For other places, see Cambridge (disambiguation). Cambridge, Massachusetts is a city in the Greater Boston area of Massachusetts, United States. . For more information, please visit the Curis web site at www.curis.com. This press release contains 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, including statements concerning Curis' execution on its strategic plan for growth. Forward looking statements used in this press release may contain the words "believes", "expects", "anticipates", "plans", "seeks", "estimates" or similar expressions. These forward looking statements are not guarantees of future performance and involve risks, uncertainties, assumptions and other factors that may cause Curis' actual results to be materially different from those indicated by such forward-looking statements. Actual results can be affected by a number of important factors including, among other things: adverse results in Curis' and its strategic collaborators' product development programs; difficulties or delays in obtaining or maintaining required regulatory approvals; Curis' ability to obtain or maintain the patent and other proprietary intellectual property protection necessary for the development and commercialization of products based on its technologies; changes in or Curis' inability to execute its business plan; the risk that Curis does not obtain the additional funding required to conduct research and development of its product candidates and execute on its business plan; unplanned cash requirements and expenditures; risks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Curis' ability to enter into and maintain important strategic collaborations, including its ability to maintain its current collaboration agreements with Genentech, Ortho Biotech and Wyeth; the risk that competitors will discover and develop signaling pathway-based therapeutics therapeutics Treatment and care to combat disease or alleviate pain or injury. Its tools include drugs, surgery, radiation therapy, mechanical devices, diet, and psychiatry. faster and more successfully than Curis and its collaborators are able to; and other risk factors identified in Curis' Quarterly Report on Form 10-Q Form 10-Q See 10-Q. and other reports periodically filed with the Securities and Exchange Commission. In addition, any forward-looking statements represent the Company's views only as of today and should not be relied upon as representing its views as of any subsequent date. Curis disclaims any intention or obligation to update any of the forward-looking statements after the date of this press release whether as a result of new information, future events or otherwise. |
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