Cytel Announces Second Quarter Financial Results.SAN DIEGO San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. , Calif.--(BW HealthWire)--July 28, 1998--Cytel 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 :CYTL) today announced financial results for the second quarter of 1998. For the three month period ended June June: see month. 30, 1998, Cytel reported a net loss of $5.2 million, or $0.16 per share, on revenues of $0.5 million. This compares with a net loss of $4.2 million, or $0.17 per share, on revenues of $0.4 million in the second quarter of 1997. The Company reported revenues for the six months ended June 30, 1998 of $1 million and a net loss of $9.4 million, or $0.29 per share. These results compare with revenues of $2.1 million and a net loss of $7.6 million, or $0.30 per share for the same period in 1997. Increased 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 quarter reflect the cost of accelerated patient accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. in the on-going Phase II/III clinical trial of Cytel's lead therapeutic compound, Cylexin(TM), and opening of its Gmp manufacturing facility for Cylexin and bioactive bi·o·ac·tive adj. Of or relating to a substance that has an effect on living tissue. bioactive having an effect on or eliciting a response from living tissue. carbohydrates Carbohydrates Compounds, such as cellulose, sugar, and starch, that contain only carbon, hydrogen, and oxygen, and are a major part of the diets of people and other animals. Mentioned in: Laxatives carbohydrates, n. . Increased general and administrative expenses, as compared to 1997, reflect the creation of Epimmune, which was established in October 1997 and moved to its own facility. As of June 30, 1998, Cytel had cash, cash equivalents and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments of $17 million and 32,870,387 shares of common stock outstanding. Cytel has discovered cell adhesion Cellular adhesion is the binding of a cell to another cell or to a surface or matrix. Cellular adhesion is regulated by specific adhesion molecules that interact with molecules on the opposing cell or surface. inhibitors for treatment of acute and chronic inflammation chronic inflammation n. Inflammation that may have a rapid or slow onset but is characterized primarily by its persistence and lack of clear resolution; it occurs when the tissues are unable to overcome the effects of the injuring agent. , and manufactures bioactive carbohydrates for use in medical and consumer products. Epimmune Inc., its subsidiary, is focused on the discovery and development of a new generation of safer, more potent vaccines for the prevention and treatment of cancer and infectious diseases infectious diseases: see communicable diseases. . This press release includes 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. that reflect management's current views of future events. Actual results may differ materially from the above forward-looking statements due to a number of important factors, including but not limited to the risks associated with successfully negotiating and completing definitive agreements for any corporate collaboration Working together on a project. See collaborative software. , the timing and cost of conducting human clinical trials, the regulatory approval process, and the possibility that testing may reveal undesirable and unintended side effects Side effects Effects of a proposed project on other parts of the firm. or other characteristics that may prevent or limit the commercial use of proposed products. These factors are more fully discussed in Cytel's most recent Forms 10-K and 10-Q. -0-
Cytel Corporation
Condensed Consolidated Statements of Operations
(in thousands)
Three months Six months
ended June 30, ended June 30,
1998 1997 1998 1997
---------------------------------------
(Unaudited) (Unaudited)
Revenues:
Research and development $ -- $ -- $ -- $ 1,125
Research grants and other
income 507 394 977 934
------ ------- ------- --------
Total revenues 507 394 977 2,059
Operating expenses:
Research and development 4,616 3,971 8,402 8,498
General and administrative 1,508 792 2,612 1,627
------ ------- ------- --------
Total expenses 6,124 4,763 11,014 10,125
Minority interest in net loss
of consolidated
subsidiary (1) 120 -- 145 --
Interest income, net 263 178 539 447
------- ------- ------- --------
Net loss $(5,234) $(4,191) $(9,353) $(7,619)
======= ======= ======= ========
Net loss per share
(Basic and Diluted) $ (0.16) $ (0.17) $ (0.29) $ (0.30)
======= ======= ======= ========
Average common shares
outstanding
(Basic and Diluted) 32,868 25,135 32,732 25,121
======= ======= ======= ========
Condensed Consolidated Balance Sheets
(in thousands)
June 30, Dec. 31,
1998 1997
-------- ---------
(Unaudited)
Assets
Current assets:
Cash, cash equivalents and short-term
investments $ 17,005 $ 17,803
Other current assets 2,029 1,687
-------- ---------
Total current assets 19,034 19,490
Property and equipment, net 2,743 1,704
Other assets 7,983 6,953
-------- ---------
Total assets $ 29,760 $ 28,147
======== =========
Liabilities and stockholders' equity
Current liabilities $ 2,504 $ 1,711
Other liabilities 1,707 2,044
Minority interest in consolidated subsidiary (1) 2,031 --
Stockholders' equity 23,518 24,392
-------- ---------
Total liabilities and stockholders' equity $ 29,760 $ 28,147
======== =========
(1) The minority interest calculation is based on G.D. Searle's actual
ownership percentage in Epimmune of 13.4%. The calculation does
not include the potential additional ownership interest that would
result from the conversion of G. D. Searle's investment in Cytel's
preferred stock which is convertible into Epimmune common stock.
CONTACT: Cytel Corporation Virgil Thompson Thompson, city, Canada Thompson, city (1991 pop. 14,977), central Man., Canada, on the Burntwood River. A mining town, it developed after large nickel deposits were discovered in the area in 1956. , 619/552-3000 (President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. ) or Mentus, Inc. Linda Seaton, 619/455-5500 ext. 133 (Media Contact) Kelly Steeves, 619/455-5500 ext. 129 (Media Contact) Timothy Scott, 619/455-5500 ext. 132 (Investor Contact) |
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