Cytel Announces Third Quarter Financial Results.SAN DIEGO--(BW HealthWire)--Oct. 27, 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 third quarter of 1998. For the three month period ended September 30, 1998, Cytel reported a net loss of $4.5 million, or $0.13 per share, on revenues of $1.8 million. This compares with a net loss of $2.8 million, or $0.11 per share, on revenues of $1.8 million in the third quarter of 1997. The Company reported revenues for the nine months ended September 30, 1998 of $2.8 million and a net loss of $13.8 million, or $0.42 per share. These results compare with revenues of $3.9 million and a net loss of $10.4 million, or $0.41 per share, for the same period in 1997. Research and development revenue for the third quarter of 1998 reflects $1.4 million received from Elan Corporation's (NYSE NYSE See: New York Stock Exchange : ELN Noun 1. ELN - a Marxist terrorist group formed in 1963 by Colombian intellectuals who were inspired by the Cuban Revolution; responsible for a campaign of mass kidnappings and resistance to the government's efforts to stop the drug trade; "ELN kidnappers target ) subsidiary, Elan International Services Ltd. (Elan), for an exclusive sublicense for patent rights involving the use of antibodies that block VLA-4 integrin integrin /in·te·grin/ (in´te-grin) any of a family of heterodimeric cell adhesion receptors, each consisting of an a and a ß polypetide chain, that mediate cell-to-cell and cell-to–extracellular matrix interactions. for the treatment of inflammatory conditions. In addition to the research and development revenue, Elan made a $2.6 million equity investment in Cytel's common stock. 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 in the on-going Phase II/III clinical trial of Cytel's lead therapeutic compound, Cylexin(R) and the addition in the second quarter of this year of its GMP GMP (guanosine monophosphate): see guanine. manufacturing facility for Cylexin and other bioactive carbohydrates. General and administrative expenses year to date, as compared to the same period in 1997, refelct the creation and operation of Epimmune, its vaccine subsidiary, which was established in Oct. 1997 and moved to its own facility. As of September 30, 1998 Cytel had cash, cash equivalents and short-term investments of $16.1 million and 34,909,187 shares of common stock outstanding. Cytel has discovered cell adhesion 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. This press release includes forward-looking statements 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, the timing and cost of conducting human clinical trials, the regulatory approval process, and the possibility that testing may reveal undetements of Operations (in thousands) Three Months Ended 387 196 1,364 1,131 Total revenues 1,774 1,821 2,751 3,881 Operating Expenses: Research and development 5,690 3,807 14,092 12,305 $(0.13) $(0.11) $(0.42) $(0.41) Average common shares outstanding (Basic and Diluted) 34,079 25,445 33,181 25,229 Condensed Consolidated Balance Sheets (in thousands) September 30, December 31, 1998 1997 (Unaudited) Assets Current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. : Cash, cash equivalents and short-term investments $16,091 $17,803 Other current assets Other Current Assets A balance sheet item that includes the value of non-cash assets due within one year. Notes: Examples are things like prepaid expenses and accounts receivable. 1,525 1,687 Total current assets 17,616 19,490 Property and equipment, net 2,678 1,704 Other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. 7,749 6,953 Total assets 28,043 28,147 Liabilities and stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. Current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. $2,945 $1,711 Other Liabilities 1,466 2,044 Minority interest in consolidated subsidiary (1) 1,896 -- Stockholders' equity 21,736 24,392 Total liabilities and stockholders' equity 28,043 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. -0- |
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