Interneuron Pharmaceuticals Announces Third Quarter Fiscal 1998 Results.
The Company reported net losses of $14,755,000, or $0.35 per share, for the three month period ended June 30, 1998, and $57,256,000, or $1.38 per share, for the nine month period ended June 30, 1998, compared with net losses of $7,174,000, or $0.17 per share, for the three month period ended June 30, 1997, and $17,955,000, or $0.44 per share, for the nine month period ended June 30, 1997. Per share amounts are all on both a basic and diluted basis.
Total consolidated revenues were $1,693,000 and $4,690,000 for the three and nine month periods ended June 30, 1998, compared to revenues of $17,395,000 and $54,861,000 for the three and nine month periods ended June 30, 1997. Revenues in the 1998 periods were primarily generated from sales of PMS Escape(TM) and contract and license fees. Revenues during fiscal 1997 primarily relate to Redux(TM), which was withdrawn in September 1997.
At June 30, 1998, on a consolidated basis, the Company had cash, cash equivalents and marketable securities of approximately $80,526,000 of which approximately $22,441,000 is held by its majority-owned subsidiary, Intercardia, Inc. and is generally unavailable to the Company.
"Recent clinical and regulatory highlights at Interneuron include the initiation of a 900-patient Phase 3 trial with CerAxon for ischemic stroke in July 1998 following the withdrawal of the NDA in April 1998, the completion of enrollment in a Phase 2-3 trial with pagoclone for panic and anxiety, and the receipt of authorization from the FDA for marketing a medical device, AnatoMark(TM), for brain imaging," said Glenn L. Cooper, M.D., president and chief executive officer of Interneuron. "We also expanded our earlier stage product pipeline with the licensing of rights to a compound known as PACAP from Tulane University with potential as a treatment for stroke and other neurodegenerative diseases.
"Among our subsidiaries, the merger of Transcell Technologies, Inc. with Intercardia became effective in May, 1998," said Dr. Cooper.
"We expect data shortly from a pivotal Phase 2-3 clinical trial with pagoclone for panic," said Dr. Cooper. "Data is also expected in the fourth quarter of fiscal 1998 from a placebo-controlled, blinded study relating to Redux that will add to the database provided by the study results announced in March, 1998 which showed no statistically significant difference between the incidence of cardiac valve abnormalities seen among patients who took Redux and that seen among those who received placebo."
Consolidated costs and expenses totaled $18,332,000 for the three month period ended June 30, 1998 compared to $27,302,000 for the corresponding 1997 three month period, and $66,719,000 for the nine month period ended June 30, 1998 compared to $80,294,000 for the corresponding 1997 nine month period. The Company's major expenses for the three and nine month periods ended June 30, 1998 principally relate to marketing costs incurred by the Company's InterNutria, Inc. subsidiary in connection with PMS Escape, noncash expenses related to the Company's 1997 Equity Incentive Plan, and development expenses related to CerAxon.
Expenses at Interneuron's consolidated, majority-owned subsidiary companies constituted a significant part of the Company's overall expenses. The subsidiaries' portions of consolidated research and development and selling, general and administrative expenses were approximately 55 percent and 47 percent, respectively, for the three and nine month periods ended June 30, 1998 (not including Progenitor, which is not consolidated for fiscal 1998). This compares with subsidiaries' portions of 41 percent and 40 percent for the three and nine month periods ended June 30, 1997.
Increased subsidiary expenses during fiscal 1998 are primarily the result of costs incurred in connection with the launch of PMS Escape by InterNutria. For the 1997 periods, subsidiary expenses included those incurred by Progenitor, Inc. Following the initial public offering of Progenitor in August 1997, Progenitor has been accounted for under the equity method and, therefore, expenses related to Progenitor are not consolidated in the Company's financial statements for fiscal 1998.
InterNutria is actively exploring strategic alternatives, which may include financing or corporate partnering, to reduce significantly or to eliminate Interneuron's funding of InterNutria in the near term. In addition, the recently finalized merger of Transcell into Intercardia transfers responsibility for the funding of Transcell from Interneuron to Intercardia.
Interneuron Pharmaceuticals is a diversified biopharmaceutical company engaged in the development and commercialization of a portfolio of prod
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|Date:||Aug 14, 1998|
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