Megabios Announces First Quarter Financial Results.BURLINGAME, Calif.--(BW HealthWire)--Nov. 6, 1997--Megabios Corp. (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 :MBIO) reported today a net loss of $0.8 million, or $0.08 per pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma share, for the quarter ended September 30, 1997, compared to a net loss of $1.0 million, or $0.10 per pro forma share, for the quarter ended September 30, 1996. Expenditures on research and development for the quarter ended September 30, 1997, were $2.8 million versus $1.9 million for same quarter ending a year earlier. Revenues for the quarter ended September 30, 1997 were $2.3 million, an increase over revenues of $1.5 million for the quarter ended September 30, 1996. Revenues were comprised principally of research and development funding from corporate partners. Cash 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 totaled $54.0 million at September 30, 1997. On September 15, 1997, the Company completed its initial public offering of 2,500,000 shares of common stock at $12.00 per share. In addition, on September 29, 1997, the Company's underwriters exercised their over-allotment option and purchased an additional 375,000 shares of the common stock at $12.00 per share. The combined gross proceeds raised by Megabios from the offering and over-allotment option was approximately $34.5 million. "With the successful completion of Megabios' initial public offering, the Company has added significant additional financial resources to support its efforts to develop novel gene-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. ," stated Benjamin F. McGraw, III, Chairman, Chief Executive Officer and President of Megabios. "We intend to form additional partnerships with leading pharmaceutical and biotechnology companies Top 100 Biotechnology Companies The following is a list of the top 100 biotechnology companies ranked by revenue. The first nine companies qualify for the list of the top 50 pharmaceutical companies. , while expanding our gene-based delivery systems currently under development." Megabios Corp. is developing proprietary gene delivery systems and provides preclinical preclinical /pre·clin·i·cal/ (-klin´i-k'l) before a disease becomes clinically recognizable. pre·clin·i·cal adj. 1. development expertise to create gene-based therapeutics designed for the treatment or prevention of genetic and acquired diseases. Megabios Corp. has developed several in vivo in vivo /in vi·vo/ (ve´vo) [L.] within the living body. in vi·vo adj. Within a living organism. in vivo adv. , non-viral gene delivery systems to address a number of potential therapeutic applications using a variety of therapeutic agents. The Company's clinical development and commercialization strategy is to enter into collaborative research and development agreements, or "corporate partnerships," with pharmaceutical and biotechnology companies. To date, the Company has established corporate partnerships with Glaxo Wellcome plc to develop a treatment for cystic fibrosis cystic fibrosis (sĭs`tĭk fībrō`sĭs), inherited disorder of the exocrine glands (see gland), affecting children and young people; median survival is 25 years in females and 30 years in males. using the CFTR gene, Pfizer Inc to develop a treatment for solid tumors through angiogenesis angiogenesis /an·gio·gen·e·sis/ (-jen´e-sis) vasculogenesis; development of blood vessels either in the embryo or in the form of neovascularization or revascularization. an·gi·o·gen·e·sis n. inhibition inhibition In enzymology, a phenomenon in which a compound (an inhibitor), usually similar in structure to the substance on which an enzyme acts (substrate), interacts with the enzyme so that the resulting complex cannot undergo the usual reaction or cannot form the usual and Eli Lilly and Company Eli Lilly and Company (NYSE: LLY) is a global pharmaceutical company and one of the world's largest corporations. Eli Lilly's global headquarters is located in Indianapolis, Indiana, in the United States. to develop treatments for breast and ovarian cancer ovarian cancer Malignant tumour of the ovaries. Risk factors include early age of first menstruation (before age 12), late onset of menopause (after age 52), absence of pregnancy, presence of specific genetic mutations, use of fertility drugs, and personal history of breast using the BRCA BRCA One of two genes (designated BRCA1 and BRCA2) that help repair damage to DNA, but when inherited in a defective state increase the risk of breast and ovarian cancer. 1 gene. Statements in this press release that are not strictly historical are "forward looking" statements as defined in 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. The actual results may differ from those projected in the forward looking statement due to risks and uncertainties that exist in the Company's operations and business environment, described more fully in the Company's Form 10-Q Form 10-Q See 10-Q. for the period ended September 30, 1997 and the prospectus dated September 15, 1997, filed with the Securities and Exchange Commission. -0-
MEGABIOS CORP.
Selected Financial Information
Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three months ended
September 30,
1997 1996
Collaborative research and
development revenue $ 2,287 $ 1,471
Operating expenses:
Research and development 2,758 1,870
General and administrative 675 573
Total operating expenses 3,433 2,443
Loss from operations (1,146) (972)
Interest income 398 63
Interest expense (98) (98)
Net loss $ (846) $ (1,007)
Net loss per pro forma share $ (0.08) $ (0.10)
Shares used in computing net
loss per pro forma share 10,081,396 9,863,224
Condensed Balance Sheets
(in thousands)
September 30, June 30,
1997 1997
(unaudited)
Assets
Cash and cash equivalents $ 40,307 $ 9,044
Short-term investments 13,798 15,225
Other current assets 899 628
Total current assets 55,004 24,897
Property and equipment, net 5,471 4,733
Other assets 349 348
-------- --------
$ 60,824 $ 29,978
Liabilities and
shareholders' equity
Current liabilities $ 2,641 $ 3,269
Long-term obligations 1,964 1,486
Stockholders' equity 56,219 25,223
-------- --------
$ 60,824 $ 29,978
CONTACT: Megabios Corp. Patrick Enright, 650/697-1900 (ext. 214) enright@megabios.com or Burns McClellan, Inc. Reagan Codner (investor inquiries), 212/213-0006 Audra Nass (media inquiries), 650/352-6262 |
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