NeoRx Reports Fourth Quarter and Full Year Financial Results and Corporate Highlights.SEATTLE -- Management to Hold Conference Call Today at 4:30 p.m. ET (1:30 p.m. Pacific) NeoRx 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 :NERX) today reported results for the quarter and year ended December 31, 2004. For the fourth quarter of 2004, NeoRx reported a net loss of $5.3 million ($0.18 diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. loss per share on a loss applicable to common shares of $5.4 million), compared to a net loss of $3.1 million ($0.19 diluted loss per share on loss applicable to common shares of $5.2 million) for the fourth quarter of 2003. Net loss for the year ended December 31, 2004 was $19.4 million ($0.66 diluted loss per share on a loss applicable to common shares of $19.9 million), compared to a net loss of $5.1 million ($0.28 diluted loss per share on a loss applicable to common shares of $7.5 million) for the year ended December 31, 2003. The 2003 results included income of $10.0 million from licensing certain non-core intellectual property. "I believe that we are making substantial progress to advance NeoRx as a specialty pharmaceutical company dedicated to the development and commercialization of oncology oncology /on·col·o·gy/ (ong-kol´ah-je) the sum of knowledge regarding tumors; the study of tumors. on·col·o·gy n. products," said Jerry McMahon, Ph.D., chairman and chief executive officer of NeoRx. "Among our accomplishments during 2004, we expanded our oncology pipeline with the acquisition of the platinum-based compound NX 473, for which we currently plan to begin a Phase II trial in small cell lung cancer Lung Cancer, Small Cell Definition Small cell lung cancer is a disease in which the cells of the lung tissues grow uncontrollably and form tumors. Description Lung cancer is divided into two main types: small cell and non-small cell. in mid-2005; we started our pivotal trial of STR STR abbr. synchronous transmitter receiver for the treatment of multiple myeloma multiple myeloma A malignant proliferation of abnormal plasma cells that populate the marrow-containing bones of the body. The affected plasma cells produce myeloma protein, a monoclonal antibody that replaces normal antibodies in the blood, thereby increasing susceptibility ; and we added key members to our executive team and board of directors." "During the coming year, we are committed to forming partnerships to support clinical development and commercialization of STR and NX 473, and to continuing to build our portfolio with oncology product candidates that have the potential to provide long-term value for our shareholders," added McMahon. Revenue for the fourth quarter of 2004 was $2,000 from royalties earned. The Company received no revenue in the fourth quarter of 2003. Revenue for the year ended December 31, 2004 was $1.0 million, compared to $10.5 million for the year ended December 31, 2003. Revenue for the 2004 year consisted primarily of milestone payments from Boston Scientific The Boston Scientific Corporation (NYSE: BSX) (abbreviated BSC), is a worldwide developer, manufacturer and marketer of medical devices whose products are used in a range of interventional medical specialties, including interventional cardiology, peripheral interventions, Corporation. Revenue for the 2003 year consisted of $10.0 million from the assignment and license to Boston Scientific Corporation of certain non-core intellectual property and revenue from a facilities lease. Total 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 fourth quarter of 2004 increased to $5.3 million, from $3.1 million for the fourth quarter of 2003, and increased to $20.5 million for the year ended December 31, 2004, from $15.2 million for the same period in 2003. Research and development expenses increased to $3.3 million for the fourth quarter of 2004, from $2.2 million for the fourth quarter of 2003. The increase in R&D expenses for the fourth quarter of 2004 resulted from increased costs related to the STR Phase III Noun 1. phase III - a large clinical trial of a treatment or drug that in phase I and phase II has been shown to be efficacious with tolerable side effects; after successful conclusion of these clinical trials it will receive formal approval from the FDA trial, which was opened in March 2004, and to pre-clinical development Pre-clinical development is a stage in the development of a new drug that begins before clinical trials (testing in humans) can begin, and during which important safety and pharmacology data is collected. efforts related to NX 473. Research and development expenses for the year ended December 31, 2004 increased to $13.3 million, from $9.6 million for the same period in 2003 due to the same activities. General and administrative expenses increased to $2.0 million for the fourth quarter of 2004, compared to $1.5 million for the fourth quarter of 2003, and increased to $7.2 million for the year ended December 31, 2004, from $6.3 million for the same period in 2003. The increase in G&A costs for the quarter and year ended December 31, 2004 was due primarily to increased personnel related costs. Cash and investment securities as of December 31, 2004 were $17.8 million, compared to $27.5 million at December 31, 2003. Fourth Quarter and Other Recent Highlights: --Reported updated survival data at the 46th annual meeting of the American Society of Hematology hematology Branch of medicine concerned with the nature, function, and diseases of the blood. It covers the cellular and serum composition of blood, the coagulation process, blood-cell formation, hemoglobin synthesis, and disorders of all these. (ASH) from multiple myeloma patients previously treated in Phase I/II trials of STR. Among the 10 patients treated with STR at a dosage dosage /dos·age/ (do´saj) the determination and regulation of the size, frequency, and number of doses. dos·age n. 1. Administration of a therapeutic agent in prescribed amounts. equivalent to that being used in the current pivotal Phase III trial, the complete response rate was 40 percent and the four-year survival rate was 70 percent. --Filed an Investigational New Drug application with the FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. for a Phase II trial of NX 473 in patients with small cell lung cancer. The NX 473 platinum-based compound is being developed to improve on the efficacy and safety of existing platinum compounds. --Announced the publication in the November 2004 issue of Investigational New Drugs of third party preclinical preclinical /pre·clin·i·cal/ (-klin´i-k'l) before a disease becomes clinically recognizable. pre·clin·i·cal adj. 1. data supporting the use of NX 473 in colorectal cancer colorectal cancer Malignant tumour of the large intestine (colon) or rectum. Risk factors include age (after age 50), family history of colorectal cancer, chronic inflammatory bowel diseases, benign polyps, physical inactivity, and a diet high in fat. . These preliminary data indicate that NX 473 is active in colorectal co·lo·rec·tal adj. Relating to the colon and the rectum, or to the entire large bowel. colorectal pertaining to or of the nature of the colon and the rectum. cell lines sensitive or resistant to 5FU, a standard treatment for colorectal cancer. --Appointed Susan D. Berland, formerly of Monsanto Company and 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. Sciences Inc., as chief financial officer. Berland brings 25 years of corporate financial experience to NeoRx. Caroline M. Loewy, formerly of Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. Inc. and Prudential Securities, Inc., also joined NeoRx
in a consulting capacity as vice president of strategic development.--Appointed Alan B. Glassberg, M.D., associate director of clinical care at the University of California The University of California has a combined student body of more than 191,000 students, over 1,340,000 living alumni, and a combined systemwide and campus endowment of just over $7.3 billion (8th largest in the United States). San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden Comprehensive Cancer Center and member of the board of directors for Biogen Idec Biogen Idec, Inc. (NASDAQ: BIIB) is a biotechnology company specializing in drugs for neurological disorders, autoimmune disorders and cancer. The company was formed in 2003 by the merger of Cambridge, Massachusetts-based Biogen and San Diego, California-based Idec , Inc., to the Company's board of directors. Glassberg brings more than 35 years experience in oncology-related clinical practice and oversight to NeoRx. Conference Call Management will host a conference call beginning at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) today to discuss the financial results, review recent corporate highlights and answer questions. To participate in the live call by telephone, please dial (888) 803-8271 from the U.S., and for international callers, please dial (706) 634-2467. A telephone replay will be available for 48 hours following the conclusion of the call by dialing (800) 642-1687 from the U.S., or (706) 645-9291 for international callers, and entering reservation number 4108203. The live conference call will also be available via the Internet at www.neorx.com, and a recording of the call will be available on the Company's Web site for 14 days following the completion of the call. About NeoRx NeoRx is a cancer 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. development company. The Company's product pipeline includes STR, a radiotherapeutic ra·di·o·ther·a·peu·tic adj. Relating to radiotherapy or to radiotherapeutics. targeting bone, currently in a pivotal phase III clinical trial Noun 1. phase III clinical trial - a large clinical trial of a treatment or drug that in phase I and phase II has been shown to be efficacious with tolerable side effects; after successful conclusion of these clinical trials it will receive formal approval from the for patients with multiple myeloma, and NX 473, a next-generation platinum therapy that the Company plans to evaluate in the treatment of patients with advanced lung and colorectal cancers. For more information, visit www.neorx.com. This 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. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the development of the Company's products and future operating results that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words "believe," "expect," "intend", "anticipate," variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the availability of financing sources for the development of NeoRx's product candidates, the progress and costs of clinical trials and the timing of regulatory approvals, the ability to successfully develop and commercialize products and the risks and uncertainties described in NeoRx's current and periodic reports filed with the Securities and Exchange Commission, including NeoRx's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2003 and its Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended September 30, 2004. As permitted by SEC Rules, the Company will file with the Commission, on or before March 17, 2005, a notification on Form 12b-25 extending the filing date for submission of the Company's Annual Report on Form 10-K for the year ended December 31, 2004. Such submission is based on the Company's inability, as a result of the factors described in the Form 12b-25, to file its Form 10-K within the prescribed pre·scribe v. pre·scribed, pre·scrib·ing, pre·scribes v.tr. 1. To set down as a rule or guide; enjoin. See Synonyms at dictate. 2. To order the use of (a medicine or other treatment). time period without unreasonable effort or expense. The Company expects to file its Form 10-K by March 31, 2005. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update any forward-looking statement to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. NeoRx and STR are trademarks or registered trademarks of NeoRx Corporation in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and/or foreign countries. Visit NeoRx at www.neorx.com. (C) 2005 NeoRx Corporation. All Rights Reserved.
NeoRx Corporation
Selected Financial Information
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Unaudited
-----------------------
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------- ------------------------
2004 2003 2004 2003
----------- ----------- ------------ -----------
REVENUES $ 2 $ - $ 1,015 $ 10,531
----------- ----------- ------------ -----------
OPERATING EXPENSES:
Research and
development 3,322 2,215 13,331 9,591
General and
administrative 1,998 1,523 7,171 6,265
Gain on sale of real
estate and equipment - (638) - (638)
----------- ----------- ------------ -----------
Total operating
expenses 5,320 3,100 20,502 15,218
----------- ----------- ------------ -----------
Loss from operations (5,318) (3,100) (19,487) (4,687)
Other income
(expense), net 40 (47) 116 (182)
----------- ----------- ------------ -----------
Net loss before
cumulative effect
of change in
accounting
principle (5,278) (3,147) (19,371) (4,869)
----------- ----------- ------------ -----------
Cumulative effect of
change in accounting
principle - - - (190)
----------- ----------- ------------ -----------
Net loss (5,278) (3,147) (19,371) (5,059)
Series B warrants
beneficial conversion
feature - (1,976) - (1,976)
Preferred stock
dividends (125) (125) (500) (500)
----------- ----------- ------------ -----------
Loss applicable to
common shares $ (5,403) $ (5,248) $ (19,871) $ (7,535)
=========== =========== ============ ===========
Loss per share:
Basic and diluted
loss per share
before cumulative
effect of change
in accounting
principle $ (0.18) $ (0.19) $ (0.66) $ (0.27)
Cumulative effect
of change in
accounting
principle - - - (0.01)
----------- ----------- ------------ -----------
Basic and diluted
loss applicable
to common shares $ (0.18) $ (0.19) $ (0.66) $ (0.28)
=========== =========== ============ ===========
Shares used in
calculation of loss
per share:
Basic and diluted 30,863 27,927 30,143 27,280
=========== =========== ============ ===========
Condensed Consolidated Balance Sheets
(in thousands)
December 31, December 31,
2004 2003
------------ ------------
ASSETS:
Cash and investment securities $ 17,753 $ 27,501
Facilities and equipment, net 7,102 7,471
Licensed products 1,875 -
Other assets, net 706 719
------------ ------------
Total assets $ 27,436 $ 35,691
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities $ 2,703 $ 2,089
Long-term liabilities 3,905 4,112
Shareholders' equity 20,828 29,490
------------ ------------
Total liabilities and shareholders'
equity $ 27,436 $ 35,691
============ ============
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