Neurex Reports Second Quarter Financial Results; SNX-111 for Severe Pain Progresses in Clinical Development.MENLO PARK Menlo Park. 1 Residential city (1990 pop. 28,040), San Mateo co., W Calif.; inc. 1874. Electronic equipment and aerospace products are manufactured in the city. Menlo College and a Stanford Univ. research institute are there. 2 Uninc. , Calif.--(BUSINESS WIRE)--May 9, 1996--Neurex Corporation (NXCO) today reported its financial results for the second quarter ended March 31, 1996 as well as reporting progress on SNX-111 currently in clinical development for severe pain. SNX-111 Progress During the second quarter, Neurex initiated its 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 program with SNX-111 for the treatment of severe pain in both cancer and AIDS patients. The study will be conducted in over 30 centers and is targeted to enroll 200 patients. Patient recruitment for this study has already been initiated. In addition, results of the first Phase I/II study were presented at the 11th World Congress of Anaesthesiologists which was held in Sydney, Australia in mid-April. In a paper entitled, "SNX-111 Produces Analgesia analgesia /an·al·ge·sia/ (an?al-je´ze-ah) 1. absence of sensibility to pain. 2. the relief of pain without loss of consciousness. in Patients with Intractable Pain intractable pain Refractory pain Pain medicine Persistent pain which does not respond to at least 3 dosease of parenteral analgesics given over a 12-24 hr period; pain that does not respond to appropriate doses of opioid analgesics. ," Dr. Brose n. 1. Pottage made by pouring some boiling liquid on meal (esp. oatmeal), and stirring it. It is called beef brose, water brose, etc., according to the name of the liquid (beef broth, hot water, etc.) used. , Director of the Pain Clinic at Stanford University Stanford University, at Stanford, Calif.; coeducational; chartered 1885, opened 1891 as Leland Stanford Junior Univ. (still the legal name). The original campus was designed by Frederick Law Olmsted. David Starr Jordan was its first president. , presented the clinical experience in 31 patients treated at six centers. All patients had either failed or had become intolerant to opioid opioid /opi·oid/ (o´pe-oid) 1. any synthetic narcotic that has opiate-like activities but is not derived from opium. 2. any of a group of naturally occurring peptides, e.g. (morphine morphine, principal derivative of opium, which is the juice in the unripe seed pods of the opium poppy, Papaver somniferum. It was first isolated from opium in 1803 by the German pharmacist F. W. A. ) treatment. Of the 25 patients that were evaluable, 21 (84%) had a favorable response with partial to complete pain relief and reduction in concurrent analgesia medications. Of this patient group, approximately half had pain associated with cancer or AIDS and the remaining patients had pain associated with non-malignant conditions including post herpetic herpetic /her·pet·ic/ (her-pet´ik) pertaining to or of the nature of herpes; relating to or caused by herpesviruses. herpetic pertaining to or of the nature of herpes; relating to or caused by herpesviruses. neuralgia neuralgia (n  răl`jə, ny–), acute paroxysmal pain along a peripheral sensory nerve. (pain associated with herpes HerpesAny virus of the herpesvirus group, which comprises a family of 70 species, 5 of which are pathogenic to humans; the term also refers to any infection caused by these viruses. ), phantom limb pain phantom limb pain n. Pain or discomfort felt by an amputee in the area of the missing limb. phantom limb pain, n and spinal cord injury Spinal Cord Injury Definition Spinal cord injury is damage to the spinal cord that causes loss of sensation and motor control. Description Approximately 10,000 new spinal cord injuries (SCIs) occur each year in the United States. . The Phase III program was designed and implemented based on the results of this study. Second Quarter Financial Results Revenues were $365,000 and the net loss was $3,256,000 or $0.18 per share, for the three months ended March 31, 1996, compared to revenues of $335,000 and a net loss of $3,192,000 or $0.26 per share, for the same period in the prior year. Revenues consisted primarily of expense reimbursements from a partner. Research and development expenses were $3,140,000 for the three months ended March 31, 1996 compared to $3,050,000 for the same period in the prior year. The increase was due primarily to increased clinical study expenses related to the Company's Phase III clinical studies for CORLOPAM, and clinical studies of SNX-111 for the prevention of pain in cancer and AIDS patients. General and administrative expenses were $727,000 for the three months ended March 31, 1996, compared to $517,000 for the same period in the prior year. The increase was due to higher patent, investor relations Investor relations The process by which the corporation communicates with its investors. , safety program and employment related expenses. Interest income was $313,000 for the three months ended March 31, 1996 compared to $49,000 for the same period in the prior year. The increase was primarily due to higher levels of invested funds associated with the directed public offering which closed on October 16, 1995. Following the close of the quarter, Neurex received approximately $64 million in the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of a secondary offering of 3 million shares which was underwritten by Montgomery Securities and Schroder Wertheim & Co.. Total cash on hand is now approximately $85 million. Neurex Corporation is developing products for acute care, principally in the area of cardiorenal and neurological disease Noun 1. neurological disease - a disorder of the nervous system nervous disorder, neurological disorder disorder, upset - a physical condition in which there is a disturbance of normal functioning; "the doctor prescribed some medicine for the disorder"; . The Company's focus is on therapies to be used in the emergency room, intensive care unit and pain clinic. Neurex' products under development, CORLOPAM (fenoldopam) and SNX-111, are currently in human trials, each with potential in multiple indications. The Company's strategy is to discover, develop and commercialize its products for acute care treatment in hospital settings, such as emergency rooms, intensive care units and pain clinics. -0-
Neurex Corporation
Condensed Consolidated Statements of Operations
(unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
1995 1996 1995 1996
Total Revenues $ 335,000 $ 365,000 $ 409,000 $ 523,000 Research and Development 3,050,000 3,140,000 5,449,000 5,920,000 General and Administrative 517,000 727,000 1,058,000 1,322,000 Total Costs and Expenses 3,567,000 3,867,000 6,507,000 7,242,000 Loss from Operations (3,232,000) (3,502,000) (6,098,000) (6,719,000) Interest Income 49,000 313,000 132,000 622,000 Interest Expense (9,000) (67,000) (13,000) (184,000) Net Loss $(3,192,000)$(3,256,000)$(5,979,000) $(6,281,000) Net Loss Per Share $ (0.26) $ (0.18) $ (0.49) $ (0.35) Shares used in net loss per share computation 12,313,000 18,217,000 12,307,000 17,820,000
Condensed Consolidated Balance Sheets
(unaudited)
Sept. 30, March 31,
1995 1996
Assets
Cash, Cash Equivalents and
Short-Term Investments $ 12,753,000 $ 22,675,000
Other Current Assets 2,784,000 723,000
Property and Equipment, Net 1,661,000 1,669,000
Other Assets 419,000 238,000
------------ ------------
$ 17,617,000 $ 25,305,000
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Liabilities and Stockholders'
Equity
Current Liabilities $ 6,167,000 $ 4,499,000
Long-Term Capital Lease
Obligations 567,000 465,000
Convertible Note 7,594,000 --
Prepaid Milestone -- 1,519,000
Stockholders' Equity 3,289,000 18,822,000
------------ ------------
$ 17,617,000 $ 25,305,000
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CONTACT: Neurex Corporation Bradford M. Wait, 415/853-1500 |
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