Neurex Reports Third Quarter Financial Results; Agreement on Terms to Extend Warner-Lambert Collaboration.MENLO PARK, Calif.--(BUSINESS WIRE)--Aug. 8, 1996--Neurex 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 : NXCO) today reported its financial results for the third quarter ended June 30, 1996. In addition, the Company also announced that it has reached agreement on the terms of a three year extension to the Research Collaboration with Warner-Lambert (NYSE NYSE See: New York Stock Exchange : WLA WLA Women's Land Army WLA West Los Angeles (California, USA) WLA Wisconsin Library Association (Madison, WI) WLA World Lottery Association WLA Western Lacrosse Association WLA Wasteload Allocation ). - Warner-Lambert Collaboration - Neurex and the Parke-Davis division of Warner-Lambert have agreed to the terms of an extension to their 1993 Research Collaboration. This collaborative research program has been focused on the structure and function of neuron-specific calcium channels and the therapeutic potential of compounds that block these channels. Under a Development agreement with Warner-Lambert, the first neuron-specific calcium channel blocker calcium channel blocker n. Any of a class of drugs that inhibit movement of calcium ions across a cell membrane, used in the treatment of cardiovascular disorders. to enter development, SNX-111, is already in Phase II clinical development for the treatment of brain damage following head trauma. Neurex also has a separate agreement with Medtronic (NYSE: MDT MDT abbr. Mountain Daylight Time MDT (in the US and Canada) Mountain Daylight Time MDT n abbr (US) (= mountain daylight time) → ) for the development of the same compound in the treatment of pain where it is currently in Phase III clinical studies for the treatment of intractable cancer and AIDS pain. "This continues to be a true collaborative effort," commented Dr. Wendell Wierenga, Sr. Vice President, Research at Parke-Davis. "A significant number of scientists from both Neurex and Warner-Lambert will continue to focus on strategies to discover and develop second generation compounds to SNX-111. In addition, Neurex will also push ahead on work with R-type calcium channel The R-type calcium channel is a type of voltage-dependent calcium channel. Like the others of this class, the α1 subunit is the one that determines most of the channel's properties. , the most recently discovered neuronal calcium channel. We believe we now have the tools to quickly develop our understanding of this channel and identify applications for compounds which block it," he added. Although financial terms of the arrangement have not been disclosed, Warner-Lambert will provide continued support for research at Neurex and make payments against key milestones. Any compound discovered under the terms of the agreement will still be subject to the existing terms which includes provisions for co-development and co-promotion. - Third Quarter Financial Results - During the quarter, Neurex received approximately $73.5 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 3.4 million shares. The offering was underwritten by Montgomery Securities and Schroder Wertheim & Co. As of June 30, 1996, cash on hand was approximately $92.8 million. Revenues were $733,000 and the net loss was $3,928,000 or $0.19 per share, for the three months ended June 30, 1996, compared to revenues of $2,226,000 and a net loss of $1,027,000 or $0.08 per share, for the same period in the prior year. Revenues consisted primarily of milestone revenue recognition. Research and development expenses were $4,770,000 for the three months ended June 30, 1996 compared to $2,801,000 for the same period in the prior year. The increase was a result of ongoing clinical study expenses in support of the Company's CORLOPAM(R) Phase III clinical studies, and ongoing Phase III clinical studies of SNX-111 for the prevention of pain in cancer and AIDS patients, and for the prevention of brain damage following closed head trauma and CABG CABG coronary artery bypass graft. CABG abbr. coronary artery bypass graft CABG Coronary artery bypass graft, see there surgery. General and administrative expenses were $698,000 for the three months ended June 30,1996, compared to $451,000 for the same period in the prior year. Interest income was $869,000 for the three months ended June 30, 1996 compared to $17,000 for the same period in the prior year. Neurex Corporation is developing products for acute care, principally in the areas of cardiorenal and neurological diseases. The Company focuses on the discovery, development and commercialization of products for acute care therapies, including emergency room, intensive care unit and pain clinic settings. Neurex' products under development, CORLOPAM(R) (fenoldopam) and SNX-111, are currently in advanced stage human trials, each with potential multiple indications. -0- Neurex Corporation Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. Consolidated Statements of Operations (unaudited) Three Months Ended Nine Months Ended June 30, June 30, 1995 1996 1995 1996 Total Revenues $ 2,226,000 $ 733,000 $ 2,635,000 $ 1,256,000 Research and Development 2,801,000 4,770,000 8,251,000 10,691,000 General and Administrative 451,000 698,000 1,508,000 2,019,000 Total Costs and Expenses 3,252,000 5,468,000 9,759,000 12,710,000 Loss from Operations (1,026,000) (4,735,000) (7,124,000) (11,454,000) Interest Income 17,000 869,000 150,000 1,491,000 Interest Expense (18,000) (62,000) (32,000) (246,000) Net Loss $ (1,027,000)$(3,928,000) $(7,006,000)$(10,209,000) Net Loss Per Share $ (0.08) $(0.19) $ (0.57) $ (0.54) Shares used in net loss per share computation 12,316,000 20,602,000 12,310,000 18,747,000 Condensed Consolidated Balance Sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. (unaudited) September 30, June 30, 1995 1996 Assets Cash, Cash Equivalents and Short-Term Investments $ 12,753,000 $ 92,837,000 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. 2,784,000 587,000 Property and Equipment, Net 1,661,000 1,707,000 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. 419,000 236,000 ------------- ------------- $ 17,617,000 $ 95,367,000 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. $ 6,167,000 $ 4,454,000 Long-Term Capital Lease Obligations 567,000 413,000 Convertible Note 7,594,000 -- Prepaid Milestone -- 1,569,000 Stockholders' Equity 3,289,000 88,931,000 -------------- ------------ $ 17,617,000 $ 95,367,000 -0- Neurex Corporation (NASDAQ NM Symbol NXCO) The Management of Neurex Corporation will conduct a conference call TODAY Thursday, Aug. 8, 1996 at 11:45 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy to discuss the Company's third Quarter Financial Results and its Product Development Programs Dr. Wendell Wierenga, Sr. Vice President of Research for Parke-Davis has kindly agreed to participate on this call to discuss the status of the Parke-Davis/Warner-Lambert Co. collaborations. The Access Number for the call is 212/346-6265 If you have any questions, please contact: Jonathan Fassberg/Kathleen Eppolito The Trout Group/ Lippert/Heilshorn & Associates 212/838-5447 CONTACT: Neurex Corp. Dr. Paul Goddard, 415/853-1500 (Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. ) |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion