PHARSIGHT REVENUES INCREASE 52% FOR 3RD QUARTER.
The company reported a net loss for the quarter of $4.8 million, or ($0.27) per share, compared to a net loss of $2.5 million, or ($0.76) per share (excluding accretion on preferred stock), for the same period in 1999. The increase in net loss is primarily attributed to amortization of deferred stock compensation (non-cash) and expansion of staff and operations.
As of December 31, 2000, Pharsight had $27.2 million in cash, cash equivalents and short-term investments compared to $16.5 million at March 31, 2000, the end of the company's last fiscal year. The increase was attributable to the net proceeds from the company's IPO in August, 2000, reduced in part from net cash used in operations.
Art Reidel, Pharsight president and CEO, noted that increased revenue was a result of the expansion of relationships with Pharsight's current customer base and the addition of new customers including Aventis, Bayer and two other leading pharmaceutical companies.
"Our strong customer relationships continue to grow with the results created by our products and services," he said. "We're gratified that the reputation we've built and the understanding of the value that Pharsight provides are attracting new customers who are seeking proven solutions to improve their development process and achieve substantial savings in time and money."
In order to meet anticipated demand for its products and services worldwide, Pharsight announced an agreement with PricewaterhouseCoopers (PwC) to co-market and deploy new services and technologies designed to dramatically change the way pharmaceutical companies develop and market new drugs.
Under the agreement, Pharsight and PwC will market and implement a range of integrated services based on Pharsight's industry-leading Computer Aided Trial Design (CATD) capability. CATD is comprised of advanced simulation and modeling technologies and decision analysis methodologies that enable pharmaceutical researchers to design more effective trials and make better program decisions. Pharsight expects that PwC's global competency in process re-engineering, change management and systems integration will enable the broader deployment and adoption of the combined products and services worldwide.
"While we have continued to meet our objectives with our own resources, the combination of increased demand worldwide and the need to integrate our products into more extensive enterprise infrastructures has created opportunities to collaborate with consulting organizations that have complementary expertise in the global pharmaceutical industry," Reidel said. "We are very pleased that PwC, with its experience and skills in this area, will be our initial consulting collaboration. PwC and Pharsight will give our customers what we believe is the best solution -- backed by the strongest technical, scientific and management talent -for dramatic improvement in drug development."
In addition to the new collaboration and new and expanded customer relationships, Reidel reported advances in Pharsight's Information Product development programs. "This quarter we have seen good progress in the beta testing and customer evaluation of our Information Products. We're continuing on track toward the significant contribution of these products to our revenue in fiscal 2002."
About Pharsight Corporation
Pharsight Corporation (Nasdaq:PHST) develops and markets integrated products and services that help pharmaceutical and biotechnology companies improve the drug development process. The company's solutions combine proprietary computer-based simulation, statistical and data analysis tools with the sciences of pharmacology, drug and disease modeling, human genetics, biostatistics and strategic decision-making. Pharsight Corporation is headquartered in Mountain View, California.
For more information, visit http://www.pharsight.com or call 650/314-3809.
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|Title Annotation:||Pharsight Corp., fiscal year 2001|
|Comment:||PHARSIGHT REVENUES INCREASE 52% FOR 3RD QUARTER.(Pharsight Corp., fiscal year 2001)|
|Publication:||Biotech Financial Reports|
|Article Type:||Brief Article|
|Date:||Mar 1, 2001|
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