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PROTEIN DESIGN LABS REPORTS SECOND QUARTER 1993 FINANCIAL RESULTS

 MOUNTAIN VIEW, Calif., Aug. 5 /PRNewswire/ -- Protein Design Labs Inc. (PDL) (NASDAQ: PDLI) today reported financial results for the three months ended June 30, 1993. Revenues were $941,000 compared to revenues of $1.1 million for the comparable period in 1992. The company incurred a net loss of $2.8 million or 23 cents per share before recording a $5.0 million special charge (39 cents per share) in April 1993 related to the acquisition of an exclusive license from Sandoz Ltd., Sandoz Pharma Ltd. and Sandoz Pharmaceuticals Corp. ("Sandoz") to five antibodies and related in-process technology. The total net loss was $7.8 million (62 cents per share), which compares to a net loss of $920,000 or 7 cents per share for the comparable period in 1992.
 For the six months ended June 30, 1993, PDL revenues were $1.9 million, compared to $2.6 million in the comparable period in 1992, and the net loss was $10.0 million (79 cents per share) compared to a net loss of $1.1 million (9 cents per share) in the comparable period last year. Revenues from research and development contracts were $350,000 for the three months ending June 30, compared to $469,000 in the comparable period in 1992, and were $700,000 for the six months ending June 30, compared to $1.6 million. Such revenues are subject to quarterly fluctuations as they may include license fees and milestone payments as well as funded research under collaborative agreements with pharmaceutical companies.
 "We are preparing to initiate Phase II/III clinical trials with our two lead potential products, human antibodies against cytomegalovirus (CMV) and hepatitis B," said Laurence Jay Korn, Ph.D., president and chief executive officer of PDL. "This has resulted in the planned increase in our operating expenses, in addition to the special charge of $5 million for the Sandoz transaction. Revenues from existing R&D collaborative agreements are currently trending down because we have earned most milestone payments under these agreements. We are discussing new collaborations with pharmaceutical companies but do not know if or when these discussions will lead to additional agreements."
 The company had $39.9 million in cash, cash equivalents and investments as of June 30, 1993 and total assets of $45.4 million.
 The license to the five antibodies and related technology from Sandoz includes marketing and manufacturing rights to human anti-viral antibodies against cytomegalovirus (CMV), hepatitis B, herpes simplex, and varicella zoster and to the SMART(TM) ABL 364 Antibody, a humanized anti-cancer antibody that PDL had previously developed for Sandoz. Other key developments during the quarter were the start of a multinational, multiple-dose clinical trial of the SMART Anti-Tac Antibody for the prevention of graft-versus-host disease by Hoffmann- La Roche Inc., PDL's worldwide licensee for SMART Anti-Tac; the presentation at the IXth International Conference on AIDS of the results of a Phase I/II clinical trial of the Human Anti-CMV Antibody in AIDS patients with CMV Retinitis; and the disclosure that the U.S. Food and Drug Administration has granted orphan drug status for certain indications to the Human Anti-CMV Antibody and to the Human Anti- Hepatitis B Antibody.
 Other significant developments during the quarter included the election of Dr. Max Link to the PDL Board of Directors. Link is chief executive officer of Corange Ltd., the London-based health care company that includes the Boehringer Mannheim and DePuy brands of products. Prior to joining Corange, Link was chairman of Sandoz Pharma. In addition, Lars Ostberg, M.D., was appointed to the position of senior scientist. Ostberg was director of monoclonal antibody research at the Sandoz Research Institute and the developer of the Sandoz human antibody technology.
 Protein Design Labs, founded in 1986, is engaged in the development of next-generation antibodies and other novel proteins to treat various disease conditions, including viral infections, autoimmune and inflammatory diseases and cancer.
 The company has four potential products in clinical trials and two core proprietary antibody technologies. In addition to the technology for developing human anti-viral antibodies, PDL uses computer modeling techniques to combine the binding site of a mouse antibody with a large part of a human antibody. The resulting SMART Antibodies, which are more than 90-percent human, retain high binding affinity for the target antigens and will, PDL believes, reduce or avoid the human anti- mouse antibody (HAMA) response that has limited the use of mouse monoclonal antibodies as human therapeutics. SMART Antibodies have potential as therapeutics for autoimmune and inflammatory conditions and cancers, for which human antibodies are generally not feasible, as well as for viral infections.
 PROTEIN DESIGN LABS INC.
 STATEMENTS OF OPERATIONS
 Three months ended June 30,
 1993 1992
 (unaudited)
 Revenues:
 Research and development
 under collaborative
 agreements - related party $ 225,000 $ 225,000
 Research and development
 revenue under collaborative
 agreements - other 125,000 244,200
 Interest and other income 591,306 650,246
 Total Revenues 941,306 1,119,446
 Costs and expenses:
 Research and development 3,062,689 1,689,514
 Purchase of in-process technology 4,975,000 ---
 General and administrative 736,273 338,442
 Interest expense 7,246 11,793
 Total costs and expenses 8,781,208 2,039,749
 Net loss $(7,839,902) $ (920,303)
 Net loss per share $ (0.62) $ (0.07)
 Shares used in computation of
 net loss per share 12,688,000 12,785,000
 Six months ended June 30,
 1993 1992
 (unaudited)
 Revenues:
 Research and development
 under collaborative
 agreements - related party $ 450,000 $ 450,000
 Research and development
 revenue under collaborative
 agreements - other 250,000 1,100,000
 Interest and other income 1,175,188 1,035,184
 Total Revenues 1,875,188 2,585,184
 Costs and expenses:
 Research and development 5,499,495 2,908,278
 Purchase of in-process technology 4,975,000 ---
 General and administrative 1,360,275 797,515
 Interest expense 15,479 24,102
 Total costs and expenses 11,850,249 3,729,895
 Net loss $(9,975,061) $(1,144,711)
 Net loss per share $ (0.79) $ (0.09)
 Shares used in computation of
 net loss per share 12,694,000 12,259,000
 BALANCE SHEET DATA
 June 30, Dec. 31,
 1993 1992
 (unaudited)
 Cash, cash equivalents and
 investments $ 39,861,672 $ 50,903,690
 Total assets 45,429,970 55,623,183
 Total common stockholders' equity 43,693,763 53,533,516
 -0- 8/5/93
 /CONTACT: Peter Dworkin, director of corporate communications of Protein Design Labs, 415-903-3721/
 (PDLI)


CO: Protein Design Labs Inc. ST: California IN: MTC SU: ERN

LH-SG -- SJ001 -- 9648 08/05/93 07:01 EDT
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