Titan Pharmaceuticals, Inc. Announces 1997 Third Quarter and Nine Month Financial Results.SOUTH SAN FRANCISCO South San Francisco, city (1990 pop. 54,312), San Mateo co., W Calif.; inc. 1908. South San Francisco has several industrial parks; its manufactures include medical supplies and equipment, foods, paint, paper products, consumer goods, and clothing. , Calif.--(BW HealthWire)--NOVEMBER 14, 1997--TITAN PHARMACEUTICALS, INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . (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 : TTNP TTNP Tactical Telephone Numbering Plan , TTNPU, and TTNPW) today announced financial results for the third quarter and nine months ended September 30, 1997. The Company had no revenues for the three months ended September 30, 1997, compared to approximately $83,000 for the same quarter in 1996. The company incurred an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of approximately $(3,874,000) during the 1997 quarter compared with $(2,497,000) for the 1996 quarter. As previously reported, this increase is primarily due to the increased number and activity of the Company's clinical development programs. For the third quarter of 1997, the company reported a net loss of approximately $(3,831,000) or $(0.29) per share on approximately 13,046,000 shares outstanding, compared with a net loss of $(2,788,000) or $(0.24) per share on approximately 11,793,000 shares outstanding for the 1996 quarter. Total revenues for the nine months ended September 30, 1997 were approximately $148,000, compared to approximately $133,000 for the nine months ended September 30, 1996. The company incurred an operating loss of approximately $(21,008,000) compared to $(6,773,000) for the 1996 nine months. This increase includes the previously reported one-time acquired in process research and development expense of $9,500,000 representing an upfront license fee paid by the Company to acquire Iloperidone, of which $5,500,000 was a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. . The net loss per share for the 1997 nine months declined 28% from the comparable 1996 period. The net loss for the 1997 nine months was approximately $(12,773,000) or $(0.98) per share on approximately 12,997,000 shares outstanding, compared with a net loss of $(8,888,000) or $(1.37) per share on approximately 10,463,149 shares for the same period in 1996. Research and development expenses increased for the 1997 third quarter and nine months as a result of the increased number and activity of the Company's product development programs, particularly related to one of its later stage products, Iloperidone, which is ready to commence Phase III clinical trials 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 , and human clinical testing of the Company's cancer immunotherapeutic im·mu·no·ther·a·py n. pl. im·mu·no·ther·a·pies Treatment of disease by inducing, enhancing, or suppressing an immune response. im products, two of which are expected to be in Phase II/III clinical trials by early next year. The 1997 third quarter R&D expenses were approximately $2,375,000, an increase of $701,000 or 63% from the 1996 quarter. For the first nine months of 1997, research and development expenses increased 79% to $7,193,000 from $4,024,000 for the first nine months of 1996. The increase in research and development expense was also attributable to sponsored research and contract manufacturing costs for key projects including Spheramine, the Company's cell-therapy product for Parkinson's disease Parkinson's disease or Parkinsonism, degenerative brain disorder first described by the English surgeon James Parkinson in 1817. When there is no known cause, the disease usually appears after age 40 and is referred to as Parkinson's disease. , which is now in late stage preclinical testing Noun 1. preclinical test - a laboratory test of a new drug or a new invasive medical device on animal subjects; conducted to gather evidence justifying a clinical trial preclinical phase, preclinical trial . General and administrative expenses during 1997 have increased as a result of the addition to the Company's product portfolio of Iloperidone and the cancer therapeutic vaccines therapeutic vaccine Immunology A vaccine–eg, Salk's Remune™ intended to treat a viral infection by stimulating the immune system. See Vaccine therapy. . Those increased expenses have been in the areas of legal fees, patent prosecution Patent prosecution describes the interaction between an applicant, or their representative, and a patent office with regard to a patent, or an application for a patent. Broadly, patent prosecution can be split into pre-grant prosecution, which involves negotiation with a patent , and medical, marketing and financial consulting fees. The 1997 third quarter G&A expenses were approximately $1,499,000 compared with $907,000 for the 1996 third quarter. For the 1997 nine months, general and administrative expenses were $4,462,000 as compared to $2,883,000 for the 1996 nine months, an increase of 55%. As a percentage of 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. , general and administrative expenses decreased from the 1996 nine months to the 1997 nine months. Commenting on the Company's financial results and activities, Dr. Louis R. Bucalo, President 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. of Titan Pharmaceuticals The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. Titan Pharmaceuticals, Inc. , Inc. stated, "During the third quarter of 1997, we have continued to make important progress in our product development programs. Preparations for our IND for 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 studies of Iloperidone have advanced and are on schedule for initiation by year end 1997. We have also achieved positive developments in our other important CNS See Continuous net settlement. CNS See continuous net settlement (CNS). product development programs. Our Sertoli cell Ser·to·li cell n. Any of the elongated striated cells in the seminiferous tubules to which spermatids attach during spermiogenesis. Sertoli cell technology published positive animal results in Nature Medicine, demonstrating the ability to promote neural regeneration, which is potentially applicable to a broad range of neuro-degenerative disorders. We also demonstrated in a preliminary animal model the effectiveness of our sustained drug delivery technology in providing consistent, sustained, therapeutic levels of CNS active drugs. This technology holds promise for improving the administration and effectiveness of many drugs for treating disorders of the nervous system. In addition, preliminary studies in primate primate, member of the mammalian order Primates, which includes humans, apes, monkeys, and prosimians, or lower primates. The group can be traced to the late Cretaceous period, where members were forest dwellers. models of Parkinson's Disease of our Spheramine product are on schedule for completion this quarter. Our cancer programs continue to progress toward Phase II/III studies, with our CeaVac, TriAb and Pivanex products preparing to enter later stage clinical testing in the near future." Dr. Bucalo further stated that, "In addition to advancing our clinical programs, we are particularly focused on establishing corporate partnerships and developing further relationships with nationally recognized financial institutions to participate in making a market for the Company's securities. With regard to the latter, we were pleased to have EVEREN Securities and Gerard Klauer Mattison recently become market makers in the Company's securities. Our efforts in these arenas are continuing, and I believe we are on target toward achieving our objectives in these areas." Titan Pharmaceuticals is a biopharmaceutical company that develops proprietary 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. for the treatment of cancer, nervous system disorders Nervous system disorders A satisfactory classification of diseases of the nervous system should include not only the type of reaction (congenital malformation, infection, trauma, neoplasm, vascular diseases, and degenerative, metabolic, toxic, or deficiency and other serious and life-threatening diseases. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: The statements which are not historical facts contained in this release are forward looking statements that involve risks and uncertainties, including, but not limited to, the ability to obtain stockholder approval of the merger, results of research and development efforts, the results of pre-clinical and clinical testing, the effect of regulation by the United States Food and Drug Administration United States Food and Drug Administration (FDA), n.pr a unit of the Public Health Service created to protect the health of the nation against impure and unsafe foods, drugs, and cosmetics. (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. ) and other agencies, the impact of competitive products, product development, commercialization and technological difficulties, the results of financing efforts, the effect of the Company's accounting policies, and other risks detailed in the Company's Securities and Exchange Commission filings.
TITAN PHARMACEUTICALS, INC.
(a development stage company)
CONSOLIDATED STATEMENTS OF OPERATIONS
unaudited
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
Grant revenue $ -- $ 83,356 $ 47,745 $ 133,061
Costs and expenses:
Research and development 2,375,096 1,673,848 7,193,071 4,023,836
Acquired in-process
research and development -- -- 9,500,000 --
General and
administrative 1,498,576 906,729 4,462,467 2,882,715
Total costs and expenses 3,873,672 2,580,577 21,155,538 6,906,551
Loss from operations (3,873,672) (2,497,221) (21,007,793) (6,773,490)
Other income (expense):
Gain on sale of technology
and fixed assets -- -- 8,513,884 --
Equity in loss of Ansan
Pharmaceuticals, Inc. (89,029) (344,348) (590,853) (699,837)
Interest income 133,574 178,820 452,887 518,568
Interest expense (2,140) (125,140) (140,881)(1,943,346)
Other expense - net 42,405 (290,668) 8,235,037 (2,124,615)
Loss before minority
interest (3,831,267) (2,787,889) (12,772,756)(8,898,105)
Minority interest
in losses of subsidiaries -- -- -- 9,931
Net loss $(3,831,267)$(2,787,889)$(12,772,756)$(8,888,174)
Net loss per share $ (0.29) $ (0.24) $ (0.98) $ (1.37)
Shares used in
computation 13,046,102 11,792,738 12,996,635 10,463,149
TITAN PHARMACEUTICALS, INC.
(a development stage company)
CONSOLIDATED BALANCE SHEETS
unaudited
September 30 December 31,
1997 1996
(Unaudited) (Note A)
Assets:
Current Assets:
Cash and cash equivalents $ 5,504,797 $ 1,376,532
Short-term investments 500,000 13,000,000
Prepaid expenses and other current assets 332,956 193,324
Receivable from Ansan Pharmaceuticals Inc. 232,004 117,881
Note receivable from
Ansan Pharmaceuticals Inc. 1,000,000 -
Total current assets 7,569,757 14,687,737
Furniture and equipment, net 284,378 791,579
Deferred financing costs 50,000 96,349
Investment in Ansan Pharmaceuticals, Inc. -- 590,854
Other assets 18,350 199,830
$ 7,922,485 $ 16,366,349
Liabilities and Stockholder's Equity:
Current Liabilities:
Accounts payable $ 1,556,605 $ 692,982
License fee payable -- --
Accrued legal fees 147,051 587,800
Accrued sponsored research 115,009 163,905
Other accrued liabilities 592,591 233,044
Current portion of capital lease obligations - 265,462
Current portion of technology financing -
Ingenex Inc. - 570,711
Total current liabilities 2,411,256 2,513,904
Noncurrent portion of capital lease obligation - 481,676
Noncurrent portion of technology financing -
- Ingenex Inc. - 718,602
2,411,256 3,714,182
Commitments
Minority interest - Series B preferred
stock of Ingenex, Inc. 1,241,032 1,241,032
Guaranteed security value 5,500,000 -
Stockholder's Equity:
Common stock, at amounts paid in 49,622,782 49,619,784
Additional paid-in capital 6,521,353 6,521,353
Deferred compensation (501,280) (630,100)
Deficit accumulated during the
development stage (56,872,658) (44,099,902)
Total stockholder's equity (1,229,803) 11,411,135
$ 7,922,485 $ 16,366,349
Note A: The balance sheet at December 31, 1996 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting for complete financial statements. CONTACT: Titan Pharmaceuticals, Inc. Louis R. Bucalo, M.D., 650-244-4990 or Lippert/Heilshorn Investor Contact: Keith L. Lippert, 212-838-3777 keith@lhai.com |
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