Titan Pharmaceuticals, Inc. announces 1996 fourth quarter and year end 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.--(BUSINESS WIRE)--April 1, 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 fourth quarter and year ended December 31, 1996. For the fourth quarter ended December 31, 1996, the Company reported a net loss of $4.0 million, or $0.32 per share, calculated on 12.4 million weighted average shares outstanding, versus a net loss of $2.8 million, or $0.36 per share based on 7.9 million weighted average shares outstanding, reported for the same period in 1995. 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. in the fourth quarter of 1996 were $3.9 million versus $1.6 million reported in the fourth quarter of last year. For the year ended December 31, 1996, the Company reported a net loss of $12.9 million, or $1.67 per share, calculated on 10.9 million weighted average shares outstanding, compared to $11.7 million, or $1.54 per share, based on 7.6 million weighted average shares outstanding in 1995. The net loss per common share calculation for fiscal 1996 reflects a $5.4 million deemed dividend, due to a change in the conversion ratio of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. outstanding prior to the Company's initial public offering in January 1996. The Company's operating expenses for fiscal 1996 were $10.8 million versus $9.5 million reported in the prior year. The increase in expenses for the fourth quarter and year ended December 31, 1996 is primarily due to the establishment of new drug development programs in cancer and central nervous system (CNS See Continuous net settlement. CNS See continuous net settlement (CNS). ) 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. . The Company expects expenses to increase in the future as drug development efforts, including clinical trials, progress. Commenting on the Company's progress during 1996, Dr. Louis R. Bucalo, 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. and President 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 "Our financial results for 1996 were in line with expectations and reflect our continued efforts to further our clinical development programs in the areas of cancer, CNS disorders and other life-threatening diseases. During 1996, we added several promising cancer therapeutic products in clinical testing, which include: CeaVac(TM) for non-small cell lung and colon cancer colon cancer, cancer of any part of the colon (often called the large intestine). Colon cancer is the second most common cancer diagnosed in the United States. ; TriGem(TM) for small cell lung cancer Lung Cancer, Small Cell Definition Small cell lung cancer is a disease in which the cells of the lung tissues grow uncontrollably and form tumors. Description Lung cancer is divided into two main types: small cell and non-small cell. and malignant melanoma Malignant Melanoma Definition Malignant melanoma is a type of cancer arising from the melanocyte cells of the skin. Melanocytes are cells in the skin that produce a pigment called melanin. ; and TriAB(TM) for the treatment of breast cancer. In addition to their potential therapeutic value for patients with cancer, these vaccines, if effective, could also potentially be used as a preventive medicine preventive medicine, branch of medicine dealing with the prevention of disease and the maintenance of good health practices. Until recently preventive medicine was largely the domain of the U.S. for people at high risk of developing primary cancers. Further enhancing our product portfolio, we completed licensing and manufacturing agreements for our cell-based products for neurologic neurologic /neu·ro·log·ic/ (-loj´ik) pertaining to neurology or to the nervous system. Neurologic Having to do with the nervous system. diseases. These product candidates are being developed as novel treatments for a variety of neurological disorders This is a list of major and frequently observed neurological disorders (e.g. Alzheimer's disease), symptoms (e.g.back pain), signs (e.g. aphasia) and syndromes (e.g. Aicardi syndrome). . Additionally, we successfully completed Phase I clinical trials Noun 1. phase I clinical trial - a clinical trial on a few persons to determine the safety of a new drug or invasive medical device; for drugs, dosage or toxicity limits should be obtained phase I for a gene therapy product, MDRx1(TM) for the treatment of ovarian cancer ovarian cancer Malignant tumour of the ovaries. Risk factors include early age of first menstruation (before age 12), late onset of menopause (after age 52), absence of pregnancy, presence of specific genetic mutations, use of fertility drugs, and personal history of breast , and Phase I clinical trials for Pivanex(TM) for the treatment of various solid tumors and leukemia leukemia (l  kē`mēə), cancerous disorder of the blood-forming tissues (bone marrow, lymphatics, liver, spleen) characterized by excessive production of immature or mature are continuing through our Ansan
affiliate."Dr. Bucalo continued, "We have also further enhanced our management team with the addition of Robert E. Farrell as Chief Financial Officer, and Dr. Victor J. Bauer as Executive Director of our Iloperidone iloperidone Zomaril™ An antipsychotic for treating schizophrenia and related disorders program. Mr. Farrell was formerly Chief Financial Officer and Group Vice President of Fresenius USA, Inc., and Dr. Bauer was formerly the President of Hoescht-Roussel Pharmaceuticals." Dr. Bucalo concluded, "In 1997, we further enhanced our product portfolio with the addition of Iloperidone, an antipsychotic antipsychotic /an·ti·psy·chot·ic/ (-si-kot´ik) effective in the treatment of psychotic disorders; also, an agent that so acts. Antipsychotics are a chemically diverse but pharmacologically similar class of drugs; besides psychotic drug entering 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 , which was licensed from Hoechst Marion Roussel. Clinical data from this late stage product is encouraging, and Iloperidone may prove to be very competitive in the multi-billion dollar market for antipsychotic agents antipsychotic agent Major tranquilizer, neuroleptic Neuropharmacology Any drug that attenuates psychotic episodes Agents Phenothiazines, thioxanthenes, butyrophenones, dibenzoxazepines, dibenzodiazepines, diphenylbutylpiperidines Indications Management of . With the addition of Iloperidone and the anticipated initiation of Phase II/Phase III clinical studies for CeaVac(TM), TriGem(TM) and TriAB(TM) in 1997, Titan will be positioned as a later-stage drug development company. As we advance our current products through development, we continue to explore complementary product opportunities that enhance our primary objective to build a strong pipeline of products focused on cancer and neurologic diseases." Titan Pharmaceuticals, Inc. is a biopharmaceutical company developing proprietary therapeutics 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. The Company's core technologies include molecular therapy, cell therapy and gene therapy. The Company's operations include majority owned subsidiaries and affiliate companies, including: Ansan (Nasdaq: ANSN ANSN Asian Nuclear Safety Network , ANSNU), Ingenex, ProNeura, Theracell and Trilex. "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, product demand and market acceptance risks, the effect of economic conditions, the impact of competitive products and pricing, product development, commercialization and technological difficulties, capacity and supply constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. or difficulties, the results of financing efforts, actual purchases under agreements, the effect of the Company's accounting policies, and other risks detailed in the Company's Securities and Exchange Commission filings. -0-
TITAN PHARMACEUTICALS, INC.
(a development stage company)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended December 31,
1995 1996
Grant revenue $ 39,736 $ 125,750
Costs and expenses:
Research and development 799,329 1,542,936
Acquired in-process research & development 686,000 ---
General and administrative 121,825 2,381,249
Total costs and expenses 1,607,154 3,924,185
Loss from operations (1,567,418) (3,798,435)
Other income (expense):
Equity in loss of Ansan Pharmaceuticals, Inc. (223,346) (299,135)
Interest income 21,978 197,416
Interest expense (1,072,147) (67,318)
Other income (expense) - net (1,273,515) (169,037)
Loss before minority interest (2,840,933) (3,967,472)
Minority interest in losses of subsidiaries 825 ---
Net loss $(2,840,108) $(3,967,472)
Proforma net loss per share $ (0.36)
Shares used in computing proforma net
loss per share 7,889,189
Net loss per share $ (0.32)
Shares used in computing net loss per share 12,369,349
-0-
TITAN PHARMACEUTICALS, INC.
(a development stage company)
CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended December 31, Period from
1995 1996 Commencement
Of Operations
(July 25, 1991) to
December 31, 1996
Grant revenue $ 139,522 $ 258,811 $ 398,333
Costs and expenses:
Research and development 5,201,507 5,566,772 27,580,393
Acquired in-process
research & development 686,000 --- 686,000
General and administrative 3,657,900 5,263,964 11,828,346
Total costs and expenses 9,545,407 10,830,736 40,094,739
Loss from operations (9,405,885) (10,571,925) (39,696,406)
Other income (expense):
Equity in loss of Ansan
Pharmaceuticals, Inc. (457,114) (998,972) (1,456,086)
Interest income 67,868 715,984 1,170,742
Interest expense (1,899,148) (2,010,664) (4,163,002)
Other expense - net (2,288,394) (2,293,652) (4,448,346)
Loss before minority
interest (11,694,279) (12,865,577) (44,144,752)
Minority interest in losses
of subsidiaries 825 9,931 44,850
Net loss $(11,693,454) $(12,855,646) $(44,099,902)
Proforma net loss per share $ (1.54)
Shares used in computing
proforma net loss per share 7,617,470
Net loss per share $ (1.67)
Shares used in computing net
loss per share 10,936,046
-0-
TITAN PHARMACEUTICALS, INC.
(a development stage company)
CONSOLIDATED BALANCE SHEETS
December 31, December 31,
1995 1996
Assets:
Current Assets:
Cash and cash equivalents $ 947,805 $ 1,376,532
Short-term investments --- 13,000,000
Prepaid expenses and other current assets 40,071 193,324
Receivable from Ansan Pharmaceuticals, Inc. 57,791 117,881
Total current assets 1,045,667 14,687,737
Furniture and equipment, net 848,852 791,579
Deferred stock offering costs 522,299 ---
Deferred financing costs 600,183 96,349
Investment in Ansan Pharmaceuticals, Inc. 1,589,826 590,854
Other assets 125,344 199,830
$ 4,732,171 $16,366,349
Liabilities and Stockholder's Equity
(Net Capital Deficiency)
Current Liabilities:
Accounts payable $ 714,896 $ 692,982
Notes payable by Ingenex, Inc.
(bridge financing) 1,500,000 ---
Notes payable by Titan Pharmaceuticals, Inc.
(bridge financing) 2,800,000 ---
Accrued legal fees 691,368 587,800
Accrued sponsored research 304,202 163,905
Other accrued liabilities 546,057 233,044
Current portion of capital lease obligations 226,709 265,462
Current portion of technology financing -
Ingenex, Inc. 494,107 570,711
Total current liabilities 7,277,339 2,513,904
Noncurrent portion of capital lease obligation 747,142 481,676
Noncurrent portion of technology financing -
Ingenex, Inc. 1,289,313 718,602
Commitments
Minority interest 1,241,032 1,241,032
Stockholders' Equity: (net capital deficiency)
Preferred stock, $0.001 par value per share;
30,000,000 and 5,000,000 shares authorized at
December 31, 1995 and 1996, respectively,
issuable in series:
Series A, 3,885,571 shares designated,
3,534,199 shares issued and outstanding at
December 31, 1995, none at December 31, 1996; 17,763,978 ---
Series B, 2,440,513 shares designated, 244,043
shares issued and outstanding at December 31,
1995, none at December 31, 1996; 1,143,794 ---
Common stock, $0.001 par value per share;
50,000,000 and 30,000,000 shares authorized
at December 31, 1995 and 1996, respectively;
1,548,519 and 12,399,037 shares issued and
outstanding at December 31, 1995 and 1996,
respectively 745,476 49,619,784
Additional paid-in capital 6,186,353 6,521,353
Deferred compensation (418,000) (630,100)
Deficit accumulated during the
development stage (31,244,256) (44,099,902)
Total stockholders' equity
(net capital deficiency) (5,822,655) 11,411,135
$ 4,732,161 $16,366,349
CONTACT: Company Contact: Louis R. Bucalo, M.D. President & CEO Titan Pharmaceuticals, Inc. 415-244-4990 or Investor Relations Investor relations The process by which the corporation communicates with its investors. Contact: Evan Smith/Keith Lippert Lippert/Heilshorn & Assoc. 212-838-3777 |
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