ZymoGenetics Reports First Quarter 2004 Financial Results.Business Editors SEATTLE--(BUSINESS WIRE)--May 6, 2004 ZymoGenetics, Inc. (Nasdaq:ZGEN) today reported its financial results for the first quarter ended March 31, 2004. The company reported a net loss for the quarter of $18.9 million, or $0.36 per share, reflecting continuing investment in its pipeline of product candidates. For the first quarter of 2003, ZymoGenetics had a net loss of $13.5 million, or $0.29 per share. The company ended the quarter in a strong financial position, with $285.0 million of cash and investments. "ZymoGenetics is off to a good start in 2004," stated Bruce L.A. Carter, 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. . "We have made significant progress with the start of rhThrombin Phase 2 clinical trials phase 2 clinical trial Phase 2 study. See Phase study. , completion of a Phase 1 trial of TACI-Ig in healthy volunteers, the filing and clearance of our IND application for IL-21, and the completion of an important licensing agreement for IL-20," added Dr. Carter. Revenues for the quarter decreased by 9% to $5.7 million, compared to $6.2 million for the same period in the prior year. The decrease resulted from lower license fees and milestone payments. Revenues recorded in the 2003 quarter included a milestone payment from Novo Nordisk Wikipedia is not the place for advertisement or self-advertising. Novo Nordisk (, NYSE: NVO) manufactures and markets pharmaceutical products and services. Founded in Denmark in 1923, the company has since become a world leader in diabetes care with the broadest related to development of IL-21 outside North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . In the 2004 quarter, the company received a $4 million upfront payment related to an IL-20 license, but $3.6 million of this amount has been deferred and will be recognized as revenue over the remainder of 2004. 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. for the quarter increased, as expected. Expenses increased by 20% to $24.6 million, compared to $20.5 million for the first quarter of 2003. The increase largely resulted from higher costs related to the company's product development programs. ZymoGenetics is developing a broad pipeline of proprietary therapeutic protein product candidates and expects shortly to begin clinical trials of its fourth product candidate, IL-21. The company has ramped up its development efforts significantly over the past year, both through the addition of experienced personnel and the expansion of outsourced development work, such as process development, manufacturing and 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 . Company Highlights To date in 2004, ZymoGenetics has taken a number of important steps in support of its business plan, including the following: -- Completed patient treatment in a Phase 1 rhThrombin clinical trial and began Phase 2 clinical studies of rhThrombin, which will address the control of bleeding in four different surgical settings: liver resection Liver resection refers to the removal of the whole liver (which would be fatal in a living person) or one or more of its vascular segments. It is commonly done as a treatment for malignant tumors, such as hepatoma (liver cancer) or metastases from other cancers. , lumbar spine Lumbar spine The segment of the human spine above the pelvis that is involved in low back pain. There are five vertebrae, or bones, in the lumbar spine. Mentioned in: Low Back Pain surgery, lower extremity lower extremity n. The hip, thigh, leg, ankle, or foot. Also called inferior limb, pelvic limb. peripheral artery bypass surgery Bypass surgery A surgical procedure that grafts blood vessels onto arteries to reroute the blood flow around blockages in the arteries (arteriosclerosis). , and formation of vascular access vascular access Clinical medicine The ability to enter the vascular system; the ease with which the vascular system can be entered for administering therapy or obtaining blood for testing grafts for dialysis. -- Together with its collaborator Serono, completed treatment of subjects in a Phase 1 clinical trial phase 1 clinical trial Phase 1 study. See Phase study. of TACI-Ig, examining the effects of treatment in healthy volunteers. -- Filed an IND application for Interleukin interleukin Any of a class of naturally occurring proteins important in regulation of lymphocyte function. Several known types are recognized as crucial constituents of the body's immune system (see immunity). 21 (IL-21) and received agreement from the Food and Drug Administration to begin a Phase 1 clinical study examining the effects of IL-21 in treating metastatic Metastatic The term used to describe a secondary cancer, or one that has spread from one area of the body to another. Mentioned in: Coagulation Disorders metastatic pertaining to or of the nature of a metastasis. melanoma melanoma: see skin cancer. melanoma Dark-coloured malignant tumour of skin cells that produce the protective skin-darkening pigment melanin. and renal cell carcinoma renal cell carcinoma or hypernephroma Malignant tumour of the cells that cover and line the kidney. It usually affects persons over age 50 who have vascular disorders of the kidneys. It seldom causes pain, unless it is advanced. patients. -- Completed a license agreement with Novo Nordisk A/S, granting exclusive rights in North America to ZymoGenetics' patents covering Interleukin 20 (IL-20) for which the company received a $4 million initial license fee, along with potential milestone and royalty payments. About ZymoGenetics ZymoGenetics is a biopharmaceutical company focused on the discovery, development and commercialization of therapeutic proteins for the prevention or treatment of human diseases. The Company is developing a diverse pipeline of potential proprietary product candidates that are moving into and through clinical development. These span a wide array of clinical opportunities that include bleeding, autoimmune diseases Autoimmune diseases A group of diseases, like rheumatoid arthritis and systemic lupus erythematosus, in which immune cells turn on the body, attacking various tissues and organs. Mentioned in: Complement Deficiencies, Premature Menopause and cancer. ZymoGenetics intends to commercialize these product candidates through internal development, collaborations with partners and out-licensing of patents from its extensive patent portfolio. For further information, visit www.zymogenetics.com. This press release contains "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of 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. These forward-looking statements are based on the current intent and expectations of the management of ZymoGenetics. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. ZymoGenetics' actual results and the timing and outcome of events may differ materially from those expressed in or implied by the forward-looking statements because of risks associated with our unproven discovery strategy, preclinical and clinical development, regulatory oversight, intellectual property claims and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and other risks detailed in the company's public filings with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2003. Except as required by law, ZymoGenetics undertakes no obligation to update any forward-looking or other statements in this press release, whether as a result of new information, future events or otherwise.
ZYMOGENETICS, INC.
STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 31,
------------------
2004 2003
------------------
Revenues:
Royalty revenue $2,410 $2,396
Option fee 1,875 1,875
License fees and milestone payments 1,404 1,962
------------------
Total revenues 5,689 6,233
Operating expenses:
Research and development, excluding noncash
stock-based compensation 20,033 15,675
General and administrative, excluding noncash
stock-based compensation 2,965 3,094
Noncash stock-based compensation expense 1,572 1,766
------------------
Total operating expenses 24,570 20,535
------------------
Loss from operations (18,881) (14,302)
Other income (expense), net (15) 831
------------------
Net loss $(18,896)$(13,471)
==================
Basic and diluted net loss per share $(0.36) $(0.29)
==================
Weighted-average number of shares used in
computing net loss per share 52,701 45,871
==================
BALANCE SHEETS
(in thousands)
(Unaudited)
March 31, December 31,
2004 2003
-------------- -------------
Cash, cash equivalents and short-term
investments $284,998 $299,892
Other current assets 8,834 8,652
Property and equipment, net 65,756 62,341
Other assets 5,218 5,024
-------------- -------------
Total assets $364,806 $375,909
============== =============
Current liabilities $22,212 $21,131
Lease obligation 50,666 50,570
Construction advance from landlord 11,793 7,918
Other non-current liabilities 8,405 8,375
Shareholders' equity 271,730 287,915
-------------- -------------
Total liabilities and shareholders'
equity $364,806 $375,909
============== =============
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion