INHALE REPORTS INCREASE IN 3RD. QTR. CONTRACT REVENUE.
For the three months ended September 30, 2000, the company reported a net loss of $13.2 million or $(0.31) per share. The results for the third quarter, excluding a charge for non-cash compensation, was a net loss of $12.2 million or $(0.29) per share. The company's net loss during the corresponding period of 1999 was $7.0 million or $(0.21) per share. The non-cash compensation charge recorded during the three month period ended September 30, 2000 of $1.0 million or $(0.02) per share was associated with the accounting for stock options.
For the nine months ended September 30, 2000 the company reported a net loss of $57.8 million or $(1.42) per share. Excluding the charges described below, the company's results would be a net loss of $35.1 million or $(0.86) per share. The results exclude a one-time net interest charge of $15.2 million $(0.37) per share incurred during the first quarter as a premium to convert $98.7 million of debentures into approximately 6.2 million shares of common stock, a one-time charge of $2.3 million or $(0.06) per share resulting from purchased in-process research and development, and $5.2 million or $(0.13) per share resulting from non-cash compensation charges. The company's net loss for the corresponding period of 1999 was $18.3 million or $(0.54) per share.
The increase in expenses and net operating loss in the first nine months of 2000 as compared to the prior year is primarily attributed to increased spending related to the scale-up of technologies and the continuing development of global manufacturing capabilities in order to support Phase III inhaleable insulin trials and commercial production.
Incyte CEO Roy A. Whitfield Joins Inhale board of directors
Inhale also announced the appointment of Roy A. Whitfield, CEO of Incyte Genomics, Inc., as a new member of Inhale's board of directors. Whitfield is replacing Mark Gabrielson who is retiring from Inhale's board. "Mark was one of our early venture capital investors, and we appreciate the support and guidance that he has provided us as we have grown the company," said Robert Chess, chairman, Inhale.
Whitfield pioneered the genomic information business by co- founding Incyte in 1991. With more than 20 years of experience, he has a varied and extensive background in innovative business strategy development and execution. Whitfield is also a member of the board of directors for Aurora Biosciences Corp. and the Biotechnology Industry Organization (BIO).
A native of Crewe, England, Whitfield earned a bachelor's degree in mathematics from Oxford University and an MBA with distinction from Stanford University.
"We are excited about Roy joining our board. At Incyte, he has built one of the pioneering companies in the genomics field. Roy's experience in strategy development and creative partnering arrangements will prove valuable to Inhale as we continue to grow our company," concluded Chess.
Real Estate Transaction
Inhale also announced the completion of a build-to-suit lease transaction involving property purchased by the company two years ago across the street from its current headquarters facility. Inhale has sold, transferred and contributed its interest in this property along with the improvements to a partnership venture, in which Inhale is a 49% limited partner, that will lease back the building to Inhale. The transaction could provide up to $51 million of financing for capital improvements. The building on this site will provide additional laboratory and office space for the company. The company's headquarters address will not change.
On October 17, Inhale completed its previously announced offering of $200 million of 3.5% convertible subordinated. The terms of the notes are as set forth in the announcement of the offering filed with the Securities and Exchange Commission on Form 8-K.
Inhale also today announced that it has entered into privately negotiated agreements with certain holders of its outstanding 5% convertible subordinated notes privately placed in February 2000, and as of this date have secured agreements to convert approximately $105 million of the notes into 2.7 million shares of common stock. The cost to convert these notes is estimated at $16 million.
Inhale is pioneering drug delivery systems to easily deliver a range of inhaleable drugs, including peptides, proteins and small molecules, to the deep lung for treatment of systemic and respiratory diseases. Inhale's Inhance(TM) drug delivery platform technology combines innovations in powder technology and inhaling devices to enable efficient and reproducible delivery of inhaleable drugs. The company has development partnerships with several major pharmaceutical and biotechnology companies, including Pfizer, Aventis Behring (formerly Centeon), Biogen and Lilly. Inhale's most advanced program is inhaleable insulin, sponsored by Pfizer, which is in Phase III human clinical trials.
For more information, call 650/631-3138.
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|Comment:||INHALE REPORTS INCREASE IN 3RD. QTR. CONTRACT REVENUE.|
|Publication:||Biotech Financial Reports|
|Article Type:||Brief Article|
|Date:||Dec 1, 2000|
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