SCIOS REPORTS FIRST QUARTER 1992 FINANCIAL RESULTS
SCIOS REPORTS FIRST QUARTER 1992 FINANCIAL RESULTS MOUNTAIN VIEW, Calif., April 22 /PRNewswire/ -- Scios Inc.
(NASDAQ: SCIO) (formerly California Biotechnology Inc.) today announced financial results for the first quarter ended March 31, 1992.
Scios reported a net loss of $3,409,000 (19 cents per share) for the first quarter ended March 31, 1992, compared to a net loss of $2,113,000 (18 cents per share) in the same period last year. For the first quarter 1992, Scios reported revenues of $1,634,000 and costs and expenses of $6,939,000. In the similar period last year, Scios reported revenues of $2,206,000 and costs and expenses of $5,150,000. Research contract revenues to Scios under its collaboration with Pfizer have been reduced compared to last year as insulinotropin has advanced to later stages of development performed directly by Pfizer Inc. The rise in costs and expenses in 1992 reflects Scios' increased efforts in product development and a significant expansion of its medical and regulatory staff. In addition, Scios has undertaken a variety of activities in anticipation of bringing products to market including the company's recently announced name change. Scios also reported investment and other income of $1,896,000 for the first quarter 1992, compared to $837,000 in the similar period last year. The increase resulted from interest received in connection with the investment of the proceeds from the secondary public offerings completed during 1991. At quarter-end, Scios had approximately $122 million in cash and marketable securities. "Our expenses for the first quarter, which are in line which expectations, reflect an increase in the intensity of our product development programs over last year," commented Richard L. Casey, Scios' president and chief executive officer. "On an organizational level, we have now established a core group of medical and regulatory staff to meet the increasing needs of our clinical trials. With this key group in place, we will also be well-positioned when early-stage products in the pipeline emerge from preclinical testing." Scios has three products in Phase II clinical trials, one in each of its focus areas: cardiopulmonary disease, tissue repair, and metabolic disorders. In the metabolic area, Phase II trials with insulinotropin for treatment of Type II diabetes progressed under the direction of Pfizer. The first publication of human clinical data for insulinotropin in the first quarter highlights its promise as a treatment for Type II diabetes. In the February 1992 issue of the journal Diabetes Care, researchers at Massachusetts General Hospital reported that insulinotropin appears to safely and effectively regulate blood sugar levels in Type II diabetics. While this study is preliminary, the findings suggest that insulinotropin may have a key potential benefit over current therapies. When administered after a meal, insulinotropin appears to more closely mimic the natural regulation of blood sugar, reducing insulin release as glucose levels fall, thereby avoiding hypoglycemia. The MGH insulinotropin study, performed for research purposes, is independent of the company's ongoing clinical development program with Pfizer. Scios acquired an exclusive license from MGH in 1988 for the commercial development of insulinotropin. In the cardiopulmonary area, Auriculin(R) atrial natriuretic peptide is undergoing evaluation for two kidney disorders: radiocontrast induced nephropathy (RCIN) and acute renal failure. Clinical trials for these indications are advancing to determine the optimal route of administration for pivotal Phase III trials which are expected to begin in 1992. Fibroblast growth factor (FGF), the lead agent in Scios' tissue repair program, is in Phase II clinical trials for soft tissue ulcers in the United States and in Japan through Scios' commercial partner for the Asian market, Kaken Pharmaceutical Co., Ltd. E. Merck, a major German pharmaceutical company and Scios' partner for European territories, has advanced FGF to the late stages of preclinical development for soft tissue wounds and bone repair. Scios is conducting preclinical studies with five additional products including brain natriuretic peptide (BNP) as a treatment for certain cardiovascular diseases; and heparin binding epidermal growth factor-like growth factor (HB-EGF), a new tissue repair factor which may be useful for gastrointestinal and lung disorders. Scios Inc. (formerly California Biotechnology Inc.) is a biopharmaceutical company engaged in the discovery, development and commercialization of novel human therapeutics. Scios focuses its efforts in three areas -- cardiopulmonary disease, tissue repair, and metabolic disorders. The company develops and commercializes products on a proprietary basis and in collaboration with established companies. SCIOS INC. AND SUBSIDIARIES Consolidated Balance Sheets (In thousands, except share data) 3/31/92 12/31/91 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 26,450 $ 29,825 Marketable securities 59,238 64,946 Contract revenues receivable 1,754 677 Other receivables 2,130 1,979 Prepaid expenses 898 870 Total current assets 90,470 98,297 Non-current marketable securities 36,633 31,909 Property and equipment, net 31,584 30,596 Other assets 49 170 Total assets 158,736 160,972 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 2,730 $ 2,309 Accrued payroll 786 1,182 Deferred contract revenue 792 501 Other current liabilities 1,177 888 Total current liabilities 5,485 4,880 Stockholders' equity: Common stock, $.01 par value; issued and outstanding: 18,400,488 and 18,322,847, respectively 184 183 Additional paid-in capital 222,996 222,429 Accumulated deficit (69,929) (66,520) Total stockholders' equity 153,251 156,092 Total liabilities and stockholders' equity 158,736 160,972 SCIOS INC. AND SUBSIDIARIES Consolidated Statements of Operations (In thousands, except share data) (Unaudited) Three Months Ended March 31 1992 1991 Revenues: Research & development contracts $1,634 $2,206 License income -- -- Total 1,634 2,206 Costs and expenses: Research and development 4,831 3,767 General and administrative 2,108 1,383 Total 6,939 5,150 Loss from operations (5,305) (2,944) Other income: Investment income 1,758 715 Other income, net 138 122 Total 1,896 837 Minority interests -- (6) Net loss (3,409) (2,113) Net loss per share $(0.19) $(0.18) Weighted average number of shares outstanding 18,365,679 11,954,742 -0- 4/22/92 /CONTACT: Virginia Walker of Scios, 415-940-6631 or 415-966-1550, or Robert Gottlieb of Feinstein Partners, 617-577-8110, for Scios/ (SCIO) CO: Scios Inc. ST: California IN: MTC SU: ERN
GK-PS -- NY012 -- 1041 04/22/92 08:32 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||Apr 22, 1992|
|Previous Article:||NORTH ATLANTIC INDUSTRIES REPORTS NINTH CONSECUTIVE RECORD QUARTERLY RESULTS|
|Next Article:||VERTEX PHARMACEUTICALS REPORTS 1992 FIRST QUARTER RESULTS|