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REDWOOD CITY, Calif.--(BW HealthWire)--July 22, 1998--SUGEN, Inc. (NASDAQ:SUGN) today announced results
for the quarter ended June 30, 1998.
The Company reported revenues of $2.4 million and a net loss of $10.9 million, or $0.69 per share. These results compare
with revenues of $1.5 million and a net loss of $8.2 million, or $0.62 per share for the same period last year, and revenues of
$1.7 million and a net loss of $9.1 million, or $0.59 per share, for the quarter ended March 31, 1998.
SUGEN also reported its results of operations for the six months ended June 30, 1998. The Company reported revenues of
$4.0 million and a net loss of $20.0 million, or $1.28 per share. These results compare with revenues of $3.0 million and a net
loss of $15.6 million, or $1.20 net loss per share for the same period last year.
As of June 30 1998, the Company had cash, cash equivalents and short-term investments of approximately $62.5 million
compared to $68.3 million as of March 31, 1998.
This quarter's results and quarter-end cash balances were positively impacted by the signing of a collaboration agreement
between SUGEN and Israeli-based ProChon Biotech Ltd. ("ProChon"), which included the purchase of $2.25 million of
SUGEN common stock at a price of $24 per share.
The collaboration is focused on the development of small molecule signal transduction inhibitors of the FGFR-3 (fibroblast
growth factor receptor) tyrosine kinase for the treatment of achondroplasia (dwarfism) and other growth disorders.
Under the agreement, SUGEN will perform lead identification and optimization on compounds that inhibit the FGFR-3 target.
ProChon will be responsible for clinical development and worldwide commercialization of drug candidates exclusively for the
treatment of FGFR-3-mediated growth disorders, while SUGEN will retain all rights, subject to royalty payments to ProChon
in certain circumstances, for other diseases in which this target may play a role.
The levels of research funding by ProChon, milestone payments and commercial terms provided for in the agreement were not
"This collaboration makes great sense for SUGEN. Without diverting any financial or clinical development resources from the
Company's primary areas of focus, it allows us to realize value from our pre-existing technologies and proprietary chemistries
in a disease area in which we do not have expertise," said Stephen Evans-Freke, chairman and CEO of SUGEN. "We are
looking forward to a mutually productive relationship with ProChon."
SUGEN, Inc. is a biopharmaceutical company focused on the discovery and development of small molecule drugs which
target specific cellular signal transduction pathways.
These signaling pathways are regulated by cell surface receptors known as tyrosine kinases (TKs), serine-threonine kinases
(STKs) and tyrosine phosphatases (TPs). Aberrant signaling of TKs, STKs and TPs has been shown to result in a variety of
chronic and acute pathological diseases, including cancer and diabetes as well as dermatologic, ophthalmic, neurologic and
SUGEN currently has three drugs in clinical trials: SU101 (a PDGF receptor inhibitor) in Phase III trials in refractory brain
cancer and multiple Phase II studies for the treatment of prostate and other cancers; SU5416 (a Flk-1/KDR angiogenesis
inhibitor) in multiple Phase I trials for the treatment of solid tumors and Phase I/II for Kaposi's sarcoma; and SU5271 (an EGF
receptor inhibitor) in Phase I for the treatment of psoriasis. The Company has research and development collaborations with
Zeneca, ASTA Medica and Allergan.