|Trega Biosciences Reports Third-Quarter 2000 Results|
- Third Quarter Highlighted by iDEA (TM) License to Johnson & Johnson Companies -
SAN DIEGO, Nov. 9 /PRNewswire/ -- Trega Biosciences, Inc. (Nasdaq: TRGA), focused on commercializing technologies and products for accelerating drug discovery and development, today announced financial results for the third quarter ended September 30, 2000. Revenues for the third quarter were $3.4 million, compared with revenues of $2.0 million for the previous quarter. Revenues for the third quarter 1999 were $4.0 million, which included one-time payments from members of the consortium of companies with whom Trega collaborated for the development of the initial version of the iDEA (TM) Predictive ADME Simulation System for absorption. Revenues from the sale of chemical compounds for the third quarter were $2.5 million, compared with $2.8 million in the third quarter of 1999.
The net loss for the third quarter of 2000 was $4.1 million, or $0.18 per share, compared with a net loss of $2.3 million, or $0.13 per share, in the comparable period in 1999. Expenses for the quarter increased approximately $1.0 million over the prior year due primarily to transactions related to the manufacture of compounds for a single customer and software licenses purchased to support the enterprise version of Trega's iDEA (TM) Predictive ADME Simulation System. These expenses are not expected to continue in future quarters.
Revenues for the nine months ended September 30, 2000 were $8.0 million compared with revenues of $8.8 million for the same period last year. The net loss for the nine months was $11.6 million, or $0.53 per share, compared with $8.5 million, or $0.47 per share, for the nine months ended September 30, 1999. Trega ended the third quarter of 2000 with approximately $5.8 million in cash, cash equivalents and short-term investments. Additionally, current assets at the end of the quarter included approximately $3.0 million in accounts receivable.
"In line with our strategy, Trega has in recent months advanced the development and commercialization of its iDEA (TM) Predictive ADME Simulation System, which simulates, in silico, how drug candidates will be processed in the body. We are excited to see that the trend toward in silico testing is gathering momentum among research scientists, as evidenced by a number of presentations last week at the American Association of Pharmaceutical Scientists conference. These included several presentations on our iDEA (TM) module for absorption, which is the only absorption model commercially available with an independently validated high level predictive capability. We also previewed at the meeting our iDEA (TM) module for metabolism, which is scheduled for a year-end commercial launch," said Michael G. Grey, President and CEO of Trega Biosciences.
Mr. Grey continued, "During the third quarter, we completed initial license agreements to the iDEA (TM) absorption module with F. Hoffmann- LaRoche, Ltd. and Aventis Pharma AG as well as a worldwide license for both the absorption and metabolism modules to Janssen Research Foundation and its Johnson & Johnson affiliates. Revenues from the iDEA (TM) licenses will be recognized over the term of the licenses. Moreover, in this quarter we continued to provide Chem.Folio (R) combinatorial libraries to both new and repeat customers."
Trega Biosciences, Inc. is a premier provider of products that accelerate and improve drug discovery through its iDiscovery (TM) technologies linking biology and chemistry with information technologies. Trega's iDEA (TM) Predictive ADME Simulation System of information-based models simulate, in silico, how drug candidates will be processed in the body, thereby enabling selection of those with optimal characteristics for clinical development. Together with its iDEA (TM) products, Trega's Chem.Folio (R) libraries of information-enhanced small molecules are designed to facilitate the identification and optimization of drug candidates. For additional information on Trega, please visit our Web site at trega.com.
Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties. The Company's quarterly and annual financial performance may be subject to fluctuations depending on factors such as the receipt, timing and amount of revenue recognized from sales, licenses and collaborations, timing of the delivery of products and technologies, the completion of contracted service commitments to Trega's customers and partners, and potential future acquisitions or disposition of complementary assets or technologies. Accordingly, revenue and operating results for prior periods may not be indicative of Trega's future financial results. Other forward-looking statements could include whether the Company's resources are sufficient to enable it to reach its business objectives, whether any research or development activities to be conducted as described will be successful, whether any additional collaborations or alliances will be formed or expanded, whether any such products can be successfully marketed, the impact of competitive products and pricing in marketing success, whether any other corporate collaborations or alliances will be successful, and other risks detailed from time to time in Trega's Securities and Exchange Commission filings. These forward-looking statements represent Trega's judgment as of the date of this release. Actual results may differ materially from those projected. Trega disclaims, however, any intent or obligation to update these forward-looking statements.
TREGA BIOSCIENCES, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
Compound revenues $2,504 $2,822 $4,814 $4,383
and licenses fees 899 1,102 3,183 4,133
Net sales 7 76 50 265
Total revenues 3,410 4,000 8,047 8,781
Costs and expenses:
Cost of sales 29 83 136 242
development 5,036 4,593 13,635 13,534
and administrative 2,271 1,682 6,568 5,187
and expenses 7,336 6,358 20,339 18,963
Loss from operations
before equity in losses
of affiliate $(3,926) $(2,358) $(12,292) $(10,182)
Equity in losses
of affiliate (111) (16) (451) (16)
Loss from operations (4,037) (2,374) (12,743) (10,198)
(expense), net (78) 32 1,180 1,687
Net loss $(4,115) $(2,342) $(11,563) $(8,511)
Basic and diluted
net loss per share $(0.18) $(0.13) $(0.53) $(0.47)
Shares used in
net loss per share 23,337 18,537 21,986 18,150
TREGA BIOSCIENCES, INC.
Condensed Consolidated Balance Sheets
September 30, December 31,
Cash, cash equivalents and
short-term investments $5,840 $6,434
Accounts receivable and
other current assets 3,888 2,541
Property and equipment, net 4,647 4,179
Other assets 8,460 9,507
Total assets $22,835 $22,661
Current liabilities $7,866 $8,155
Long-term liabilities 3,510 2,996
Stockholders' equity 11,459 11,510
Total liabilities and stockholders' equity $22,835 $22,661
Gerard A. Wills
Chief Financial Officer
Associate, Corporate Communications
SOURCE Trega Biosciences, Inc.
CO: Trega Biosciences, Inc.
11/09/2000 07:59 EST prnewswire.com