Arena Pharmaceuticals Announces Financial Results For the First Quarter of 2002
SAN DIEGO, Apr 24, 2002 /PRNewswire-FirstCall via COMTEX/ -- Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) today reported revenues of $4.2 million for the quarter ended March 31, 2002, versus $5.4 million in revenues for the quarter ended March 31, 2001. Revenues in the first quarter of 2002 and 2001 were attributable to collaborations, which included research funding, milestone payments and technology access and development fees. The Company reported a net loss for the first quarter of 2002 of $6.5 million, or $.24 per share, after non-cash amortization charges of $1.1 million. This compares with prior year results for the first quarter of a net profit of $1.1 million, or $.05 per share, after non-cash amortization charges of $1.4 million.
Research and development expenses increased to $8.8 million in the first quarter of 2002 as compared to $3.9 million in the first quarter of 2001. The expense increase was primarily due to the increase in scientific personnel and laboratory supplies needed to expand our internal drug discovery and development programs.
Cash, cash equivalents and short-term investments totaled $215.2 million at March 31, 2002.
"Arena had an excellent first quarter in which we achieved many important scientific and partnering milestones," said Jack Lief, President and CEO. "We continued to grow our scientific organization, and we believe we may have discovered many new exciting drug targets including the niacin receptor, moved our internal discovery programs closer toward an IND, and fulfilled our partnering commitments. In the coming months, I look forward to discussing our continued pharmaceutical development progress along with exciting new revenue generating collaborations."
Arena's CART and Melanophore technologies allow for the direct identification of modulators of G protein-coupled receptors ("GPCRs") in a ligand-independent manner, making the technologies particularly useful with respect to the GPCRs of therapeutic interest within the human genome. Arena has initiated "Project Genesis," an internal program aimed at obtaining all of the human GPCRs, identifying the location of these receptors within the human body for purposes of understanding the function of such receptors, and screening each GPCR to identify receptor modulators that form the basis of drug candidates. We believe that our CART and Melanophore technologies will facilitate completion of Project Genesis within the next two to four years.
Certain statements in this press release are forward-looking statements that involve a number of risks and uncertainties. Such forward looking statements include statements about the Company's strategy, our discoveries, our internal programs, and statements that are not historical facts, including statements which are preceded by the words "intends," "will," "plans," "expects," "anticipates," "estimates," "aims," and "believes" or similar words. For such statements, Arena claims the protection of the Private Securities Litigation Reform Act of 1995. Actual events or results may differ materially from Arena's expectations. Important factors that could cause actual results to differ materially from those stated or implied by Arena's forward looking statements due to risks and uncertainties associated with Arena's business include, but are not limited to, the following: the ability to complete Project Genesis, if at all, within a reasonable time period; future quarterly or annual financial results; the timing, success and cost of preclinical research, out-licensing endeavors and clinical studies; and receipt of additional milestone payments, if any, from collaborators. Additional risk factors that could cause actual results to differ materially from those in Arena's forward looking statements are disclosed in Arena's SEC reports, including, but not limited to, Arena's most recent quarterly report on Form 10-Q and its most recent annual report on Form 10-K. These forward-looking statements represent Arena's judgment as of the date of this release. Arena disclaims, however, any intent or obligation to update these forward-looking statements.
Arena Pharmaceuticals, Inc.
Condensed Consolidated Statements of Operations
Three months ended
March 31,
2002 2001
(unaudited)
Revenues
Total revenues $4,240,304 $5,392,335
Expenses
Research and development 8,841,060 3,903,341
General and administrative 1,769,753 1,025,983
Amortization of non-cash
deferred compensation 755,609 1,268,666
Amortization of acquired
technology 384,249 128,083
Total expenses 11,750,671 6,326,073
Interest and other income, net 1,040,633 2,018,732
Net income (loss) $(6,469,734) $1,084,994
Net income (loss) per share,
basic and diluted $(0.24) $0.05
Shares used in calculating
net income (loss) per share, basic 27,363,447 22,272,476
Shares used in calculating net
income (loss) per share, diluted 27,363,447 23,247,747
Condensed Consolidated
Balance Sheet Data: March 31, December 31,
2002 2001
(unaudited)
Assets
Cash, cash equivalents
and short-term investments $215,152,890 $226,924,293
Other current assets 8,879,714 6,384,531
Land, property and
equipment, net 25,894,338 23,268,567
Acquired technology,
investments and other assets 20,463,895 20,396,319
Total assets $270,390,837 $276,973,710
Liabilities and Stockholders' Equity
Liabilities $7,009,840 $7,500,032
Stockholders' equity 263,380,997 269,473,678
Total liabilities and
stockholders' equity $270,390,837 $276,973,710
"Arena Pharmaceuticals" and "Arena" are registered U.S. trademarks of the
company. "CART" is a trademark of the company. Arena's headquarters are located
at 6166 Nancy Ridge Drive, San Diego, CA 92121. Arena's telephone number is
(858) 453-7200. On the Internet, please refer to Arena's website:
http://www.arenapharm.com or BRL Screening's website:
http://www.brlscreening.com for further information regarding CART and
Melanophore technologies.
SOURCE Arena Pharmaceuticals, Inc.
CONTACT: Jack Lief, President & CEO, ext. 223, or Joseph Mooney, CFO, ext. 508, both of Arena Pharmaceuticals, +1-858-453-7200
