Corgentech Announces First Quarter 2006 Financial Results
May 04 2006 - 5:02PM
PR Newswire (US)
Management Will Host Conference Call at 4:30 p.m. EDT SOUTH SAN
FRANCISCO, Calif., May 4 /PRNewswire-FirstCall/ -- Corgentech Inc.
(NASDAQ:CGTK) today reported financial results for the first
quarter ended March 31, 2006. "We are making excellent progress
preparing a New Drug Application (NDA) for 3268, our lead product
candidate for the reduction of pain associated with venipunctures
and intravenous line placements, which we plan to file in the
summer with the FDA," said John P. McLaughlin, Corgentech's chief
executive officer. "In addition, we are completing two Phase 2
trials of 4975, a non- opioid drug candidate with blockbuster
commercial potential for the treatment of moderate-to-severe pain,
which has demonstrated reductions in pain for up to eight weeks in
some clinical settings after only a single administration of the
drug. These trials are for the treatment of pain post-operatively
in open cholecystectomy, or gall bladder removal, and total knee
replacement patients. We anticipate meeting with the FDA later this
year to determine the future clinical development plan for 4975. In
keeping with our mission to be the leader in novel pain management
therapies, the board of directors recently voted to change the name
of the company to Anesiva, Inc. This change requires stockholder
approval, which we hope to receive at our annual meeting on June
21, 2006." First Quarter 2006 Financial Results The financial
results for the first quarter of 2006 reflect the first full
quarter of combined operating results for AlgoRx Pharmaceuticals,
Inc. and Corgentech Inc. following the completion of our merger on
December 15, 2005. AlgoRx's financial statements are the basis for
the merged company's historical financials. Total operating
expenses were $15.5 million in the first quarter of 2006. These
operating expenses were primarily related to the preparation of an
NDA for 3268, the company's lead product candidate; data gathering
from ongoing, multiple clinical trials for 4975, an anesthetic for
site-specific, moderate- to-severe pain; and preparations to
initiate a clinical trial of 1207, the company's novel anesthetic
for the treatment of neuropathic pain. In the first quarter of
2005, operating expenses were $5.9 million. For the first quarter
of 2006, the net loss was $14.6 million, or $0.75 loss per share.
In the first quarter of 2005, the net loss was $5.7 million, or
$5.15 loss per share. Common shares outstanding were 20.1 million
shares at March 31, 2006. The overall increase in expenses and net
loss for the first quarter of 2006 reflect the increase in
personnel and development programs resulting from the merger in
December 2005. As of March 31, 2006, cash, cash equivalents and
short-term investments were $80.1 million compared to $94.9 million
at December 31, 2005. Financial Guidance for 2006 The company's
financial guidance for 2006 is as follows: -- Net loss for the full
year of 2006 to be between $45 million and $50 million before
non-cash stock compensation expense of $10 million to $12 million.
The net loss, including all non-cash stock compensation expenses,
for the full year of 2006 to be between $55 million and $62
million. -- Cash, cash equivalents and short term investments
balance ending 2006 of between $35 million and $40 million. --
Revenue projections are not included in the company's financial
guidance for 2006. Conference Call Details Corgentech will conduct
a webcast conference call with the investment community at 4:30
p.m. EDT, today, May 4, 2006 to discuss the first quarter 2006
results and to review the company's progress and future outlook.
The call will be available via live audio broadcast from the
Investor Information page on the Corgentech website at
http://www.corgentech.com/. For those unable to participate via the
Internet, a 24-hour replay will be available for seven days after
the call by calling 1-800-642-1687 (international dial:
706-645-9291) and giving the following pass code: 8473342. The
webcast will be available until the company's next quarterly
financial results conference call. About Corgentech Corgentech is a
late-stage biopharmaceutical company that seeks to be the leader in
the development and commercialization of novel therapeutic
treatments for pain. The company has four drug candidates in
clinical development for multiple potential indications, the most
advanced of which, 3268, has completed Phase 3 clinical trials.
Corgentech is based in South San Francisco, CA. Forward Looking
Statements This press release includes "forward-looking statements"
within the meaning of the safe harbor provisions of the United
States Private Securities Litigation Reform Act of 1995. Words such
as "expect," "estimate," "project," "budget," "forecast,"
"anticipate," "intend," "plan," "may," "will," "could," "should,"
"believes," "predicts," "potential," "continue," and similar
expressions are intended to identify such forward-looking
statements. Forward- looking statements in this press release
include, without limitation, projected timing of FDA filings and
clinical data announcements and other matters that involve known
and unknown risks, uncertainties and other factors that may cause
actual results, levels of activity, performance or achievements to
differ materially from results expressed or implied by this press
release. Such risk factors include, among others: whether
Corgentech can successfully develop new products and the degree to
which these gain market acceptance. Actual results may differ
materially from those contained in the forward- looking statements
in this press release. Additional information concerning these and
other risk factors is contained in Corgentech's Annual Report on
Form 10-K for the year ended December 31, 2005. Corgentech
undertakes no obligation and does not intend to update these
forward-looking statements to reflect events or circumstances
occurring after this press release. You are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date of this press release. All forward-looking
statements are qualified in their entirety by this cautionary
statement. Corgentech Inc. Consolidated Statements of Operations
(In thousands, except share and per share amounts) Three months
ended March 31, 2006 2005 (unaudited) (unaudited) Operating
expenses: Research and development $9,297 $4,155 General and
administrative 6,156 1,770 Total operating expenses 15,453 5,925
Loss from operations (15,453) (5,925) Interest and other income,
net 891 222 Net loss $(14,562) $(5,703) Basic and diluted net loss
per common share $(0.75) $(5.15) Shares used to compute basic and
diluted net loss per common share 19,453,092 1,106,909 Corgentech
Inc. Condensed Consolidated Balance Sheets (In thousands) March 31,
December 31, 2006 2005 (unaudited) (Note) Assets Cash, cash
equivalents and short-term investments $80,087 $94,913 Other
current assets 1,397 1,464 Total current assets 81,484 96,377
Property and equipment, net 3,351 871 Other assets, non-current 678
669 Total assets $85,513 $97,917 Liabilities and stockholders'
equity Current liabilities $6,692 $8,377 Long term obligations 9 --
Total stockholders' equity 78,812 89,540 Total liabilities and
stockholders' equity $85,513 $97,917 (Note): Derived from audited
financial statements at that date. DATASOURCE: Corgentech Inc.
CONTACT: Richard Powers, Chief Financial Officer of Corgentech
Inc., +1-650-624-9600, or ; or Media, Daryl Messinger of WeissComm
Partners, +1-415-999-2361, or , for Corgentech Inc. Web site:
http://www.corgentech.com/
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