Neurobiological Technologies Reports Fiscal 2004 Second Quarter
Results - FDA Approval of Memantine in Q2 Triggers $2.25 Million
Payment In January 2004, Plus Future Royalties Stream - RICHMOND,
Calif., Feb. 9 /PRNewswire-FirstCall/ -- Neurobiological
Technologies, Inc. (NTI(R)) today announced a net loss of
$1,059,000, or $0.06 per share, basic and diluted, for its second
quarter ended December 31, 2003. This compares with a net loss of
$1,325,000, or $0.07 per share, basic and diluted, for thesame
quarter a year ago. "A number of significant developments during
the fiscal 2004 second quarter contributed to a positive outlook
for NTI," said Paul E. Freiman, president and chief executive
officer. "During the quarter, the FDA approved Namenda(TM)
(Memantine) for the treatment of moderate to severe Alzheimer's
disease, which we expect will lead to an ongoing revenue stream for
the company. Forest Laboratories announced positive results of a
Phase III clinical study of Namenda for mild to moderate
Alzheimer's disease and clarified that it is moving forward in
developing Namenda for neuropathic pain. Both of these separate
indications could bring additional royalties to NTI in the future.
XERECEPT(TM), our drug candidate for treating swelling around brain
cancers, has undergone a special protocol assessment with the FDA,
and we anticipate commencing a Phase III clinical trial shortly.
All in all, this has been an excellent quarter for NTI." Subsequent
to the close of the fiscal 2004second quarter, NTI received a $2.25
million payment from Merz Pharmaceuticals GmbH related to the
approval of Memantine (Namenda(TM)) for the treatment of
Alzheimer's disease in the United States. For the fiscal 2004
second quarter, NTI's research and development expenses decreased
24 percent to approximately $513,000 from approximately $679,000 in
the same period of the prior year. The decrease was primarily due
to the completion of long-term toxicology studies and manufacturing
of initial clinical supplies of XERECEPT(TM). General and
administrative expenses increased 24 percent to approximately
$855,000 from approximately $688,000 for the same quarter last
year. The increase was primarily due to increased employee benefit
costs and costs related to strategic partnership activities.
Interest income decreased to approximately $9,000 compared with
approximately $41,000 in the second quarter of the prior year, due
to lower average interest rates and lower average invested cash
balances. At December 31, 2003, the company had cash, cash
equivalents and short-term investments of approximately $2,637,113
and no long-term debt. NTI will host a conference call today with
interested parties beginning at 10:30 a.m. ET, 7:30 a.m. PT to
review the results of operations for its fiscal 2004 second quarter
and other recent events. The conference call may be heard by
dialing (800) 289-0468. A telephonic replay will be available by
dialing (888) 203-1112 or (719) 457-0820, access code: 766297,
beginning today at 1:30 p.m. through February 18th at midnight, ET,
9:00 p.m. PT. The conference call will also be webcast live at
http://www.shareholder.com/ntii/medialist.cfm. NTI is an emerging
drug development company focused on the clinical evaluation and
regulatory approval of neuroscience drugs. The Company's strategy
is to in-license and develop early- and later-stage drug candidates
that target major medical needs and which can be rapidly
commercialized. The Company's experienced management team oversees
the human clinical trials necessary to establish preliminary
evidence of efficacy and seeks partnerships with pharmaceutical and
biotechnology companies to complete development and marketing of
its product candidates. Pursuant to a strategic research and
marketing cooperation agreement with NTI and Children's Medical
Center Corporation, Merz Pharmaceuticals GmbH received rights to
develop and commercialize Memantine for all indications. Merz has
licensed exclusive marketing rights for Memantine in the United
States to Forest Laboratories, Inc. For a number of European
markets, as well as Canada, Australia and South Africa, Merz has
granted exclusive marketing rights to H. Lundbeck A/S. Merz'
exclusive partner, Daiichi Suntory Pharma Co., Ltd., is developing
Memantine in Japan. Merz and Lundbeck will co-market Memantine for
the rest of the world. Pursuant to the agreement with Merz, NTI
shares in future revenues from sales of Memantine. Except for the
historical information contained herein, the matters discussed in
this press release are forward-looking statements that involve
risks and uncertainties, including our dependence on Merz and its
marketing partners for the successful commercialization of
Memantine; our ability to develop and meet regulatory requirements
for XERECEPT(TM); fluctuations in quarterly operating results; our
dependence on others for manufacturing our products and other risks
detailed from time to time in our Securities and Exchange
Commission filings. Actual results may differ materially from those
projected. These forward-looking statements represent our judgment
as of the date of the release. We disclaim, however, any intent or
obligation to update these forward-looking statements. CONDENSED
STATEMENTS OF OPERATIONS (Unaudited) Three months ended Six months
ended December 31, December 31, 2003 2002 2003 2002 REVENUES
License $281,000 $-- $281,000 $1,406,000 Royalty 19,000 -- 29,000
-- Total revenue 300,000 -- 310,000 1,406,000 EXPENSES Research and
development 513,000 679,000 842,000 1,586,000 General and
administrative 855,000 688,000 1,431,000 1,176,000 Total expenses
1,368,000 1,366,000 2,273,000 2,762,000 Operating loss (1,068,000)
(1,366,000) (1,963,000) (1,356,000) Interest income 9,000 41,000
31,000 86,000 NET LOSS $(1,059,000) $(1,325,000)$(1,932,000)
$(1,269,000) BASIC AND DILUTED NET LOSS PER SHARE $(0.06) $(0.07)
$(0.10) $(0.07) Weighted average shares used in basic and diluted
net loss per share calculation 19,206,054 17,772,633 19,019,739
17,777,460 SELECTED BALANCE SHEET DATA December 31, June 30, 2003
2003 (unaudited) (1) Cash and cash equivalents & investments
$2,637,000 $4,402,000 Working capital 2,414,000 4,238,000 Total
assets 2,787,000 4,813,000 Deficit accumulated during development
stage (42,449,000) (40,517,000) Stockholders' equity 2,420,000
4,248,000 (1) Derived from audited financial statements.
DATASOURCE: Neurobiological Technologies, Inc. CONTACT: Paul E.
Freiman, President & CEO of Neurobiological Technologies, Inc.,
+1-510-262-1730; or Roger Pondel or Rob Whetstone, both of
PondelWilkinson MS&L, +1-323-866-6050, for Neurobiological
Technologies, Inc. Web site: http://www.ntii.com/
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