ATLANTA, GA , a pharmaceutical company focused on the treatment
of chronic inflammatory diseases, today reported financial results
for the second quarter and six months ended June 30, 2008.
During the second quarter and six months ended June 30, 2008,
AtheroGenics recorded no revenues, as compared to $30.3 million and
$41.7 million, respectively, for the same periods in 2007. Revenues
in 2007 were associated with the Company's License Agreement with
AstraZeneca for AGI-1067, which was terminated last year.
Research and development expenses for the second quarter of 2008
decreased to $8.5 million as compared to $22.3 million for the same
period in 2007. For the six months ended June 30, 2008, research
and development expenses decreased to $17.7 million, compared to
$42.3 million for the same period in 2007. The decrease in the
quarter and six-month periods was primarily due to decreased
expenditures for the ARISE and FOCUS Phase 3 clinical trials, which
have since been concluded, and lower personnel costs resulting from
the Company's organizational restructuring in May 2007. Partially
offsetting these declines were clinical trial expenditures for the
ANDES Phase 3 clinical trial which commenced in the second half of
2007.
Marketing, general and administrative expenses for the second
quarter of 2008 decreased to $2.9 million, as compared to $3.6
million for the same period in 2007. For the six months ended June
30, 2008, marketing, general and administrative expenses decreased
to $6.1 million as compared to $7.5 million for the same period in
2007. The decrease in the quarter and year-to-date periods is
primarily a reflection of lower personnel costs and professional
fees.
Restructuring and impairment expense in the second quarter and
six months ended 2007 represents the write-off of impaired
manufacturing assets, as a result of the transition of commercial
manufacturing activities from AstraZeneca, as well as severance and
asset impairment costs from an organizational restructuring that
was undertaken in the second quarter of 2007.
Interest and other income decreased to $481,000 in the second
quarter of 2008 from $1.6 million reported for the comparable
period in 2007. For the six months ended June 30, 2008, interest
and other income decreased to $1.4 million as compared to $3.5
million reported for the same period in 2007. The decrease is due
to reduced levels of invested cash and lower interest rates.
Interest expense for the second quarter of 2008 was $3.4
million, as compared to $2.1 million for the same period in 2007.
For the six months ended June 30, 2008, interest expense increased
to $6.8 million as compared to $4.2 million for the same period in
2007. The increase in interest expense for both periods was
primarily due to the additional debt incurred as a result of an
exchange, in the third quarter of 2007, of $38.0 million of 4.5
percent convertible notes due in 2008 for $60.4 million of 4.5
percent convertible notes due in 2011, as well as the accretion of
the discount recorded in connection with the new notes.
AtheroGenics reported a net loss of $14.3 million, or $0.36 per
share, for the second quarter of 2008, as compared to $6.1 million,
or $0.16 per share, for the same period in 2007. For the six months
ended June 30, 2008, AtheroGenics reported a net loss of $29.2
million, or $0.74 per share, as compared to $18.8 million, or $0.48
per share, for the comparable period in 2007.
At June 30, 2008, AtheroGenics reported total cash, cash
equivalents and short-term investments of approximately $66.2
million.
"We were pleased to report recently that our ANDES Phase 3
clinical trial of AGI-1067 for the treatment of Type 2 diabetes met
the primary endpoint and showed a dose response in reducing A1c, a
key measure of blood glucose control," stated Russell M. Medford,
M.D., Ph.D., President and Chief Executive Officer of AtheroGenics.
"Based on the results of this successful trial, AtheroGenics
intends to rapidly move forward with development of AGI-1067."
About AtheroGenics
AtheroGenics is focused on the discovery, development and
commercialization of novel drugs for the treatment of chronic
inflammatory diseases, including diabetes and coronary heart
disease (atherosclerosis). The Company's lead antioxidant and
anti-inflammatory drug candidate, AGI-1067, is being studied for
the treatment of diabetes and has completed a Phase 3 clinical
trial known as ANDES (AGI-1067 as a Novel Anti-Diabetic Agent
Evaluation Study). In addition, the Company has other clinical and
preclinical anti-inflammatory compounds, including AGI-1096, an
oral agent for the prevention of organ transplant rejection. For
more information about AtheroGenics, please visit
http://www.atherogenics.com.
Conference Call and Webcast Information
AtheroGenics will be hosting a conference call and webcast on
Tuesday, August 5, 2008, at 9:00 a.m. EDT to discuss second quarter
financial results and to provide a company update.
Conference Call Details:
(877) 407-8031 (U.S.)
(201) 689-8031 (International)
Replay Access:
(877) 660-6853 (U.S.)
(201) 612-7415 (International)
Conference ID: 292374 - Account #286
The conference call replay will be available until August 12, 2008.
Webcast Details:
To access the webcast, please go to
http://www.atherogenics.com/investor/index.html.
The webcast will be available until November 6, 2008 on
AtheroGenics' website www.atherogenics.com.
Disclosure Regarding Forward-Looking Statements
Statements contained in this press release that relate to events
or developments that we expect or anticipate will occur in the
future are deemed to be forward-looking statements, and can be
identified by words such as "believes," "intends," "expects" and
similar expressions. AtheroGenics cautions investors not to place
undue reliance on the forward-looking statements contained in this
release. An example of a forward looking statement in this press
release includes our intention to rapidly move forward with
development of AGI-1067. This and other such statements are subject
to certain factors, risks and uncertainties that may cause actual
results, events and performances to differ materially from those
referred to in such statements. For example, additional information
relating to the safety, efficacy or tolerability of AGI-1067, may
be discovered upon further analysis of clinical trial data. The
U.S. Food and Drug Administration might not allow us to conduct
further studies of the efficacy of AGI-1067 for the same or new
endpoints, and, to the extent approved, additional clinical trial
work may take a significant period of time to complete or require
significant additional resources to complete. We cannot ensure that
AGI-1067 will ever be approved or be proven safe and effective for
use in humans. These and other risks are discussed in AtheroGenics'
Securities and Exchange Commission filings, including, but not
limited to, the risks discussed in AtheroGenics' Annual Report on
Form 10-K for the fiscal year ended December 31, 2007 and Quarterly
Report on Form 10-Q for the quarter ended March 31, 2008, and are
specifically incorporated by reference into this press release. We
undertake no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events,
or otherwise.
AtheroGenics, Inc.
Statements of Operations
(Unaudited)
Three months ended Six months ended
June 30, June 30,
-------------------------- --------------------------
2008 2007 2008 2007
------------ ------------ ------------ ------------
Revenues:
License fees $ -- $ 20,833,333 $ -- $ 27,083,333
Research and
development -- 9,425,371 -- 14,636,623
------------ ------------ ------------ ------------
Total
revenues -- 30,258,704 -- 41,719,956
Operating expenses:
Research and
development 8,463,710 22,330,198 17,713,772 42,294,473
Marketing,
general and
administrative 2,926,498 3,587,195 6,061,657 7,532,698
Restructuring
and impairment
costs -- 9,996,332 -- 9,996,332
------------ ------------ ------------ ------------
Total
operating
expenses 11,390,208 35,913,725 23,775,429 59,823,503
------------ ------------ ------------ ------------
Operating loss (11,390,208) (5,655,021) (23,775,429) (18,103,547)
Interest and other
income 480,724 1,604,120 1,374,361 3,487,803
Interest expense (3,421,158) (2,087,780) (6,821,468) (4,175,561)
------------ ------------ ------------ ------------
Net loss $(14,330,642) $ (6,138,681) $(29,222,536) $(18,791,305)
============ ============ ============ ============
Net loss per share -
basic and diluted $ (0.36) $ (0.16) $ (0.74) $ (0.48)
============ ============ ============ ============
Weighted average
shares
outstanding -
basic and diluted 39,518,492 39,498,338 39,518,492 39,483,280
============ ============ ============ ============
Balance Sheet Data
(Unaudited)
June 30, December 31,
2008 2007
------------ ------------
Cash, cash equivalents and short-term
investments $ 66,214,524 $ 92,875,420
Working capital 27,047,632 50,229,551
Total assets 72,408,498 103,139,028
Current portion of long-term debt 30,500,000 35,968,750
Long-term obligations, less current portion 254,551,972 252,163,102
Accumulated deficit (440,688,351) (411,465,815)
Total shareholders? deficit (222,166,615) (195,594,625)
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