Conference call scheduled today at 8:00 a.m. Pacific Time SAN
DIEGO, March 12 /PRNewswire-FirstCall/ -- SGX Pharmaceuticals
(NASDAQ:SGXP) today announced financial results for the year and
fourth quarter ended December 31, 2007. For the full year 2007, the
Company posted total revenues of $34.7 million and a net loss of
$16.0 million, or $1.01 per share. For the quarter ended December
31, 2007, the Company posted total revenues of $7.7 million and a
net loss of $6.1 million, or $0.35 per share. Cash and cash
equivalents totaled $39.0 million at December 31, 2007 compared to
$33.9 million at December 31, 2006. 2007 Overview and Pipeline
Update -- SGX523: In November 2007, the Company submitted an
investigational new drug application (IND) to the FDA, only ten
months after designating this small-molecule MET receptor tyrosine
kinase inhibitor as a development candidate. Two Phase I studies
were initiated in January 2008 in subjects with solid tumors;
patient enrollment is ongoing. -- SGX126: Expanding the MET
program, in November 2007, SGX designated SGX126 as its next MET
development candidate. Like SGX523 and the Company's BCR-ABL
inhibitors, this development candidate was discovered using the
Company's FAST(TM) platform. This orally-bioavailable small
molecule shows potent and selective in vitro and in vivo activity
with a profile complementary to that of SGX523. -- SGX393: This
selective, orally-bioavailable BCR-ABL inhibitor is currently in
IND enabling studies and, pending successful completion, an IND
submission is planned during the second quarter of 2008. SGX393 is
a potent inhibitor of the T315I mutant (as well as other resistant
mutants and wild-type BCR-ABL) and is likely most applicable to
relapsed/refractory chronic myelogenous leukemia (CML). -- The
research activities conducted under the Company's collaboration
with Novartis have resulted in the identification of a number of
promising BCR-ABL inhibitors targeting the front-line CML
population. The collaborative research phase is due to end in late
March 2008 in accordance with the agreement and, thereafter,
Novartis is responsible for further development of drug candidates
identified under the collaboration. At this time, an IND for a drug
candidate under the collaboration is not anticipated in 2008. -- In
addition to the inhibitors targeting the front-line CML population,
the Company is currently pursuing a portfolio of drug discovery
targets which have been implicated in various human cancers. The
goal for the Company's FAST(TM) drug discovery program is to
nominate two new development candidates by year end leading to IND
submission in 2009. -- In November 2007, the Company completed a
private placement financing providing net proceeds of $23.2
million. "We began 2008 by initiating clinical development of our
first internally developed oncology drug candidate, SGX523, now
enrolling subjects in two phase I studies," said Mike Grey,
President and Chief Executive Officer of SGX Pharmaceuticals.
"After SGX523, we have SGX393 from our BCR-ABL program, and SGX126,
also from our MET program, preparing for IND submissions in 2008.
In addition to these compounds, our drug discovery portfolio is
focused on multiple oncology targets. We are very pleased with our
accomplishments in 2007 and excited by the many clinical,
preclinical and discovery-stage opportunities in 2008 and beyond."
Financial Results for the Full Year and Fourth Quarter Ended
December 31, 2007 Total revenues for the year ended December 31,
2007 were $34.7 million, compared to $27.8 million for the year
ended December 31, 2006. Total revenues in the fourth quarter of
2007 were $7.7 million, compared to $8.4 million in the fourth
quarter of 2006. The increased revenue of $6.9 million for 2007,
compared to 2006, is primarily attributable to additional revenues
earned through our Novartis collaboration, together with the
achievement of a milestone, and additional services provided under
other collaborations and commercial agreements. This increase also
reflects the recognition of revenue in the first quarter of 2007
related to the reimbursement of indirect costs incurred on grant
research since the commencement of the grant in July 2005. The $0.7
million decrease in revenue for the fourth quarter of 2007,
compared to the fourth quarter of 2006, reflects higher Novartis
direct development costs, thereby reducing the amount of revenue
recognized for out-of-pocket reimbursements, offset by revenue
recognized for additional services provided under other
collaborations and commercial agreements. Research and development
expenses totaled $42.2 million for the year ended December 31,
2007, compared to $46.9 million for the year ended December 31,
2006. Research and development expenses totaled $11.2 million for
the fourth quarter of 2007, compared to $11.4 million in the same
period of 2006. The decrease of $4.7 million in 2007, compared to
2006, is primarily attributable to reduced expenditures for outside
services in connection with the MET and BCR-ABL programs, reduced
payments to subcontractors performing services in connection with
our grant research efforts and lower depreciation expense. The
decrease of $0.2 million for the fourth quarter of 2007, as
compared to the fourth quarter of 2006, was primarily attributable
to lower depreciation expense. General and administrative expenses
totaled $8.6 million for the year ended December 31, 2007, compared
to $9.6 million for the year ended December 31, 2006. General and
administrative expenses totaled $2.2 million for the fourth
quarters of both 2007 and 2006. The decrease in general and
administrative expenses in 2007, compared to 2006, is primarily
attributable to lower stock-based compensation expense for option
and restricted stock grants. SGX reported a net loss applicable to
common stockholders for the full year and fourth quarter ended
December 31, 2007 of $16.0 million, or $1.01 per share, and $6.1
million, or $0.35 per share, respectively. This compares with a net
loss applicable to common stockholders for the full year and fourth
quarter ended December 31, 2006 of $28.1 million, or $2.03 per
share, and $4.9 million, or $0.32 per share, respectively. The
decrease in the net loss in 2007, compared to 2006, is primarily
attributable to an increase in revenues in connection with the
Novartis collaboration, an increase in revenue recognized in
connection with the reimbursement of indirect costs related to
grant-related activities, a decrease in non-cash related operating
expenditures, and a decrease in expenditures to subcontractors
performing services in connection with our grant research efforts.
The increase in the net loss for the fourth quarter of 2007,
compared to the fourth quarter of 2006, is primarily attributable
to lower revenues earned in connection with our collaboration with
Novartis. For 2008, the Company projects a net cash burn of
approximately $19 -- $21 million before any cash inflows in
connection with a potential collaboration around the Company's MET
program. Conference Call and Webcast The Company will hold a
conference call at 8:00 a.m. Pacific Time today March 12, 2008, to
discuss these results and business highlights. Interested
participants and investors may access the teleconference call by
dialing 800-573-4752 (U.S./Canada) or 617-224-4324 (international),
participant code 20358556. A telephonic replay will be available
for seven days following the call. Access numbers for this replay
are 888-286-8010 (U.S./Canada) and 617-801-6888 (international),
participant code 55640708. About SGX Pharmaceuticals SGX
Pharmaceuticals is a biotechnology company focused on the
discovery, development and commercialization of innovative cancer
therapeutics. The SGX oncology pipeline includes drug candidates
from its FAST(TM) drug discovery platform, such as SGX523, a MET
kinase inhibitor currently in Phase 1 clinical studies, next
generation BCR-ABL inhibitors being developed by SGX and in
partnership with Novartis and a portfolio of inhibitors of various
oncology targets. More information on the pipeline and drug
discovery platform can be found at http://www.sgxpharma.com/ and in
the Company's various filings with the Securities and Exchange
Commission. Forward-looking Statements Statements in this press
release that are not strictly historical in nature are
forward-looking statements. These statements include, but are not
limited to, statements related to research and development
programs, net cash burn and plans for 2008 and beyond, expectations
regarding the timing of the filing of INDs and commencement and
success of IND enabling activities and preclinical and clinical
studies, partnership opportunities, the potential of the Company's
inhibitors as treatments for certain cancers, partnering
opportunities for the Company's research and development programs,
including any potential collaborations around the Company's MET
program and the ability to discover, develop and commercialize
cancer therapeutics. These statements are only predictions based on
current information and expectations and involve a number of risks
and uncertainties. Actual events or results may differ materially
from those projected in any of such statements due to various
factors, including the risks and uncertainties inherent in drug
discovery, development and commercialization, which include,
without limitation, the potential failure of development candidates
to advance through preclinical studies or demonstrate safety and
efficacy in clinical testing and the ability to file INDs or
commence IND enabling activities or preclinical or clinical studies
in the referenced time frames. The results of early preclinical
studies or clinical trials may not be predictive of future results,
and the Company cannot provide any assurances that any of its
compounds or development candidates will have favorable results in
preclinical studies or future clinical trials. In addition, results
may be affected by the initiation, implementation and conclusion of
its collaborations, cash generated or used in connection with new
or existing collaborations, the failure to successfully complete
collaborations or partnerships, the partnering of its research and
development programs, competition from other biotechnology and
pharmaceutical companies, its effectiveness at managing its
financial resources, the level of resources that its collaborative
partners devote to development of its product candidates, the scope
and validity of patent protection for its products, and its ability
to obtain additional funding to support its operations. For a
discussion of these and other factors, please refer to the risk
factors described in the Company's annual report on Form 10-K for
the year ended December 31, 2006, the Company's quarterly report on
Form 10-Q for the three and nine months ended September 30, 2007,
as well as other filings with the Securities and Exchange
Commission. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof.
This caution is made under the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. All
forward-looking statements are qualified in their entirety by this
cautionary statement and SGX undertakes no obligation to revise or
update this press release to reflect events or circumstances after
the date hereof. SGX PHARMACEUTICALS, INC. CONSOLIDATED STATEMENTS
OF OPERATIONS (in thousands, except per share data) (unaudited)
Three Months Ended Year Ended December 31, December 31, 2007 2006
2007 2006 Revenue: Collaborations and commercial agreements $5,554
$6,714 $22,367 $19,906 Grants 2,125 1,723 12,372 7,874 Total
revenue 7,679 8,437 34,739 27,780 Expenses: Research and
development 11,242 11,352 42,249 46,942 General and administrative
2,233 2,168 8,642 9,588 Total operating expenses 13,475 13,520
50,891 56,530 Loss from operations (5,796) (5,083) (16,152)
(28,750) Interest income (expense), net (326) 198 145 698 Net loss
(6,122) (4,885) (16,007) (28,052) Accretion to redemption value of
redeemable convertible preferred stock - - - (49) Net loss
attributable to common stockholders $(6,122) $(4,885) $(16,007)
$(28,101) Basic and diluted net loss per share attributable to
common stockholders $(0.35) $(0.32) $(1.01) $(2.03) Shares used to
compute basic and diluted net loss per share attributable to common
stockholders 17,707 15,152 15,915 13,814 Three Months Ended Three
Months Ended December 31, 2007 (1) December 31, 2006 (1) Stock-
Stock- based Reported based Reported non- compensation GAAP non-
compensation GAAP GAAP expense results GAAP expense results Net
loss attributable to common stockholders $(5,532) $(590) $(6,122)
$(4,126) $(759) $(4,885) Basic and diluted net loss per share
attributable to common stockholders $(0.32) $(0.02) $(0.35) $(0.27)
$(0.05) $(0.32) Research and development expenses $10,922 $320
$11,242 $11,064 $288 $11,352 General and administrative expenses
$1,963 $270 $2,233 $1,697 $471 $2,168 Year Ended Year Ended
December 31, 2007 (1) December 31, 2006 (1) Stock- Stock- based
Reported based Reported non- compensation GAAP non- compensation
GAAP GAAP expense results GAAP expense results Net loss
attributable to common stockholders $(12,637) $(3,370) $(16,007)
$(23,532) $(4,569) $(28,101) Basic and diluted net loss per share
attributable to common stockholders $(0.79) $(0.21) $(1.01) $(1.70)
$(0.33) $(2.03) Research and development expenses $40,519 $1,730
$42,249 $44,818 $2,124 $46,942 General and administrative expenses
$7,002 $1,640 $8,642 $7,143 $2,445 $9,588 SGX PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited)
December 31, December 31, 2007 2006 Assets Cash, cash equivalents
and short- term investments $38,990 $33,877 Accounts receivable
2,706 3,532 Other current assets 1,187 1,616 Property and
equipment, net 3,889 5,435 Other assets 4,284 4,004 Total assets
$51,056 $48,464 Liabilities and stockholder's equity Current
liabilities $24,991 $21,762 Deferred revenue, long-term 1,042
13,023 Other liabilities, net of current portion - 66 Stockholder's
equity 25,023 13,613 Total liabilities and stockholder's equity
$51,056 $48,464 1) In addition to disclosing financial results
calculated in accordance with generally accepted accounting
principles (GAAP), this table contains non-GAAP financial measures
that exclude the effect of non-cash stock compensation expense. The
Company believes that the presentation of results excluding
non-cash stock compensation expense provides meaningful
supplemental information to both management and investors that is
indicative of the Company's core operating results. The Company
believes these non-GAAP financial measures facilitate comparison of
operating results across reporting periods, and uses these non-GAAP
financial measures when evaluating its financial results, as well
as for internal planning and forecasting purposes. These non-GAAP
financial measures should not be considered a substitute for, or
superior to, financial measures calculated in accordance with GAAP.
DATASOURCE: SGX Pharmaceuticals CONTACT: Bonnie Feldman, Sr.
Director, Investor Relations and Corporate Communications,
+1-858-344-8860, or Todd Myers, Chief Financial Officer,
+1-858-558-4850, both of SGX Pharmaceuticals Web site:
http://www.sgxpharma.com/
Copyright
Sgx Pharmaceuticals (MM) (NASDAQ:SGXP)
Historical Stock Chart
From Jul 2024 to Aug 2024
Sgx Pharmaceuticals (MM) (NASDAQ:SGXP)
Historical Stock Chart
From Aug 2023 to Aug 2024