Research and development expenses totaled $12.0 million in the third quarter of 2002, compared to $6.2 million in the third quarter of 2001. For the nine months ended September 30, 2002, research and development expenses totaled $31.1 million, compared to $15.4 million for the nine months ended September 30, 2001.
Cash, cash equivalents and short-term investments totaled $196.1 million at September 30, 2002. Total shares outstanding at September 30, 2002 were 27.7 million.
"In these difficult financial times, I believe Arena has been able to build upon our scientific leadership position. I expect Arena to report on favorable progress as we complete initial discovery work at most human GPCRs by year-end" stated Jack Lief, Arena's President and CEO. "I am especially pleased with progress of our recent collaborations with Merck & Co., Ferring Pharmaceuticals and by our achievement of milestones in our collaborations led by Eli Lilly & Co."
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 their function, and screening such receptors 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, internal programs, future achievements, and statements that are not historical facts, including statements which are preceded by the words "hopes," "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 the 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" and "Arena" are registered U.S. trademarks of the company. "CART" is a trademark of the company. Arena's headquarters is 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 for further information.
For further information, contact: Jack Lief, President & CEO, +1-858-453-7200, ext. 223, or Joseph Mooney, CFO, +1-858-453-7200, ext. 508, both of Arena Pharmaceuticals, Inc.
Arena Pharmaceuticals, Inc. Condensed Consolidated Statements of Operations Three months ended Nine months ended September 30, September 30, 2002 2001 2002 2001 (unaudited) (unaudited) (unaudited) (unaudited) Revenues Total revenues $2,987,741 $3,472,338 $13,057,541 $12,194,928 Expenses Research and development 12,001,252 6,230,959 31,138,313 15,375,823 General and administrative 1,842,302 1,462,779 5,463,786 3,820,335 Amortization of non-cash deferred compensation 463,931 1,071,653 1,820,412 3,413,050 Amortization of acquired technology 405,305 384,249 1,180,822 896,581 Total expenses 14,712,790 9,149,640 39,603,333 23,505,789 Interest and other income, net 1,543,823 3,657,748 4,281,194 7,230,621 Investment write-down (86,797) -- (1,786,797) -- Net loss $(10,268,023) $(2,019,554) $(24,051,395) $(4,080,240) Net loss per share, basic and diluted $(0.37) $(0.07) $(0.88) $(0.17) Shares used in calculating net loss per share, Basic and diluted 27,514,085 27,236,326 27,464,983 24,194,049 Condensed Consolidated Balance Sheet Data: September 30, December 31, 2002 2001 (unaudited) Assets Cash, cash equivalents and short-term investments $196,102,985 $226,924,293 Other current assets 8,549,823 6,384,531 Land, property and equipment, net 34,596,065 23,268,567 Acquired technology, investments and other assets 17,513,129 20,396,319 Total assets $256,762,002 $276,973,710 Liabilities and Stockholders' Equity Liabilities $6,961,406 $7,500,032 Stockholders' equity 249,800,596 269,473,678 Total liabilities and stockholders' equity $256,762,002 $276,973,710SOURCE Arena Pharmaceuticals, Inc.
CONTACT: Jack Lief, President & CEO, ext. 223, or Joseph Mooney, CFO, ext. 508, both of Arena Pharmaceuticals, Inc., +1-858-453-7200