Research and development expenses totaled $10.3 million in the second quarter of 2002 as compared to $5.2 million in the second quarter of 2001. For the six months ended June 30, 2002 research and development expenses totaled $19.1 million as compared to $9.1 million for the six months ended June 30, 2001.
Cash, cash equivalents and short-term investments totaled $208.8 million at June 30, 2002. Total shares outstanding at June 30, 2002 were 27.7 million.
"In these turbulent markets, I'm pleased to report year-to-date revenues of $10 million," said Jack Lief, President and CEO. "During the past quarter, Arena continued our GPCR discovery via Project Genesis, enhanced our research capabilities and announced a new collaboration with Ferring Pharmaceuticals. I hope to share additional positive achievements in the coming months."
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 the function of such receptors, and screening each GPCR 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, our 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 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, Inc. Condensed Consolidated Statements of Operations Three months ended Six months ended June 30, June 30, 2002 2001 2002 2001 (unaudited) (unaudited) (unaudited) (unaudited) Revenues Total revenues $5,829,496 $3,330,255 $10,069,800 $8,722,590 Expenses Research and development 10,296,001 5,241,523 19,137,061 9,144,864 General and administrative 1,851,731 1,331,573 3,621,484 2,357,556 Amortization of non-cash deferred compensation 600,872 1,072,731 1,356,481 2,341,397 Amortization of acquired technology 391,268 384,249 775,517 512,332 Total expenses 13,139,872 8,030,076 24,890,543 14,356,149 Interest and other income, net 1,696,738 1,554,141 2,737,371 3,572,873 Investment writedown (1,700,000) -- (1,700,000) -- Net loss $(7,313,638) $(3,145,680) $(13,783,372) $(2,060,686) Net loss per share, basic and diluted $(0.27) $(0.14) $(0.50) $(0.09) Shares used in calculating net loss per share, basic and diluted 27,445,282 22,819,360 27,413,696 22,556,573 Condensed Consolidated Balance Sheet Data: June 30, December 31, 2002 2001 (unaudited) Assets Cash, cash equivalents and short-term investments $208,837,030 $226,924,293 Other current assets 8,092,271 6,384,531 Land, property and equipment, net 29,043,242 23,268,567 Acquired technology, investments and other assets 18,277,410 20,396,319 Total assets $264,249,953 $276,973,710 Liabilities and Stockholders' Equity Liabilities $6,344,972 $7,500,032 Stockholders' equity 257,904,981 269,473,678 Total liabilities and stockholders' equity $264,249,953 $276,973,710
"Arena Pharmaceuticals" and "Arena" are registered U.S. trademarks of the company. "CART" is a trademark of the company. Arena's headquarters are located 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 regarding CART and Melanophore technologies.
SOURCE 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