Research and development expenses increased to $8.8 million in the first quarter of 2002 as compared to $3.9 million in the first quarter of 2001. The expense increase was primarily due to the increase in scientific personnel and laboratory supplies needed to expand our internal drug discovery and development programs.
Cash, cash equivalents and short-term investments totaled $215.2 million at March 31, 2002.
"Arena had an excellent first quarter in which we achieved many important scientific and partnering milestones," said Jack Lief, President and CEO. "We continued to grow our scientific organization, and we believe we may have discovered many new exciting drug targets including the niacin receptor, moved our internal discovery programs closer toward an IND, and fulfilled our partnering commitments. In the coming months, I look forward to discussing our continued pharmaceutical development progress along with exciting new revenue generating collaborations."
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 discoveries, our internal programs, and statements that are not historical facts, including statements which are preceded by the words "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 March 31, 2002 2001 (unaudited) Revenues Total revenues $4,240,304 $5,392,335 Expenses Research and development 8,841,060 3,903,341 General and administrative 1,769,753 1,025,983 Amortization of non-cash deferred compensation 755,609 1,268,666 Amortization of acquired technology 384,249 128,083 Total expenses 11,750,671 6,326,073 Interest and other income, net 1,040,633 2,018,732 Net income (loss) $(6,469,734) $1,084,994 Net income (loss) per share, basic and diluted $(0.24) $0.05 Shares used in calculating net income (loss) per share, basic 27,363,447 22,272,476 Shares used in calculating net income (loss) per share, diluted 27,363,447 23,247,747 Condensed Consolidated Balance Sheet Data: March 31, December 31, 2002 2001 (unaudited) Assets Cash, cash equivalents and short-term investments $215,152,890 $226,924,293 Other current assets 8,879,714 6,384,531 Land, property and equipment, net 25,894,338 23,268,567 Acquired technology, investments and other assets 20,463,895 20,396,319 Total assets $270,390,837 $276,973,710 Liabilities and Stockholders' Equity Liabilities $7,009,840 $7,500,032 Stockholders' equity 263,380,997 269,473,678 Total liabilities and stockholders' equity $270,390,837 $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 or BRL Screening's website: http://www.brlscreening.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, +1-858-453-7200