Arena Pharmaceuticals Announces Financial Results For the Fourth Quarter and Full Year of 2001
Research and development expenses increased to $7.5 million in the fourth quarter of 2001 as compared to $3.5 million in the fourth quarter of 2000. For the full year ended December 31, 2001, research and development expenses increased by $10.8 million to $22.9 million from $12.1 million for the full year ended December 31, 2000.
Cash, cash equivalents and short-term investments totaled $226.9 million at December 31, 2001.
"This past year represented an important transition for Arena as we become a product focused company," said Jack Lief, President and CEO. "We intend to continue our excellent partnering relationships, enter into new collaborations and leverage our financial strength as Arena discovered compounds enter the IND process."
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 estimated 800 therapeutically relevant GPCRs 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 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 registration statement filed June 21, 2001 on Form S-1, as amended, its 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 Year ended December 31, December 31, 2001 2000 2001 2000 (unaudited) Revenues Total revenues $5,865,071 $4,079,999 $18,059,999 $7,683,396 Expenses Research and development 7,488,427 3,533,857 22,864,250 12,080,204 General and administrative 1,570,111 959,097 5,390,446 2,678,980 Amortization of non-cash deferred compensation 826,690 1,390,494 4,239,740 4,342,896 Amortization of acquired technology and other purchased intangibles 384,249 -- 1,280,830 -- Total expenses 10,269,477 5,883,448 33,775,266 19,102,080 Interest and other income, net 1,601,922 2,868,355 8,832,543 5,056,714 Net income (loss) (2,802,484) 1,064,906 (6,882,724) (6,361,970) Non-cash preferred stock charge -- -- -- (22,391,068) Net income (loss) applicable to common stockholders $(2,802,484) $1,064,906 $(6,882,724) $(28,753,038) Net income (loss) per share, basic and diluted $(0.10) $0.05 $(0.28) $(2.84) Shares used in calculating net income (loss) per share, basic 27,280,258 22,166,822 24,989,067 10,139,755 Shares used in calculating net income (loss) per share, diluted 27,280,258 22,692,988 24,989,067 10,139,755 Pro forma net loss per share $(1.65) Shares used in calculating pro forma net loss per share 17,411,028 Note: The loss per share on a pro forma basis assumes the conversion of the redeemable preferred stock into common stock as of the date of issuance. The redeemable preferred stock converted into common stock at the closing of the Company's initial public offering on a one-for-one basis. Condensed Consolidated Balance Sheet Data: December 31, December 31, 2001 2000 Assets Cash, cash equivalents and short-term investments $226,924,293 $144,413,176 Other current assets 6,384,531 3,801,268 Land, property and equipment, net 23,268,567 4,265,260 Acquired technology, investments and other assets 20,396,319 232,225 Total assets $276,973,710 $152,711,929 Liabilities and Stockholders' Equity Liabilities $7,500,032 $3,927,604 Stockholders' equity 269,473,678 148,784,325 Total liabilities and stockholders' equity $276,973,710 $152,711,929"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 Technology and the Melanophore Technology.
For further information, contact: Jack Lief, President & CEO, (858) 453-7200 Extension 223 or Joseph Mooney, CFO, (858) 453-7200 Extension 508, both of Arena Pharmaceuticals, Inc.
SOURCE Arena Pharmaceuticals, Inc.
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.