EX-99.1 2 a05-20276_1ex99d1.htm EXHIBIT 99

Exhibit 99.1

 

 

For Immediate Release

 

Sunesis Pharmaceuticals Reports Third Quarter 2005 Financial Results

 

South San Francisco, CA, November 14, 2005 – Sunesis Pharmaceuticals, Inc. (Nasdaq: SNSS), a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel small molecule therapeutics, today reported financial results for the quarter ended September 30, 2005.  Revenue for the third quarter was $3.3 million, with a net loss of $5.6 million.  As of September 30, 2005, cash, cash equivalents and marketable securities totaled $55.0 million and debt totaled $2.5 million.

 

Quarter Highlights

 

•                  The company completed enrollment of the first Phase I clinical trial of SNS-595, Sunesis’ lead novel cytotoxic anticancer drug.  The trial is an open-label, multi-center, dose-escalation study designed to examine the safety, tolerability and pharmacokinetics of SNS-595.  The results of this trial will be presented at the upcoming European Organization for Research and Treatment of Cancer (“EORTC”) conference on November 17, 2005.

 

•                  On August 29, 2005, Sunesis announced the selection of SNS-314 as the lead development candidate from the company’s internal efforts to discover novel Aurora kinase inhibitors.  SNS-314 has shown promising activity and pharmaceutical properties in animal models.  Sunesis plans to file an Investigational New Drug (IND) application for this compound in 2006.

 

•                  On September 30, 2005, the company completed an initial public offering (“IPO”) of common stock with gross proceeds of $42.0 million.

 

Financial Highlights

 

•                  Revenue from research collaborations totaled $3.3 million and $11.9 million for the three-month and nine-month periods ended September 30, 2005, respectively, compared to $2.8 million and $6.3 million for the three-month and nine-month periods ended September 30, 2004, respectively.  This increase in revenue is primarily due to the signing of the kinase collaboration with Biogen Idec in August 2004.

 

•                  Research and development (R&D) expense was $6.9 million and $28.3 million for the three-month and nine-month periods ended September 30, 2005, respectively.  R&D expense for the three-month and nine-month periods ended September 30, 2004, was $5.6 million and $17.5 million, respectively.  The $10.8 million increase in R&D expenses between the nine-month periods ended September 30, 2004 and September 30, 2005 is primarily due to an $8.9 million expense related to the in-licensing of SNS-032 and related intellectual property from Bristol-Myers Squibb in April 2005,

 


 

of which $8.0 million represents a non-cash licensing fee, and a $2.8 million increase in expense related to the development of SNS-314, our Aurora kinase inhibitor.

 

•                  General and administrative (G&A) expense for the third quarter was $2.1 million, compared to $1.8 million for the prior year.  For the nine-month period ended September 30, 2005, these expenses were $6.1 million, compared to $5.5 million for the nine-month period ended September 30, 2004.  The increase is G&A expense is primarily due to an increase in non-cash stock compensation expense.

 

•                  Sunesis reported a net loss of $5.6 million for the third quarter and $22.2 million for the nine-month period ended September 30, 2005, compared to a reported loss of $4.5 million and $16.5 million, respectively, for the three-month and nine-month periods ended September 30, 2004.  The loss applicable to common shareholders was $93.7 million for the third quarter, including an $88.1 million non-cash deemed dividend related to the conversion of preferred stock into common stock in conjunction with the IPO.  This non-cash deemed dividend results from the redistribution of pre-IPO ownership which occurred in conjunction with the company’s IPO.

 

Company Milestones

 

Sunesis anticipates the following milestones in its development programs to occur over the next four months:
 

•                  Report results from a Phase I clinical trial of SNS-595 in patients with advanced solid tumors at the EORTC conference on November 17.

 

•                  Initiate a multi-center open-label Phase I clinical trial of SNS-595 in patients with acute leukemias.

 

•                  Initiate a multi-center, open-label Phase II second-line clinical trial of SNS-595 in patients with non-small cell lung cancer.

 

•                  Initiate a multi-center, open-label Phase II second-line clinical trial of SNS-595 in patients with small cell lung cancer.

 

•                  Initiate a multi-center, open-label Phase I/II clinical trial of SNS-032, our inhibitor of CDK 2, 7 and 9, in patients with advanced solid tumors.

 

Conference Call Information

 

Sunesis’ management will host a conference call to review the results of the quarter on Monday, November 14 at 1:30 pm PST.  Individual and institutional investors can access the call via (800) 310-6649 (domestic) or (719) 457-2693 (international).  To access the live audio broadcast or the subsequent archived recording, visit the “Investors and Media Calendar of Events” section of the Sunesis website at www.sunesis.com.  Please log on to Sunesis’ website several minutes prior to the start of the presentation to ensure adequate time for any software download that may be necessary.

 

About Sunesis Pharmaceuticals

 

Sunesis is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel small molecule therapeutics for oncology and other serious diseases.  Sunesis has built a broad product candidate portfolio through internal discovery and in-licensing of novel cancer therapeutics.  Sunesis is advancing its product candidates through in-house research and development efforts and strategic collaborations with leading pharmaceutical and biopharmaceutical companies.  For additional information on Sunesis Pharmaceuticals, please visit www.sunesis.com.

 

2


 

Safe Harbor Statement

 

This press release contains forward-looking statements that involve substantial risks and uncertainties. Sunesis may not actually achieve the plans, intentions or expectations contained in such forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations contained in such forward-looking statements. Sunesis does not assume any obligation to update any such forward-looking statements.

 

CONTACTS:

 

Investors

 

Media

Eric Bjerkholt, CFO

 

Karen L. Bergman or

Sunesis Pharmaceuticals, Inc.

 

Michelle Corral

650-266-3717

 

BCC Partners

 

 

650-575-1509 or 415-794-8662

 

3


 

Sunesis Pharmaceuticals, Inc.

Condensed Statement of Operations

 

 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

(unaudited)

 

(unaudited)

 

Revenue:

 

 

 

 

 

 

 

 

 

Collaboration revenue

 

$

1,685,537

 

$

1,574,669

 

$

5,028,923

 

$

4,302,942

 

Collaboration revenue from related party

 

1,637,499

 

1,205,657

 

6,880,943

 

1,991,731

 

Grant and fellowship revenue

 

21,942

 

38,914

 

89,347

 

135,505

 

Total revenues

 

3,344,978

 

2,819,240

 

11,999,213

 

6,430,178

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development

 

6,870,942

 

5,604,924

 

28,263,850

 

17,504,300

 

General and administrative

 

2,067,215

 

1,779,898

 

6,056,145

 

5,477,888

 

Total operating expenses

 

8,938,157

 

7,384,822

 

34,319,995

 

22,982,188

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

(5,593,179

)

(4,565,582

)

(22,320,782

)

(16,552,010

)

 

 

 

 

 

 

 

 

 

 

Interest income

 

178,515

 

111,400

 

574,204

 

316,102

 

Interest expense

 

(229,450

)

(88,755

)

(445,975

)

(299,494

)

Other income (expense), net

 

2,094

 

726

 

8,300

 

733

 

Net loss

 

(5,642,020

)

(4,542,211

)

(22,184,253

)

(16,534,669

)

Convertible preferred stock dividends

 

(88,092,302

)

—

 

(88,092,302

)

—

 

Loss applicable to common stockholders

 

$

(93,734,322

)

$

(4,542,211

)

$

(110,276,555

)

$

(16,534,669

)

 

 

 

 

 

 

 

 

 

 

Basic and diluted net loss per share applicable to common stockholders

 

$

(45.12

)

$

(3.51

)

$

(67.58

)

$

(12.89

)

Shares used in computing basic and diluted loss per share applicable to common stockholders

 

2,077,245

 

1,294,835

 

1,631,700

 

1,283,179

 

 

See accompanying notes.

 

4


 

Sunesis Pharmaceuticals, Inc.

Condensed Balance Sheet

 

 

 

September 30,
2005

 

December 31,
2004

 

 

 

(Unaudited)

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

45,212,955

 

$

7,587,512

 

Marketable securities

 

9,777,438

 

29,224,509

 

Other current assets

 

1,803,917

 

1,839,259

 

Total current assets

 

56,794,310

 

38,651,280

 

 

 

 

 

 

 

Note and interest receivable from officers and employees

 

—

 

85,350

 

Property and equipment, net

 

3,982,635

 

3,989,357

 

Deposits and other assets

 

300,000

 

300,000

 

Total assets

 

61,076,945

 

43,025,987

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Short-term liabilities

 

9,642,547

 

9,653,051

 

Current portion of equipment financing

 

1,138,076

 

1,291,363

 

Total current liabilities

 

10,780,623

 

10,944,414

 

 

 

 

 

 

 

Other long term liabilities

 

5,742,446

 

8,874,093

 

Borrowings under debt facility with related party

 

—

 

3,200,000

 

Non current portion of equipment financing

 

1,351,785

 

1,238,430

 

 

 

 

 

 

 

Commitments

 

 

 

 

 

Convertible preferred stock

 

—

 

108,812,619

 

 

 

 

 

 

 

Stockholders’ equity (deficit):

 

 

 

 

 

Common stock

 

2,146

 

139

 

Additional paid-in capital and other

 

246,893,143

 

3,372,935

 

Accumulated deficit

 

(203,693,198

)

(93,416,643

)

Total stockholders’ equity (deficit)

 

43,202,091

 

(90,043,569

)

 

 

 

 

 

 

Total liabilities, convertible preferred stock and stockholders’ equity (deficit)

 

61,076,945

 

43,025,987

 

 

5