EX-99.1 3 a2062932zex-99_1.txt EXHHIBIT 99.1 Exhibit 99.1 FOR IMMEDIATE RELEASE GENOME THERAPEUTICS REPORTS FINANCIAL RESULTS - Results for 3-month and 12-month periods ended August 31, 2001 - - Transition to new 12/31 fiscal reporting schedule; Third quarter results also announced - WALTHAM, MASS., NOVEMBER 8, 2001 -- Genome Therapeutics Corp. (Nasdaq: GENE) today announced financial results for the 3-month and 12-month periods ended August 31, 2001. In addition, the Company's Board of Directors approved in July a change in the reporting schedule from an August 31 year end to a December 31 year end. Reflecting this change in fiscal reporting schedule, financial results for the third quarter ended September 29, 2001 are also noted below. To provide additional disclosure during this transition, three pages of financial tables are included at the end of this news release. For the 3-month period ended August 31, 2001, total revenues were $12,592,000 compared to $6,106,000 in the same period of 2000. Net income for the 3-month period ended August 31, 2001 was $703,000, or $0.03 per share (basic and diluted), compared to a net loss of ($1,732,000), or ($.08) per share (basic and diluted), for the same period in 2000. For the 12-month period ended August 31, 2001, the Company reported total revenues of $32,806,000 compared to $26,424,000 during the same 12-month-period in 2000. Net loss in this 12-month period in 2001 was ($3,969,000), or ($0.18) per share (basic and diluted), compared to a net loss of ($2,816,000), or ($0.14) per share (basic and diluted), in fiscal 2000. The Company's cash and cash equivalents, restricted cash and investments totaled approximately $74.0 million at August 31, 2001. Management noted that results for the 3-month period ended August 31, 2001 reflect confirmation of the identity of a novel gene responsible for high bone density in the Company's osteoporosis alliance with Wyeth-Ayerst, that resulted in receipt of $5 million in milestone payments. Moving forward, management expects to continue to report operating losses as the Company makes additional investments in internal discovery and product development opportunities. "Our positive financial results reflect the revenue contributions from a major achievement in our osteoporosis alliance and the sponsored research from our established portfolio of product discovery research alliances with pharmaceutical companies. They also reflect continued progress in GenomeVision(TM) Services - our commercial genomics service business," said Steven M. Rauscher, CEO and President. "This foundation allows us to invest in new product opportunities with potentially higher rewards to shareholders, namely our anti-infectives drug discovery collaboration with ArQule and the in-license of products for Genome Therapeutics. - more - -5- "The recent acquisition of the Phase III anti-infective Ramoplanin has helped the Company achieve an important step toward building our product-based biopharmaceutical business with a clinical candidate pipeline of our own," added Mr. Rauscher. "In acquiring the rights to Ramoplanin, we are able to capitalize on the Company's established expertise in infectious disease research and apply it to a near-term commercial opportunity. To facilitate attaining our goals, we have made several key hires in the areas of corporate development, marketing and clinical development." OTHER HIGHLIGHTS INCLUDE: o Confirmation of the identity of a novel gene responsible for high bone density and $5 million milestone payment from Wyeth-Ayerst o Election of David K. Stone, a partner with AGTC Funds and former Cowen & Co. analyst, to Board of Directors o Extension of osteoporosis alliance with Wyeth-Ayerst through the end of 2002 o Renewal of PathoGenome(TM) Database subscriptions by Bristol-Myers Squibb and Aventis o Identification of novel asthma gene in Schering-Plough alliance o Participation in completion of Human Genome Project draft sequence and publication in NATURE TRANSITION TO FISCAL CALENDAR YEAR ENDED DECEMBER 31: REPORTING RESULTS FOR Q3 "In order to facilitate financial modeling and comparisons with other biotechnology companies by the financial community, the Company has implemented a change to a December 31 fiscal year so that we will be on similar cycles to our pharmaceutical alliance partners and companies in our peer group," said Mr. Rauscher. For the third quarter of 2001, which ended September 29, 2001, the Company reported total revenues of $7,378,000 and a net loss of ($4,181,000), or approximately ($0.18) per share (basic and diluted). In the same period of 2000, the Company reported revenues of $5,925,000, and a net loss of ($1,322,000), or approximately ($0.06) per share (basic and diluted). For the first nine months of 2001, the Company reported total revenues of $26,858,000, compared to $19,109,000 during the same period of 2000. Net loss in the first nine months of 2001 was ($2,150,000), or ($0.10) per share, compared to a net loss of ($3,439,000), or ($0.16) per share, in the same period of 2000. The Company's cash, cash equivalents and other investments at the end of the third quarter of 2001 were approximately $72.5 million. Management noted that these results reflect a steady growth in our service business and the achievement of significant scientific and financial milestones. Costs and expenses also increased, compared to the prior year period, as the company expanded funding of internal research and development programs and recruited key personnel to lead the company's product development efforts. The Company will host an annual meeting of shareholders in the Spring 2002 and details about the date and location will be included in an annual report and proxy mailed prior to the meeting. - more - -6- SUPPLEMENTARY FINANCIAL INFORMATION STATEMENTS IN THIS PRESS RELEASE THAT ARE NOT STRICTLY HISTORICAL, INCLUDING STATEMENTS REGARDING FUTURE REVENUES AND EXPENSES, ARE "FORWARD LOOKING" STATEMENTS AS DEFINED IN THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. A NUMBER OF IMPORTANT FACTORS COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE PROJECTED OR SUGGESTED IN THE FORWARD LOOKING STATEMENT, INCLUDING, BUT NOT LIMITED TO, THE ABILITY OF THE COMPANY AND ITS ALLIANCE PARTNERS TO (I) SUCCESSFULLY DEVELOP PRODUCTS BASED ON THE COMPANY'S GENOMIC INFORMATION, (II) OBTAIN THE NECESSARY GOVERNMENTAL APPROVALS, (III) EFFECTIVELY COMMERCIALIZE ANY PRODUCTS DEVELOPED BEFORE ITS COMPETITORS AND (IV) OBTAIN AND ENFORCE INTELLECTUAL PROPERTY RIGHTS, AS WELL AS THE RISK FACTORS DESCRIBED IN EXHIBIT 99 OF THE COMPANY'S ANNUAL REPORT ON FORM 10-K FOR THE FISCAL YEAR ENDED AUGUST 31, 2000 AND FROM TIME TO TIME IN THE COMPANY'S OTHER REPORTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. FOR THE YEAR ENDING DECEMBER 31, 2001, GENOME THERAPEUTICS MANAGEMENT EXPECTS: - Revenues projected to be in the range of $33-37 million - Total costs and expenses projected to be in the range of $45-50 million, reflecting the increased expense attributable to license fees and development costs associated with Ramoplanin Genome Therapeutics (www.genomecorp.com) is focused on the commercialization of genomics-based pharmaceutical and diagnostic products. The Company's genomics services business - GenomeVision(TM) Services - includes custom contract sequencing, SNP discovery and the PathoGenome(TM) Database. The Company's biopharmaceutical business focuses on the development of novel therapeutics and diagnostics to solve major medical needs and includes six alliances with pharmaceutical companies including Schering-Plough, AstraZeneca, Wyeth-Ayerst and bioMerieux, to develop genomics-based products and a joint venture with ArQule. Genome Therapeutics' product candidate, Ramoplanin, is in Phase III clinical trials for the prevention of bloodstream infections caused by vancomycin- resistant enterococci (VRE). - tables follow - -7- FINANCIAL RESULTS FOR PERIODS ENDED AUGUST 31, 2001 GENOME THERAPEUTICS CORP. STATEMENTS OF OPERATIONS (unaudited) (in thousands, except share and per share amounts)
Thirteen weeks ended Fifty-two weeks ended August 31, August 31, August 31, August 31, 2001 2000 2001 2000 ---- ---- ---- ---- REVENUE: Contract research, licenses, milestones and subscription fees $12,592 $6,106 $ 32,806 $ 26,424 ------- ----- -------- ------ COSTS AND EXPENSES: Research and development 9,676 6,778 32,085 24,821 Selling, general and administrative 2,992 1,807 8,307 5,818 ----- ----- ----- ------- Total costs and expenses 12,668 8,585 40,392 30,639 ------- ----- -------- ------ Loss from operations (76) (2,479) (7,586) (4,215) Interest income 995 957 4,422 2,226 Interest expense (216) (210) (805) (827) ---------- ---------- ---------- ---------- NET INCOME (LOSS) $703 $(1,732) $(3,969) $(2,816) ==== ======== ======== ======== Net income (loss) per common share Basic $0.03 $(0.08) $(0.18) $(0.14) ===== ======= ======= ======= Diluted $0.03 $(0.08) $(0.18) $(0.14) ===== ======= ======= ======= Weighted average number of common shares outstanding Basic 22,611,608 21,710,257 22,420,139 20,277,076 ========== ========== ========== ========== Diluted 23,885,705 21,710,257 22,420,139 20,277,076 ========== ========== ========== ==========
SELECTED BALANCE SHEET DATA (in thousands) (unaudited)
AUGUST 31, AUGUST 31, ---------- ---------- 2001 2000 ---- ---- Cash, cash equivalents, restricted cash and $74,008 $75,884 investments Total assets 90,008 91,336 Long-term obligations, net of current maturities 2,420 4,543 Shareholders' equity 74,395 74,275
- more - -8- NEW FISCAL REPORTING SCHEDULE THIRD QUARTER RESULTS, SEPTEMBER 29, 2001 GENOME THERAPEUTICS CORP. STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited)
Thirteen weeks ended Thirty-nine weeks ended Sept 29, Sept 23, Sept 29, Sept 23, 2001 2000 2001 2000 ---- ---- ---- ---- REVENUE: Contract research, licenses, milestones and subscription fees $7,378 $5,925 $26,858 $19,109 ------ ----- ------ ------ COSTS AND EXPENSES: Research and development 9,881 6,505 25,254 19,276 Selling, general and administrative 2,559 1,712 6,384 4,745 ----- ----- ----- ----- Total costs and expenses 12,440 8,217 31,638 24,021 ----- ----- ----- ----- Loss from operations (5,062) (2,292) (4,780) (4,912) Interest income 1,055 1,180 3,186 2,100 Interest expense (174) (210) (556) (627) ----- ----- ----- ----- NET LOSS $(4,181) $(1,322) $(2,150) $(3,439) ======== ======== ======== ======== Net Loss per Common Share Basic $(0.18) $(0.06) $(0.10) $(0.16) ======= ======= ======= ======= Diluted $(0.18) $(0.06) $(0.10) $(0.16) ======= ======= ======= ======= Weighted average number of common shares outstanding Basic 22,685,660 22,163,366 22,515,638 21,030,081 ========== ========== ========== ========== Diluted 22,685,660 22,163,366 22,515,638 21,030,081 ========== ========== ========== ==========
SELECTED BALANCE SHEET DATA (in thousands) (unaudited)
September 29, December 31, 2001 2000 ---- ---- Cash, cash equivalents, restricted cash and investments $72,525 $73,010 Total assets 87,957 90,251 Long-term obligations, net of current maturities 2,588 3,334 Shareholders' equity 73,653 72,687
- more - -9- NEW FISCAL REPORTING SCHEDULE Q1-Q3 RESULTS GENOME THERAPEUTICS CORP. STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited)
Thirteen weeks ended Thirty-nine ---------------- ---------------- ----------------- weeks ended March 24, June 23, Sept 29, Sept 29, 2001 2001 2001 2001 ---------------- ---------------- ----------------- ---- REVENUE: Contract research, licenses, milestones and subscription fees $8,090 $11,390 $7,378 $26,858 ------ ------ ----- ------ COSTS AND EXPENSES: Research and development 7,503 7,870 9,881 25,254 Selling, general and administrative 1,635 2,190 2,559 6,384 ----- ----- ----- ----- Total costs and expenses 9,138 10,060 12,440 31,638 ----- ----- ----- ----- Income (loss) from operations (1,048) 1,330 (5,062) (4,780) Interest income 1,144 986 1,055 3,186 Interest expense (169) (212) (174) (556) ----- ----- ----- ----- NET INCOME (LOSS) $(73) $2,104 $(4,181) $(2,150) ===== ====== ======== ======== Net income (loss) per common share Basic $(0.00) $0.09 $(0.18) $(0.10) ======= ===== ======= ======= Diluted $(0.00) $0.09 $(0.18) $(0.10) ======= ===== ======= ======= Weighted average number of common shares outstanding Basic 22,409,501 22,451,753 22,685,660 22,515,638 ========== ========== ========== ========== Diluted 22,409,501 23,550,563 22,685,660 22,515,638 ========== ========== ========== ==========
SELECTED BALANCE SHEET DATA (in thousands) (unaudited)
March 24, June 23, September 29, 2001 2001 2001 ---- ---- ---- Cash, cash equivalents, restricted cash and $70,377 $76,195 $72,524 investments Total assets 89,165 91,483 87,957 Long-term obligations, net of current 3,452 2,906 2,588 maturities Shareholders' equity 73,235 75,634 73,653
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