EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Company | Frank Thomas | Media | Jim Wetmore | |||
Contact: | VP, Finance & Chief Financial Officer | Contact: | Berry & Company Public Relations | |||
Esperion Therapeutics, Inc. | (212) 253-8881 | |||||
(734) 222-1831 | jwetmore@berrypr.com | |||||
fthomas@esperion.com |
ESPERION REPORTS FINANCIAL RESULTS FOR THE
QUARTER AND YEAR ENDED DECEMBER 31, 2003
Ann Arbor, MI(January 22, 2004) — Esperion Therapeutics, Inc. (Nasdaq: ESPR), a biopharmaceutical company dedicated to the discovery, development and commercialization of therapies to improve the treatment of cardiovascular disease, today reported financial results for the quarter and year ended December 31, 2003.
Esperion reported a net loss of $9.3 million, or $0.27 per share, for the quarter ended December 31, 2003, compared to a net loss of $6.6 million, or $0.23 per share, for the fourth quarter of 2002. Total operating expenses for the fourth quarter of 2003 were $8.6 million, compared to $6.2 million for the fourth quarter of 2002, representing an increase of 39 percent primarily due to expenses related to the Company’s pending acquisition by Pfizer, Inc., which was announced on December 21, 2003. These expenses, which totaled $1.5 million, are included in general and administrative expenses. Research and development expenses totaled $4.8 million for the fourth quarter of 2003, or 56 percent of total operating expenses.
As of December 31, 2003, Esperion had $86.3 million in cash and investments, compared with $44.9 million at December 31, 2002. Long-term debt, including the current portion, was $9.7 million at December 31, 2003, compared with $8.8 million at December 31, 2002. There were approximately 34 million shares outstanding as of December 31, 2003.
The net loss for the twelve months ended December 31, 2003 was $31.7 million, or $1.01 per share, compared to a net loss of $28.7 million, or $0.98 per share, for 2002. Operating expenses totaled $29.7 million for 2003 compared to $27.9 million for 2002, representing an increase of 6%. As a development stage company, Esperion has not reported any revenue since its inception.
The status of each of the Company’s four product candidates in clinical development is as follows:
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Esperion Reports Financial Results for the Quarter and Year Ended December 31, 2003 | Page 2 |
• | ETC-588 (LUV) — Enrollment complete for both a multiple-dose Phase 2 clinical trial in patients with carotid atherosclerosis and a multiple-dose Phase 2 clinical trial in patients with acute coronary syndromes. |
• | ETC-216 (AIM or ApoA-I Milano/phospholipid complex) — Full results for a multiple-dose Phase 2 clinical trial demonstrating statistically significant regression of atherosclerosis at the end of six weeks published in the November 5 issue of theJournal of the American Medical Association. |
• | ETC-642 (RLT Peptide) — Positive initial results for a second single-dose Phase 1 clinical trial in patients with stable cardiovascular disease announced on December 16, 2003. Enrollment complete for a multiple-dose Phase 1 clinical trial in patients with stable cardiovascular disease. |
• | ETC-1001 — Positive initial results for a single-dose Phase 1 clinical trial in healthy volunteers announced on December 4, 2003. |
In addition, Esperion recently announced the execution of a license agreement with Nippon Chemiphar to develop new small molecule therapies based on PPAR (peroxisome proliferator activated receptor) delta agonists.
On January 8, 2004, Esperion announced that it had settled litigation against Durus Life Sciences Master Fund, Ltd. and related parties to recover short-swing profits under the Securities Exchange Act of 1934. The parties obtained dismissal of the complaint by the U.S. District Court of Connecticut on January 13, 2004 and, under the terms of the settlement, Durus will pay Esperion $32.2 million and certain interest payments. This payment has been placed in an escrow account pending payout under the terms of the settlement agreement, at which time it will be included in the Company’s financial statements.
Due to the Company’s pending acquisition by Pfizer, Inc., Esperion will not host a conference call to discuss fourth quarter financial results.
Esperion Therapeutics
Esperion Therapeutics, Inc. discovers and develops pharmaceutical products for the treatment of cardiovascular disease. Esperion intends to commercialize a novel class of drugs that focuses on a new treatment approach called “HDL Therapy,” which is based on the Company’s understanding of high-density lipoprotein, or HDL, function. HDL is the primary facilitator of the reverse lipid transport, or RLT, pathway by which excess cholesterol and other lipids are removed from artery walls and other tissues and are transported to the liver for elimination from the body. Esperion’s goal is to develop drugs that exploit the beneficial functions of HDL within the RLT pathway. Esperion currently has four product candidates in clinical development. Esperion is listed on the Nasdaq National Market under the symbol “ESPR.”
Safe Harbor Statement
The information contained in this press release includes “forward-looking statements.” These forward-looking statements are often identified by words such as “hope,” “may,” “believe,” “anticipate,” “plan,” “expect,” “require,” “intend,” “assume” and similar expressions. Forward-looking statements speak only as of the date of this press release, reflect management’s current expectations, estimations and projections and involve certain factors, such as risks and uncertainties, that may cause actual results, performance or achievements to be far different from those suggested by Esperion’s forward-looking statements. These factors include, but are not limited to, risks associated with: uncertainty as to whether Esperion’s acquisition by Pfizer
Esperion Reports Financial Results for the Quarter and Year Ended December 31, 2003 | Page 3 |
will be completed; Esperion’s ability to successfully execute its business strategies, including entering into strategic partnerships or other transactions if the transaction with Pfizer is not completed; the progress and cost of development of Esperion’s product candidates; the extent and timing of market acceptance of new products developed by Esperion or its competitors; Esperion’s dependence on third parties to conduct clinical trials for Esperion’s product candidates; the extent and timing of regulatory approval, as desired or required, for Esperion’s product candidates; Esperion’s dependence on licensing arrangements and strategic relationships with third parties; clinical trials; manufacturing; Esperion’s dependence on patents and proprietary rights; the procurement, maintenance, enforcement and defense of Esperion’s patents and proprietary rights; competitive conditions in the industry; business cycles affecting the markets in which any of Esperion’s future products may be sold; extraordinary events and transactions; seeking and consummating business acquisitions, including the diversion of management’s attention to the assimilation of the operations and personnel of any acquired business; fluctuations in foreign exchange rates; and economic conditions generally or in various geographic areas. Because all of the foregoing factors are difficult to forecast, you should not place undue reliance on any forward-looking statement. More detailed information about some of these and other risk factors is set forth in Esperion’s filings with the Securities and Exchange Commission. Esperion does not intend to update any of these factors or to publicly announce the results of any revisions to any of these forward-looking statements other than as required under the federal securities laws.
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Esperion Reports Financial Results for the Quarter and Year Ended December 31, 2003 | Page 4 |
ESPERION THERAPEUTICS, INC. AND SUBSIDIARIES
(A Company in the Development Stage)
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, | December 31, | |||||||||
in thousands | 2003 | 2002 | ||||||||
Assets: | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 32,378 | $ | 40,499 | ||||||
Short-term investments | 38,886 | 4,354 | ||||||||
Prepaid expenses and other | 1,183 | 410 | ||||||||
Total current assets | 72,447 | 45,263 | ||||||||
Long-term investments | 15,020 | — | ||||||||
Property and equipment, net | 2,311 | 3,001 | ||||||||
Goodwill | 3,108 | 3,108 | ||||||||
Deposits and other assets | 5 | 35 | ||||||||
Total assets | $ | 92,891 | $ | 51,407 | ||||||
Liabilities and Stockholders’ Equity: | ||||||||||
Current liabilities: | ||||||||||
Current portion of long-term debt | $ | 2,556 | $ | 1,061 | ||||||
Accounts payable | 3,205 | 1,687 | ||||||||
Accrued liabilities | 3,778 | 2,185 | ||||||||
Total current liabilities | 9,539 | 4,933 | ||||||||
Long-term debt, less current portion | 7,094 | 7,731 | ||||||||
Stockholders’ equity: | ||||||||||
Preferred stock | — | — | ||||||||
Common stock | 34 | 29 | ||||||||
Additional paid-in capital | 201,901 | 133,411 | ||||||||
Notes receivable | — | (3 | ) | |||||||
Accumulated deficit during the development stage | (125,701 | ) | (94,046 | ) | ||||||
Deferred stock compensation | — | (589 | ) | |||||||
Accumulated other comprehensive income | 24 | (59 | ) | |||||||
Total stockholders’ equity | 76,258 | 38,743 | ||||||||
Total liabilities and stockholders’ equity | $ | 92,891 | $ | 51,407 | ||||||
Esperion Reports Financial Results for the Quarter and Year Ended December 31, 2003 | Page 5 |
ESPERION THERAPEUTICS, INC. AND SUBSIDIARIES
(A Company in the Development Stage)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended | Year Ended | Inception to | ||||||||||||||||||||
December 31, | December 31, | December 31, | ||||||||||||||||||||
in thousands, except share and per share data | 2003 | 2002 | 2003 | 2002 | 2003 | |||||||||||||||||
(unaudited) | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||
Research and development | $ | 4,833 | $ | 4,992 | $ | 21,037 | $ | 21,991 | $ | 97,485 | ||||||||||||
General and administrative | 3,770 | 1,205 | 8,708 | 5,955 | 25,824 | |||||||||||||||||
Goodwill amortization | — | — | — | — | 1,089 | |||||||||||||||||
Purchased in-process research and development | — | — | — | — | 4,000 | |||||||||||||||||
Total operating expenses | 8,603 | 6,197 | 29,745 | 27,946 | 128,398 | |||||||||||||||||
Loss from operations | (8,603 | ) | (6,197 | ) | (29,745 | ) | (27,946 | ) | (128,398 | ) | ||||||||||||
Other income (expense): | ||||||||||||||||||||||
Interest income | 274 | 209 | 714 | 1,070 | 7,911 | |||||||||||||||||
Interest expense | (344 | ) | (301 | ) | (1,304 | ) | (1,119 | ) | (3,689 | ) | ||||||||||||
Other, net | (578 | ) | (330 | ) | (1,320 | ) | (731 | ) | (1,525 | ) | ||||||||||||
Total other income (expense) | (648 | ) | (422 | ) | (1,910 | ) | (780 | ) | 2,697 | |||||||||||||
Loss before income taxes | (9,251 | ) | (6,619 | ) | (31,655 | ) | (28,726 | ) | (125,701 | ) | ||||||||||||
Provision for income taxes | — | — | — | — | — | |||||||||||||||||
Net loss | (9,251 | ) | (6,619 | ) | (31,655 | ) | (28,726 | ) | (125,701 | ) | ||||||||||||
Beneficial conversion feature on preferred stock | — | — | — | — | (22,870 | ) | ||||||||||||||||
Net loss attributable to common stockholders | ($9,251 | ) | ($6,619 | ) | ($31,655 | ) | ($28,726 | ) | ($148,571 | ) | ||||||||||||
Basic and diluted net loss per share | ($0.27 | ) | ($0.23 | ) | ($1.01 | ) | ($0.98 | ) | ||||||||||||||
Shares used in computing basic and diluted net loss per share | 34,095,715 | 29,340,257 | 31,343,302 | 29,260,930 | ||||||||||||||||||
Esperion Reports Financial Results for the Quarter and Year Ended December 31, 2003 | Page 6 |
ESPERION THERAPEUTICS, INC. AND SUBSIDIARIES
(A Company in the Development Stage)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended | ||||||||||||||||
December 31, | Inception to | |||||||||||||||
December 31, | ||||||||||||||||
in thousands | 2003 | 2002 | 2003 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net loss | $ | (31,655 | ) | $ | (28,726 | ) | $ | (125,701 | ) | |||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
Purchased in-process research and development | — | — | 4,000 | |||||||||||||
Depreciation and amortization | 1,153 | 1,291 | 5,966 | |||||||||||||
Stock-based compensation expense | 589 | 771 | 4,239 | |||||||||||||
Decrease in notes receivable | 3 | 12 | 126 | |||||||||||||
Loss on sale of property and equipment | 3 | 169 | 194 | |||||||||||||
Non-cash interest expense included in long-term debt | 503 | 384 | 1,290 | |||||||||||||
Changes in assets and liabilities: | ||||||||||||||||
Prepaid expenses and other | (768 | ) | 596 | (2,006 | ) | |||||||||||
Other assets | 30 | 599 | 550 | |||||||||||||
Accounts payable | 1,514 | (1,242 | ) | 3,470 | ||||||||||||
Accrued liabilities | 1,554 | (418 | ) | 3,736 | ||||||||||||
Net cash used in operating activities | (27,074 | ) | (26,564 | ) | (104,136 | ) | ||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchases of property and equipment | (451 | ) | (1,155 | ) | (7,954 | ) | ||||||||||
Acquisition of Talaria Therapeutics, Inc. | — | — | (233 | ) | ||||||||||||
Proceeds from sale of property and equipment | — | 30 | 32 | |||||||||||||
Purchases of short-term investments | (44,382 | ) | (37,215 | ) | (81,597 | ) | ||||||||||
Purchases of long-term investments | (15,020 | ) | — | (15,020 | ) | |||||||||||
Maturities of short-term investments | 9,850 | 32,861 | 42,711 | |||||||||||||
Net cash used in investing activities | (50,003 | ) | (5,479 | ) | (62,061 | ) | ||||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from issuance of convertible preferred stock | — | — | 42,200 | |||||||||||||
Proceeds from the issuance of common stock | 68,495 | 384 | 147,606 | |||||||||||||
Proceeds from long-term debt | 117 | 2,132 | 10,288 | |||||||||||||
Repayments of long-term debt | (1,064 | ) | (1,075 | ) | (3,861 | ) | ||||||||||
Net cash provided by financing activities | 67,548 | 1,441 | 196,233 | |||||||||||||
Effect of exchange rate changes on cash | 1,408 | 815 | 2,342 | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (8,121 | ) | (29,787 | ) | 32,378 | |||||||||||
Cash and cash equivalents at beginning of period | 40,499 | 70,286 | — | |||||||||||||
Cash and cash equivalents at end of period | $ | 32,378 | $ | 40,499 | $ | 32,378 | ||||||||||