Exhibit 99.1
For Immediate Release
Contact: Alfred Merriweather
VP, Finance and CFO
650.210.1200
invrel@aclara.com
ACLARA ANNOUNCES THIRD QUARTER 2003 FINANCIAL RESULTS
MOUNTAIN VIEW, Calif.—November 5, 2003—ACLARA BioSciences (Nasdaq: ACLA), today reported financial results for the three months ended September 30, 2003.
Third Quarter 2003 Financial Results
Revenue for the three months ended September 30, 2003 was $276,000, compared to revenue for the three months ended September 30, 2002 of $505,000. Revenue for the nine months ended September 30, 2003 was $860,000, compared to $1.8 million in the first nine months of 2002. Prior year revenue reflects discontinued microfluidics-related sources of revenue.
Total operating expenses for the three months ended September 30, 2003 were $5.6 million, a decrease of $7.0 million, or 56%, compared to $12.6 million in the prior year period. Approximately $3.3 million of the $7.0 million reduction in expenses was due to the Company’s cost reduction programs. The remaining $3.7 million of the reduction was due to the elimination of litigation settlement and restructuring expenses in the three months ended September 30, 2003, compared to those incurred in the same period last year. Third quarter 2003 expenses were lower by $415,000 than in the second quarter of 2003.
Reflecting the continued reduction in expenses, net loss for the three months ended September 30, 2003 was $4.9 million, or a loss of $0.14 per share, less than half of the net loss of $11.2 million, or $0.31 per share, in the corresponding prior year period. Net loss for the nine months ended September 30, 2003 was $16.3 million, or $0.46 per share, compared to a net loss of $30.1 million, or $0.84 per share, in the nine months ended September 30, 2002.
Total cash resources, comprising cash and short-term and long-term investments, were $93.2 million at September 30, 2003, a reduction of $3.6 million from the end of the second quarter of 2003.
Business Progress
ACLARA reported that it continued to see a high level of customer interest in the application ofeTag assays to the development of individualized medicines. Pharmaceutical and biotechnology companies are increasingly looking for targeted therapies with high efficacy for specific patients, particularly with the new classes of targeted cancer therapeutics. eTag assays can provide unique insights to the existence of certain difficult-to-detect protein states that may facilitate the development of targeted drugs during clinical trials and their prescription in the market, once approved.
Highlights of the Company’s recent progress in developing eTag applications and customer relationships include:
• | The accomplishment of a milestone and receipt of a related milestone payment under the previously announced collaboration with Genentech, Inc. (NYSE:DNA); |
• | The execution of an agreement with GlaxoSmithKline (“GSK”) under which GSK will have access to eTag assays for gene expression analysis; |
• | The establishment of an agreement with the Tokyo Metropolitan Institute of Medical Science (TMIMS) for the use of eTag assays in gene and protein expression analysis; |
• | The issuance of a U.S. patent covering the measurement of cell surface receptors; |
• | The launch of an expanded set of eTag™ gene expression assays, which are particularly useful for determining a potential drug’s metabolism and toxicity; and |
• | The establishment of a Scientific Advisory Board comprised of leading experts in cancer and immune system disorders. |
Conference Call Details
ACLARA will conduct a conference call with the investment community at 5 p.m. Eastern/ 2 p.m. Pacific, today, November 5, 2003 to discuss the third quarter 2003 results, review the company’s progress and provide more specific guidance. Interested parties may participate in the conference call by calling 1-877-375-2162 domestic (international dial: 1-973-582-2737). The call will also be available via live audio broadcast over the Internet on the ACLARA Investor Relations website atwww.aclara.com from the Conference Calls link. For those unable to participate on the live call, a 24-hour replay will be available for seven days after the call atwww.aclara.com or by calling 1-877-519-4471 (international dial: 1-973-341-3080) and giving the following pass code: 4279563.
About ACLARA
ACLARA BioSciences, Inc. is commercializing its proprietaryeTag Assay System for drug discovery research and to support preclinical and clinical development of specific targeted therapies. TheeTag Assay System is a high performance, high throughput system for the simultaneous measurement of 10’s to 100’s of genes, proteins, and cell-based antigens across thousands of samples. TheeTag platform makes it possible for researchers to measure multiple aspects of a complex biological system, enabling the study of gene expression, protein expression, cell signaling and pathway activation, protein-protein interaction, post-translational modifications and cell receptor binding—all in the same sample and with the same platform. The system uses ACLARA’s proprietaryeTag reporters to multiplex the analysis of genes and/or proteins. Specific molecular binding events result in the release of electrophoretically distincteTag reporters, which are then resolved by standard capillary electrophoresis to provide precise, sensitive quantitation of multiple analytes—directly from cell lysates of cultured or primary cells, as well as fresh and fixed tissue samples. More information on ACLARA can be obtained on the Company’s web site atwww.aclara.com.
Forward-Looking Statements
All statements in this news release that are not historical are forward-looking statements within the meaning of the Securities Exchange Act of 1934 as amended. Such forward-looking statements are subject to factors that could cause actual results to differ materially for ACLARA from those projected. Those factors include risks and uncertainties relating to the performance of the Company’s products, product development, development and commercialization efforts, successful establishment of and performance under collaborative and commercial agreements, adoption of it’s the Company’s technologies by pharmaceutical and biotechnology companies, the validity and enforceability of patents, the possible infringement of the intellectual property of others, technological approaches of ACLARA and its competitors, and other risk factors identified in the Company’s Form 10-K for the year ended December 31, 2002 and Form 10-Q for the quarter ended June 30, 2003 as filed with the Securities and Exchange Commission.
Trademarks
ACLARA BioSciences is a registered trademark andeTag and the ACLARA logo are trademarks of ACLARA BioSciences, Inc.
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~Financial statements to follow~
ACLARA BIOSCIENCES, INC.
(A Development Stage Enterprise)
CONDENSED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2003 | 2002 | 2003 | 2002 | |||||||||||||
Revenues | $ | 276 | $ | 505 | $ | 860 | $ | 1,768 | ||||||||
Costs and Operating expenses: | ||||||||||||||||
Research and development | 3,847 | 5,516 | 12,264 | 18,576 | ||||||||||||
Selling, general and administrative | 1,714 | 3,318 | 6,122 | 9,229 | ||||||||||||
Litigation settlement | — | 396 | — | 3,740 | ||||||||||||
Restructuring | — | 3,327 | — | 3,327 | ||||||||||||
Total costs and operating expenses | 5,561 | 12,557 | 18,386 | 34,872 | ||||||||||||
Loss from operations | (5,285 | ) | (12,052 | ) | (17,526 | ) | (33,104 | ) | ||||||||
Interest income, net | 364 | 860 | 1,234 | 2,966 | ||||||||||||
Net loss | $ | (4,921 | ) | $ | (11,192 | ) | $ | (16,292 | ) | $ | (30,138 | ) | ||||
Net loss per common share, basic and diluted | $ | (0.14 | ) | $ | (0.31 | ) | $ | (0.46 | ) | $ | (0.84 | ) | ||||
Weighted average shares used in net loss per common share calculation, basic and diluted | 35,681 | 36,148 | 35,564 | 36,020 |
ACLARA BIOSCIENCES, INC.
(A Development Stage Enterprise)
CONDENSED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
(unaudited)
September 30, 2003 | December 31, 2002 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash, cash equivalents and short term investments | $ | 67,050 | $ | 50,848 | ||||
Restricted cash | — | 34,125 | ||||||
Accounts receivable | 302 | 469 | ||||||
Prepaid expenses and other current assets | 557 | 422 | ||||||
Inventories | 2,767 | 2,780 | ||||||
Total current assets | 70,676 | 88,644 | ||||||
Long-term marketable investments | 26,105 | 21,612 | ||||||
Property and equipment, net | 6,153 | 7,098 | ||||||
Other assets, net | 1,404 | 1,564 | ||||||
Total assets | $ | 104,338 | $ | 118,918 | ||||
LIABILITIES & STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 623 | $ | 689 | ||||
Accrued payroll and related expenses | 1,099 | 1,023 | ||||||
Accrued expenses and other current liabilities | 2,902 | 1,357 | ||||||
Deferred revenue | 206 | 104 | ||||||
Restructuring | — | 501 | ||||||
Current portion of loans payable | 196 | 202 | ||||||
Total current liabilities | 5,026 | 3,876 | ||||||
Loans payable, net of current portion | 399 | 542 | ||||||
Deferred rent | 459 | 414 | ||||||
Total liabilities | 5,884 | 4,832 | ||||||
Stockholders’ equity: | ||||||||
Common stock, $0.001 par value: | ||||||||
Authorized 150,000,000 shares; Issued and outstanding: | ||||||||
35,723,494 shares at September 30, 2003 and 35,391,018 shares at December 31, 2002 | 36 | 36 | ||||||
Treasury stock at cost (900,000 shares at September 30, 2003 and at December 31, 2002) | (1,350 | ) | (1,350 | ) | ||||
Additional paid-in capital | 259,110 | 258,798 | ||||||
Deferred stock-based compensation | (108 | ) | (627 | ) | ||||
Accumulated other comprehensive income | 126 | 297 | ||||||
Deficit accumulated during development stage | (159,360 | ) | (143,068 | ) | ||||
Total stockholders’ equity | 98,454 | 114,086 | ||||||
Total liabilities and stockholders’ equity | $ | 104,338 | $ | 118,918 | ||||