Exhibit 99.1
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Contact: | ||
Kosan Biosciences Susan M. Kanaya Chief Financial Officer 510-732-8400 ext. 5227 | Vida, LLC Stephanie Diaz (Investors) (415) 885-2298 Tim Brons (Media) 646-319-8981 |
FOR IMMEDIATE RELEASE
Kosan Reports First Quarter Financial Results
3-Fold Revenue Increase Over Prior Year Narrows Net Loss
HAYWARD, CA. April 24, 2003 – Kosan Biosciences Incorporated (Nasdaq: KOSN) today reported financial results for the quarter ended March 31, 2003. For the quarter, Kosan reported a net loss of $2.6 million, or $0.10 per share, compared to $3.9 million, or $0.16 per share, in the same period last year, a 33% reduction year-to-year. At March 31, 2003, cash, cash equivalents and marketable securities totaled $79.2 million compared to $80.5 million at December 31, 2002.
Kosan reported revenues of $5.3 million for the first quarter of 2003, compared to $1.7 million in the same period last year. The $3.6 million increase primarily reflects funding associated with the Company’s agreement with Roche, which was signed in September 2002, to co-develop and commercialize Kosan’s lead product candidate, KOS-862.
Total operating expenses were $8.1 million for the quarter, compared to $7.2 million in the same period last year. This increase was primarily attributable to the expansion of the clinical development program for KOS-862, currently in three Phase I clinical trials and reimbursed by Roche, and further investment supporting our 17-AAG/geldanamycin analog program and other internally funded programs.
Kosan Biosciences Incorporated is a biotechnology company that has proprietary genetic engineering technologies to develop drug candidates from polyketides, a rich source of pharmaceuticals. Kosan is currently focused on the creation of new polyketides and the improvement of existing drugs for the treatment of cancer and infectious disease.
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Q1 Earnings – Page 2
This press release contains “forward-looking” statements. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. There are a number of important factors that could cause the results of Kosan to differ materially from those indicated by these forward-looking statements, including, among others, risks detailed from time to time in the Company’s SEC reports, including its Annual Report on Form 10-K for the year ended December 31, 2002, and other periodic filings with the SEC. Kosan does not undertake any obligation to update forward-looking statements.
FINANCIAL TABLE FOLLOWS
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Q1 Earnings – Page 3
Selected Financial Information
Condensed Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended March 31, | ||||||||
2003 | 2002 | |||||||
Revenues: | ||||||||
Contract revenue | $ | 4,347 |
| $ | 925 |
| ||
Grant revenue |
| 911 |
|
| 737 |
| ||
Total revenues |
| 5,258 |
|
| 1,662 |
| ||
Operating expenses: | ||||||||
Research and development |
| 6,881 |
|
| 5,947 |
| ||
General and administrative |
| 1,248 |
|
| 1,260 |
| ||
Total operating expenses |
| 8,129 |
|
| 7,207 |
| ||
Loss from operations |
| (2,871 | ) |
| (5,545 | ) | ||
Net interest income |
| 289 |
|
| 621 |
| ||
Realized gain on investment |
| — |
|
| 990 |
| ||
Net loss | $ | (2,582 | ) | $ | (3,934 | ) | ||
Basic and diluted net loss per common share | $ | (0.10 | ) | $ | (0.16 | ) | ||
Shares used in computing basic and diluted net loss per common share |
| 25,317 |
|
| 24,633 |
|
Condensed Balance Sheets
(in thousands)
March 31, 2003 | December 31, 2002 | |||||
(unaudited) | ||||||
Cash, cash equivalents and marketable securities | $ | 79,234 | $ | 80,538 | ||
Total assets | $ | 89,865 | $ | 91,590 | ||
Deferred revenue | $ | 11,517 | $ | 11,771 | ||
Total liabilities | $ | 21,469 | $ | 20,750 | ||
Total liabilities and stockholders’ equity | $ | 89,865 | $ | 91,590 | ||
Shares issued and outstanding |
| 25,565 |
| 25,392 |
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