EXHIBIT 99.1
NEOSE TECHNOLOGIES REPORTS 2005 YEAR END FINANCIAL RESULTS AND PROVIDES 2006 GUIDANCE
HORSHAM, PA, March 7, 2006 — Neose Technologies, Inc. (NasdaqNM: NTEC) today announced financial results for the year and fourth quarter ended December 31, 2005.
For the year ended December 31, 2005, the Company reported a net loss of $51.8 million, or $1.64 per basic and diluted share, compared to a net loss of $41.6 million, or $1.82 per basic and diluted share, for the same period in 2004. The Company’s net loss for the year ended December 31, 2005 included $14.2 million of charges related to our restructuring of operations announced in August 2005. The restructuring charges consisted of $13.2 million of non-cash property and equipment impairment charges and $1.0 million of employee severance and facility closure costs.
For the quarter ended December 31, 2005, the Company reported a net loss of $7.7 million, or $0.23 per basic and diluted share, compared to a net loss of $11.0 million, or $0.44 per basic and diluted share, for the same period in 2004.
Revenues were $6.1 million for the year ended December 31, 2005, compared to $5.1 million for the same period in 2004. The increase in revenues for 2005 was primarily due to revenues recognized under the Company’s collaborations with BioGeneriX. Revenues for the fourth quarter of 2005 were $1.9 million, compared to $1.5 million for the fourth quarter of 2004. The increase in revenues for the 2005 period was due to revenues recognized under the Company’s collaborations with Novo Nordisk and BioGeneriX.
Research and development expenses for the year ended December 31, 2005 were $33.1 million, compared to $34.7 million in 2004. For the fourth quarter of 2005, research and development expenses were $7.0 million, compared to $9.7 million for the same period in 2004. These decreases were primarily due to the reduction in headcount and operational costs resulting from the Company’s August 2005 restructuring.
General and administrative expenses were $10.9 million for the year ended December 31, 2005, compared to $11.7 million for the same period in 2004. For the fourth quarter of 2005, general and administrative expenses were $2.4 million, compared to $2.7 million for the same period in 2004. These decreases were primarily due to reduced salaries, consulting, and depreciation expenses.
NEOSE TECHNOLOGIES, INC. | Page 2 |
The Company ended 2005 with $37.7 million in cash and cash equivalents. During 2006, the Company anticipates average quarterly spending of approximately $8.0 million to $8.5 million to fund its operating activities, capital expenditures, and debt repayments, without giving effect to the impact of entering into any new collaborative agreements or disposing of the Company’s current headquarters and manufacturing facility.
Conference Call
The Company will host a conference call at 5:00 p.m. (ET) on March 7, 2006, to discuss the fourth quarter financial results and update investors on company developments. The dial-in number for domestic callers is (800) 967-7134. The dial-in number for international callers is (719) 457-2625. A replay of the call will be available for 7 days beginning approximately three hours after the conclusion of the call. The replay number for domestic callers is (888) 203-1112 using the pass code 9408433. The replay number for international callers is (719) 457-0820, also using the pass code 9408433. The call will also be webcast live through the Company’s website via the following link:
http://phx.corporate-ir.net/phoenix.zhtml?c=60494&p=irol-calendar
To listen to the live call, please go to the web site at least fifteen minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call.
About Neose
Neose is a biopharmaceutical company using its proprietary enzymatic technologies to develop improved drugs, focusing primarily on therapeutic proteins. Neose uses its GlycoAdvance® and GlycoPEGylation™ technologies to develop improved versions of drugs with proven safety and efficacy. Neose intends to apply its technologies to products it is developing on its own and to products it co-develops and co-owns with others. It also expects to make its technologies available, through strategic partnerships, to improve the products of other parties. Neose’s first two proprietary candidates are NE-180 (GlycoPEG-EPO), a long-acting version of erythropoietin, and GlycoPEG-GCSF, a long-acting version of granulocyte colony stimulating factor (G-CSF).
NEOSE TECHNOLOGIES, INC. | Page 3 |
Statements of Operations
(in thousands, except per share data)
(unaudited)
(in thousands, except per share data)
(unaudited)
Year | Three months | |||||||||||||||
ended December 31, | ended December 31, | |||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
Revenue from collaborative agreements | $ | 6,137 | $ | 5,070 | $ | 1,866 | $ | 1,478 | ||||||||
Operating expenses: | ||||||||||||||||
Research and development | 33,136 | 34,672 | 7,003 | 9,701 | ||||||||||||
General and administrative | 10,878 | 11,711 | 2,409 | 2,664 | ||||||||||||
Restructuring charges | 14,206 | — | 204 | — | ||||||||||||
Total operating expenses | 58,220 | 46,383 | 9,616 | 12,365 | ||||||||||||
Operating loss | (52,083 | ) | (41,313 | ) | (7,750 | ) | (10,887 | ) | ||||||||
Other income | 22 | — | — | — | ||||||||||||
Interest income | 1,536 | 652 | 399 | 221 | ||||||||||||
Interest expense | (1,314 | ) | (981 | ) | (315 | ) | (323 | ) | ||||||||
Net loss | $ | (51,839 | ) | $ | (41,642 | ) | $ | (7,666 | ) | $ | (10,989 | ) | ||||
Basic and diluted net loss per share | $ | (1.64 | ) | $ | (1.82 | ) | $ | (0.23 | ) | $ | (0.44 | ) | ||||
Weighted-average shares outstanding used in computing basic and diluted net loss per share | 31,590 | 22,898 | 32,782 | 24,717 | ||||||||||||
NEOSE TECHNOLOGIES, INC. | Page 4 |
Condensed Balance Sheets
(in thousands)
(unaudited)
(in thousands)
(unaudited)
December 31, | ||||||||
2005 | 2004 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 37,738 | $ | 45,048 | ||||
Accounts receivable | 1,076 | 2,150 | ||||||
Prepaid expenses and other current assets | 892 | 618 | ||||||
Total current assets | 39,706 | 47,816 | ||||||
Property and equipment, net | 24,708 | 41,133 | ||||||
Intangible and other assets, net | 949 | 1,782 | ||||||
Total assets | $ | 65,363 | $ | 90,731 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities | $ | 10,595 | $ | 11,897 | ||||
Long-term debt and capital lease obligations | 10,423 | 13,759 | ||||||
Deferred revenue, net of current portion | 3,765 | 3,688 | ||||||
Other liabilities | 463 | 533 | ||||||
Total liabilities | 25,246 | 29,877 | ||||||
Stockholders’ equity | 40,117 | 60,854 | ||||||
Total liabilities and stockholders’ equity | $ | 65,363 | $ | 90,731 | ||||
CONTACTS:
Neose Technologies, Inc.
A. Brian Davis
Sr. Vice President and Chief Financial Officer
(215) 315-9000
Barbara Krauter
Manager, Investor Relations
(215) 315-9004
A. Brian Davis
Sr. Vice President and Chief Financial Officer
(215) 315-9000
Barbara Krauter
Manager, Investor Relations
(215) 315-9004
For more information, please visitwww.neose.com.
Neose “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding our business that are not historical facts are “forward-looking statements” that involve risks and uncertainties. For a discussion of these risks and uncertainties, any of which could cause our actual results to differ from those contained in the forward-looking statement, see the section of Neose’s Annual Report onForm 10-K for the year ended December 31, 2004, entitled “Factors Affecting the Company’s Prospects” and discussions of potential risks and uncertainties in Neose’s subsequent filings with the SEC.
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