Exhibit 99.1
[LOGO]
NEOSE TECHNOLOGIES, INC.
102 Witmer Road, Horsham, PA 19044 215.315.9000 fax: 215.315.9100
email: info@neose.com www.neose.com
NEOSE TECHNOLOGIES REPORTS SECOND QUARTER
FINANCIAL RESULTS
HORSHAM, PA, August 7, 2003—Neose Technologies, Inc. (NasdaqNM: NTEC) today announced financial results for the second quarter and six months ended June 30, 2003.
For the quarter ended June 30, 2003, the Company reported a net loss of $9,226,000, or $0.54 per diluted share, compared to a net loss of $6,490,000, or $0.45 per diluted share, for the same period in 2002. The Company reported revenues of $651,000 for the second quarter of 2003, compared to $1,561,000 for the second quarter of 2002. The decrease in revenues for the 2003 period was primarily due to completion of our activities under our Wyeth Pharmaceuticals agreement in 2002, which resulted in no revenues for the 2003 period, and the completion of our activities under our Wyeth Nutrition agreement, which resulted in lower revenues during the 2003 period than in the 2002 period.
For the six months ended June 30, 2003, the Company reported a net loss of $17,647,000, or $1.07 per diluted share, compared to a net loss of $14,085,000, or $0.99 per diluted share, for the same period in 2002. The Company reported revenues of $721,000 for the first six months of 2003, compared to $2,332,000 for the same period in 2002. The decrease in revenues for the 2003 period was primarily due to completion of our activities under our Wyeth Pharmaceuticals agreement in 2002, which resulted in no revenues for the 2003 period, and the completion of our activities under our Wyeth Nutrition agreement, which resulted in lower revenues during the 2003 period than in the 2002 period.
The Company ended the second quarter with $42,070,000 in cash, cash equivalents, and marketable securities.
Operating expenses for the six months ended June 30, 2003 were $18,485,000, compared to $17,183,000 for the same period in 2002. Research and development expenses for the six months ended June 30, 2003 increased to $12,284,000 from $10,974,000 in the comparable 2002 period. Research and development expenses for the 2002 period included severance expense of $2,295,000, of which $1,608,000 was a non-cash charge related to an agreement entered into with one of the Company’s former executive officers. Substantially offsetting the decrease in severance expense in the 2003 period were increases related to depreciation for
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improvements to the Company’s pilot manufacturing facility, which were placed in service in January 2003, additional personnel since the second quarter of 2002, and the purchase of more supplies and outside services than in the first half of 2002.
The Company’s marketing, general, and administrative expenses were $6,201,000 for the six months ended June 30, 2003 compared to $6,209,000 for the first half of 2002. The 2002 period included severance expense of $427,000, of which $309,000 related to an agreement entered into with one of the Company’s former executive officers. Partially offsetting the decrease in severance expense in the 2003 period were increases related to additional executive personnel since the second quarter of 2002 and higher insurance premiums and patent-related legal expenses than in the first half of 2002.
Conference Call
The Company will host a conference call at 5:00 p.m. (EDT) on August 7, 2003, to discuss the first quarter financial results and update investors on company developments. The dial-in number for domestic callers is (888) 217-9614. The dial-in number for international callers is (913) 981-5593. A replay of the call will be available for 7 days beginning approximately three hours after the call’s conclusion. The replay number for domestic callers is (888) 203-1112 using the passcode 484794. The replay number for international callers is (719) 457-0820, also using the passcode 484794. Live audio of the conference call will be simultaneously broadcast over the Internet through First Call Events, which can be accessed via the following link:
http://www.firstcallevents.com/service/ajwz384380345gf12.html
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. The call will also be available on the Investor Relations/Audio Archives page of the Neose website atwww.neose.com.
About Neose
Neose is a biopharmaceutical company focused on the improvement of protein therapeutics through the application of its proprietary technologies. By applying its GlycoAdvance™ and GlycoPEGylation™ technologies, Neose is developing proprietary protein drugs that are improved versions of currently marketed therapeutics with proven efficacy. These next generation proteins are expected to offer significant advantages, including less frequent dosing and improved safety and efficacy. In addition to developing its own products or co-developing products with others, Neose is entering into strategic partnerships for the inclusion of its technologies into products being developed by other biotechnology and pharmaceutical companies.
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Statements of Operations
(in thousands, except per share data)
(unaudited)
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2003 | 2002 | 2003 | 2002 | |||||||||||||
Revenue from collaborative agreements | $ | 651 | $ | 1,561 | $ | 721 | $ | 2,332 | ||||||||
Operating expenses: | ||||||||||||||||
Research and development | 6,664 | 5,139 | 12,284 | 10,974 | ||||||||||||
Marketing, general and administrative | 3,197 | 3,289 | 6,201 | 6,209 | ||||||||||||
Total operating expenses | 9,861 | 8,428 | 18,485 | 17,183 | ||||||||||||
Operating loss | (9,210 | ) | (6,867 | ) | (17,764 | ) | (14,851 | ) | ||||||||
Interest income | 147 | 419 | 317 | 848 | ||||||||||||
Interest expense | (163 | ) | (42 | ) | (200 | ) | (82 | ) | ||||||||
Net loss | $ | (9,226 | ) | $ | (6,490 | ) | $ | (17,647 | ) | $ | (14,085 | ) | ||||
Basic and diluted net loss per share | $ | (0.54 | ) | $ | (0.45 | ) | $ | (1.07 | ) | $ | (0.99 | ) | ||||
Weighted-average shares outstanding used in computing basic and diluted net loss per share | 17,229 | 14,281 | 16,519 | 14,201 | ||||||||||||
Condensed Balance Sheets
(in thousands)
(unaudited)
June 30, 2003 | December 31, 2002 | |||||
Assets | ||||||
Cash, cash equivalents and marketable securities | $ | 42,070 | $ | 41,040 | ||
Restricted funds and other current assets | 1,798 | 1,535 | ||||
Total current assets | 43,868 | 42,575 | ||||
Property and equipment, net | 35,548 | 36,508 | ||||
Other assets and acquired intellectual property, net | 4,455 | 4,009 | ||||
Total assets | $ | 83,871 | $ | 83,092 | ||
Liabilities and Stockholders’ Equity | ||||||
Current liabilities | $ | 7,291 | $ | 6,517 | ||
Other liabilities | 641 | 330 | ||||
Long-term debt | 6,278 | 5,560 | ||||
Total liabilities | 14,210 | 12,407 | ||||
Stockholders’ equity | 69,661 | 70,685 | ||||
Total liabilities and stockholders’ equity | $ | 83,871 | $ | 83,092 | ||
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CONTACTS:
Neose Technologies, Inc.
Robert I. Kriebel
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.