Exhibit 99.1
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 THIRD QUARTER FINANCIAL RESULTS
HORSHAM, PA, November 4, 2004 — Neose Technologies, Inc. (NasdaqNM: NTEC) today announced financial results for the third quarter and nine months ended September 30, 2004.
For the quarter ended September 30, 2004, the Company reported a net loss of $10,824,000, or $0.44 per basic and diluted share, compared to a net loss of $10,338,000, or $0.59 per basic and diluted share, for the same period in 2003. The increased net loss for the 2004 period was primarily due to higher operating expenses, which were partially offset by higher revenues during the 2004 period. In addition, the 2003 period included a non-cash impairment charge of $1,250,000 which reduced to zero the carrying value of an equity investment we had in a company. The Company reported revenues of $1,451,000 for the third quarter of 2004, compared to $150,000 for the third quarter of 2003. The increase in revenues for the 2004 period was due to revenues recognized under the Company’s collaborations with Novo Nordisk and BioGeneriX. Research and development expenses increased by $2,558,000 during the 2004 period as a result of higher personnel costs and increased purchases of outside services and research supplies associated with the Company’s proprietary drug development programs. Depreciation and operating expenses associated with the new laboratory and office facility that the Company occupied in April 2004 also contributed to the increase for the 2004 period. Marketing, general and administrative costs increased by $405,000 in the third quarter of 2004 compared to the third quarter of 2003 due to higher costs incurred related to the Company’s patent legal fees, partially offset by savings in personnel costs.
For the nine months ended September 30, 2004, the Company reported a net loss of $30,653,000, or $1.38 per basic and diluted share, compared to a net loss of $27,985,000, or $1.66 per basic and diluted share, for the same period in 2003. The Company reported revenues of $3,592,000 for the first nine months of 2004, compared to $871,000 for the same period in 2003. The increase in revenues for the 2004 period was due to the Company’s collaborations with Novo Nordisk and BioGeneriX.
Total operating expenses for the nine months ended September 30, 2004 were $34,018,000, compared to $27,688,000 for the same period in 2003. Research and development expenses for the nine months ended September 30, 2004 increased to $24,971,000 from $19,031,000 in
NEOSE TECHNOLOGIES, INC. | Page 2 |
the comparable 2003 period. The increase was primarily due to higher personnel costs, as well as increased purchases of outside services, including preclinical studies, and research supplies associated with the Company’s proprietary drug development programs. Depreciation and operating expenses associated with the new laboratory and office facility that the Company occupied in April 2004 also contributed to the increase for the 2004 period.
The Company’s marketing, general, and administrative expenses were $9,047,000 for the nine months ended September 30, 2004, compared to $8,657,000 for the same period last year. The increase for the 2004 period was due to higher legal expenses associated with the Company’s intellectual property portfolio, partially offset by lower personnel and marketing costs.
The Company ended the third quarter with $55,016,000 in cash and cash equivalents. In August 2004, the Company borrowed $1,255,000 to finance the purchase of equipment and facility improvements, which collateralize the amount borrowed.
Conference Call
The Company will host a conference call at 5:00 p.m. (ET) on November 4, 2004, to discuss the third quarter financial results and update investors on company developments. The dial-in number for domestic callers is (800) 478-6251. The dial-in number for international callers is (913) 981-5558. 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 passcode 507758. The replay number for international callers is (719) 457-0820, also using the passcode 507758. 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://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. The call will also be available on the Investor Relations/Audio Archives page of the Neose website at www.neose.com.
About Neose
Neose is a biopharmaceutical company focused on improving protein therapeutics using its proprietary technologies. Neose uses its novel GlycoAdvance™ and GlycoPEGylation™ technologies to develop improved, next-generation protein therapeutics for which there is already a substantial body of data demonstrating 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 improved, GlycoPEGylated versions of erythropoietin (EPO) and granulocyte colony stimulating factor (G-CSF), both of which are expected to enter clinical trials in 2005.
NEOSE TECHNOLOGIES, INC. | Page 3 |
Statements of Operations
(in thousands, except per share amounts)
(unaudited)
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| Three months |
| Nine months |
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| 2004 |
| 2003 |
| 2004 |
| 2003 |
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Revenue from collaborative agreements |
| $ | 1,451 |
| $ | 150 |
| $ | 3,592 |
| $ | 871 |
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Operating expenses: |
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Research and development |
|
| 9,305 |
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| 6,747 |
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| 24,971 |
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| 19,031 |
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Marketing, general and administrative |
|
| 2,861 |
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| 2,456 |
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| 9,047 |
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| 8,657 |
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Total operating expenses |
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| 12,166 |
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| 9,203 |
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| 34,018 |
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| 27,688 |
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Operating loss |
|
| (10,715 | ) |
| (9,053 | ) |
| (30,426 | ) |
| (26,817 | ) |
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Impairment of equity securities |
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| — |
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| (1,250 | ) |
| — |
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| (1,250 | ) |
Interest income |
|
| 195 |
|
| 103 |
|
| 431 |
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| 420 |
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Interest expense |
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| (304 | ) |
| (138 | ) |
| (658 | ) |
| (338 | ) |
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Net loss |
| $ | (10,824 | ) | $ | (10,338 | ) | $ | (30,653 | ) | $ | (27,985 | ) |
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Basic and diluted net loss per share |
| $ | (0.44 | ) | $ | (0.59 | ) | $ | (1.38 | ) | $ | (1.66 | ) |
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Weighted-average shares outstanding used in computing basic and diluted net loss per share |
|
| 24,712 |
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| 17,437 |
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| 22,284 |
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| 16,828 |
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NEOSE TECHNOLOGIES, INC. | Page 4 |
Condensed Balance Sheets
(in thousands)
(unaudited)
|
| September 30, 2004 |
| December 31, 2003 | |||
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Assets |
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Current assets: |
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Cash, cash equivalents and marketable securities |
| $ | 55,016 |
| $ | 53,060 | |
Restricted funds and other current assets |
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| 1,878 |
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| 1,818 | |
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Total current assets |
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| 56,894 |
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| 54,878 | |
Property and equipment, net |
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| 42,158 |
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| 37,192 | |
Intangible and other assets, net |
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| 2,028 |
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| 2,775 | |
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Total assets |
| $ | 101,080 |
| $ | 94,845 | |
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Liabilities and Stockholders’ Equity |
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Current liabilities |
| $ | 14,942 |
| $ | 13,849 | |
Long-term debt and capital lease obligations |
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| 13,767 |
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| 8,370 | |
Other liabilities |
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| 542 |
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| 413 | |
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Total liabilities |
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| 29,251 |
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| 22,632 | |
Stockholders’ equity |
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| 71,829 |
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| 72,213 | |
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Total liabilities and stockholders’ equity |
| $ | 101,080 |
| $ | 94,845 | |
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CONTACTS:
| Neose Technologies, Inc. | |
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| Robert I. Kriebel |
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| Sr. Vice President and Chief Financial Officer |
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| (215) 315-9000 |
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| Barbara Krauter |
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| Manager, Investor Relations |
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| (215) 315-9004 |
For more information, please visit www.neose.com.
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