Exhibit 99.1
NEOSE TECHNOLOGIES REPORTS SECOND QUARTER FINANCIAL RESULTS
HORSHAM, PA, August 7, 2008 — Neose Technologies, Inc. (NasdaqGM: NTEC) today announced financial results for the second quarter ended June 30, 2008.
For the quarter ended June 30, 2008, the Company reported a net loss of $4.6 million, or $0.08 per basic and diluted share, compared to a net loss of $5.2 million, or $0.09 per basic and diluted share, for the second quarter in 2007. During the quarter ended June 30, 2008, the Company incurred external research and development costs of $0.8 million related to the previously announced cessation of clinical development activities for NE-180. The Company’s net loss for the quarter ended June 30, 2008 included non-cash expense of $0.2 million relating to an increase in the fair value of the Company’s warrant liability. During the second quarter of 2007, the Company recorded non-cash income of $1.9 million due to a decrease in the fair value of the Company’s warrant liability.
The Company reported revenues of $1.6 million for the second quarter of 2008, compared to $2.2 million for the second quarter of 2007. The decrease in revenues for the 2008 period was due to lower revenues recognized under the Company’s collaborations with Novo Nordisk A/S.
Research and development expenses decreased to $3.9 million in the second quarter of 2008 from $7.7 million in the second quarter of 2007. The decrease in research and development expenses during the 2008 period was primarily due to $1.5 million of lower clinical and process development costs incurred for the NE-180 program, $1.1 million lower external costs incurred under the Company’s collaborations with Novo Nordisk, $0.8 million of lower payroll and stock compensation resulting from the restructurings that were implemented in 2007 and 2008, and $0.5 million of lower supplies, maintenance costs and lab services related to lower staffing levels.
General and administrative expenses were $2.1 million for the second quarter of 2008, compared to $2.5 million for the second quarter of 2007. The decrease in general and administrative expenses for the 2008 period was primarily due to $0.6 million of lower payroll and stock compensation related to the restructurings that were implemented in 2007 and 2008 and a decrease of $0.3 million of other general and administrative costs. These decreases were partially offset by an increase of $0.5 million of legal costs.
For the six months ended June 30, 2008, the Company reported a net loss of $6.9 million, or $0.13 per basic and diluted share, compared to a net loss of $22.8 million, or $0.50 per basic and diluted share, for the same period in 2007. During the six months ended June 30, 2008, the Company incurred external research and development costs of $2.1 million related to the previously announced cessation of clinical development activities for NE-180. During 2008, the Company recorded $3.6 million of non-cash income due to a decrease in the fair value of the Company’s warrant liability. During 2007, the Company recorded $4.4 million of non-cash expense due to an increase in the fair value of the Company’s warrant liability. The Company reported revenues of $5.7 million for six months ended June 30, 2008, compared to $3.5 million for the same period in 2007. The increase in revenues for the 2008 period was primarily due to an increase in revenues recognized under the Company’s collaboration with Novo Nordisk A/S and BioGeneriX AG.
Operating expenses for the six months ended June 30, 2008 were $16.7 million, compared to $23.1 million for the same period in 2007. Research and development expenses for the six months ended June 30, 2008 decreased to $11.7 million from $17.6 million in the comparable 2007 period. The decrease in research and development expenses during the 2008 period was primarily due to $3.2 million of lower external costs incurred for the NE-180 program during the 2008 period, $2.5 lower payroll, stock compensation and facilities costs resulting from the restructurings that were implemented in 2007 and 2008, and $1.3 million of lower supplies, maintenance costs and lab services related to lower staffing levels. These decreases were partially offset by $1.1 million of additional external costs incurred under the Company’s collaborations with Novo Nordisk A/S and BioGeneriX AG during the 2008 period.
General and administrative expenses were $5.0 million for the six months ended June 30, 2008, compared to $5.5 million for the same period in 2007. The decrease for the 2008 period was primarily due to $0.5 million of lower stock compensation related to the restructurings implemented in 2007 and 2008 and a decrease of $0.3 million of other general administrative costs. These decreases were partially offset by an increase of $0.4 million of legal costs.
Interest income was $0.2 million for the six months ended June 30, 2008, compared to $0.8 million for the same period in 2007. Lower average cash balances during the 2008 period accounted for the decrease.
The Company ended the second quarter of 2008 with $11.4 million in cash and cash equivalents. The Company anticipates that its existing cash and cash equivalents, expected proceeds from collaborations and license arrangements, and interest income should be sufficient to meet its operating and capital requirements at least into the third quarter of 2009.
Conference Call
The Company will host a conference call at 5:00 p.m. (EST) on August 7, 2008, to discuss the second quarter financial results and update investors on company developments. The dial-in number for domestic callers is (877) 741-4245. The dial-in number for international callers is (719) 325-4752. 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 5481498. The replay number for international callers is (719) 457-0820, also using the passcode 5481498. 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 atwww.neose.com.
About Neose
Neose Technologies, Inc. is a clinical-stage biopharmaceutical company focused on the development of next-generation therapeutic proteins that are competitive with best-in-class protein drugs currently on the market. The lead candidates in its pipeline, GlycoPEG-GCSF for chemotherapy-induced neutropenia, and the GlycoPEGylated hemostasis compounds Factor VIIa, Factor VIII, and Factor IX, target markets with aggregate 2006 sales of approximately $7.8 billion. For more information, please visitwww.neose.com.
CONTACTS:
Neose Technologies, Inc. |
A. Brian Davis Sr. Vice President and Chief Financial Officer (215) 315-9000 |
“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, including statements regarding our anticipated operating and capital requirements are “forward-looking statements” that involve risks and uncertainties, including the risk that we will incur unexpected or unavoidable expenditures in 2008. For a discussion of these risks and uncertainties, any of which could cause the Company’s actual results to differ from those contained in the forward-looking statement, see the section entitled “Risk Factors” and “Special Note Regarding Forward-Looking Statements” in the Company’s Annual Report onForm 10-K for the year ended December 31, 2007, and discussions of potential risk and uncertainties in the Company’s subsequent filings with the SEC.
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Statements of Operations
(unaudited)
(in thousands, except per share amounts)
Three months ended | Six months ended | |||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||||||||||||||||||
Revenue from collaborative agreements | $ | 1,573 | $ | 2,231 | $ | 5,685 | $ | 3,468 | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
Research and development | 3,920 | 7,742 | 11,681 | 17,554 | ||||||||||||||||||||||||||||
General and administrative | 2,091 | 2,548 | 5,041 | 5,513 | ||||||||||||||||||||||||||||
Total operating expenses | 6,011 | 10,290 | 16,722 | 23,067 | ||||||||||||||||||||||||||||
Operating loss | (4,438 | ) | (8,058 | ) | (11,037 | ) | (19,599 | ) | ||||||||||||||||||||||||
(Increase) decrease in fair value of warrant liability | (228 | ) | 1,920 | 3,567 | (4,430 | ) | ||||||||||||||||||||||||||
Interest income | 85 | 502 | 247 | 774 | ||||||||||||||||||||||||||||
Interest expense | (12 | ) | (48 | ) | (29 | ) | (88 | ) | ||||||||||||||||||||||||
Loss before income tax benefit | (4,593 | ) | (5,685 | ) | (7,252 | ) | (23,343 | ) | ||||||||||||||||||||||||
Income tax benefit | — | 533 | 303 | 533 | ||||||||||||||||||||||||||||
Net loss | $ | (4,593 | ) | $ | (5,152 | ) | $ | (6,949 | ) | $ | (22,810 | ) | ||||||||||||||||||||
Basic and diluted net loss per share | $ | (0.08 | ) | $ | (0.09 | ) | $ | (0.13 | ) | $ | (0.50 | ) | ||||||||||||||||||||
Weighted-average shares outstanding used in computing basic and diluted net loss per share | 54,468 | 54,402 | 54,468 | 45,995 | ||||||||||||||||||||||||||||
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Condensed Balance Sheets
(unaudited)
(in thousands)
June 30, | December 31, | |||||||
2008 | 2007 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 11,430 | $ | 19,282 | ||||
Accounts receivable, net | 1,695 | 1,758 | ||||||
Prepaid expenses and other current assets | 525 | 1,564 | ||||||
Total current assets | 13,650 | 22,604 | ||||||
Property and equipment, net | 12,774 | 13,564 | ||||||
Other assets | 71 | 71 | ||||||
Total assets | $ | 26,495 | $ | 36,239 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities | $ | 5,181 | $ | 7,333 | ||||
Warrant liability | 638 | 4,205 | ||||||
Long-term debt and capital lease obligations | 150 | 182 | ||||||
Deferred revenue, net of current portion | 7,772 | 5,055 | ||||||
Other liabilities | 563 | 548 | ||||||
Total liabilities | 14,304 | 17,323 | ||||||
Stockholders’ equity | 12,191 | 18,916 | ||||||
Total liabilities and stockholders’ equity | $ | 26,495 | $ | 36,239 | ||||
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