EXHIBIT 99.1
FOR IMMEDIATE RELEASE
CONTACT:
ERIC H. BJERKHOLT
SENIOR VICE PRESIDENT AND CFO
INTRABIOTICS PHARMACEUTICALS, INC.
(650) 526-6840
INTRABIOTICS REPORTS FIRST QUARTER 2003
FINANCIAL AND OPERATING RESULTS
PALO ALTO, CA, APRIL 29, 2003 - IntraBiotics Pharmaceuticals, Inc. (Nasdaq:
IBPI), a biopharmaceutical company engaged in the development of novel
antibiotics, today reported financial and operating results for the first
quarter ended March 31, 2003.
IntraBiotics reported a net loss of $1.9 million, or $0.58 per basic
and diluted share for the first quarter of 2003, compared with a net loss of
$4.9 million, or $1.73 per basic and diluted share in the same period of 2002.
The per share figures reflect a 1:12 reverse stock split that was approved by
our shareholders on April 3, 2003 and by our Board of Directors on April 9,
2003.
IntraBiotics reported no product sales or contract revenues in the
first three months of 2003 or 2002. The company reported total operating
expenses of $1.9 million in the first quarter this year, compared with total
operating expenses of $5.0 million in the comparable period of 2002.
Research and development expenses were $0.3 million in the first
quarter of 2003, compared to $7.0 million in the first quarter of 2002. The
decrease in research and development expenses was primarily related to the
completion of clinical trials of iseganan to treat oral mucositis, as well as
the company's reduction in headcount resulting from the restructuring completed
in the fourth quarter of 2002. It is expected that research and development
expenses will increase over the next several quarters as the company starts to
enroll patients in the phase II/III clinical trial for the prevention of
ventilator-associated pneumonia.
General and administrative expenses were $1.7 million compared to $1.5
million in the comparable quarter of 2002. First quarter 2003 G&A expenses
include approximately $380,000 related to severance costs for additional
employees terminated during the quarter. IntraBiotics had eight full-time
employees at March 31, 2003 compared to 31 full-time employees at March 31,
2002.
On March 31, 2003, the company had cash, cash equivalents, short-term
investments and restricted cash of $11.4 million compared to $13.3 million at
December 31, 2002.
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About the Company:
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IntraBiotics Pharmaceuticals, Inc. is a biopharmaceutical company
engaged in the development of iseganan for the prevention of
ventilator-associated pneumonia (VAP), a common infection occurring among
patients in the intensive care unit. Patients who require artificial ventilation
are vulnerable to experiencing pneumonia as a consequence of the aspiration of
bacteria-laden saliva. Prior clinical trials using a variety of other
antibiotics have demonstrated that VAP can be prevented through prophylactic
decontamination of the oral cavity. Conventional antibiotics are not widely
prescribed to prevent VAP because of concerns for the development of antibiotic
resistance and because there are currently no approved therapeutics for the
prevention of VAP. As a consequence, patients who develop VAP incur extended
stays in the intensive care unit and increased hospital charges. In the United
States, over 400,000 patients are artificially ventilated each year and are
vulnerable to developing VAP because they require ventilation for at least 48
hours.
Iseganan is a novel antimicrobial peptide whose properties may be well
suited for use in preventing VAP. Iseganan kills a wide spectrum of bacteria
known to cause pneumonia. Additionally, iseganan has been shown to be well
tolerated in clinical studies in cancer patients, and to effect significant
reductions in the level of bacteria in the oral cavity of cancer patients as
well as patients who require artificial ventilation. In a previous Phase I/II
study completed by IntraBiotics in artificially ventilated patients, iseganan
reduced the levels of oral bacteria by more than 100-fold compared to
pre-treatment baseline levels after a single 9 mg oral-topical dose. Data from
the coming Phase II/III trial are expected in the second quarter of 2004.
Additional information is available at the company's website:
www.intrabiotics.com.
Certain statements in this press release contain forward-looking
information and are subject to risks and uncertainties, such as statements
regarding product development, clinical developments and projections of future
expenses. As such, they are subject to the occurrence of many events outside of
IntraBiotics' control and are subject to various risk factors that could cause
IntraBiotics' results to differ materially from those expressed in any
forward-looking statement. The risk factors include, without limitation, the
inherent risks of product development failure; uncertainty of the timing, cost,
extent and results of clinical trials; risk of delays in conducting clinical
trials due to factors such as slower than expected rate of patient recruitment,
additional regulatory requests, inability to manufacture sufficient quantities
of materials used for clinical trials, difficulties with clinical supplies or
unforeseen safety issues; the company's ability to raise capital through private
or public financings when needed or on favorable terms; regulatory risks, and
risks related to proprietary rights, market acceptance and competition. These
risk factors are more fully described in documents on file with the Securities
and Exchange Commission including, but not limited to, our Annual Report on Form
10-K, for the year ended December 31, 2002.
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IntraBiotics Pharmaceuticals, Inc.
Statements of Operations
(in thousands, except per share amounts)
(Unaudited)
THREE MONTHS ENDED
MARCH 31
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2003 2002
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Operating expenses:
Research and development ......................................... $ 268 $ 7,041
Arbitration settlement ........................................... - (3,600)
General and administrative ....................................... 1,665 1,460
Restructuring and other charges .................................. - 91
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Total operating expenses ....................................... 1,933 4,992
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Operating loss ................................................. (1,933) (4,992)
Interest income .................................................. 26 265
Interest expense ................................................. - (153)
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Net loss ....................................................... $ (1,907) $ (4,880)
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Basic and diluted net loss per share ............................... $ (0.58) $ (1.73)
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Shares used to compute basic and diluted net loss per share ........ 3,269 2,815
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Note 1. Deferred Compensation
IntraBiotics expensed $62,000 of deferred compensation during the three month
period ended March 31, 2003, compared to $488,000 of deferred compensation for
the same period in 2002.
IntraBiotics Pharmaceuticals, Inc.
Condensed Balance Sheet Data
(In Thousands)
(Unaudited)
MARCH 31, DECEMBER 31,
2003 2002
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Cash, cash equivalents, short term investments and restricted cash ...... $ 11,405 $ 13,315
Total assets ............................................................ $ 14,698 $ 16,226
Total stockholders' equity .............................................. $ 13,639 $ 15,480