EXHIBIT 99.1
CONTACT:
Mr. Daniel G. Welch Mr. Robert F. Amundsen, Jr.
Chairman and Chief Executive Officer Executive Vice President, Chief
Triangle Pharmaceuticals, Inc. Financial Officer
(919) 493-5980 Triangle Pharmaceuticals, Inc.
www.tripharm.com (919) 493-5980
www.tripharm.com
FOR IMMEDIATE RELEASE:
TRIANGLE PHARMACEUTICALS, INC. REPORTS FINANCIAL
RESULTS FOR THE THIRD QUARTER 2002
DURHAM, N.C., NOVEMBER 6, 2002 -- Triangle Pharmaceuticals, Inc. (Nasdaq: VIRS)
today reported financial results for the third quarter ended September 30, 2002.
For the quarter ended September 30, 2002, the Company reported a net loss of
$1,055,000, or ($0.01) per share, compared to a net loss of $18,197,000, or
($0.35) per share in the third quarter of 2001. For the nine months ended
September 30, 2002, the Company reported a net loss of $17,775,000, or ($0.23)
per share, compared to a net loss of $62,218,000, or ($1.32) per share for the
same nine-month period in 2001. The third quarter results were impacted by a
one-time event as described below. Cash, cash equivalents and total investments
were $68,270,000 on September 30, 2002, compared to $108,155,000 on December 31,
2001.
Revenues for the third quarter of 2002 were $14,556,000, reflecting recognition
of substantially all remaining deferred revenue under the Company's strategic
alliance with Abbott Laboratories which was terminated in July 2002, compared to
$1,271,000 of revenue for the third quarter of 2001. Termination of the alliance
resulted in the one-time, non-cash recognition of approximately $14,200,000 of
collaborative revenue. Total operating expenses were $16,078,000 for the third
quarter of 2002 as compared to $20,241,000 for the third quarter of 2001. For
the nine months ended September 30, 2002, the Company reported revenues of
$16,625,000, operating expenses of $46,081,000, and a net loss of $17,775,000
compared to revenues of $4,760,000, operating expenses of $69,791,000, and a net
loss of $62,218,000 for the nine months ended September 30, 2001.
Daniel Welch, Chairman and Chief Executive Officer of Triangle stated,
"Triangle's strong progress toward commercialization continues with the
acceptance by the Food and Drug Administration (FDA) of our New Drug Application
(NDA) for Coviracil on November 1, 2002. The next steps in this progression are
to complete two important tasks by year end. First, to submit a Marketing
Authorisation Application (MAA) to commercialize Coviracil in the European Union
and second, to complete our evaluation of alternative strategies for the
commercialization of Coviracil."
Robert Amundsen, Executive Vice President and Chief Financial Officer, commented
on the results, "Our operating losses for the third quarter and for the nine
months ending September 30, 2002 were significantly lower than in the
corresponding 2001 periods due to substantially increased revenue associated
with our termination of the Abbott Alliance and significantly curtailing our
operating expenses. With our recent news regarding the FDA's acceptance of our
Coviracil NDA, we expect our operating expenses to increase in 2003. We will be
in a position to give guidance on our projected 2003 results in the first
quarter of 2003 when we announce our Coviracil commercialization plans."
A conference call to discuss the information contained in this press release and
to provide a brief update on our operations will be held on Tuesday, November
12, 2002 at 11:00 a.m. EST. Interested parties in the U.S. may join the call
toll free by dialing 1-877-679-9055. International callers may join the call by
dialing 1-952-556-2808. The call will be Webcast on the Triangle Pharmaceuticals
website and archived for replay on our site for one week after the call.
Triangle Pharmaceuticals, Inc. is a specialty pharmaceutical company engaged in
the development of new antiviral drug candidates, with a particular focus on
therapies for the human immunodeficiency virus (HIV) and the hepatitis B virus.
Triangle's proprietary drug candidates under development for HIV and/or
hepatitis B include Coviracil(R) (emtricitabine), amdoxovir (formerly DAPD), and
clevudine (formerly L-FMAU). Triangle is also developing immunotherapies for
hepatitis B in collaboration with Dynavax Technologies Corporation (Dynavax)
utilizing Dynavax' immunostimulatory sequence (ISS) technology. More information
about Triangle's portfolio, management and product development strategy is
available on Triangle's website.
Statements in this press release that are not historical facts are
forward-looking statements and are subject to numerous risks and uncertainties,
including the risk that we may not submit our Coviracil MAA as planned and our
Coviracil NDA or MAA may not receive regulatory approval, or if approved,
Coviracil may not achieve market acceptance or the medical results we expect.
These and other risks are discussed in detail from time to time in our filings
with the Securities and Exchange Commission. As a result of these and other
risks and uncertainties, actual results may differ materially from those
predicted in this press release. Triangle disclaims any obligations to update
any forward-looking statements in this press release.
-FINANCIAL CHART FOLLOWS-
TRIANGLE PHARMACEUTICALS, INC.
(A Development Stage Company)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------------------ ----------------------------------
2002 2001 2002 2001
---- ---- ---- ----
Total revenues $ 14,556 $ 1,271 $ 16,625 $ 4,760
Operating expenses:
License fees 1,582 500 1,800 2,453
Development 12,168 15,477 38,939 58,115
Purchased research and development -- 320 -- 320
Selling, general and administrative 2,328 1,602 5,342 6,561
Restructuring -- 2,342 -- 2,342
------------ ------------ ------------- -------------
Total operating expenses 16,078 20,241 46,081 69,791
------------ ------------ ------------- -------------
Loss from operations (1,522) (18,970) (29,456) (65,031)
Gain (loss) on investments, net 11 9 16 76
Interest income, net 456 764 1,665 2,737
Other Income -- -- 10,000 --
------------ ------------ ------------- -------------
Net loss $ (1,055) $ (18,197) $ (17,775) $ (62,218)
============ ============ ============= ==============
Basic and diluted net loss before
restructuring charge per common share $ (0.01) $ (0.30) $ (0.23) $ (1.27)
============= ============= ============== ===============
Basic and diluted net loss per common share $ (0.01) $ (0.35) $ (0.23) $ (1.32)
============= ============= ============== ===============
Shares used in computing basic and
diluted net loss per common share 76,876 52,366 76,856 47,036
============= ============= ============== ==============
SELECTED CONSOLIDATED BALANCE SHEET INFORMATION
(IN THOUSANDS)
SEPTEMBER 30, 2002 DECEMBER 31, 2001
------------------ -----------------
(UNAUDITED)
Cash, cash equivalents and investments $ 68,270 $ 108,155
Working capital 40,019 54,148
Total assets 72,335 114,165
Total stockholders' equity 46,340 63,953
Shares of common stock 76,904 76,829
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