EXHIBIT 99.2
CORVAS INTERNATIONAL
NEWS RELEASE
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Contact: Carolyn M. Felzer
Vice President and Controller
Corvas International, Inc.
(858) 455-9800
www.corvas.com
CORVAS INTERNATIONAL REPORTS SECOND QUARTER RESULTS
SAN DIEGO, CA - JULY 23, 2002 - Corvas International, Inc. (Nasdaq:CVAS) today
reported financial results for the second quarter of 2002, which were in line
with management's expectations.
Second quarter operating revenues of $46,000 and operating expenses of $6.2
million contributed to a net loss of $5.5 million, or $0.20 per share. In the
second quarter of 2001, operating revenues of $94,000 and operating expenses of
$11.1 million contributed to a net loss of $9.6 million, or $0.35 per share.
Cash, cash equivalents and investments at June 30, 2002 totaled $101.4 million,
compared to $112.3 million at December 31, 2001. These investments mature at
various dates through May 17, 2004. As a result of the recently announced
workforce reduction, the Company expects its cash burn for 2002 to decrease to
the mid-$20 million range.
"Events and market conditions in the second quarter have necessitated an
extensive strategic realignment of our research and development programs in an
effort to concentrate our resources on clinical development goals in both our
cardiovascular disease and cancer programs," said Randall E. Woods, President
and Chief Executive Officer. "We believe we are entering the second half of the
year well positioned to continue the clinical development of our proprietary
anticoagulant rNAPc2, to move forward with selected cancer research programs and
to pursue strategic development opportunities."
Corvas will hold a conference call for stockholders today at 4:30 PM Eastern
Time to discuss the second quarter results and the corporate restructuring
announced yesterday. A live webcast of the audio portion of the conference call
can be accessed through
http://www.firstcallevents.com/service/ajwz362137214gf12.html or the Company's
Web site at www.corvas.com. The webcast will be archived through August 23,
2002.
(Minimum Requirements to listen to broadcast: The Windows Media Player software,
downloadable free from
http://www.microsoft.com/windows/windowsmedia/EN/default.asp and at least a 28.8
Kbps connection to the Internet. If you experience problems listening to the
broadcast, send an email to isproducers@prnewswire.com.)
ABOUT CORVAS
Corvas International, Inc. is a biopharmaceutical company focused on the
development of new biotherapeutics that address today's largest medical markets,
including cardiovascular disease and cancer. The Company's cardiovascular drug
candidate, rNAPc2, is a novel anticoagulant intended for the treatment of people
affected by acute coronary syndromes, specifically unstable angina (UA) and
non-ST-segment elevation myocardial infarction (NSTEMI). A Phase II study of
rNAPc2 in UA/NSTEMI patients is planned to begin in the second half of 2002.
Corvas' cancer research programs are focused on the development of new
biotherapies, including monoclonal antibodies and synthetic prodrugs, that
target serine protease enzymes associated with the growth and spread of
cancerous tumors. The Company has collaborations with Abgenix Inc. and Dyax
Corp. to discover, develop and commercialize therapeutic antibodies against
cancer. Corvas' Protease Activated Cancer Therapy (PACT) program employs a
synthetic conjugate molecule, or prodrug, approach designed to activate potent,
cytotoxic drugs to kill tumor cells.
For more information, please visit the Company's Web site at www.corvas.com.
THIS PRESS RELEASE, INCLUDING STATEMENTS THAT ARE NOT HISTORICAL FACTS, AND THE
COMPANY'S WEB SITE AT HTTP://WWW.CORVAS.COM, CONTAIN FORWARD-LOOKING STATEMENTS
WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995,
INCLUDING STATEMENTS REGARDING THE EXPECTED CASH BURN FOR 2002, THE TIMING AND
NATURE OF CLINICAL TRIALS, THE COMPANY'S CANCER RESEARCH PROGRAMS AND STRATEGIC
DEVELOPMENT OPPORTUNITIES. ACTUAL RESULTS COULD VARY MATERIALLY FROM THOSE
DESCRIBED AS A RESULT OF A NUMBER OF FACTORS, INCLUDING THOSE SET FORTH IN THE
COMPANY'S ANNUAL REPORT ON FORM 10-K FOR 2001 AND ANY SUBSEQUENT SEC FILINGS. IN
ADDITION, THERE IS THE RISK THAT THE CLINICAL TRIALS FOR RNAPC2 FOR THE
TREATMENT OF PATIENTS WITH UA/NSTEMI WILL NOT COMMENCE IN 2002, AND, IF
COMMENCED, WILL NOT BE SUCCESSFUL, THAT THE COMPANY'S CANCER RESEARCH PROGRAMS,
INCLUDING ITS COLLABORATIONS WITH ABGENIX AND DYAX, WILL NOT BE SUCCESSFUL, THAT
RNAPC2 OR OTHER DRUG CANDIDATES IN OUR PIPELINE MAY NEVER BECOME MARKETABLE
PRODUCTS AND THAT OUR REVENUES AND EXPENSES COULD DIFFER FROM THOSE THAT WE
EXPECT OR ANTICIPATE. THE COMPANY UNDERTAKES NO OBLIGATION TO REVISE OR UPDATE
THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER THE
DATE OF THIS PRESS RELEASE, EXCEPT AS REQUIRED BY LAW.
(Financial data follows)
CORVAS INTERNATIONAL
STATEMENT OF OPERATIONS DATA:
Three Months Ended June 30, Six Months Ended June 30,
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2002 2001 2002 2001
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(unaudited) (unaudited)
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(in thousands, except per share data)
Revenues:
Royalties $ 46 $ 37 $ 73 $ 67
Research grants --- 57 --- 96
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Total revenues 46 94 73 163
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Costs and expenses:
Research and development 5,001 9,817 9,725 15,020
General and administrative 1,206 1,296 2,473 2,495
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Total costs and expenses 6,207 11,113 12,198 17,515
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Loss from operations (6,161) (11,019) (12,125) (17,352)
Other income 916 1,659 1,896 3,676
Interest expense (209) (198) (415) (393)
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Net loss and other comprehensive loss $ (5,454) $ (9,558) $ (10,644) $ (14,069)
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Basic and diluted net loss per share $ (0.20) $ (0.35) $ (0.39) $ (0.51)
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Shares used in calculation of basic and
diluted net loss per share 27,507 27,400 27,505 27,380
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BALANCE SHEET DATA:
June 30, December 31,
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2002 2001
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(unaudited)
(in thousands)
Cash, cash equivalents and investments $ 101,388 (A) $ 112,299
Working capital 79,142 76,594
Total assets 106,967 117,003
Long-term debt 12,141 11,736
Accumulated deficit (135,644) (125,000)
Total stockholders' equity 91,993 102,457
(A) Includes long- and short-term investments that mature at various dates
through May 17, 2004.
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