EXHIBIT 99.1
[DYAX LOGO AND LOGOTYPE]
CONTACT:
Stephen S. Galliker
EVP, Finance and Administration, CFO
Dyax Corp.
(617) 250-5733
sgalliker@dyax.com
DYAX CORP. ANNOUNCES FOURTH QUARTER AND YEAR END 2002
FINANCIAL RESULTS AND 2003 GUIDANCE
CAMBRIDGE, MA, FEBRUARY 19, 2003 - Dyax Corp. (Nasdaq: DYAX) today announced
financial results for the fourth quarter and year ended December 31, 2002.
FINANCIAL RESULTS:
For the quarter ended December 31, 2002, the Company reported a net loss of
$6,377,000 or $0.32 per share as compared to a net loss of $5,933,000 or $0.31
per share in the comparable quarter of 2001. For the fourth quarter of 2002, the
Company reported revenues of $10,864,000 as compared to $8,717,000 for the same
period in 2001.
For the year ended December 31, 2002, the Company reported a net loss of
$26,818,000 or $1.36 per share as compared to a net loss of $17,165,000 or
$0.89 per share for the year ended December 31, 2001.
Revenue for the year ended December 31, 2002 increased 23.8% to $40,908,000 as
compared to $33,040,000 for the year ended December 31, 2001. The growth in
revenue for fiscal year 2002 was due primarily to increased sales of separations
systems and products by Biotage, the Company's chromatography subsidiary, as
well as to new and expanded biopharmaceutical research and product
collaborations. Dyax ended the fourth quarter and year 2002 with $28,199,000 in
cash and cash equivalents, exclusive of restricted cash.
Research and development expenses for the fourth quarter of 2002 increased 50.0%
to $8,036,000 from $5,356,000 for the fourth quarter of 2001. Research and
development expenses for the year ending December 31, 2002 increased 64.3% to
$31,920,000 from $19,432,000 for the year 2001. These increases were primarily
due to increases in external research and development costs associated with
prospective and ongoing clinical trials involving DX-88 and
DX-890, the Company's lead product candidates. More specifically, increased
costs were incurred due to the initiation of a phase I/II clinical trial of
DX-88 for patients undergoing cardiopulmonary bypass (CPB), costs associated
with U.S. enrollment into EDEMA1, a phase II 48-patient clinical study of DX-88
for the treatment of hereditary angioedema (HAE), and manufacturing costs
associated with the ongoing Phase II trial in Europe for DX-890 in cystic
fibrosis (CF).
Commenting on Dyax's results, Henry E. Blair, Chairman and CEO said, "We are
greatly encouraged by the progress made during 2002. In particular, the advances
made in the area of clinical development for DX-88 and DX-890 demonstrate our
transition to a biopharmaceutical company from a technology platform company.
For DX-88, we reported interim phase II results from our European study in HAE,
and as planned, we initiated a phase I/II study of DX-88 in a second indication,
CPB. Since year end, we have initiated a larger U.S.-based 48-patient study of
DX-88 in HAE, referred to as the EDEMA1 trial, and have begun patient treatment.
Notably, both the United States and European regulatory authorities granted
orphan drug designation to DX-88 early in 2003 for the treatment of angioedema.
Regarding DX-890, we reported initial results of a phase IIa European study in
adult CF patients, and have also initiated a second phase IIa' study in Europe
for children with CF."
Added Mr. Blair, "I'm also very proud of Dyax's success in achieving effective
freedom to operate in the important arena of phage display discovery of human
antibodies. We concluded a series of cross-licensing agreements with Biosite,
Genentech, XOMA and most recently extended our agreement with Cambridge Antibody
Technology. These new arrangements should set the stage for a number of new
therapeutic antibody collaborations. I believe that Dyax has state-of-the-art
libraries and capabilities in this important discovery technology."
With respect to the financial results, Mr. Galliker said, "We are pleased that
our results are in line with our most recent forecast for the year. We are
particularly pleased with the progress made by Biotage, our now self-sufficient
separations subsidiary located in Charlottesville, Virginia, that has become a
significant financial asset of Dyax. During 2002, Biotage continued its revenue
growth and began generating positive operating cash flow in the last two
quarters of the year." Mr. Galliker continued with the following guidance for
2003:
2003 GUIDANCE:
FINANCIAL OUTLOOK
"Overall, our revenues are expected to increase from 20% to 30% in 2003. This
growth is composed of a 15% to 20% increase in Biotage revenues and a 25% to 50%
increase in the biopharmaceutical segment. We expect continued strength from
Biotage's products in its
discovery segment, including several new product launches scheduled for early
2003. Projected growth from the biopharmaceutical segment reflects additional
anticipated funded research opportunities based on our antibody discovery
technology and capacity.
We will continue to carefully monitor and manage our cash position. With the
cost reduction measures implemented in 2002, we would expect net cash
consumption for operations in 2003 in the range of $15 to $20 million, down from
$22.8 million in 2002. The Company will also be considering its available
alternatives for additional working capital, including selling additional equity
or debt securities or selling or leveraging other assets.
CLINICAL MILESTONES
We expect to report initial results from all four of our active clinical trials
during 2003: the European phase II DX-88 study in HAE, the U.S.-based phase II
EDEMA1 study of DX-88 in HAE, the U.S. phase I/II study of DX-88 in CPB, and the
phase IIa1 study of DX-890 in children with CF. Notably, Dyax is presenting
clinical data for the first time at a major medical meeting in March 2003. This
data from the European trial of DX-88 in hereditary angioedema will be presented
in an oral abstract at the annual meeting of the American Academy of Allergy,
Asthma and Immunology (AAAAI)."
CONFERENCE CALL AND WEBCAST
The Company will host a conference call and webcast followed by a question and
answer session at 10:00 a.m. Eastern Standard Time today (February 19, 2002) to
discuss fourth quarter and year end 2002 financial results.
The dial-in number for domestic callers is (800) 915-4836. International callers
should dial (973) 317-5319. A webcast of the discussion will be accessible from
the Investor Relations page of Dyax's corporate website at www.dyax.com.
A replay of the conference call will be available until March 15, 2003 and may
be accessed by dialing (800) 428-6051 for domestic callers, or (973) 709-2089
for international callers. The replay access code for all callers is 286395. The
webcast will be archived on Dyax's website for an indefinite period of time.
DYAX CORP.
Dyax Corp. is a biopharmaceutical company focused on the discovery, development
and commercialization of therapeutic products. The Company uses its patented
phage display technology to rapidly identify a broad range of recombinant
protein, peptide, and fully human monoclonal antibody compounds that bind with
high affinity and specificity to targets of interest, with the objective of
selecting those compounds with the greatest potential for advancement into
clinical development. Dyax currently has two recombinant proteins in phase II
clinical trials. DX-88 is being studied for the treatment of hereditary
angioedema and for use during cardiopulmonary bypass surgery, while DX-890 is
being studied for the treatment of cystic fibrosis. Dyax leverages its
technology broadly through revenue generating licenses and collaborations in
therapeutics and in non-core areas of affinity separations, diagnostic imaging,
and research reagents. Through its subsidiary, Biotage, Inc., Dyax develops,
manufactures and sells chromatography separations systems and products to
pharmaceutical companies worldwide for drug discovery and purification. For more
information on Dyax Corp., please visit the Company's website at www.dyax.com.
This press release contains forward-looking statements regarding Dyax Corp.,
including statements regarding its revenues, results of operations, financial
position, research and development expenditures and programs, clinical trials
and collaborations. Statements that are not historical facts are based on Dyax's
current expectations, beliefs, assumptions, estimates, forecasts and projections
for Dyax and the industry and markets in which Dyax competes. The statements
contained in this release are not guarantees of future performance and involve
certain risks, uncertainties and assumptions, which are difficult to predict.
Therefore, actual outcomes and results may differ materially from what is
expressed in such forward-looking statements. Important factors which may affect
future revenues, operating results, financial position, research and development
programs, clinical trials and collaborations include Dyax's dependence on the
expertise, effort, priorities and contractual obligations of its collaborators
in the development, clinical trials, manufacture, marketing, sales and
distribution of biopharmaceuticals developed by Dyax or its collaborators; the
risk that biopharmaceuticals developed by Dyax or its collaborators may not show
therapeutic effect or an acceptable safety profile in clinical trials or could
take a significantly longer time to gain regulatory approval than Dyax expects
or may never gain approval; Dyax's ability to obtain and maintain intellectual
property protection for its products and technologies; the development of
technologies or products superior to its technologies or products; and other
risk factors described or referred to in Dyax's most recent Annual Report on
Form 10-K and other periodic reports filed with the Securities and Exchange
Commission. Dyax cautions investors not to place undue reliance on the
forward-looking statements contained in this release. These statements speak
only as of the date of this release, and Dyax undertakes no obligation to update
or revise these statements, except as may be required by law.
Dyax and the Dyax logo are the registered trademarks of Dyax Corp. Biotage is a
trademark of Biotage, Inc., a Dyax subsidiary.
- FINANCIAL TABLES FOLLOW -
DYAX CORP.
SELECTED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
---------------------------------- -------------------------------
2002 2001 2002 2001
-------------- -------------- -------------- --------------
Revenue:
Product sales $ 6,280,000 $ 5,531,000 $ 23,158,000 $ 18,803,000
Product development and license fee revenues 4,584,000 3,186,000 17,750,000 14,237,000
-------------- -------------- -------------- --------------
Total revenues 10,864,000 8,717,000 40,908,000 33,040,000
Costs and expenses:
Cost of products sold 2,701,000 2,654,000 10,038,000 8,805,000
Research and development (Note 1) 8,036,000 5,356,000 31,920,000 19,432,000
Selling, general and administrative (Note 2) 6,119,000 6,838,000 25,218,000 24,121,000
-------------- -------------- -------------- --------------
Total costs and expenses 16,856,000 14,848,000 67,176,000 52,358,000
-------------- -------------- -------------- --------------
Loss from operations (5,992,000) (6,131,000) (26,268,000) (19,318,000)
Other income (expense), net (385,000) 198,000 (550,000) 2,153,000
-------------- -------------- -------------- --------------
Net loss $ (6,377,000) $ (5,933,000) $ (26,818,000) $ (17,165,000)
============== ============== ============== ==============
Basic and diluted net loss per share $ (0.32) $ (0.31) $ (1.36) $ (0.89)
============== ============== ============== ==============
Weighted average number of shares used in
computing basic and diluted net loss per share 19,703,242 19,390,872 19,652,474 19,244,809
============== ============== ============== ==============
SELECTED CONSOLIDATED BALANCE SHEET INFORMATION
(UNAUDITED)
DECEMBER 31, DECEMBER 31,
2002 2001
-------------- -------------
Cash, cash equivalents and restricted cash $ 28,199,000 $ 51,034,000
Restricted cash 5,115,000 4,365,000
Working capital 17,642,000 44,010,000
Total assets 73,906,000 81,441,000
Stockholders' equity 30,842,000 55,464,000
(Note 1) Includes charges for non-cash stock based compensation of $128,000 and
$185,000 for the three months ended December 31, 2002 and 2001, and $513,000 and
$687,000 for the years ended December 31, 2002 and 2001.
(Note 2) Includes charges for non-cash stock based compensation of $157,000 and
$245,000 for the three months ended December 31, 2002 and 2001, and $627,000 and
$867,000 for the years ended December 31, 2002 and 2001.
# # #