EXHIBIT 99.1
AtheroGenics Reports First Quarter 2004 Financial Results
ATLANTA, GA - April 22, 2004 - AtheroGenics, Inc. (NASDAQ: AGIX),
a pharmaceutical company focused on the treatment of chronic
inflammatory diseases, today reported financial results for the
quarter ended March 31, 2004, reflecting steady progress in the
Company's research and development activities.
Research and development expenses for the first quarter increased
to $14.0 million, compared to $10.3 million for the prior year
period. The increase in research and development spending was
due primarily to costs associated with ongoing patient
recruitment and new clinical development staff hires for the
Company's ARISE Phase III clinical trial evaluating AGI-1067 in
atherosclerosis. Also contributing to the increase in expenses
were costs associated with the ongoing OSCAR Phase II clinical
trial evaluating AGIX-4207 in rheumatoid arthritis and
preclinical studies involving the Company's asthma program.
General and administrative expenses totaled $1.7 million for the
first quarter of 2004, compared to $1.3 million for the prior
year period. The majority of the increase in general and
administrative expenditures resulted from higher insurance
premiums and business development expenses related to partnership
activities.
AtheroGenics recorded interest expense of $1.3 million during the
quarter, compared to interest expense of $18,631 in the first
quarter of 2003. The higher interest in 2004 relates to
convertible notes issued by the Company in August 2003.
AtheroGenics' net loss for the first quarter of 2004 was $16.6
million, or $(0.45) per share, compared to $11.5 million, or
$(0.35) per share, for the same period in 2003.
AtheroGenics ended the first quarter of 2004 with $115.5 million
in cash, cash equivalents and short-term investments.
"Since the beginning of the year, we've made significant progress
with our maturing clinical programs for AGI-1067 in
cardiovascular disease and AGIX-4207 in rheumatoid arthritis,"
said Russell M. Medford, M.D., Ph.D., President and Chief
Executive Officer of AtheroGenics. "We look forward to reporting
important Phase II clinical trial results from both of these
programs later in the year."
Conference Call Information
There will be a conference call today at 9:00 a.m. EDT to discuss
AtheroGenics' first quarter 2004 financial results and provide a
Company update. To participate in the call, dial 800-915-4836.
A replay of this call will be available from approximately 11:00
a.m. EDT today until 11:59 p.m. EDT on April 30, 2004, by dialing
(domestic) 800-428-6051 or (international) 973-709-2089. Please
reference pass code 288889.
About AtheroGenics
AtheroGenics is focused on the discovery, development and
commercialization of novel drugs for the treatment of chronic
inflammatory diseases, including heart disease (atherosclerosis),
rheumatoid arthritis and asthma. The Company has four drug
development programs in the clinic. AtheroGenics' lead compound,
AGI-1067, is being evaluated in the pivotal Phase III clinical
trial called ARISE, as an oral therapy for the treatment of
atherosclerosis. AGIX-4207, the Company's second clinical
compound derived from its proprietary v-protectantT technology
platform, is a novel, oral agent being tested in a Phase II
clinical program called OSCAR, for the treatment of rheumatoid
arthritis. AGIX-4207 I.V. is an intravenous rheumatoid arthritis
treatment that has completed a Phase I clinical study. AGI-1096
is a novel, oral agent that is being developed for the prevention
of organ transplant rejection in collaboration with Fujisawa.
For more information about AtheroGenics, please visit
www.atherogenics.com.
This press release may contain forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such statements are subject to
certain factors, risks and uncertainties that may cause actual
results, events and performances to differ materially from those
referred to in such statements. These risks include statements
which address operating performance, events or developments that
we expect or anticipate will occur in the future, such as
projections about the Company's future results of operations or
the Company's financial condition, research, development and
commercialization of the Company's product candidates,
anticipated trends in the Company's business, and other risks
that could cause actual results to differ materially. These
risks are discussed in AtheroGenics' Securities and Exchange
Commission filings, including but not limited to the risks
discussed in AtheroGenics' Form 10-K for fiscal 2003.
AtheroGenics, Inc.
Mark Colonnese
Chief Financial Officer
678-336-2511
investor@atherogenics.com
Investor Relations
Lilian Stern
Stern Investor Relations
212-362-1200
lilian@sternir.com
Media Relations
Katie Brazel
Fleishman Hillard
404-739-0150
brazelk@fleishman.com
AtheroGenics, Inc.
Statements of Operations
(Unaudited)
Three months ended
March 31,
------------------
2004 2003
---- ----
Revenues $ - $ -
Operating expenses:
Research and development 13,999,531 10,338,278
General and adminstrative 1,681,316 1,334,085
----------- ----------
Total operating expenses 15,680,847 11,672,363
----------- ----------
Operating loss (15,680,847) (11,672,363)
Interest income 370,988 196,293
Interest expense (1,292,841) (18,631)
----------- ----------
Net loss $(16,602,700) $(11,494,701)
=========== ==========
Net loss per share - basic and
diliuted $(0.45) $(0.35)
=========== ==========
Weighted averages shares
outstanding - basic and diluted 36,866,673 33,293,017
=========== ==========
Balance Sheet Data
(Unaudited)
March 31, December 31,
2004 2003
-------- -----------
Cash, cash equivalents and short-
term investments $ 115,522,465 $131,583,928
Working capital 110,078,509 124,848,687
Total assets 123,270,205 138,836,746
Long-term obligations,
current portion 100,052,751 100,083,622
Accumulated deficit (159,134,015) (142,531,315)
Total shareholders' equity 15,316,243 30,377,006