FOR IMMEDIATE RELEASE
AtheroGenics Reports Second Quarter 2004 Financial Results
ATLANTA, GA - July 22, 2004 - AtheroGenics, Inc. (Nasdaq: AGIX),
a pharmaceutical company focused on the treatment of chronic
inflammatory diseases, today reported financial results for the
second quarter and six months ended June 30, 2004.
Research and development expenses for the second quarter
increased to $13.8 million, compared to $11.2 million for the
comparable quarter in 2003. For the six months ended June 30,
2004, research and development expenses increased to $27.8
million, compared to $21.6 million for the same period in 2003.
The increase in research and development spending is due
primarily to planned expanded clinical development activities as
enrollment continues to progress in the Company's ARISE Phase III
clinical trial, which is evaluating AGI-1067 in atherosclerosis.
Contributing to the increase in expenses were costs associated
with the Company's CART-2 Phase IIb clinical trial, also
evaluating AGI-1067, and the OSCAR Phase II clinical trial
studying AGIX-4207 in rheumatoid arthritis.
General and administrative expenses for the second quarter ended
June 30, 2004, increased to $1.8 million compared to $1.3 million
for the same period in the prior year. For the six months ended
June 30, 2004, general and administrative expenses increased to
$3.4 million compared to $2.6 million for the same period in
2003. The increase in both periods reflects expenditures that
resulted from higher insurance premiums and additional business
development costs.
AtheroGenics recorded interest expense of $1.3 million during the
quarter, compared to interest expense of $16,544 in the second
quarter of 2003. Interest expense for the first six months of
2004 was $2.6 million, as compared to interest expense of $35,175
for the first half of 2003. The higher interest in 2004 relates
to convertible notes issued by the Company in August 2003.
Net loss for the second quarter of 2004 was $16.5 million, or
$(0.45) per share, as compared to $12.3 million, or $(0.34) per
share, reported for the same period in 2003. Net loss for the
first six months of 2004 was $33.1 million, or $(0.90) per share,
as compared to a net loss of $23.8 million or $(0.68) per share
for the first half of 2003. At June 30, 2004, AtheroGenics had
$99.7 million in cash, cash equivalents and short-term
investments.
"Our research and development teams have made considerable
progress during the past quarter, particularly in our late stage
cardiovascular program," said Russell M. Medford, M.D., Ph.D.,
President and Chief Executive Officer of AtheroGenics. "Later
this year we expect to report important clinical data from both
the CART-2 and OSCAR Phase II clinical trials."
Conference Call Information
There will be a conference call today at 9:00 a.m. ET to discuss
AtheroGenics' second quarter 2004 financial results and to
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. ET today until 11:59 p.m. ET on July 30,
2004, by dialing (domestic) 800-428-6051 or (international) 973-
709-2089. Please reference pass code 361981.
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-protectant 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 our future results of operations or our
financial condition, research, development and commercialization
of our product candidates, anticipated trends in our 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 and our Quarterly Report on Form 10-Q for the first
quarter of 2004.
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 Six months ended
June 30, June 30,
2004 2003 2004 2003
---- ---- ---- ----
Revenues $ -- $ -- $ -- $ --
Operating expenses:
Research and
development 13,836,448 11,195,310 27,847,193 21,566,240
General and
administrative 1,761,507 1,347,104 3,431,609 2,648,536
---------- ---------- ---------- ----------
Total operating
expenses 15,597,955 12,542,414 31,278,802 24,214,776
---------- ---------- ---------- ----------
Operating loss (15,597,955) (12,542,414) (31,278,802) (24,214,776)
Interest income 375,095 222,980 746,083 419,272
Interest expense (1,302,299) (16,544) (2,595,140) (35,175)
--------- ---------- --------- ----------
Net loss $(16,525,159)$(12,335,978)$(33,127,859)$(23,830,679)
========== ========== ========== ==========
Net loss per share-
basic and diluted $(0.45) $(0.34) $(0.90) $(0.68)
===== ===== ===== =====
Weighted average
shares outstanding-
basic and diluted 37,015,455 36,458,982 36,941,064 34,884,745
========== ========== ========== ==========
Balance Sheet Data
(Unaudited)
June 30, December 31,
2004 2003
---- ----
Cash, cash equivalents and
short-term investment $99,699,730 $131,583,928
Working capital 94,164,963 124,848,687
Total assets 106,292,458 138,836,746
Long-term obligations, less
current portion 100,021,298 100,083,622
Accumulated deficit (175,659,174) (142,531,315)
Total shareholders'
(deficit)equity (929,983) 30,377,006