Onyx Pharmaceuticals, Inc. (MM) (NASDAQ:ONXX)
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Onyx Pharmaceuticals Reports Third Quarter and Nine Month 2004
Financial Results
RICHMOND, Calif., Nov. 4 /PRNewswire-FirstCall/ -- Onyx Pharmaceuticals, Inc.
(NASDAQ:ONXX) today reported a net loss of $11.3 million, or $0.32 per share,
for the third quarter ended September 30, 2004 as compared to a net loss of
$11.1 million, or $0.40 per share, for the same quarter in 2003. The net loss
for the third quarter 2004 reflects the continued, and growing, investment in
BAY 43-9006, an anticancer compound being codeveloped with Bayer
Pharmaceuticals Corporation.
"We are actively advancing and expanding the clinical development of BAY
43-9006. In addition to an ongoing Phase III trial in patients with advanced
kidney cancer, Onyx, with Bayer, has announced plans to begin pivotal studies
early next year in both malignant melanoma and liver cancer," said Hollings C.
Renton, Onyx's president and chief executive officer. "A second oral
anticancer compound, this one resulting from a collaboration with Pfizer, also
began initial clinical testing in the third quarter."
For the quarters ended September 30, 2004 and 2003, Onyx reported no revenue.
Total operating expenses of $12.2 million increased by $0.8 million in the
third quarter of 2004 as compared to the same period in the prior year. This
increase was primarily due to clinical development and marketing expenses
associated with BAY 43-9006, as well as higher general and administrative costs
needed to support the program. These increases were offset by significantly
decreased expenses for the company's therapeutic virus program, which was
terminated in 2003.
Research and development costs were $9.3 million in the third quarter of 2004
compared to $8.8 million in the third quarter of 2003, an increase of $0.4
million over the comparable period last year. Expenses for BAY 43-9006
increased by $2.9 million while therapeutic virus expenses decreased by $2.5
million. Marketing costs grew to $0.9 million in the third quarter of 2004 as
compared to $0.2 million in the third quarter of 2003. The change was due to
an increase in precommercial marketing activities for BAY 43-9006. General and
administrative costs increased to $2.0 million in the third quarter of 2004 as
compared to $1.4 million in the third quarter of 2003. The company recorded no
restructuring charges in the third quarter of 2004 as compared to $0.9 million
in the same period in the prior year related to the discontinuation of the
therapeutic virus program.
As of September 30, 2004, the company had cash, cash equivalents, and
marketable securities of $230.2 million compared to $105.4 million at December
31, 2003. The increase was due to a public offering completed in February
2004, which resulted in net proceeds of $148.3 million to Onyx.
Nine-month Results
For the nine months ended September 30, 2004, the company reported a net loss
of $32.6 million, or $0.96 per share, compared with a net loss of $33.2
million, or $1.34 per share, for the same period in 2003. There were no
revenues recorded in the first nine months of 2004 or 2003. Operating expenses
increased by $1.2 million during the nine-month period ended September 30, 2004
as compared to the same period in the prior year.
Conference Call with Management Today
Onyx's management will host a teleconference and webcast discussing the
company's third quarter and nine-month 2004 financial results. The event will
be held today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). Interested
parties may access the live webcast at:
http://phx.corporate-ir.net/playerlink.zhtml?c=112065&s=wm&e=961508 or by
dialing 617-614-4911 and using the passcode 24169366. A replay of the
presentation will be available on the Onyx website or by dialing 617-801-6888
and using the pass code 92061130 approximately one hour after the
teleconference concludes. The replay will be available through December 4,
2004.
Onyx Pharmaceuticals is engaged in the development of novel cancer therapies
that target the molecular basis of cancer. With its collaborators, the company
is developing small molecule drugs, including BAY 43-9006 with Bayer
Pharmaceuticals Corporation. For more information about Onyx's pipeline and
activities, visit the company's website at http://www.onyx-pharm.com/.
NOTE: This press release contains forward-looking statements regarding
expectations about the development of BAY 43-9006. These forward-looking
statements involve a number of risks and uncertainties that could cause actual
events to differ from the company's expectations. These risks are addressed in
the company's periodic reports filed with the Securities and Exchange
Commission, including but not limited to its Annual Report on Form 10-K filed
on March 15, 2004 and its Quarterly Reports on Form 10-Q.
ONYX PHARMACEUTICALS, INC.
SUMMARY FINANCIAL INFORMATION
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
Total revenue $-- $-- $-- $--
Operating expenses:
Research and
development 9,270 8,841 25,844 24,593
Marketing 859 195 2,619 504
General and
administrative 2,045 1,353 5,960 4,218
Restructuring -- 944 258 4,145
Total operating
expenses 12,174 11,333 34,681 33,460
Loss from operations (12,174) (11,333) (34,681) (33,460)
Interest income, net 910 254 2,130 562
Other expense -- -- -- (275)
Net loss $(11,264) $(11,079) $(32,551) $(33,173)
Basic and diluted
net loss per share $(0.32) $(0.40) $(0.96) $(1.34)
Shares used in
computing basic and
diluted net loss
per share 34,905 27,777 34,064 24,791
CONDENSED BALANCE SHEETS
(In thousands)
September 30, Dec. 31,
2004 2003
(unaudited) (1)
Assets
Cash, cash equivalents and
marketable securities $230,206 $105,400
Other current assets 4,170 3,045
Total current assets 234,376 108,445
Property and equipment, net 282 285
Other assets 474 408
Total assets $235,132 $109,138
Liabilities and stockholders' equity
Current liabilities $20,882 $15,619
Advance from collaboration partner 20,000 20,000
Stockholders' equity 194,250 73,519
Total liabilities and
stockholders' equity $235,132 $109,138
(1) Derived from the audited financial statements included in the Company's
Annual Report on Form 10-K for the year ended December 31, 2003.
DATASOURCE: Onyx Pharmaceuticals, Inc.
CONTACT: Julie Wood of Onyx Pharmaceuticals, Inc., +1-510-262-8757
Web site: http://www.onyx-pharm.com/