Keryx Biopharmaceuticals, Inc. Announces First Quarter 2003 Financial Results
- Reports Non-Cash Charge Related to Restructuring Program -
NEW YORK, May 14 -- Keryx Biopharmaceuticals, Inc. (Nasdaq: KERX; AIM: KRX),
a biopharmaceutical company focused on the acquisition, development and
commercialization of novel pharmaceutical products for the treatment of serious,
life-threatening diseases, including diabetes and cancer, today released
financial results for the first quarter ended March 31, 2003.
In March 2003, as part of a previously announced restructuring program,
the Company decided to cease its Jerusalem laboratory activities and to
further curtail its general and administrative activities in its Jerusalem
facility. As a result of these actions, the Company took a non-cash
impairment charge in the quarter ended March 31, 2003 of $2,295,000, all of
which is included in research and development expenses. The impairment charge
includes a write-off of approximately $1,509,000 in fixed assets and $786,000
in other investments relating to certain intangible assets.
At March 31, 2003, the Company had cash, cash equivalents, interest
receivable and investment securities of $22.4 million, compared to cash, cash
equivalents, interest receivable and investment securities of $24.1 million at
December 31, 2002.
The net loss for the quarter ended March 31, 2003 was $(3,788,000), or
$(0.19) per share, compared to a net loss of $(3,543,000), or $(0.18) per
share, for the quarter ended March 31, 2002. This represents an increase in
net loss of $245,000. The increase in net loss in the first quarter of 2003,
as compared to the first quarter of 2002, was primarily attributable to the
$2,295,000 non-cash impairment charge taken in the first quarter of 2003
arising from the Company's restructuring program and its decision to cease its
Jerusalem laboratory activities. This increase was partially offset by
reduced early stage research activities and associated personnel and general
and administrative expenses as a result of our restructuring programs
initiated in 2002 and in 2003.
Commenting on the quarter, Michael S. Weiss, Keryx's Chairman and Chief
Executive Officer, said, "Upon assuming the role of Chairman and Chief
Executive Officer of Keryx in December 2002, I made it our number one priority
to significantly reduce the Company's cash expenditures and refocus the
Company towards clinical-stage compounds. In pursuit of this goal, during the
first quarter, we closed down our Jerusalem-based laboratory and scaled back
our Israel administrative activities. This has enabled us to substantially
reduce our cash burn rate. During the quarter, we also worked diligently on
our U.S.-based clinical plan for KRX-101, our late-stage drug candidate for
the treatment of diabetic kidney disease. At the same time, we are continuing
to pursue strategic partners for KRX-101 on an opportunistic basis. In
addition, as we strive to expand our drug pipeline, we have also established
an in-house team that is focused on our product acquisition program."
Keryx will host a conference call tomorrow, Thursday, May 15, 2003 at 9:30
am EDT. In order to participate in the conference call, please call
1-877-323-6160 (U.S.) ID Code: Keryx, 1-888-752-4880 (Canada), 1-800-270-077
(Israel), 0-800-085-7917 (UK), 0-800-918-447 (France), 0-800-562-074
(Switzerland), and 0-800-1813-496 (Germany).
The press release can be accessed by visiting the Company's website at
www.keryx.com. The webcast of the conference call will be available for
replay at www.keryx.com, for a period of 15 days after the call.
ABOUT KERYX BIOPHARMACEUTICALS, INC.
Keryx Biopharmaceuticals, Inc. (Nasdaq: KERX; AIM: KRX) is a
biopharmaceuticals company focused on the acquisition, development and
commercialization of novel pharmaceutical products for the treatment of
serious, life-threatening diseases, including diabetes and cancer. Keryx is
developing KRX-101 (sulodexide), a novel treatment for diabetic nephropathy,
for which it is in the process of planning its U.S.-based clinical program.
Keryx is also seeking in-licensing opportunities of additional clinical-stage
drug candidates. In addition, Keryx is seeking partners for its novel
KinAce(TM) drug discovery technology, which allows for rapid and rational
development of drug candidates that target a vast range of protein kinases,
and its associated product candidates.
Cautionary Statement
Statements contained or referenced in this news release that are not
historical facts, including, but not limited to, statements concerning Keryx's
ability to successfully begin and complete cost-effective clinical trials of
KRX-101, may be forward-looking statements, as the term is defined in the
Private Litigation Reform Act of 1995. In some cases, you can identify
forward-looking statements by terminology such as "anticipate," "estimate,"
"expect," "project," "hope," "should," "intend," "plan," "believe,"
"scheduled," will" and other words and terms of similar meaning in connection
with any discussion of future operating or financial performance. Important
factors may cause Keryx's actual results to differ materially, including:
adverse results in its drug discovery and clinical development processes;
failure to obtain patent protection for its discoveries; commercial
limitations imposed by patents owned or controlled by third parties;
difficulties or delays in obtaining regulatory approvals to market products
resulting from its development efforts; and the requirement for substantial
funding to conduct research and development, and to expand commercialization
activities. Important factors that might cause or contribute to such a
discrepancy include, but are not limited to, the risks discussed under the
heading "Risk Factors" in our Annual Report or Form 10-K, which has been filed
with the Securities and Exchange Commission, as well as other filings we
periodically make with the Commission. Any forward-looking statements set
forth in this news release speak only as of the date of this news release.
Keryx does not intend to update any of these forward-looking statements to
reflect events or circumstances that occur after the date hereof. This press
release and prior releases are available at www.keryx.com. The information in
Keryx's website is not incorporated by reference into this press release and
is included as an inactive textual reference only.
Keryx Biopharmaceuticals, Inc.
Selected Consolidated Financial Data
(Thousands of US Dollars, Except Share and Per Share Data)
Statement of Operations:
Three Months Ended March 31,
(unaudited)
2003 2002
OPERATING EXPENSE:
Research and Development
Non-cash compensation $ (266) $ (580)
Other research and development 3,371 2,943
Total research and development 3,105 2,363
General and administrative
Non-cash compensation $ 2 $ (6)
Other general and administrative 664 1,310
Total general and administrative 666 1,304
LOSS FROM OPERATIONS (3,771) (3,667)
OTHER INCOME (EXPENSE):
Financing income, net 85 174
Taxes on income (102) (50)
NET LOSS $ (3,788) $ (3,543)
NET LOSS PER COMMON SHARE
Basic and diluted $ (0.19) $ (0.18)
SHARES USED IN COMPUTING NET
LOSS PER COMMON SHARE
Basic and diluted 20,011,036 19,890,335
Balance Sheet:
March 31, December 31,
2003 2002
(unaudited) (audited)
Cash, cash equivalents, interest
receivable and investment securities $ 22,385 $ 24,131
Total assets 24,488 29,103
Accumulated deficit (49,290) (45,502)
Stockholders' equity 22,298 26,330
KERYX CONTACT:
Ron Bentsur
Director of Investor Relations
Keryx Biopharmaceuticals, Inc.
Tel: +972 2 541 3500
E-mail: ron@keryx.com
SOURCE Keryx Biopharmaceuticals, Inc.
-0- 05/14/2003
/CONTACT: Ron Bentsur, Director of Investor Relations of Keryx
Biopharmaceuticals, Inc., +972-2-541-3500, ron@keryx.com/
/Web site: http://www.keryx.com /
(KERX)
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