Onyx Pharmaceuticals Reports Third Quarter and Nine Month 2004 Financial Results
05 November 2004 - 8:00AM
PR Newswire (US)
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/
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