MONTVALE, N.J., May 10 /PRNewswire-FirstCall/ -- Memory Pharmaceuticals
Corp. (Nasdaq: MEMY), a biopharmaceutical company focused on the discovery and
development of innovative drug candidates for the treatment of a broad range
of central nervous system (CNS) conditions, today reported its financial
results for the three months ended March 31, 2007.
"Our clinical objectives for 2007 include the completion of our ongoing
proof-of-concept trials for MEM 1003 and MEM 3454, and we've made good
progress during the first quarter of 2007 toward achieving these objectives,"
said Jim Sulat, President and Chief Executive Officer. "Since the beginning
of the year, we've initiated our Phase 2a Alzheimer's disease trial for MEM
3454, and we recently announced that we had completed enrollment in our Phase
2a clinical trial of MEM 1003 in Alzheimer's disease. We look forward to
reporting top-line data from both trials in the fourth quarter of this year."
For the quarter ended March 31, 2007, the Company reported a net loss of
$8.9 million, or $0.13 per share, compared to a net loss of $8.2 million, or
$0.22 per share, for the same period in 2006. Net loss for the quarter ended
March 31, 2007 includes a non-cash charge of $0.8 million related to share-
based payments accounted for in accordance with Statement of Financial
Accounting Standards 123R, "Share-based Payments" (SFAS 123R) and EITF Issue
No. 96-18. For the quarter ended March 31, 2007, after removing the effect of
the charge related to SFAS 123R, the Company's non-GAAP net loss was $8.0
million, or $0.11 per share. For the quarter ended March 31, 2006, after
removing the effect of the charge related to SFAS 123R and the unrealized loss
on the warrants issued in the Company's 2005 private placement, the Company's
non-GAAP net loss was $5.2 million, or $0.14 per share. A reconciliation of
GAAP to non-GAAP results is presented in the tables at the end of this press
release.
Prior to January 1, 2007, the fair value of the warrants issued in the
Company's 2005 private placement was required to be classified as a liability
on the Company's Balance Sheet, with the change in fair value recognized in
the Company's Statement of Operations as unrealized gains or losses. Pursuant
to the adoption of a recent accounting pronouncement, as of January 1, 2007,
the carrying value of these warrants was reclassified to the equity section of
the Company's Balance Sheet.
For the quarter ended March 31, 2007, the Company reported revenue of $2.7
million, compared to revenue of $2.8 million for the same period in 2006.
Revenue relates to the Company's two agreements with Hoffmann La-Roche, one of
which is for the development of PDE4 inhibitors and the other for the
development of nicotinic alpha-7 agonists, and the Company's agreement with
Amgen for the development of PDE10 inhibitors. This revenue includes the
amortization of upfront non-refundable fees and milestone payments, in
addition to payments received for research and development funding.
Research and development expenses for the quarter ended March 31, 2007
were $9.9 million compared to $6.8 million for the same period in 2006. This
increase included $2.7 million in increased expenses associated with the
clinical development of MEM 1003 and MEM 3454 and a $0.6 million increase in
external research support costs for these programs. The increase was
partially offset by a $0.2 million decrease in lab supply costs, as well as a
$0.1 million reduction in personnel and personnel-related costs.
General and administrative expenses for the quarter ended March 31, 2007 were
$2.3 million, compared to $2.2 million for the same period in 2006. This
increase included $0.3 million in personnel-related costs, offset by a
reduction of $0.2 million in legal and patent fees.
At March 31, 2007, the Company had cash, cash equivalents and marketable
securities of $53.8 million, compared to $51.3 million at the end of 2006. The
Company expects that its existing cash, cash equivalents and marketable
securities, together with payments required to be made under its collaboration
agreements, should be sufficient to fund operating expenses, repayment of
equipment notes and capital equipment requirements into the second half of
2008.
First Quarter Highlights and Recent Developments
-- MEM 3454
Commenced Phase 2a Trial of MEM 3454 for Alzheimer's disease. In March
2007, Memory Pharmaceuticals announced that it had dosed the first
subject in its Phase 2a trial of MEM 3454, its lead nicotinic alpha-7
receptor partial agonist, in Alzheimer's disease. The Company plans to
announce top-line results from this trial in the fourth quarter of
2007.
-- MEM 1003
Completed Enrollment in Phase 2a Trial of MEM 1003 in Alzheimer's
Disease. In April 2007, the Company announced that it had completed
enrollment in its Phase 2a trial of MEM 1003 in Alzheimer's disease.
Memory Pharmaceuticals plans to announce top-line results from this
trial in the fourth quarter of 2007.
Announced Top-line Data from Phase 2a Trial of MEM 1003 in Bipolar
Disorder. In March 2007, the Company announced results of the Phase 2a
study of MEM 1003 in acute mania in bipolar disorder. MEM 1003 did not
prove to be effective for the treatment of bipolar mania, although it
was safe and generally well-tolerated in the study. The Company
conducted the trial with funding support from The Stanley Medical
Research Institute.
-- Financial Position
Secured $10.0 Million Debt Financing. In March 2007, the Company closed
a $10.0 million term loan agreement with Hercules Technology Growth
Capital, Inc. Under the agreement, Hercules advanced $6.0 million to
the Company, and Memory Pharmaceuticals has the option to request up to
an additional $4.0 million during the period from September 15, 2007
through December, 31, 2007. In conjunction with the Loan Agreement, the
Company issued Hercules a five-year warrant to purchase 598,086 shares
of its common stock at an exercise price per share of $2.09.
Raised $5.0 Million Through Warrant Call. In February 2007, the
Company accelerated the exercise period of the warrants issued in its
2006 private placement. Warrants to purchase an aggregate of 7,058,042
shares of common stock were issued in the 2006 private placement at an
exercise price of $1.33 per share. As of March 5, 2007, all of the
warrants issued in the 2006 private placement had been exercised, some
on a cashless basis, resulting in gross proceeds to the Company of $5.0
million in the first quarter of 2007.
Conference Call and Webcast Information
Memory Pharmaceuticals will hold a conference call on Thursday, May 10,
2007, at 9:00 a.m. EDT to discuss the Company's first quarter 2007 financial
results. The conference call will also be broadcast live from the "Investors"
section of the Company's website. Memory Pharmaceuticals' senior management
will host the conference call. Investors and other interested parties may
access the call as follows:
Date: Thursday, May 10, 2007
Time: 9:00 a.m. EDT
Telephone (U.S.): 800.435.1398
Telephone (international): 617.614.4078
Participant Passcode: 30377239
Webcast: http://www.memorypharma.com under the
"Investors" section
An audio replay of the conference call will be available from 11:00 a.m.
EDT on Thursday, May 10, 2007, until Thursday, May 17, 2007. To access the
replay, please dial 888.286.8010 (U.S.) or 617.801.6888 (international) and
enter passcode number 55643908. An audio replay of the conference call will
also be available under the "Investors" section of the Company's website
during the same period.
About the Company
Memory Pharmaceuticals Corp., a biopharmaceutical company, is focused on
developing innovative drugs for the treatment of debilitating CNS disorders
such as Alzheimer's disease, schizophrenia, depression and bipolar disorder.
For additional information, please visit our website at
http://www.memorypharma.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995 that are subject to
risks and uncertainties. All statements, other than statements of historical
facts, regarding management's expectations, beliefs, goals, plans or Memory
Pharmaceuticals' prospects, future financial position, future revenues and
projected costs should be considered forward-looking. Readers are cautioned
that actual results may differ materially from projections or estimates due to
a variety of important factors, including the risks and uncertainties
associated with: obtaining additional financing to support Memory
Pharmaceuticals' R&D and clinical activities and operations; the outcome of
clinical trials of Memory Pharmaceuticals' drug candidates and whether they
demonstrate these candidates' safety and effectiveness; obtaining regulatory
approvals to conduct clinical trials and to commercialize Memory
Pharmaceuticals' drug candidates; Memory Pharmaceuticals' ability to enter
into and maintain collaborations with third parties for its drug development
programs; Memory Pharmaceuticals' dependence on its collaborations and its
license relationship with Bayer; achieving milestones under Memory
Pharmaceuticals' collaborations; Memory Pharmaceuticals' dependence on
preclinical and clinical investigators, preclinical and clinical research
organizations, manufacturers and consultants; and protecting the intellectual
property developed by or licensed to Memory Pharmaceuticals. These and other
risks are described in greater detail in Memory Pharmaceuticals' filings with
the Securities and Exchange Commission. Memory Pharmaceuticals may not
actually achieve the goals or plans described in its forward-looking
statements, and investors should not place undue reliance on these statements.
Memory Pharmaceuticals disclaims any intent or obligation to update any
forward-looking statements as a result of developments occurring after the
date of this press release.
MEMORY PHARMACEUTICALS CORP.
CONDENSED STATEMENTS OF OPERATIONS AND NON-GAAP ADJUSTMENTS
(in thousands - except share and per share information)
(unaudited)
Three Months Ended
March 31,
2007 2006
Revenue $2,690 $2,780
Operating expenses:
Research and development 9,851 6,843
General and administrative 2,253 2,238
Total operating expenses 12,104 9,081
Loss from operations (9,414) (6,301)
Change in fair value of warrants - (2,260)
Interest income, net 551 382
Net loss before income taxes (8,863) (8,179)
Income taxes - 2
Net loss $(8,863) $(8,181)
Basic and diluted net loss per share of
common stock $(0.13) $(0.22)
Basic and diluted weighted average number
of shares of common stock outstanding 70,145,592 37,745,394
Non-GAAP adjustments:
Net loss $(8,863) $(8,181)
Unrealized (gain)/loss on warrants - 2,260
Non-cash compensation charge associated
with share-based payments 849 716
Non-GAAP net loss(1) $(8,014) $(5,205)
Non-GAAP basic and diluted net loss per
share(1) $(0.11) $(0.14)
(1) Excludes gains or losses on the warrants issued in the 2005 private
placement and the expense associated with share-based payments.
MEMORY PHARMACEUTICALS CORP.
CONDENSED BALANCE SHEETS
(in thousands)
(unaudited)
March 31, December 31,
2007 2006
ASSETS
Cash, cash equivalents and
marketable securities $ 53,763 $ 51,323
Other current assets 3,294
1,397
Restricted cash
504 509
Deferred financing costs 438 -
Property and equipment, net 7,040 7,413
Total assets $ 65,039 $ 60,642
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities (excluding
deferred revenue) $ 10,070 $ 7,664
Warrant liability - 8,724
Equipment notes payable, less
current portion 268 345
Loan payable 5,074 -
Deferred revenue 19,632 20,707
Total liabilities 35,044 37,440
Stockholders' equity 29,995 23,202
Total liabilities and
stockholders' equity $ 65,039 $ 60,642
SOURCE Memory Pharmaceuticals Corp.
-0- 05/10/2007
/CONTACT: Jzaneen Lalani, General Counsel for Memory Pharmaceuticals
Corp., +1-201-802-7249; or Laura Perry of Stern Investor Relations,
+1-212-362-1200, for Memory Pharmaceuticals Corp./
/Web site: http://www.memorypharma.com/
(MEMY)
CO: Memory Pharmaceuticals Corp.
ST: New Jersey
IN: HEA BIO MTC FIN
SU: ERN CCA TRI
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5466 05/10/2007 07:06 EDT http://www.prnewswire.com
