MONTVALE, N.J., Nov. 8 /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 and nine months ended September 30, 2007. At September
30, 2007, the Company had cash, cash equivalents and marketable securities of
approximately $43.2 million.
"Over the past few months, we have reported important progress with our
portfolio of nicotinic alpha-7 receptor agonists, highlighted by the recent
positive data for our proof-of-concept Phase 2a trial of MEM 3454 in
Alzheimer's disease," said Jim Sulat, President and Chief Executive Officer.
"The data from that trial further strengthened our belief in the potential of
the nicotinic alpha-7 receptor as a target for treating debilitating cognitive
disorders, and preparation is underway to initiate a Phase 2a trial of MEM
3454 in cognitive impairment associated with schizophrenia, or CIAS, in the
near term."
For the quarter ended September 30, 2007, the Company reported a net loss
of $6.2 million, or $0.09 per share, compared to a net loss of $9.8 million,
or $0.26 per share, for the same period in 2006. Net loss for the third
quarter of 2007 included a non-cash charge of $0.6 million related to stock-
based compensation. Net loss for the third quarter of 2006 included a non-
cash gain of $0.3 million related to the warrants issued in the Company's
September 2005 private placement and a non-cash charge of $0.7 million related
to stock-based compensation. For the quarter ended September 30, 2007, after
removing the effect of the charge related to stock-based compensation, the
Company's non-GAAP net loss was $5.6 million, or $0.08 per share. For the
quarter ended September 30, 2006, after removing the effect of the charge
related to stock-based compensation and the unrealized gain on the warrants
issued in the Company's 2005 private placement, the Company's non-GAAP net
loss was $9.5 million, or $0.25 per share.
For the nine months ended September 30, 2007, the Company reported a net
loss of $25.7 million, or $0.36 per share, compared to a net loss of $16.4
million, or $0.43 per share, for the same period in 2006. Net loss for the
nine months ended September 30, 2007 included a non-cash charge of $2.3
million related to stock-based compensation. Net loss for the nine months
ended September 30, 2006 included a non-cash gain of $5.8 million related to
the warrants issued in the Company's September 2005 private placement and a
non-cash charge of $2.1 million related to stock-based compensation. For the
nine months ended September 30, 2007, after removing the effect of the charge
related to stock-based compensation, the Company's non-GAAP net loss was $23.5
million, or $0.33 per share. For the nine months ended September 30, 2006,
after removing the effect of the charge related to stock-based compensation
and the unrealized gain on the warrants issued in the Company's 2005 private
placement, the Company's non-GAAP net loss was $20.1 million, or $0.53 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 Emerging Issues Task Force (EITF) Issue No. 00-19-2,
Accounting for Registration Payment Arrangements (EITF No. 00-19-2), 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 September 30, 2007, the Company reported revenue of
$5.0 million, compared to revenue of $2.0 million for the same period in 2006.
For the nine months ended September 30, 2007, revenue was $10.4 million,
compared to revenue of $6.7 million for the same period in 2006. The increase
in revenue in the three and nine months ended September 30, 2007 is related to
recognizing the $2.2 million in milestone payments received from the Stanley
Medical Research Institute in connection with the MEM 1003 Phase 2a bipolar
disorder clinical trial, and includes revenue received from Amgen, as well as
the amortization of upfront non-refundable fees, milestone payments, and
payments received for research and development funding from Roche.
For the quarter ended September 30, 2007, research and development
expenses were $9.0 million, compared to $10.0 million for the quarter ended
September 30, 2006. The $1.0 million decrease is primarily the result of a
$0.6 million decrease in manufacturing costs and a $0.4 million decrease in
costs associated with the clinical and preclinical development of MEM 1003 and
MEM 3454.
Research and development expenses for the nine months ended September 30,
2007 were $30.1 million compared to $23.3 million for the nine months ended
September 30, 2006. The $6.8 million increase includes $6.5 million in
increased costs associated with the clinical and preclinical development of
MEM 1003 and MEM 3454, and $0.6 million in increased personnel-related costs,
offset by a $0.3 million decrease in laboratory materials and supplies.
For the quarter ended September 30, 2007, general and administrative
expenses were $2.3 million, compared to $2.4 million for the quarter ended
September 30, 2006. The $0.1 million decrease is primarily the result of a
$0.2 million decrease in personnel-related costs and a $0.1 million increase
in administrative costs.
General and administrative expenses for the nine months ended September
30, 2007 were $7.1 million compared to $6.7 million for the nine months ended
September 30, 2006. The $0.4 million increase includes $0.2 million in
increased personnel-related costs and $0.2 million in increased administrative
costs.
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.
Third Quarter Highlights and Recent Developments
--Nicotinic Alpha-7 Receptor Agonist Program
Announced Positive Top-line Data from Phase 2a Trial of MEM 3454 in
Alzheimer's Disease. In November 2007, Memory Pharmaceuticals announced
positive top-line data from the randomized, placebo-controlled, multi-center
Phase 2a proof-of-concept trial of MEM 3454, the Company's lead nicotinic
alpha-7 receptor partial agonist, in 80 patients with mild to moderate
Alzheimer's disease. MEM 3454 demonstrated a statistically significant effect
at the 5 mg and 15 mg doses on both the primary endpoint and certain key
secondary endpoints from the Cognitive Drug Research (CDR) battery. The
primary endpoint of the trial was the change from baseline in the Quality of
Episodic Secondary Memory (QESM) factor score of the CDR battery. Secondary
endpoints included other measures from the CDR battery and the ADAS-cog.
Commenced Phase 1 Trial of R4996/ MEM 63908. In August 2007, Memory
Pharmaceuticals announced the dosing of the first subject in the single
ascending dose (SAD) study of its Phase 1 clinical program of R4996/MEM 63908,
a partial agonist of the nicotinic alpha-7 receptor. The commencement of this
trial triggered a $2.0 million milestone payment from Roche. The Company
expects to complete the SAD study in the first quarter of 2008.
--MEM 1003
Announced Top-line Data from Phase 2a Trial of MEM 1003 in Alzheimer's
Disease. In October 2007, Memory Pharmaceuticals announced top-line data from
its Phase 2a study of MEM 1003 in Alzheimer's disease. The trial failed to
meet its primary endpoint, which was a twelve-week mean change in the
Alzheimer's disease Assessment Scale -- Cognitive subscale (ADAS-cog) score in
the overall population. The negative results, however, were largely driven by
an unusually large placebo response in the subgroup of monotherapy subjects.
In the subgroup of subjects receiving cholinesterase inhibitors, the change in
ADAS-cog favored treatment over placebo and numeric improvements were seen in
all of the four secondary endpoints. The Company plans to complete its
analysis of the data from this trial and evaluate the potential for further
development of this drug candidate.
--Additional Pipeline Programs
Expanded Pipeline to Include 5-HT6 Receptor Antagonist Program. In August
2007, Memory Pharmaceuticals announced the expansion of its drug development
pipeline to include a 5-HT6 Antagonist Program. Memory Pharmaceuticals has
internally developed a portfolio of novel, potent and selective 5-HT6
antagonists, which includes compounds that are covered by intellectual
property licensed from NPS Pharmaceuticals. The Company is evaluating several
lead compounds from this portfolio as potential development candidates.
-- Financial Position
Secured Additional $4.0 Million in Debt Financing. In October 2007, the
Company received the final advance of $4.0 million under its $15.0 million
Loan and Security Agreement with Hercules Technology Growth Capital, Inc.
Conference Call and Webcast Information
Memory Pharmaceuticals will hold a conference call on Thursday,
November 8, 2007, at 9:00 a.m. EST to discuss the Company's third quarter 2007
financial results. Slides accompanying the call will be available for download
from the "Investors" section of the Company's website. 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, November 8, 2007
Time: 9:00 a.m. EST
Telephone (U.S.): 866.314.9013
Telephone (international): 617.213.8053
Participant Passcode: 64962595
Webcast: http://www.memorypharma.com under the
"Investors" section
An audio replay of the conference call will be available from 11:00 a.m.
EST on Thursday, November 8, 2007, until Thursday, November 15, 2007. To
access the replay, please dial 888.286.8010 (U.S.) or 617.801.6888
(international) and enter passcode number 43832722. 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 outcome of clinical trials of
Memory Pharmaceuticals' drug candidates and whether they demonstrate these
candidates' safety and effectiveness; the risks and uncertainties associated
with: obtaining additional financing to support Memory Pharmaceuticals' R&D
and clinical activities and operations; 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
relationships; 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 & NON-GAAP ADJUSTMENTS
(in thousands - except share and per share information)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2007 2006 2007 2006
Revenue $5,026 $1,958 $10,444 $6,682
Operating expenses:
Research and development 8,988 10,044 30,096 23,266
General and administrative 2,259 2,376 7,104 6,677
Total operating expenses 11,247 12,420 37,200 29,943
Loss from operations (6,221) (10,462) (26,756) (23,261)
Change in fair value of warrants - 308 - 5,801
Interest income, net 39 340 1,030 1,088
Net loss before income taxes (6,182) (9,814) (25,726) (16,372)
Income taxes (3) 9 3 8
Net loss $(6,179) $(9,823) $(25,729) $(16,380)
Net loss per common share:
Basic and diluted net loss $(0.09) $(0.26) $(0.36) $(0.43)
Basic and diluted weighted average
number of shares
of common stock
outstanding 72,610,018 37,923,706 71,617,983 37,835,147
Non-GAAP Adjustments:
Net loss $(6,179) $(9,823) $(25,729) $(16,380)
Unrealized (gain)/loss
on warrants - (308) - (5,801)
Non-cash compensation charge
associated with share-
based payments 604 673 2,259 2,062
Non-GAAP net loss (1) $(5,575) $(9,458) $(23,470) $(20,119)
Non-GAAP basic and diluted
net loss per share (1) $(0.08) $(0.25) $(0.33) $(0.53)
(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)
September 30, December 31,
2007 2006
ASSETS
Cash, cash equivalents and marketable
securities $43,225 $51,323
Other current assets 1,759 1,397
Restricted cash 505 509
Deferred financing costs 483 -
Property and equipment, net 6,312 7,413
Total assets $52,284 $60,642
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities (excluding deferred
revenue) $8,257 $7,664
Warrant liability - 8,724
Equipment notes payable, less current portion 129 345
Loan payable, less current portion 8,491 -
Deferred revenue 18,109 20,707
Total liabilities 34,986 37,440
Stockholders' equity 17,298 23,202
Total liabilities and stockholders' equity $52,284 $60,642
SOURCE Memory Pharmaceuticals Corp.
-0- 11/08/2007
/CONTACT: Jzaneen Lalani, General Counsel, +1-201-802-7249; or Laura Perry
of Stern Investor Relations, +1-212-362-1200, both of Memory Pharmaceuticals
Corp. /
/Web site: http://www.memorypharma.com/
(MEMY)
CO: Memory Pharmaceuticals Corp.
ST: New Jersey
IN: HEA BIO MTC
SU: ERN ERP CCA
CB-MJ
-- NYTH037A --
6346 11/08/2007 06:26 EST http://www.prnewswire.com
