*DJ DURECT Corp 1Q Loss 12c/Shr >DRRX [DHKVXZR]
(MORE) Dow Jones Newswires
04-22-04 1606ET- - 04 06 PM EDT 04-22-04
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DURECT Corporation Announces First Quarter 2004 Financial Results [DHKVXXG]
/FROM PR NEWSWIRE SAN FRANCISCO 415-543-7800/
-- WITH LOGO -- TO BUSINESS, HEALTH AND MEDICAL EDITORS:
DURECT Corporation Announces First Quarter 2004 Financial Results
CUPERTINO, Calif., April 22 /PRNewswire-FirstCall/ -- DURECT Corporation
(Nasdaq: DRRX) announced today financial results for the three months ended
March 31, 2004.
(Logo:
http://www.newscom.com/cgi-bin/prnh/20020717/DRRXLOGO )
DURECT's net loss for the three months ended March 31, 2004 was
$6.0 million or 12 cents per share, compared to a net loss of $5.9 million or
12 cents per share for the same period in 2003. DURECT's results for the three
months ended March 31, 2004 included non-cash charges for the amortization of
intangible assets and stock-based compensation of $370,000, compared to
$181,000 for the same period in 2003. Cash used in operating activities was
$4.7 million for the three months ended March 31, 2004, compared to
$5.2 million for the same period in 2003.
"During the quarter, the Company completed feasibility studies to test and
measure the performance of a number of alternative prototype systems in
animals for our CHRONOGESIC(R) product, which we have partnered with Endo
Pharmaceuticals in the U.S. and Canada. Based on the data, we have identified
a number of possible solutions to address the premature shutdown. The results
thus far give us the confidence that this program remains on track, and we
anticipate that we will resume human clinical trials by the end of the year as
previously stated," stated James E. Brown, DVM, President and CEO of DURECT.
Dr. Brown continued, "Additionally, we have been formulating our SABER(TM)
post-operative pain relief depot product with higher drug loadings in
preparation for Phase I/IIA studies anticipated later this year. We are also
formulating different compositions for different clinical settings. We held a
clinical advisory meeting with our Scientific Advisory Board composed of
relevant physician experts and thought leaders, where they provided valuable
input into our Phase I/IIA clinical trial protocol design. We are very pleased
at the level of interest that this product has received from our clinical
advisors, potential partners and physicians currently treating patients who
would be targeted for our product."
"During the quarter, Phase I clinical testing began for Remoxy(TM), a
novel long-acting oral formulation of oxycodone that utilizes our SABER
technology and which is targeted to decrease the potential for oxycodone
abuse. This product is partnered with Pain Therapeutics, Inc., and we look
forward to the clinical results from this program."
Total revenues were $3.4 million for the three months ended March 31,
2004, compared to $2.6 million for the same period in 2003. Total
collaborative research and development and other revenues were $2.0 million
for the three months ended March 31, 2004, compared with $1.1 million for the
same period in 2003. The increase in total revenues was primarily attributable
to higher collaborative research and development revenue recognized from our
agreements with Pain Therapeutics, Inc. and Voyager Pharmaceutical Corporation
and higher service revenue from our wholly-owned subsidiary, Absorbable
Polymers International Corporation (API), offset by lower product revenues
from our ALZET(R) and API product lines.
Research and development expenses were $5.4 million for the three months
ended March 31, 2004, compared to $5.6 million for the same period in 2003.
The decrease in the three months ended March 31, 2004 was primarily
attributable to the lower personnel expenses and consulting expenses compared
with the same period in 2003.
Selling, general and administrative expenses were $2.2 million for the
three months ended March 31, 2004, compared to $2.2 million for the same
period in 2003. There was no material difference in selling, general and
administrative expenses between the quarter ended March 31, 2004 and the
quarter ended March 31, 2003.
Interest income was $304,000 for the three months ended March 31, 2004,
compared with $241,000 for the same period in 2003. The increase in interest
income was primarily the result of higher cash and investment balances held
during the three months ended March 31, 2004, partially offset by a decline in
interest rates. Interest expense was $1.1 million for the three months ended
March 31, 2004 as compared to $124,000 for the same period in 2003. The
increase during the three months ended March 31, 2004 was primarily the result
of the interest accrued on the $60.0 million convertible notes the Company
issued in June and July of 2003.
At March 31, 2004, DURECT had cash and investments of $80.3 million,
including $3.0 million in restricted investments, compared with cash and
investments of $85.2 million at December 31, 2003.
DURECT expects its net loss for the second quarter of 2004 will range from
$7.0 million to $8.0 million or 14 to 16 cents per share.