PRINCETON, N.J., Nov. 6, 2008 (GLOBE NEWSWIRE) -- Pharmacopeia (Nasdaq:PCOP) today announced results for the quarter ended September 30, 2008.
Recent company developments have included the following:
* Pharmacopeia entered into a definitive merger agreement with
Ligand Pharmaceuticals Incorporated (Ligand) on September 24,
2008, under which Ligand will acquire Pharmacopeia. Ligand filed
a registration statement on Form S-4 related to the transaction
on October 20, 2008. The transaction is expected to close by
January 2009 and is subject to the approval of Pharmacopeia's
stockholders, antitrust regulatory clearance, and other customary
closing conditions.
* The company implemented a second workforce reduction of
approximately 40 percent through termination of positions. In
combination with the workforce reduction implemented in May 2008,
Pharmacopeia has reduced its workforce in excess of 50 percent
from previous levels.
* Pharmacopeia received a $500,000 milestone payment from
GlaxoSmithKline (GSK). The payment was triggered by the
identification of the sixth new lead for advancement in its
alliance with GSK, through its collaboration with the Center
of Excellence for External Drug Discovery.
"The proposed acquisition of Pharmacopeia by Ligand provides stockholders with an excellent opportunity to participate in the potential upside of the combined business," stated Joseph A. Mollica, Ph.D., Chairman of the Board of Directors and Interim President and Chief Executive Officer of Pharmacopeia. "Pharmacopeia's broad pipeline will complement Ligand's programs, and the companies together will offer an array of promising product candidates in early clinical, mid-stage and advanced development."
THIRD QUARTER 2008 FINANCIAL RESULTS
At September 30, 2008, Pharmacopeia had cash, cash equivalents and marketable securities of $33.4 million, compared to $71.3 million at December 31, 2007. The net cash burn for the quarter ended September 30, 2008, was $11.0 million. As of September 30, 2008, Pharmacopeia had deferred revenue of $42.7 million relating to research and development activities that are to be performed by the company for its corporate partners subsequent to September 30, 2008.
Pharmacopeia reported a net loss of $10.8 million, or ($0.36) per basic and diluted share, for the quarter ended September 30, 2008, compared to a net loss of $11.7 million, or ($0.40) per basic and diluted share, for the quarter ended September 30, 2007. For the nine months ended September 30, 2008, Pharmacopeia reported a net loss of $38.1 million, or ($1.28) per basic and diluted share, compared to a net loss of $28.6 million, or ($1.07) per basic and diluted share for the same period in 2007.
Pharmacopeia's net revenue was $5.9 million for the quarter ended September 30, 2008, compared to $5.1 million for the quarter ended September 30, 2007, an increase of 16%. Net revenue for the nine months ended September 30, 2008 was $18.0 million, compared to $16.4 million in the nine months ended September 30, 2007, an increase of 10%. These increases were primarily due to increased research revenue recognized under Pharmacopeia's agreements with Schering-Plough, GSK and Bristol-Myers Squibb (BMS) offset by lower milestone revenue in 2008.
Collaborative research and development expense was $5.3 million for the quarter ended September 30, 2008, compared to $5.8 million for the quarter ended September 30, 2007, a decrease of 8%. This decrease was primarily due to a decrease in resources allocated to Pharmacopeia's alliances with Cephalon, GSK, Schering-Plough and Wyeth Pharmaceuticals offset by resources allocated to its collaboration with Bristol-Myers Squibb. This reduction in resources allocated to these alliances was the result of the company's workforce reductions. For the nine months ended September 30, 2008, collaborative research and development expense increased 23% to $20.5 million, from $16.7 million in the comparable period in 2007. These increases were primarily due to increased resources allocated to Pharmacopeia's alliances with Schering-Plough and GSK prior to the company's workforce reductions, as well as the company's discovery collaboration agreement with BMS that was entered into in connection with the selective androgen receptor modulator (SARM) program acquisition in October 2007.
Proprietary research and development expense was $6.8 million for the quarter ended September 30, 2008, compared to $9.5 million for the quarter ended September 30, 2007, a decrease of 28%. The expense for the quarter ended September 30, 2007 included a $2.0 million milestone payment to BMS in connection with Pharmacopeia's PS433540 program. For the nine months ended September 30, 2008, proprietary research and development expense increased 13% to $24.8 million, from $22.0 million in the comparable period in 2007. This increase was primarily due to increased costs related to clinical development studies for PS433540 and toxicology studies for PS178990. The expense for the nine months ended September 30, 2007 included milestone payments of $3.0 million to BMS in connection with PS433540.
General and administrative expense increased to $3.8 million for the quarter ended September 30, 2008, compared to $2.6 million for the quarter ended September 30, 2007, an increase of 46%. For the nine months ended September 30, 2008, general and administrative expense increased 40% to $11.2 million, from $8.0 million in the comparable period in 2007. These increases were primarily due to transaction costs related to Pharmacopeia's merger agreement with Ligand and severance costs incurred in connection with the resignation of the company's former President and Chief Executive Officer.
In connection with the restructuring plans the company adopted in May and August 2008, the company recorded expenses of approximately $3.2 million and $4.9 million in the three and nine month periods ended September 30, 2008, respectively.
