Aerogen, Inc. Reports First Quarter 2001 Financial Results

Apr 26, 2001, 01:00 ET from Aerogen, Inc.

    SUNNYVALE, Calif., April 26 /PRNewswire/ -- Aerogen, Inc. (Nasdaq: AEGN)
 today announced financial results for the quarter ended March 31, 2001.  The
 net loss for the period was $5.0 million, or $0.26 per share, compared with a
 net loss of $2.6 million, or $1.28 per share, for the first quarter of 2000.
 The increase in net loss was primarily the result of an increase in the
 Company's research and development activities.  The net loss per share is
 lower for the first quarter of 2001 primarily due to the increase in the
 number of shares outstanding as a result of the Company's initial public
 offering (IPO) in November 2000, the conversion of preferred stock into common
 stock at the time of the IPO, and the issuance of additional shares during
 May and July of 2000.
     Revenues for the first quarter of 2001 were $0.7 million, compared with
 $1.1 million for the first quarter of 2000.  The decrease resulted primarily
 from a lower level of product development activities performed for partners
 other than PathoGenesis Corporation (now a subsidiary of Chiron Corporation).
     Research and development expenses for the first quarter of 2001 were
 $5.0 million, compared with $2.9 million for the first quarter of 2000.  The
 increase in expenses primarily resulted from escalation of development
 activities for products to be marketed by Aerogen, including initiation of
 Phase 2 clinical trials for albuterol and ipratropium during the quarter.
     General and administrative expenses for the first quarter of 2001 were
 $1.5 million, compared with $0.9 million for the first quarter of 2000.  The
 increase was primarily due to additional personnel costs associated with
 product launch preparations, other marketing costs, amortization of goodwill
 and the additional costs associated with operating as a public company.
     As of March 31, 2001, the Company had cash, cash equivalents and
 short-term investments totaling $57.0 million, compared with $61.0 million at
 December 31, 2000.
     Aerogen expects to report a net loss for 2001 in the range of $25 to
 $30 million.  Included in this estimate is approximately $3.0 million of
 non-cash related charges.  The anticipated increase in net loss over 2000 is
 expected to result primarily from expenses associated with the launch of the
 Company's initial products, expansion of clinical and development activities
 for products Aerogen plans to market directly, a generally higher staffing
 level and additional costs related to operating as a public company.
     "Aerogen's expenditures for the first quarter of 2001 reflect our
 preparation for the launch of our first two products this year as well as our
 increased product development activities," said Jane E. Shaw, Ph.D., Chairman
 and Chief Executive Officer of Aerogen.  "We are also very excited to have
 four products in Phase 2 studies as we expand our clinical program.  The four
 products at this stage of development are insulin, tobramycin (partnered with
 Chiron), albuterol, and ipratropium.  Our team in Sunnyvale and in Galway,
 Ireland, is growing, and is very committed to meeting our defined milestones."
     Aerogen is developing, and intends to commercialize, inhaler and nebulizer
 products for the treatment of respiratory diseases.  The Company's core
 technology enables aerosolization of small molecules, proteins and peptides.
 Aerogen is also applying its technology to develop products in collaboration
 with pharmaceutical and biotechnology partners for treatment of respiratory
 disorders and for delivery of drugs to the bloodstream.  The Company currently
 has products in the clinical and pre-clinical stages of development.  More
 information about Aerogen can be found at the Company's web site at
 http://www.aerogen.com.
     To the extent any statements made in this release deal with information
 that is not historical, these statements are necessarily forward-looking.  As
 such, they are subject to the occurrence of many events outside of the
 Company's control and are subject to various risk factors that could cause the
 Company's results to differ materially from those expressed in any
 forward-looking statement.  The risk factors are described in the Company's
 Annual Report on Form 10-K for the year ended December 31, 2000 as filed with
 the U.S. Securities and Exchange Commission, and include, without limitation,
 the inherent risks of product development, clinical outcomes, regulatory risks
 and risks related to proprietary rights, market acceptance and competition.
 
                                 Aerogen, Inc.
                         (a development stage company)
                Condensed Consolidated Statements of Operations
                     (in thousands, except per share data)
 
                                                        Three Months Ended
                                                            March 31,
                                                       2001         2000
                                                           (unaudited)
 
     Research and development revenues                   $609      $1,139
     Milestone and royalty revenues                        66          --
        Total revenues                                    675       1,139
 
     Operating expenses:
      Research and development                          5,012       2,937
      General and administrative                        1,520         928
        Total operating expenses                        6,532       3,865
     Loss from operations                             (5,857)     (2,726)
     Interest income, net                                 808          88
     Net loss                                        $(5,049)    $(2,638)
     Net loss per common share, basic and diluted     $(0.26)     $(1.28)
     Shares used in computing net loss
      per common share, basic and diluted              19,466       2,054
 
                                   Aerogen, Inc.
                           (a development stage company)
                       Condensed Consolidated Balance Sheets
                                   (in thousands)
 
                                                    March 31,  December 31,
                                                      2001         2000
                                                   (unaudited)
     ASSETS
     Current assets:
      Cash and cash equivalents                       $40,968     $48,810
      Available-for-sale securities                    15,992      12,166
      Accounts receivable                                 851         762
      Prepaid expenses and other current assets         1,099       1,201
        Total current assets                           58,910      62,939
     Property and equipment, net                        1,902       1,905
     Goodwill and other intangible assets, net          1,614       1,823
     Other assets                                          45          45
        Total assets                                  $62,471     $66,712
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
      Accounts payable                                   $725        $915
      Accrued liabilities                               1,952       1,135
      Deferred revenue                                    248         250
        Total current liabilities                       2,925       2,300
     Other long-term liabilities                          172         184
        Total liabilities                               3,097       2,484
     Stockholders' equity:
      Common stock                                         20          20
      Additional paid-in capital                      110,349     110,692
      Notes receivable from stockholders                (672)       (665)
      Deferred stock-based compensation, net          (5,428)     (6,095)
      Accumulated other comprehensive income (loss)     (107)          15
      Deficit accumulated during development stage   (44,788)    (39,739)
        Total stockholders' equity                     59,374      64,228
        Total liabilities and stockholders' equity    $62,471     $66,712
 
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SOURCE Aerogen, Inc.
    SUNNYVALE, Calif., April 26 /PRNewswire/ -- Aerogen, Inc. (Nasdaq: AEGN)
 today announced financial results for the quarter ended March 31, 2001.  The
 net loss for the period was $5.0 million, or $0.26 per share, compared with a
 net loss of $2.6 million, or $1.28 per share, for the first quarter of 2000.
 The increase in net loss was primarily the result of an increase in the
 Company's research and development activities.  The net loss per share is
 lower for the first quarter of 2001 primarily due to the increase in the
 number of shares outstanding as a result of the Company's initial public
 offering (IPO) in November 2000, the conversion of preferred stock into common
 stock at the time of the IPO, and the issuance of additional shares during
 May and July of 2000.
     Revenues for the first quarter of 2001 were $0.7 million, compared with
 $1.1 million for the first quarter of 2000.  The decrease resulted primarily
 from a lower level of product development activities performed for partners
 other than PathoGenesis Corporation (now a subsidiary of Chiron Corporation).
     Research and development expenses for the first quarter of 2001 were
 $5.0 million, compared with $2.9 million for the first quarter of 2000.  The
 increase in expenses primarily resulted from escalation of development
 activities for products to be marketed by Aerogen, including initiation of
 Phase 2 clinical trials for albuterol and ipratropium during the quarter.
     General and administrative expenses for the first quarter of 2001 were
 $1.5 million, compared with $0.9 million for the first quarter of 2000.  The
 increase was primarily due to additional personnel costs associated with
 product launch preparations, other marketing costs, amortization of goodwill
 and the additional costs associated with operating as a public company.
     As of March 31, 2001, the Company had cash, cash equivalents and
 short-term investments totaling $57.0 million, compared with $61.0 million at
 December 31, 2000.
     Aerogen expects to report a net loss for 2001 in the range of $25 to
 $30 million.  Included in this estimate is approximately $3.0 million of
 non-cash related charges.  The anticipated increase in net loss over 2000 is
 expected to result primarily from expenses associated with the launch of the
 Company's initial products, expansion of clinical and development activities
 for products Aerogen plans to market directly, a generally higher staffing
 level and additional costs related to operating as a public company.
     "Aerogen's expenditures for the first quarter of 2001 reflect our
 preparation for the launch of our first two products this year as well as our
 increased product development activities," said Jane E. Shaw, Ph.D., Chairman
 and Chief Executive Officer of Aerogen.  "We are also very excited to have
 four products in Phase 2 studies as we expand our clinical program.  The four
 products at this stage of development are insulin, tobramycin (partnered with
 Chiron), albuterol, and ipratropium.  Our team in Sunnyvale and in Galway,
 Ireland, is growing, and is very committed to meeting our defined milestones."
     Aerogen is developing, and intends to commercialize, inhaler and nebulizer
 products for the treatment of respiratory diseases.  The Company's core
 technology enables aerosolization of small molecules, proteins and peptides.
 Aerogen is also applying its technology to develop products in collaboration
 with pharmaceutical and biotechnology partners for treatment of respiratory
 disorders and for delivery of drugs to the bloodstream.  The Company currently
 has products in the clinical and pre-clinical stages of development.  More
 information about Aerogen can be found at the Company's web site at
 http://www.aerogen.com.
     To the extent any statements made in this release deal with information
 that is not historical, these statements are necessarily forward-looking.  As
 such, they are subject to the occurrence of many events outside of the
 Company's control and are subject to various risk factors that could cause the
 Company's results to differ materially from those expressed in any
 forward-looking statement.  The risk factors are described in the Company's
 Annual Report on Form 10-K for the year ended December 31, 2000 as filed with
 the U.S. Securities and Exchange Commission, and include, without limitation,
 the inherent risks of product development, clinical outcomes, regulatory risks
 and risks related to proprietary rights, market acceptance and competition.
 
                                 Aerogen, Inc.
                         (a development stage company)
                Condensed Consolidated Statements of Operations
                     (in thousands, except per share data)
 
                                                        Three Months Ended
                                                            March 31,
                                                       2001         2000
                                                           (unaudited)
 
     Research and development revenues                   $609      $1,139
     Milestone and royalty revenues                        66          --
        Total revenues                                    675       1,139
 
     Operating expenses:
      Research and development                          5,012       2,937
      General and administrative                        1,520         928
        Total operating expenses                        6,532       3,865
     Loss from operations                             (5,857)     (2,726)
     Interest income, net                                 808          88
     Net loss                                        $(5,049)    $(2,638)
     Net loss per common share, basic and diluted     $(0.26)     $(1.28)
     Shares used in computing net loss
      per common share, basic and diluted              19,466       2,054
 
                                   Aerogen, Inc.
                           (a development stage company)
                       Condensed Consolidated Balance Sheets
                                   (in thousands)
 
                                                    March 31,  December 31,
                                                      2001         2000
                                                   (unaudited)
     ASSETS
     Current assets:
      Cash and cash equivalents                       $40,968     $48,810
      Available-for-sale securities                    15,992      12,166
      Accounts receivable                                 851         762
      Prepaid expenses and other current assets         1,099       1,201
        Total current assets                           58,910      62,939
     Property and equipment, net                        1,902       1,905
     Goodwill and other intangible assets, net          1,614       1,823
     Other assets                                          45          45
        Total assets                                  $62,471     $66,712
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Current liabilities:
      Accounts payable                                   $725        $915
      Accrued liabilities                               1,952       1,135
      Deferred revenue                                    248         250
        Total current liabilities                       2,925       2,300
     Other long-term liabilities                          172         184
        Total liabilities                               3,097       2,484
     Stockholders' equity:
      Common stock                                         20          20
      Additional paid-in capital                      110,349     110,692
      Notes receivable from stockholders                (672)       (665)
      Deferred stock-based compensation, net          (5,428)     (6,095)
      Accumulated other comprehensive income (loss)     (107)          15
      Deficit accumulated during development stage   (44,788)    (39,739)
        Total stockholders' equity                     59,374      64,228
        Total liabilities and stockholders' equity    $62,471     $66,712
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X13497426
 
 SOURCE  Aerogen, Inc.