AtheroGenics Announces First Quarter Financial Results

Increased Research & Development Spending Supports Expanded Clinical

And Pre-Clinical Activities



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

    ATLANTA, April 26 /PRNewswire/ -- AtheroGenics, Inc. (Nasdaq:   AGIX), an
 emerging pharmaceutical company focused on the treatment of chronic
 inflammatory diseases, today reported financial results for the quarter ended
 March 31, 2001.
     For the three months ended March 31, 2001, AtheroGenics reported a net
 loss of $3.1 million, or $(0.13) per share, compared to a net loss of $3.4
 million, or $(0.21) pro forma* per share, for the first quarter of 2000.
 Research and development expenses rose 24 percent to $3.6 million in the first
 quarter 2001 from $2.9 million in the comparable prior year quarter.  The
 planned increase reflects the continued expansion of internal research and
 development capabilities, pre-clinical and clinical development costs related
 to the company's oral rheumatoid arthritis drug candidate, AGIX-4207,
 currently in a Phase I clinical trial, in addition to other product
 development programs currently in progress.
     Revenues for the three months ended March 31, 2001, were $1.4 million,
 compared to $2.1 million in the first quarter of 2000.  Revenues for both
 periods resulted from the exclusive license agreement with Schering-Plough
 Corporation for the development and commercialization of AtheroGenics' lead
 compound, AGI-1067 for the treatment of post-angioplasty restenosis.  Total
 operating expenses (excluding amortization of deferred stock compensation) for
 the three months ended March 31, 2001, increased to $4.5 million from $3.7
 million for the quarter ended March 31, 2000, due primarily to AtheroGenics'
 planned research and development expansion.
     "We are pleased with our progress in the first quarter, commencing with
 the filing of an Investigational New Drug (IND) application with the U.S. Food
 and Drug Administration for AGIX-4207, and the subsequent launch of a Phase I
 clinical study of AGIX-4207 for the treatment of signs and symptoms of
 rheumatoid arthritis," said Russell M. Medford, M.D., Ph.D., President and
 Chief Executive Officer of AtheroGenics.  "We continue to advance the clinical
 development program for our lead compound, AGI-1067, for the treatment of
 post-angioplasty restenosis, with top line results from our CART-1 Phase II
 clinical trial expected to be announced within the next few weeks.  In
 addition to progressing with these first-in-class therapeutics, our research
 and development teams are actively engaged in moving other AtheroGenics
 product candidates through late stage pre-clinical development."
 
     About AtheroGenics
     AtheroGenics is focused on the discovery, development and
 commercialization of novel drugs for the treatment of chronic inflammatory
 diseases such as heart disease (atherosclerosis), rheumatoid arthritis and
 asthma.  AtheroGenics recently commenced enrollment in a Phase I clinical
 study for AGIX-4207, a novel oral agent being developed for the treatment of
 the signs and symptoms of rheumatoid arthritis.  Dosing has been completed in
 a 300-patient Phase II clinical study of AGI-1067 for the treatment of post-
 angioplasty restenosis, with results anticipated in the next few weeks.  For
 more information about AtheroGenics, please visit www.atherogenics.com .
     This press release may contain forward-looking statements made pursuant to
 the safe harbor provisions of the Private Securities Litigation Reform Act of
 1995.  Such statements are subject to certain factors, risks and uncertainties
 that may cause actual results, events and performance to differ materially
 from those referred to in such statements.  These risks include statements
 which address operating performance, events or developments that we expect or
 anticipate will occur in the future, such as projections about our future
 results of operations or our financial condition, our collaborative efforts
 with Schering-Plough Corporation, the development of our product candidates,
 anticipated trends in our business, and other risks that could cause actual
 results to differ materially.  These risks are discussed in AtheroGenics'
 Securities and Exchange Commission filings, including the company's
 registration statement on Form S-1, Registration No. 333-31140, filed with the
 SEC, and including but not limited to the risks discussed in AtheroGenics'
 Form 10-K for fiscal 2000, all of which are incorporated by reference into
 this press release.  These documents may also be examined at public reference
 facilities maintained by the SEC or, to the extent filed via EDGAR, accessed
 through the SEC's web site (http://www.sec.gov ).
 
 
                               ATHEROGENICS, INC.
                            STATEMENT OF OPERATIONS
                                  (unaudited)
 
                                                      Three Months Ended
                                                            March 31,
                                                        2001          2000
 
     Revenues:
       License fees                                  $833,333       $833,333
       Research and development                       597,089      1,257,947
         Total revenues                             1,430,422      2,091,280
 
     Operating Expenses:
       Research and development                     3,571,888      2,885,640
 
       General and administrative                     948,651        786,362
       Amortization of deferred stock
        compensation                                  794,817      1,971,838
         Total operating expenses                   5,315,356      5,643,840
     Operating loss                               (3,884,934)    (3,552,560)
     Interest income                                  784,306        157,767
 
     Net Loss                                    $(3,100,628)   $(3,394,793)
 
     Net loss per share - basic and diluted           $(0.13)        $(1.29)
     Pro forma* net loss per share                    $(0.13)        $(0.21)
 
     Weighted average common shares outstanding
       Basic and diluted                           23,939,682      2,635,816
       Pro forma*                                  23,939,682     16,332,556
 
     *Pro forma net loss per share assumes conversion of all outstanding shares
 of preferred stock into shares of AtheroGenics' common stock (which was
 effected upon the closing of AtheroGenics' Initial Public Offering in August
 2000), as if such conversion had occurred on the dates of original issue.
 
                               ATHEROGENICS, INC.
                               BALANCE SHEET DATA
                                  (unaudited)
 
                                                   March 31,     December 31,
                                                        2001            2000
 
     Cash, cash equivalents &
       short-term investments                     $50,760,804    $53,981,239
     Working capital                               49,890,715     52,422,951
     Total assets                                  54,211,243     57,598,951
     Deferred stock compensation                  (4,672,314)    (5,930,880)
     Accumulated deficit                         (46,739,032)   (43,638,404)
     Total shareholders' equity                    52,001,381     54,271,686
 
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                http://tbutton.prnewswire.com/prn/11690X35241175
 
 

SOURCE AtheroGenics, Inc.
    ATLANTA, April 26 /PRNewswire/ -- AtheroGenics, Inc. (Nasdaq:   AGIX), an
 emerging pharmaceutical company focused on the treatment of chronic
 inflammatory diseases, today reported financial results for the quarter ended
 March 31, 2001.
     For the three months ended March 31, 2001, AtheroGenics reported a net
 loss of $3.1 million, or $(0.13) per share, compared to a net loss of $3.4
 million, or $(0.21) pro forma* per share, for the first quarter of 2000.
 Research and development expenses rose 24 percent to $3.6 million in the first
 quarter 2001 from $2.9 million in the comparable prior year quarter.  The
 planned increase reflects the continued expansion of internal research and
 development capabilities, pre-clinical and clinical development costs related
 to the company's oral rheumatoid arthritis drug candidate, AGIX-4207,
 currently in a Phase I clinical trial, in addition to other product
 development programs currently in progress.
     Revenues for the three months ended March 31, 2001, were $1.4 million,
 compared to $2.1 million in the first quarter of 2000.  Revenues for both
 periods resulted from the exclusive license agreement with Schering-Plough
 Corporation for the development and commercialization of AtheroGenics' lead
 compound, AGI-1067 for the treatment of post-angioplasty restenosis.  Total
 operating expenses (excluding amortization of deferred stock compensation) for
 the three months ended March 31, 2001, increased to $4.5 million from $3.7
 million for the quarter ended March 31, 2000, due primarily to AtheroGenics'
 planned research and development expansion.
     "We are pleased with our progress in the first quarter, commencing with
 the filing of an Investigational New Drug (IND) application with the U.S. Food
 and Drug Administration for AGIX-4207, and the subsequent launch of a Phase I
 clinical study of AGIX-4207 for the treatment of signs and symptoms of
 rheumatoid arthritis," said Russell M. Medford, M.D., Ph.D., President and
 Chief Executive Officer of AtheroGenics.  "We continue to advance the clinical
 development program for our lead compound, AGI-1067, for the treatment of
 post-angioplasty restenosis, with top line results from our CART-1 Phase II
 clinical trial expected to be announced within the next few weeks.  In
 addition to progressing with these first-in-class therapeutics, our research
 and development teams are actively engaged in moving other AtheroGenics
 product candidates through late stage pre-clinical development."
 
     About AtheroGenics
     AtheroGenics is focused on the discovery, development and
 commercialization of novel drugs for the treatment of chronic inflammatory
 diseases such as heart disease (atherosclerosis), rheumatoid arthritis and
 asthma.  AtheroGenics recently commenced enrollment in a Phase I clinical
 study for AGIX-4207, a novel oral agent being developed for the treatment of
 the signs and symptoms of rheumatoid arthritis.  Dosing has been completed in
 a 300-patient Phase II clinical study of AGI-1067 for the treatment of post-
 angioplasty restenosis, with results anticipated in the next few weeks.  For
 more information about AtheroGenics, please visit www.atherogenics.com .
     This press release may contain forward-looking statements made pursuant to
 the safe harbor provisions of the Private Securities Litigation Reform Act of
 1995.  Such statements are subject to certain factors, risks and uncertainties
 that may cause actual results, events and performance to differ materially
 from those referred to in such statements.  These risks include statements
 which address operating performance, events or developments that we expect or
 anticipate will occur in the future, such as projections about our future
 results of operations or our financial condition, our collaborative efforts
 with Schering-Plough Corporation, the development of our product candidates,
 anticipated trends in our business, and other risks that could cause actual
 results to differ materially.  These risks are discussed in AtheroGenics'
 Securities and Exchange Commission filings, including the company's
 registration statement on Form S-1, Registration No. 333-31140, filed with the
 SEC, and including but not limited to the risks discussed in AtheroGenics'
 Form 10-K for fiscal 2000, all of which are incorporated by reference into
 this press release.  These documents may also be examined at public reference
 facilities maintained by the SEC or, to the extent filed via EDGAR, accessed
 through the SEC's web site (http://www.sec.gov ).
 
 
                               ATHEROGENICS, INC.
                            STATEMENT OF OPERATIONS
                                  (unaudited)
 
                                                      Three Months Ended
                                                            March 31,
                                                        2001          2000
 
     Revenues:
       License fees                                  $833,333       $833,333
       Research and development                       597,089      1,257,947
         Total revenues                             1,430,422      2,091,280
 
     Operating Expenses:
       Research and development                     3,571,888      2,885,640
 
       General and administrative                     948,651        786,362
       Amortization of deferred stock
        compensation                                  794,817      1,971,838
         Total operating expenses                   5,315,356      5,643,840
     Operating loss                               (3,884,934)    (3,552,560)
     Interest income                                  784,306        157,767
 
     Net Loss                                    $(3,100,628)   $(3,394,793)
 
     Net loss per share - basic and diluted           $(0.13)        $(1.29)
     Pro forma* net loss per share                    $(0.13)        $(0.21)
 
     Weighted average common shares outstanding
       Basic and diluted                           23,939,682      2,635,816
       Pro forma*                                  23,939,682     16,332,556
 
     *Pro forma net loss per share assumes conversion of all outstanding shares
 of preferred stock into shares of AtheroGenics' common stock (which was
 effected upon the closing of AtheroGenics' Initial Public Offering in August
 2000), as if such conversion had occurred on the dates of original issue.
 
                               ATHEROGENICS, INC.
                               BALANCE SHEET DATA
                                  (unaudited)
 
                                                   March 31,     December 31,
                                                        2001            2000
 
     Cash, cash equivalents &
       short-term investments                     $50,760,804    $53,981,239
     Working capital                               49,890,715     52,422,951
     Total assets                                  54,211,243     57,598,951
     Deferred stock compensation                  (4,672,314)    (5,930,880)
     Accumulated deficit                         (46,739,032)   (43,638,404)
     Total shareholders' equity                    52,001,381     54,271,686
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X35241175
 
 SOURCE  AtheroGenics, Inc.