CuraGen Reports First Quarter 2001 Financial Results

- Landmark Deal with Bayer Highlights Quarter -



Apr 26, 2001, 01:00 ET from CuraGen Corporation

    NEW HAVEN, Conn., April 26 /PRNewswire/ -- CuraGen Corporation
 (Nasdaq:   CRGN), an integrated, genomics-based biopharmaceutical company, today
 reported financial results for the first quarter, which ended on March 31,
 2001.
     Revenue for the quarter was $5,661,698, as compared to $5,640,340 reported
 for the same period in the prior year.  CuraGen reported a net loss of
 $5,354,612, or $0.11 per share in the first quarter of 2001, as compared to a
 net loss of $5,039,496 or $0.14 per share for the same period in the prior
 year.  As of March 31, 2001, CuraGen had available cash resources of
 approximately $548 million.
     During the quarter, CuraGen entered into two landmark biotechnology
 agreements with Bayer.  The first agreement is a $1.34 billion comprehensive
 alliance to discover, develop, and jointly commercialize small molecule drugs
 to treat obesity and adult onset diabetes.  The second agreement is a
 $124 million collaboration, which includes an $85 million equity investment,
 to apply CuraGen's functional genomic technologies and pharmacogenomic
 expertise to evaluate Bayer's development-stage and preclinical pipeline of
 pharmaceutical compounds across all disease areas.
     "CuraGen's first quarter accomplishments underscore our transition into a
 fully integrated genomics-based biopharmaceutical company," commented Jonathan
 M. Rothberg, Ph.D., Founder, Chairman, and CEO of CuraGen Corporation.
 "CuraGen is in a strong financial position, is well-positioned to develop
 small molecule drugs through its landmark alliance with Bayer, and has
 significantly advanced the development of the Company's broad protein and
 antibody preclinical drug pipeline during the quarter," added Dr. Rothberg.
     CuraGen is continuing to build its discovery-stage pipeline.  Currently,
 Company scientists are evaluating a pipeline comprised of 91 proteins, which
 may serve as therapeutics, 124 antibody targets, and 166 targets for use in
 developing small molecule drugs.
 
     Additional First Quarter 2001 Accomplishments:
     -- In January, CuraGen expanded its Scientific Advisory Board with the
        addition of Lee E. Babiss, Ph.D., Vice President of Preclinical
        Research and Development for Hoffman-La Roche Inc.
     -- Early in the first quarter, CuraGen was granted patent number 6,190,868
        by the United States Patent and Trademark Office covering CuraGen's
        ability to generate comprehensive databases of all transcribed genes
        comprising any given tissue, which facilitates the identification of
        novel genes, human genetic variations (SNPs), and the full length
        cloning of genes.
     -- In March, CuraGen scientists unveiled the Company's proprietary, high-
        throughput approach for discovering and developing novel cancer
        therapeutics at the 92nd Annual Meeting of the American Association for
        Cancer Research.
     -- During the first quarter of 2001, CuraGen expanded the number of
        research and academic collaborations to greater than 75 relationships.
     -- Also in the first quarter, CuraGen scientists published the discovery
        of a new protein in the fibroblast growth factor (FGF) family in Cancer
        Research that appears to have broad therapeutic applications.  CuraGen
        scientists are currently developing fully human antibodies to inhibit
        the function of this protein, which may serve as therapeutics to treat,
        and possibly prevent, malignant tumor cell growth.
 
     CuraGen Corporation is advancing the discovery and development of
 pharmaceutical and life science products through the systematic application of
 genomics.  CuraGen's fully integrated, Internet-based functional genomic
 technologies, services, and bioinformatic systems are designed to rapidly
 generate comprehensive information about genes, human genetic variations, gene
 expression, protein interactions, protein pathways, and potential drugs that
 affect these pathways.  The Company is applying this comprehensive functional
 genomic platform to develop protein, antibody, and small molecule
 therapeutics.  CuraGen has conducted research with collaborators including
 Abgenix, Bayer, Biogen, COR Therapeutics, Dupont/Pioneer Hi-Bred
 International, Gemini Genomics, Genentech, GlaxoSmithKline, Hoffmann-La Roche
 and its affiliate Roche Vitamins, Monsanto, and Ono Pharmaceuticals.  CuraGen
 is headquartered in New Haven, Conn. and additional Company information is
 available at http://www.curagen.com.
 
     This release may contain forward-looking statements that are subject to
 certain risks and uncertainties, including the therapeutic and clinical
 potential of proteins CuraGen's ability to transition into a genomics-based
 biopharmaceutical company, CuraGen's ability to develop and commercialize
 small molecule drugs through its alliance with Bayer and advance the
 development of its broad protein and antibody drug pipeline, CuraGen's ability
 to advance promising compounds and therapeutics into preclinical and clinical
 trials, the expected benefits of the fully human antibodies that CuraGen is
 developing to inhibit a FGF protein, including the possibility that they may
 serve as therapeutics to treat and prevent malignant tumor cell growth,
 CuraGen's ability to develop a drug pipeline, and CuraGen's ability to obtain
 regulatory approval for its products, reliance upon technological advantages,
 incurring significant product liability expenses, available resources to bring
 pharmaceutical products to market, ability to advance compounds and
 therapeutics to preclinical and clinical trial, and CuraGen's ability to
 retain its current licensed technologies and acquire new ones.  Such
 statements are based on management's current expectations and are subject to a
 number of factors and uncertainties that could cause actual results to differ
 materially from those described in the forward-looking statements.  The
 Company cautions investors that there can be no assurance that actual results
 or business conditions will not differ materially from those projected or
 suggested in such forward-looking statements as a result of various factors,
 including, but not limited to, the following:  CuraGen's expectation that it
 will incur operating losses in the near future, the early stage of development
 of CuraGen's and 454 Corporation's products and technologies, uncertainties
 related to preclinical and clinical testing and trials uncertainties
 surrounding the availability of additional funding, CuraGen's reliance on
 research collaborations, the actions of competitors and the development of
 competing technologies, CuraGen's and 454 Corporation's ability to protect its
 patents and proprietary rights, patent infringement actions and uncertainties
 relating to commercialization rights.
 
                        CURAGEN CORPORATION AND SUBSIDIARY
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                    (unaudited)
                                                     Three Months Ended
                                                          March 31,
                                                    2001              2000
     Revenue:
      Collaboration revenue                      $5,661,698        $5,640,340
 
     Operating expenses:
      Collaborative research and
       development                               12,134,131         8,686,894
      General and administrative                  4,522,956         2,463,479
       Total operating expenses                  16,657,087        11,150,373
 
     Loss from operations                       (10,995,389)       (5,510,033)
     Interest income, net                         4,895,214           470,537
 
     Net loss before income taxes and
      minority interest                          (6,100,175)       (5,039,496)
 
     Income tax benefit                             500,000         --
     Minority interest                              245,563         --
 
     Net loss                                   $(5,354,612)      $(5,039,496)
 
     Basic and diluted net loss per share            $(0.11)           $(0.14)
 
     Weighted average number of shares
      used in computing basic and diluted
      net loss per share                         46,895,716        36,058,153
 
                       SELECTED BALANCE SHEET INFORMATION
 
                                                March 31,        December 31,
                                                     2001              2000
                                               (unaudited)        (audited)
 
     Cash and cash equivalents                 $547,705,493      $477,031,762
     Working capital                            541,344,954       462,542,783
     Total assets                               571,291,692       499,162,833
     Total long-term liabilities                154,132,130       154,907,154
     Accumulated deficit                        (87,035,267)      (81,680,655)
     Stockholders' equity                       391,863,076       311,608,855
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X30718381
 
     Contact Mark R. Vincent Director of Corporate Communications & Investor
 Relations, mvincent@curagen.com, of CuraGen Corporation, 1-888-GENOMICS
 
 

SOURCE CuraGen Corporation
    NEW HAVEN, Conn., April 26 /PRNewswire/ -- CuraGen Corporation
 (Nasdaq:   CRGN), an integrated, genomics-based biopharmaceutical company, today
 reported financial results for the first quarter, which ended on March 31,
 2001.
     Revenue for the quarter was $5,661,698, as compared to $5,640,340 reported
 for the same period in the prior year.  CuraGen reported a net loss of
 $5,354,612, or $0.11 per share in the first quarter of 2001, as compared to a
 net loss of $5,039,496 or $0.14 per share for the same period in the prior
 year.  As of March 31, 2001, CuraGen had available cash resources of
 approximately $548 million.
     During the quarter, CuraGen entered into two landmark biotechnology
 agreements with Bayer.  The first agreement is a $1.34 billion comprehensive
 alliance to discover, develop, and jointly commercialize small molecule drugs
 to treat obesity and adult onset diabetes.  The second agreement is a
 $124 million collaboration, which includes an $85 million equity investment,
 to apply CuraGen's functional genomic technologies and pharmacogenomic
 expertise to evaluate Bayer's development-stage and preclinical pipeline of
 pharmaceutical compounds across all disease areas.
     "CuraGen's first quarter accomplishments underscore our transition into a
 fully integrated genomics-based biopharmaceutical company," commented Jonathan
 M. Rothberg, Ph.D., Founder, Chairman, and CEO of CuraGen Corporation.
 "CuraGen is in a strong financial position, is well-positioned to develop
 small molecule drugs through its landmark alliance with Bayer, and has
 significantly advanced the development of the Company's broad protein and
 antibody preclinical drug pipeline during the quarter," added Dr. Rothberg.
     CuraGen is continuing to build its discovery-stage pipeline.  Currently,
 Company scientists are evaluating a pipeline comprised of 91 proteins, which
 may serve as therapeutics, 124 antibody targets, and 166 targets for use in
 developing small molecule drugs.
 
     Additional First Quarter 2001 Accomplishments:
     -- In January, CuraGen expanded its Scientific Advisory Board with the
        addition of Lee E. Babiss, Ph.D., Vice President of Preclinical
        Research and Development for Hoffman-La Roche Inc.
     -- Early in the first quarter, CuraGen was granted patent number 6,190,868
        by the United States Patent and Trademark Office covering CuraGen's
        ability to generate comprehensive databases of all transcribed genes
        comprising any given tissue, which facilitates the identification of
        novel genes, human genetic variations (SNPs), and the full length
        cloning of genes.
     -- In March, CuraGen scientists unveiled the Company's proprietary, high-
        throughput approach for discovering and developing novel cancer
        therapeutics at the 92nd Annual Meeting of the American Association for
        Cancer Research.
     -- During the first quarter of 2001, CuraGen expanded the number of
        research and academic collaborations to greater than 75 relationships.
     -- Also in the first quarter, CuraGen scientists published the discovery
        of a new protein in the fibroblast growth factor (FGF) family in Cancer
        Research that appears to have broad therapeutic applications.  CuraGen
        scientists are currently developing fully human antibodies to inhibit
        the function of this protein, which may serve as therapeutics to treat,
        and possibly prevent, malignant tumor cell growth.
 
     CuraGen Corporation is advancing the discovery and development of
 pharmaceutical and life science products through the systematic application of
 genomics.  CuraGen's fully integrated, Internet-based functional genomic
 technologies, services, and bioinformatic systems are designed to rapidly
 generate comprehensive information about genes, human genetic variations, gene
 expression, protein interactions, protein pathways, and potential drugs that
 affect these pathways.  The Company is applying this comprehensive functional
 genomic platform to develop protein, antibody, and small molecule
 therapeutics.  CuraGen has conducted research with collaborators including
 Abgenix, Bayer, Biogen, COR Therapeutics, Dupont/Pioneer Hi-Bred
 International, Gemini Genomics, Genentech, GlaxoSmithKline, Hoffmann-La Roche
 and its affiliate Roche Vitamins, Monsanto, and Ono Pharmaceuticals.  CuraGen
 is headquartered in New Haven, Conn. and additional Company information is
 available at http://www.curagen.com.
 
     This release may contain forward-looking statements that are subject to
 certain risks and uncertainties, including the therapeutic and clinical
 potential of proteins CuraGen's ability to transition into a genomics-based
 biopharmaceutical company, CuraGen's ability to develop and commercialize
 small molecule drugs through its alliance with Bayer and advance the
 development of its broad protein and antibody drug pipeline, CuraGen's ability
 to advance promising compounds and therapeutics into preclinical and clinical
 trials, the expected benefits of the fully human antibodies that CuraGen is
 developing to inhibit a FGF protein, including the possibility that they may
 serve as therapeutics to treat and prevent malignant tumor cell growth,
 CuraGen's ability to develop a drug pipeline, and CuraGen's ability to obtain
 regulatory approval for its products, reliance upon technological advantages,
 incurring significant product liability expenses, available resources to bring
 pharmaceutical products to market, ability to advance compounds and
 therapeutics to preclinical and clinical trial, and CuraGen's ability to
 retain its current licensed technologies and acquire new ones.  Such
 statements are based on management's current expectations and are subject to a
 number of factors and uncertainties that could cause actual results to differ
 materially from those described in the forward-looking statements.  The
 Company cautions investors that there can be no assurance that actual results
 or business conditions will not differ materially from those projected or
 suggested in such forward-looking statements as a result of various factors,
 including, but not limited to, the following:  CuraGen's expectation that it
 will incur operating losses in the near future, the early stage of development
 of CuraGen's and 454 Corporation's products and technologies, uncertainties
 related to preclinical and clinical testing and trials uncertainties
 surrounding the availability of additional funding, CuraGen's reliance on
 research collaborations, the actions of competitors and the development of
 competing technologies, CuraGen's and 454 Corporation's ability to protect its
 patents and proprietary rights, patent infringement actions and uncertainties
 relating to commercialization rights.
 
                        CURAGEN CORPORATION AND SUBSIDIARY
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                    (unaudited)
                                                     Three Months Ended
                                                          March 31,
                                                    2001              2000
     Revenue:
      Collaboration revenue                      $5,661,698        $5,640,340
 
     Operating expenses:
      Collaborative research and
       development                               12,134,131         8,686,894
      General and administrative                  4,522,956         2,463,479
       Total operating expenses                  16,657,087        11,150,373
 
     Loss from operations                       (10,995,389)       (5,510,033)
     Interest income, net                         4,895,214           470,537
 
     Net loss before income taxes and
      minority interest                          (6,100,175)       (5,039,496)
 
     Income tax benefit                             500,000         --
     Minority interest                              245,563         --
 
     Net loss                                   $(5,354,612)      $(5,039,496)
 
     Basic and diluted net loss per share            $(0.11)           $(0.14)
 
     Weighted average number of shares
      used in computing basic and diluted
      net loss per share                         46,895,716        36,058,153
 
                       SELECTED BALANCE SHEET INFORMATION
 
                                                March 31,        December 31,
                                                     2001              2000
                                               (unaudited)        (audited)
 
     Cash and cash equivalents                 $547,705,493      $477,031,762
     Working capital                            541,344,954       462,542,783
     Total assets                               571,291,692       499,162,833
     Total long-term liabilities                154,132,130       154,907,154
     Accumulated deficit                        (87,035,267)      (81,680,655)
     Stockholders' equity                       391,863,076       311,608,855
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X30718381
 
     Contact Mark R. Vincent Director of Corporate Communications & Investor
 Relations, mvincent@curagen.com, of CuraGen Corporation, 1-888-GENOMICS
 
 SOURCE  CuraGen Corporation