Tercica Inc. (TRCA)

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Tercica Reports First Quarter 2008 Financial Results
Monday May 12, 4:05 pm ET

BRISBANE, Calif.--(BUSINESS WIRE)--Tercica, Inc. (Nasdaq:TRCA - News) today announced financial results for the quarter ended March 31, 2008. Total net product sales totaled $4.3 million, compared to $1.1 million in the first quarter of 2007. Net product sales for Increlex® and Somatuline® Depot in the first quarter 2008 were $3.4 million and $1.0 million, respectively.

Net loss for the quarter was $17.5 million, or $0.34 per share, compared to a net loss of $12.4 million, or $0.25 per share, for the first quarter of 2007.

Research and development expenses for the first quarter of 2008 were $6.1 million, compared to $4.9 million for the first quarter of 2007, due to increases in development activities associated with Tercica’s next-generation growth hormone product candidates. Selling, general and administrative expenses for the first quarter of 2008 were $12.4 million, compared to $9.6 million for the first quarter of 2007, due to increases in sales and marketing costs associated with the launch of Somatuline® Depot.

Cash, cash equivalents and short-term investments as of March 31, 2008 were $94.9 million, compared to $113.5 million as of December 31, 2007.

“The launch of Somatuline Depot is progressing well. Sales of Increlex in the first quarter reflected seasonality in the short stature market, reductions in inventory levels at certain key specialty pharmacies, as well as delays in commercial shipments to patients who have switched their insurers. With year to date revenues as of today totaling approximately $7.4 million, we remain on track to achieve our 2008 total revenue guidance of $30 to $37 million and year-end cash guidance of $40 million,” said John A. Scarlett, M.D., Tercica’s Chief Executive Officer. “Also regarding Increlex, initial efficacy and safety data from our IGFD Registry was well received when presented to participating investigators in February 2008. This is the first Increlex data pertaining to children who are representative of the patient population being treated by physicians today. We are pleased with the growth rates seen on Increlex therapy and with the positive safety data that were presented,” he added.

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