AGIX news: AtheroGenics Reports Second Quarter 2008 Financial Results
2008-08-05 07:00 ET - News Release
ATLANTA, GA -- (MARKET WIRE) -- 08/05/08
AtheroGenics, Inc. (NASDAQ: AGIX), a pharmaceutical company focused on the treatment of chronic inflammatory diseases, today reported financial results for the second quarter and six months ended June 30, 2008.
During the second quarter and six months ended June 30, 2008, AtheroGenics recorded no revenues, as compared to $30.3 million and $41.7 million, respectively, for the same periods in 2007. Revenues in 2007 were associated with the Company's License Agreement with AstraZeneca for AGI-1067, which was terminated last year.
Research and development expenses for the second quarter of 2008 decreased to $8.5 million as compared to $22.3 million for the same period in 2007. For the six months ended June 30, 2008, research and development expenses decreased to $17.7 million, compared to $42.3 million for the same period in 2007. The decrease in the quarter and six-month periods was primarily due to decreased expenditures for the ARISE and FOCUS Phase 3 clinical trials, which have since been concluded, and lower personnel costs resulting from the Company's organizational restructuring in May 2007. Partially offsetting these declines were clinical trial expenditures for the ANDES Phase 3 clinical trial which commenced in the second half of 2007.
Marketing, general and administrative expenses for the second quarter of 2008 decreased to $2.9 million, as compared to $3.6 million for the same period in 2007. For the six months ended June 30, 2008, marketing, general and administrative expenses decreased to $6.1 million as compared to $7.5 million for the same period in 2007. The decrease in the quarter and year-to-date periods is primarily a reflection of lower personnel costs and professional fees.
Restructuring and impairment expense in the second quarter and six months ended 2007 represents the write-off of impaired manufacturing assets, as a result of the transition of commercial manufacturing activities from AstraZeneca, as well as severance and asset impairment costs from an organizational restructuring that was undertaken in the second quarter of 2007.
Interest and other income decreased to $481,000 in the second quarter of 2008 from $1.6 million reported for the comparable period in 2007. For the six months ended June 30, 2008, interest and other income decreased to $1.4 million as compared to $3.5 million reported for the same period in 2007. The decrease is due to reduced levels of invested cash and lower interest rates.
Interest expense for the second quarter of 2008 was $3.4 million, as compared to $2.1 million for the same period in 2007. For the six months ended June 30, 2008, interest expense increased to $6.8 million as compared to $4.2 million for the same period in 2007. The increase in interest expense for both periods was primarily due to the additional debt incurred as a result of an exchange, in the third quarter of 2007, of $38.0 million of 4.5 percent convertible notes due in 2008 for $60.4 million of 4.5 percent convertible notes due in 2011, as well as the accretion of the discount recorded in connection with the new notes.
AtheroGenics reported a net loss of $14.3 million, or $0.36 per share, for the second quarter of 2008, as compared to $6.1 million, or $0.16 per share, for the same period in 2007. For the six months ended June 30, 2008, AtheroGenics reported a net loss of $29.2 million, or $0.74 per share, as compared to $18.8 million, or $0.48 per share, for the comparable period in 2007.
At June 30, 2008, AtheroGenics reported total cash, cash equivalents and short-term investments of approximately $66.2 million.
"We were pleased to report recently that our ANDES Phase 3 clinical trial of AGI-1067 for the treatment of Type 2 diabetes met the primary endpoint and showed a dose response in reducing A1c, a key measure of blood glucose control," stated Russell M. Medford, M.D., Ph.D., President and Chief Executive Officer of AtheroGenics. "Based on the results of this successful trial, AtheroGenics intends to rapidly move forward with development of AGI-1067."
About AtheroGenics
AtheroGenics is focused on the discovery, development and commercialization of novel drugs for the treatment of chronic inflammatory diseases, including diabetes and coronary heart disease (atherosclerosis). The Company's lead antioxidant and anti-inflammatory drug candidate, AGI-1067, is being studied for the treatment of diabetes and has completed a Phase 3 clinical trial known as ANDES (AGI-1067 as a Novel Anti-Diabetic Agent Evaluation Study). In addition, the Company has other clinical and preclinical anti-inflammatory compounds, including AGI-1096, an oral agent for the prevention of organ transplant rejection. For more information about AtheroGenics, please visit http://www.atherogenics.com.
Conference Call and Webcast Information
AtheroGenics will be hosting a conference call and webcast on Tuesday, August 5, 2008, at 9:00 a.m. EDT to discuss second quarter financial results and to provide a company update.
Replay Access: (877) 660-6853 (U.S.) (201) 612-7415 (International) Conference ID: 292374 - Account #286 The conference call replay will be available until August 12, 2008.
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