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March 31, 2008
Cougar Biotechnology Announces 2007 Fourth Quarter and Year-End Financial Results
Los Angeles, CA, March 31, 2008 -- Cougar Biotechnology, Inc. (Nasdaq: CGRB), a biotechnology company engaged in the in-license and development of clinical stage cancer drug candidates, today reported results for the fourth quarter and year ended December 31, 2007.
Financial Results
For the quarter ended December 31, 2007, Cougar reported a net loss applicable to common stock of $7.7 million or $0.43 per share, compared to a net loss applicable to common stock of $4.1 million or $1.00 per share, for the quarter ended December 31, 2006. Net loss for the year ended December 31, 2007 was $32.2 million, or $2.17 per share, compared to a net loss of $13.5 million, or $3.10 per share, for the year ended December 31, 2006.
Total operating expenses for the fourth quarter of 2007 were $8.6 million, an increase of $5.2 million compared to the fourth quarter of 2006. Total operating expenses for the year ended December 31, 2007 were $34.1 million, compared to $10.7 million in 2006, an increase of $23.4 million.
Research and development expenses for the 2007 fourth quarter were $6.7 million, compared to $2.6 million for the fourth quarter of 2006. Total research and development expenses for the year ended December 31, 2007 were $27.3 million, compared to $6.7 million in 2006. Included in research and development expenses for 2007 and 2006 were non-cash stock-based compensation expense of $5.9 million and $0.9 million, respectively. The increase in research and development expense is attributable to an increase in clinical trial activity related to CB7630, Cougar's lead product candidate, as well as increases in headcount and stock-based compensation.
General and administrative expenses for the 2007 fourth quarter were $1.8 million, compared to $0.8 million for the fourth quarter of 2006. Total general and administrative expenses for the year ended December 31, 2007 were $6.8 million, compared to $3.9 million in 2006. Included in the general and administrative expenses were non-cash stock-based compensation of $1.2 million and $0.8 million for 2007 and 2006, respectively.
Net cash used in operating activities in 2007 was $23.1 million, compared to $9.2 million in 2006. As of December 31, 2007, cash, cash equivalents and investment securities available-for-sale totaled $135.3 million, compared to $30.8 million as of December 31, 2006. The increase from the year earlier balance reflects net proceeds of approximately $128.5 million from private sales of Cougar common stock to institutional investors in May and December 2007.
Alan H. Auerbach, Chief Executive Officer and President, said, "We are extremely pleased with the milestones we achieved over the past year, our first as a publicly-traded company. We continued to report positive Phase I and Phase II clinical trial data on our lead compound CB7630 (abiraterone acetate) for the treatment of advanced prostate cancer and we began patient enrollment for our Phase I trial of CB3304 (noscapine) for multiple myeloma.
"We look forward to continuing our clinical progress in 2008. More specifically, in the first half of 2008 we anticipate initiating a Phase III trial of CB7630 in patients with advanced prostate cancer who have failed androgen deprivation and docetaxel-based chemotherapy, and we plan to initiate a Phase I/II trial of CB7630 in patients with advanced breast cancer. During the second half of 2008, we anticipate initiating a Phase III trial of CB7630 in patients with hormone-refractory, chemotherapy-naïve prostate cancer and potentially advancing CB3304 into Phase II as well. In 2008, we will continue to provide updates on the ongoing Phase I and Phase II trials of CB7630 as the data is publicly presented at medical conferences throughout the course of the year," added Mr. Auerbach.
Fourth Quarter Highlights and Recent Accomplishments:
- Announced positive interim Phase I and Phase II clinical trial data for CB7630 (abiraterone acetate) at a number of scientific and medical conferences, which continue to support the efficacy of CB7630 in both chemotherapy-naïve and chemotherapy-refractory prostate cancer patients.
- Initiated a Phase I clinical trial of CB3304 (noscapine) for the treatment of relapsed or refractory multiple myeloma in December 2007.
- Raised gross proceeds of $87 million through the private placement of 3 million shares of Cougar common stock in December 2007.
- Received approval from The NASDAQ Stock Market for the listing of Cougar common stock on the NASDAQ Global Market under the ticker symbol "CGRB" as of December 7, 2007.
About Cougar Biotechnology
Cougar Biotechnology, Inc. is a Los Angeles-based biotechnology company, established to in-license and develop clinical stage drugs, with a specific focus on the field of oncology. Cougar's oncology portfolio includes CB7630, a targeted inhibitor of the 17alpha-hydroxylase/c17,20 lyase enzyme, which is currently being tested in Phase II clinical trials in prostate cancer; CB3304, an inhibitor of microtubule dynamics, which is currently in a Phase I trial in multiple myeloma; and CB1089, an analog of vitamin D, which has been clinically tested in a number of solid tumor types. Further information about Cougar Biotechnology can be found at www.cougarbiotechnology.com.
Contact
Alan H. Auerbach
Chief Executive Officer and President
+1 310-943-8040
ahauerbach@cougarbiotechnology.com
Mariann Ohanesian
Director of Investor Relations
+1 310-943-8040, Ext. 117
mohanesian@cougarbiotechnology.com
Russo Partners, LLC
David Schull
+1 212-845-4271
David.schull@russopartnersllc.com
Timothy Engel
+1-212-845-4242
Timothy.Engel@russopartnersllc.com
Forward-Looking Statements: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are often, but not always, made through the use of words or phrases such as "anticipates," "expects," "plans," "believes," "intends," and similar words or phrases. These forward-looking statements include, without limitation, statements related to the timing of clinical trial initiations and the expected benefits to be derived from Cougar’s drug development programs, including the potential advantages of CB7630 and its potential for use in the treatment of chemotherapy refractory prostate cancer and in second-line hormone and chemotherapy treatment settings. Such statements involve risks and uncertainties that could cause Cougar’s actual results to differ materially from the anticipated results and expectations expressed in these forward-looking statements. These statements are only predictions based on current information and expectations and involve a number of risks and uncertainties. Actual events or results may differ materially from those projected in any of such statements due to various factors, including the risks and uncertainties inherent in clinical trials, and drug development and commercialization, including the uncertainty of whether results in testing of CB7630 will be predictive of results in later stages of development. For a discussion of these and other factors, please refer to Cougar’s annual report on Form 10-KSB for the year ended December 31, 2007, as well as other subsequent filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. This caution is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements are qualified in their entirety by this cautionary statement and Cougar undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof.
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Cougar Biotechnology, Inc.
10990 Wilshire Blvd, Suite 1200
Los Angeles, CA 90024
(310) 943-8040 Main
(310) 943-8059 Fax |
