Sunesis Pharmaceuticals Reports First Quarter 2007 Financial Results
Date of Annual Shareholders' Meeting Set
SOUTH SAN FRANCISCO, Calif., May 4, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Sunesis Pharmaceuticals, Inc. (Nasdaq: SNSS), a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel small molecule therapeutics, today reported financial results for the quarter ended March 31, 2007. Total revenues for the first quarter were $2.5 million, with a net loss of $9.4 million. As of March 31, 2007, cash, cash equivalents and marketable securities totaled $53.1 million, a $10.0 million reduction from December 31, 2006, and debt totaled $1.8 million.
Recent Highlights -- In January Sunesis reported preliminary results from stage one of two Phase 2 clinical trials of SNS-595 in patients with small cell and non-small cell lung cancer. - The small cell lung cancer trial achieved the pre-specified criterion for advancing to the second stage of the trial of at least two partial responses. Results from the full 40-patient Phase 2 small cell lung cancer trial are expected to be available by the end of 2007. - In the non-small cell lung cancer trial, SNS-595 demonstrated activity, with 16 out of 25 patients achieving stable disease or better, including eight minor or mixed responses. However, these results did not meet the rigorous pre-specified criterion for advancing to stage 2 of this single agent trial. -- In January, Sunesis also announced the contribution of its LFA-1 inhibitor program to the formation of a new company, SARcode Corporation. As consideration for this contribution, Sunesis received a licensing fee and convertible debt. -- In late February, Sunesis filed an Investigational New Drug Application with the Food and Drug Administration for SNS-314, a potent and selective Aurora kinase inhibitor. Sunesis anticipates initiating a Phase 1 clinical trial of SNS-314 in patients with solid tumors by the end of the second quarter. -- In March, Sunesis presented non-clinical data on SNS-314 demonstrating robust activity in multiple tumor models at the International Symposium on Targeted Anticancer Therapies (TAT) and the Keystone Symposium on Molecular Targets for Cancer. -- Also in March, Sunesis initiated a Phase 1 clinical trial of SNS-032, a potent and selective inhibitor of cyclin-dependent kinases in patients with advanced B-cell malignancies. In addition to exploring the safety and tolerability of SNS-032 in this patient setting, the trial will explore the effect of CDK7 and 9 inhibition, and the resulting inhibition of survival proteins such as MCL-1, on B-cell malignancies. -- At the American Association for Cancer Research Annual Meeting in April, Sunesis presented non-clinical data of SNS-032's activity in multiple myeloma cells. The company reported that after six hours' exposure of SNS-032, multiple myeloma cells in this experiment undergo irreversible apoptosis and cell death. -- In April, Sunesis achieved a $1 million milestone in its BACE collaboration with Merck & Co., Inc. resulting from the advancement of a preclinical candidate. Financial Highlights -- Revenue from research collaborations and licensing activities totaled $2.5 million and $3.1 million for the quarters ended March 31, 2007 and 2006, respectively. This decrease in collaboration revenue was primarily due to the completion of the research phase of the BACE collaboration with Merck & Co., Inc. in February 2006. Sunesis retains the opportunity to earn milestone payments and royalties from any products resulting from its collaborations. -- Research and development (R&D) expense was $9.3 million for the quarter ended March 31, 2007 compared to $9.7 million for the first quarter 2006. The first quarter 2006 included a $2 million non-cash milestone payment to Bristol Myers Squibb upon commencement of clinical trials with SNS-032. Net of this expense, R&D expenses increased by $1.6 million from the first quarter of 2006 to the first quarter of 2007 due to increased clinical trial funding of SNS-595 and SNS-032. -- General and administrative (G&A) expense for the first quarter of 2007 was $3.3 million, compared to $2.7 million for the first quarter 2006. The increase in G&A expense was primarily due to an increase in personnel expenses, non-cash stock-based compensation expense, an increase in office and facilities costs, and costs related to being a publicly traded company. -- Sunesis reported a net loss of $9.4 million for the first quarter of 2007, compared to a reported loss of $9.0 million for the first quarter of 2006. -- Cash flow from operations was $(9.5) million and $(8.5) million for the quarters ended March 31, 2007 and 2006, respectively. -- In the first quarter of 2007, Sunesis recorded non-cash stock compensation expense of $848,203.
Sunesis announced that its Annual Shareholders' Meeting will take place at the company's offices located at 341 Oyster Point Boulevard, South San Francisco, CA 94080 on June 5, 2007 at 9:00 a.m. Pacific Time.
Conference Call Information
Sunesis' management will host a conference call to review the results of the quarter on Friday, May 4, 2007 at 10:00 a.m. Eastern Time. Individual and institutional investors can access the call via (800) 289-0438 (U.S. and Canada) or (913) 981-5527 (international). To access the live audio broadcast or the subsequent archived recording, visit the "Investors and Media -- Calendar of Events" section of the Sunesis website at http://www.sunesis.com. Please log on to Sunesis' website several minutes prior to the start of the presentation to ensure adequate time for any software download that may be necessary.
About Sunesis Pharmaceuticals
Sunesis is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel small molecule therapeutics for oncology and other serious diseases. Sunesis has built a broad product candidate portfolio through internal discovery and in-licensing of novel cancer therapeutics. Sunesis is advancing its product candidates through in-house research and development efforts and strategic collaborations with leading pharmaceutical and biopharmaceutical companies. For additional information on Sunesis Pharmaceuticals, please visit http://www.sunesis.com.
Safe Harbor Statement
This press release contains forward-looking statements that involve substantial risks and uncertainties. Sunesis may not actually achieve the plans, intentions or expectations contained in such forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations contained in such forward-looking statements. Sunesis does not assume any obligation to update any such forward-looking statements.
Sunesis Pharmaceuticals, Inc. Statements of Operations Three months ended March 31, 2007 2006 (unaudited) Revenue: Collaboration revenue $229,167 $1,370,705 Collaboration revenue from related party 2,037,099 1,688,859 License revenue 250,000 - Grant and fellowship revenue - 37,901 Total revenues $2,516,266 $3,097,465 Operating expenses: Research and development 9,307,478 9,716,095 General and administrative 3,296,147 2,681,571 Total operating expenses 12,603,625 12,397,666 Loss from operations (10,087,359) (9,300,201) Interest income 769,626 546,153 Interest expense (52,043) (225,552) Other income (expense), net 739 1,890 Net loss (9,369,037) (8,977,710) Basic and diluted net loss per share $(0.32) $ (0.39) Shares used in computing basic and diluted net loss per share 29,457,247 22,968,484 Sunesis Pharmaceuticals, Inc. Condensed Balance Sheets March 31, December 31, 2007 2006 ASSETS (Unaudited) (Note 1) Current assets: Cash and cash equivalents $11,005,836 $6,075,449 Marketable securities 42,117,157 57,029,199 Prepaids and other current assets 1,468,314 1,082,817 Total current assets 54,591,307 64,187,465 Property and equipment, net 4,824,551 4,728,929 Deposits and other assets 359,974 359,974 Total assets $59,775,832 $69,276,368 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $1,731,885 $2,477,656 Accrued compensation 1,609,254 2,323,742 Other accrued liabilities 2,016,851 961,766 Current portion of deferred revenue 2,031,311 2,260,478 Current portion of equipment financing 862,088 885,273 Total current liabilities 8,251,389 8,908,915 Non current portion of deferred revenue 705,660 1,143,159 Non current portion of equipment financing 977,131 955,695 Deferred rent and other non-current liabilities 1,478,813 1,464,902 Commitments Stockholders' equity: Common stock 2,947 2,944 Additional paid-in capital 298,822,087 298,073,896 Deferred stock compensation (834,123) (1,006,604) Accumulated other comprehensive loss (13,872) (21,376) Accumulated deficit (249,614,200) (240,245,163) Total stockholders' equity 48,362,839 56,803,697 Total liabilities and stockholders' equity $59,775,832 $69,276,368
Note 1: The condensed balance sheet at December 31, 2006 has been derived from the audited financial statements at that date included in the Company's Form 10-K for the fiscal year ended December 31, 2006.
SOURCE Sunesis Pharmaceuticals, Inc.
Investors, Eric Bjerkholt, SVP, Corp. Development & Finance, Sunesis Pharmaceuticals, Inc., +1-650-266-3717; or Media, Karen L. Bergman or Michelle Corral, BCC Partners, +1-650-575-1509 or +1-415-794-8662
Copyright (C) 2007 PR Newswire. All rights reserved
News Provided by COMTEX