Alteon Announces Financial Results for the Third Quarter Ended
September 30, 2004 PARSIPPANY, N.J., Nov. 9 /PRNewswire-FirstCall/
-- Alteon Inc. (AMEX:ALT) announced today a net loss of $3,010,095
for the three months ended September 30, 2004. This compared to a
net loss of $1,707,265 for the same period in 2003, which included
a non-cash variable stock compensation benefit of $(1,539,537). The
net loss applicable to common stockholders, which included a
non-cash preferred stock dividend, was $4,060,015 or $0.08 per
basic/diluted share for the three months ended September 30, 2004,
as compared to $2,672,269 or $0.07 per basic/diluted share for the
same period in 2003. Research and development expenses for the
three months ended September 30, 2004 were relatively flat as
compared to the three months ended September 30, 2003. Although
there was no significant increase in 2004, the expenses included
higher clinical costs associated with SPECTRA and PEDESTAL, offset
by lower manufacturing costs. General and administrative expenses
were $933,414 for the three months ended September 30, 2004 as
compared to $(422,294) for the same period in 2003, primarily
related to the non-cash variable stock compensation benefit of
$(1,475,917) for the three months ended September 30, 2003. Based
upon the price of our common stock at September 30, 2004, there was
no non-cash variable stock compensation expense/(benefit) incurred
for the period. For the nine months ended September 30, 2004,
Alteon had a net loss of $10,246,889. This compared to a net loss
of $11,991,796 for the same period in 2003. The net loss applicable
to common stockholders, which included a non-cash preferred stock
dividend, was $13,309,620 or $0.31 per basic/diluted share for the
nine months ended September 30, 2004, as compared to $14,796,964 or
$0.42 per basic/diluted share for the same period in 2003. Research
and development expenses for the nine months ended September 30,
2004 decreased by $1,068,544 or 12.8%, as compared to the nine
months ended September 30, 2003. The decrease was primarily
attributed to lower personnel and personnel-related expenses in the
nine months ended September 30, 2004 as compared to the same period
in 2003, offset by higher clinical trial and manufacturing costs.
General and administrative expenses decreased by $542,448 or 14.3%,
which related to lower business development and marketing costs as
well as lower facility costs for the nine months ended September
30, 2004 as compared to September 30, 2003, which included the
termination of our lease in Ramsey, New Jersey. Cash and cash
equivalents at September 30, 2004 totaled $14,124,668. On July 2,
2004, pursuant to a Stock Purchase Agreement, the Company sold
8,000,000 shares of common stock to a number of new and existing
institutional investors at $1.00 per share for net proceeds after
fees and expenses of $7,581,318. A Special Meeting of the
Stockholders was held on September 15, 2004. The stockholders voted
to amend the Company's Restated Certificate of Incorporation to
increase the number of authorized shares of Common Stock from
100,000,000 to 175,000,000. About Alteon Alteon is developing
several new classes of drugs that have shown the potential to
reverse or slow down diseases of ageing and complications of
diabetes. These compounds have an impact on a fundamental
pathological process caused by the progressive formation of
protein-glucose complexes called Advanced Glycation End-products
(A.G.E.s). The formation and crosslinking of A.G.E.s lead to a loss
of flexibility and function in body tissues and organs and have
been shown to be a causative factor in many age-related diseases
and diabetic complications. Alteon has created a library of novel
classes of compounds targeting the A.G.E. Pathway. Alteon's lead
compound alagebrium chloride (formerly ALT-711), the only A.G.E.
Crosslink Breaker in advanced human testing, has demonstrated
safety and efficacy in several Phase 2 trials and is actively being
developed for systolic hypertension and heart failure. Over 1200
patients have been involved in alagebrium's human clinical trials
to date, of whom approximately 900 have received active compound.
Ongoing clinical trials include the phase 2b systolic hypertension
trial, SPECTRA (Systolic Pressure Efficacy and Safety Trial of
Alagebrium), and the phase 2a heart failure trial, PEDESTAL
(Patients with Impaired Ejection Fraction and Diastolic
Dysfunction: Efficacy and Safety Trial of ALagebrium), as well as a
third trial exploring mechanism of action in endothelial
dysfunction. For more detailed scientific information about
alagebrium, please visit the scientific publications section of the
Alteon website, http://www.alteon.com/. Any statements contained in
this press release that relate to future plans, events or
performance are forward-looking statements that involve risks and
uncertainties including, but not limited to, those relating to
technology and product development (including the possibility that
early clinical trial results may not be predictive of results that
will be obtained in large-scale testing or that any clinical trials
will not demonstrate sufficient safety and efficacy to obtain
requisite approvals or will not result in marketable products),
regulatory approval processes, intellectual property rights and
litigation, competitive products, ability to obtain financing, and
other risks identified in Alteon's filings with the Securities and
Exchange Commission. The information contained in this press
release is accurate as of the date indicated. Actual results,
events or performance may differ materially. Alteon undertakes no
obligation to publicly release the result of any revision to these
forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events. Alteon Inc. Statements of Operations
(Unaudited) Three Months Ended Nine Months Ended September 30,
September 30, 2004 2003 2004 2003 Income: Investment Income $55,198
$35,623 $121,614 $139,521 Other Income -- 151,822 -- Total Income
$55,198 $35,623 $273,436 $139,521 Expenses: Research and Devel-
opment (which includes non-cash variable stock compensation
expense/ (benefit) of $0 and $(63,620), for the three months ended
September 30, 2004 and 2003, respectively, and $0 and $20,019, for
the nine months ended September 30, 2004 and 2003, respectively)
2,131,879 2,165,182 7,261,576 8,330,120 General and Adminis-
trative (which includes non- cash variable stock compensation
expense/ (benefit) of $0 and $(1,475,917), for the three months
ended September 30, 2004 and 2003, respectively, 933,414 (422,294)
3,258,749 3,801,197 Total Expenses $3,065,293 $1,742,888
$10,520,325 $12,131,317 Net Loss $(3,010,095)
$(1,707,265)$(10,246,889)$(11,991,796) Preferred Stock Divi- dends
1,049,920 965,004 3,062,731 2,805,168 Net Loss Applicable to Common
Stock- holders $(4,060,015) $(2,672,269)$(13,309,620)$(14,796,964)
Basic/Diluted Net Loss Per Share Applicable to Common Stockholders
$(0.08) $(0.07) $(0.31) $(0.42) Weighted Average Common Shares Used
in Computing Basic/ Diluted Net Loss Per Share 48,298,985
35,961,899 43,100,121 35,173,908 Selected Balance Sheet Data
(Unaudited) September 30, December 31, 2004 2003 Cash and Cash
Equivalents $14,124,668 $16,678,582 Total Assets 14,933,122
17,254,985 Accumulated Deficit (200,928,479) (187,618,859) Total
Stockholders' Equity 12,739,084 15,384,432 DATASOURCE: Alteon Inc.
CONTACT: Susan M. Pietropaolo, Director, Corporate Communications
& Investor Relations of Alteon Inc., Direct - +1-201-818-5537,
Web site: http://www.alteonpharma.com/
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