SOUTH SAN FRANCISCO, Calif., March 24 /PRNewswire-FirstCall/ --
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 and fiscal year ended
December 31, 2005. Total revenues for the fourth quarter were $4.5
million, with a net loss of $5.3 million. Total revenues for 2005
were $16.5 million, with a net loss of $27.5 million. As of
December 31, 2005, cash, cash equivalents and marketable securities
totaled $48.3 million and debt totaled $2.4 million. Fourth Quarter
Highlights -- At the American Association for Cancer
Research-National Cancer Institute-European Organization for
Research and Treatment of Cancer conference, Sunesis presented the
results of its first Phase I clinical trial for SNS-595, a novel
S-phase active cancer therapeutic that induces rapid apoptosis.
SNS-595 achieved a maximum tolerated dose of 48 mg/m2 and
demonstrated promising signals of clinical activity with 13 of 41
patients experiencing sustained disease control lasting more than
12 weeks. -- In November, Sunesis commenced enrollment of a Phase I
dose-escalation trial for SNS-595 in patients with refractory acute
leukemia. The goal of this clinical trial is to establish an
optimal dosing regimen for use in Phase II/III testing in patients
with relapsed or refractory acute myelocytic leukemia (AML). -- In
December, Sunesis commenced enrollment of a Phase II clinical trial
with SNS-595 for the second-line treatment of patients with
non-small cell lung cancer. -- Sunesis earned a discovery milestone
in December for progress made in its Raf kinase collaboration with
Biogen Idec. Recent Highlights -- In January, Sunesis initiated a
Phase I/II clinical study in patients with advanced solid tumor
malignancies of its second cancer therapeutic, SNS-032, a novel
inhibitor of cyclin-dependent kinases 2, 7 and 9. -- In March,
Sunesis initiated a Phase II clinical trial with SNS-595 for the
second-line treatment of patients with small cell lung cancer. --
Earlier this month, Sunesis closed a private placement of common
stock and warrants with net proceeds to Sunesis of approximately
$43.7 million. With this financing, Sunesis had over $90 million in
cash, cash equivalents and marketable securities on a pro-forma
basis, as of December 31, 2005. -- Today, Sunesis announces the
attainment of a $500,000 milestone payment from Biogen Idec for the
discovery of novel inhibitors of an undisclosed oncology kinase
target. Financial Highlights -- Revenue from research
collaborations totaled $4.5 million and $16.4 million for the
three-month and twelve-month periods ended December 31, 2005,
respectively, compared to $3.8 million and $10.1 million for the
three-month and twelve-month periods ended December 31, 2004,
respectively. This increase in collaboration revenue was primarily
due to the full year of research funding from the multi-kinase
collaboration with Biogen Idec signed in August 2004 and the
deferred revenue that was recognized in connection with the
termination of the research phase of the BACE collaboration with
Merck & Co. -- Research and development (R&D) expense was
$7.9 million and $36.2 million for the three-month and twelve-month
periods ended December 31, 2005, respectively. R&D expense for
the three- and twelve-month periods ended December 31, 2004, was
$6.1 million and $23.6 million, respectively. The year-over-year
increase of $12.6 million in R&D expenses was primarily due to:
(i) a $9.7 million expense related to the in-licensing of SNS-032
and related intellectual property from Bristol-Myers Squibb in
April 2005, of which $8.0 million represents a non-cash licensing
fee; (ii) a $3.4 million increase in expense related to the
development of SNS-314, our Aurora kinase inhibitor; (iii) a $2.6
million increase in expense related to the development of SNS-595;
and (iv) a partial off-set of $4.0 million related to a reduction
in expense for other programs. -- General and administrative
(G&A) expense for the fourth quarter of 2005 was $2.2 million,
compared to $1.9 million for the prior year. For the twelve-month
period ended December 31, 2005, G&A expense was $8.3 million,
compared to $7.4 million for the twelve-month period ended December
31, 2004. The increase in G&A expense was primarily due to an
increase in non-cash stock compensation expense and costs related
to being a publicly traded company. -- Sunesis reported a net loss
of $5.3 million for the fourth quarter and $27.5 million for the
twelve-month period ended December 31, 2005, compared to a reported
loss of $4.0 million and $20.5 million, respectively, for the
three-month and twelve-month periods ended December 31, 2004. The
net loss applicable to common stockholders was $115.6 million for
2005, including an $88.1 million non-cash deemed dividend related
to the conversion of preferred stock into common stock in
conjunction with the initial public offering (IPO) in September
2005. This non-cash deemed dividend results from the redistribution
of pre-IPO ownership which occurred in conjunction with the IPO.
Other Business Sunesis announced today that it has named Don Young,
Senior Director of Biometrics. The Compensation Committee of the
Company's Board of Directors approved an employment commencement
grant of a non-qualified stock option to purchase 20,000 shares of
Sunesis common stock, effective March 31, 2006. This option award
was granted without shareholder approval pursuant to Nasdaq
Marketplace Rule 4350 (i)(1)(A)(iv) and with the following material
terms: (a) an exercise price equal to the fair market value of the
Company's common stock on the grant date, (b) a term of 10 years,
and (c) a vesting schedule providing that the option is exercisable
as to 1/4 of the total grant on the first anniversary of Mr.
Young's hire, and 1/48th of the total grant each month thereafter
until each grant is fully vested. Conference Call Information
Sunesis' management will host a conference call to review the
results of the quarter and the fiscal year on Friday, March 24 at
10:30 am EST. Individual and institutional investors can access the
call via 800-310-6649 (domestic) or 719-457-2693 (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 (in thousands,
except share and per share amounts) Three months ended Year ended
December 31, December 31, 2005 2004 2005 2004 (unaudited)
(unaudited) Revenue: Collaboration revenue $2,366 $1,635 $7,395
$5,938 Collaboration revenue from related party 2,138 2,209 9,018
4,201 Grant and fellowship revenue 19 31 109 166 Total revenues
4,523 3,875 16,522 10,305 Operating expenses: Research and
development 7,902 6,111 36,166 23,616 General and administrative
2,227 1,875 8,283 7,352 Total operating expenses 10,129 7,986
44,449 30,968 Loss from operations (5,606) (4,111) (27,927)
(20,663) Interest income 518 202 1,092 518 Interest expense (228)
(87) (674) (387) Other income (expense), net 2 1 10 2 Net loss
(5,314) (3,995) (27,499) (20,530) Convertible preferred stock
deemed dividends -- -- (88,092) -- Net loss applicable to common
stockholders $(5,314) $(3,995) $(115,591) $(20,530) Basic and
diluted net loss per share applicable to common stockholders
$(0.25) $(2.94) $(17.41) $(15.77) Shares used in computing basic
and diluted loss per share applicable to common stockholders
21,493,392 1,358,378 6,637,935 1,302,096 Sunesis Pharmaceuticals,
Inc. Condensed Balance Sheets (in thousands) December 31, 2005 2004
Assets (Unaudited) Current assets: Cash and cash equivalents
$17,704 $7,587 Marketable securities 30,629 29,224 Note and
interest receivable from officers and employees -- 164 Prepaids and
other current assets 2,068 1,676 Total current assets 50,401 38,651
Note and interest receivable from officers and employees -- 85
Property and equipment, net 4,007 3,990 Deposits and other assets
300 300 Total assets $54,708 $43,026 Liabilities and stockholders'
equity (deficit) Current liabilities: Accounts payable $2,045
$1,663 Accrued compensation 2,068 1,599 Other accrued liabilities
1,278 359 Current portion of deferred revenue 3,787 6,032 Current
portion of equipment financing 1,067 1,291 Total current
liabilities 10,245 10,944 Deferred revenue 3,320 7,678 Borrowings
under debt facility with related party -- 3,200 Non current portion
of equipment financing 1,306 1,238 Deferred rent and other
non-current liabilities 1,371 1,196 Commitments Convertible
preferred stock -- 108,813 Stockholders' equity (deficit): Common
Stock 2 1 Additional paid-in capital 249,690 6,494 Notes receivable
from stockholders -- (135) Deferred stock compensation (2,163)
(2,916) Accumulated other comprehensive loss (55) (70) Accumulated
deficit (209,008) (93,417) Total stockholders' equity (deficit)
38,466 (90,043) Total liabilities, convertible preferred stock and
stockholders' equity (deficit) $54,708 $43,026 DATASOURCE: Sunesis
Pharmaceuticals, Inc. CONTACT: investors, Eric Bjerkholt, CFO of
Sunesis Pharmaceuticals, Inc.; or media, Karen L. Bergman or
Michelle Corral, +1-650-575-1509, or +1-415-794-8662, both of BCC
Partners, for Sunesis Web site: http://www.sunesis.com/
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