COMPANY PRESS RELEASE: SUGEN, Inc.today announced its financial results for the quarter ended June 30, 1999. The Company reported revenues of $2.5 million and a net loss of $33.0 million, or $1.95 per share.
The loss for the quarter includes the recording of a one-time non-cash interest expense increase required by derivative accounting procedures associated with the warrants issued with the 12% Senior Convertible Notes issued in March 1999. The interest expense increase is driven by the rise in the Company's stock price resulting from the pending merger with Pharmacia & Upjohn (NYSE: PNU). The net loss from operations of $18.6 million was actually below management expectations for the period.
For the same period last year, SUGEN recorded revenues of $2.4 million and a net loss of $10.9 million, or $0.69 per share, and revenues of $4.3 million and a net loss of $14.9 million, or $0.89 per share, for the quarter ended March 31, 1999.
SUGEN also reported its results of operations for the six months ended June 30, 1999. The Company reported revenues of $6.7 million and a net loss of $47.9 million, or $2.85 per share. These results compare with revenues of $4.0 million and a net loss of $20.0 million, or $1.28 net loss per share, for the same period last year. As of June 30, 1999, the Company had cash, cash equivalents and short-term investments of approximately $47.6 million, compared to $61.9 million as of March 31, 1999 and $47.3 million as of December 31, 1998.
As part of the Convertible Note placement, purchasers were issued warrants to acquire additional debt, which they have begun to exercise. The Company anticipates the exercise of approximately $16 million of Note Warrants by July 30, 1999.
"We remain very confident of the long-term strength represented by our unique capabilities in cell signaling technology and other advanced R&D platforms," said Stephen Evans-Freke, Chairman and CEO. "The pending merger with Pharmacia & Upjohn further confirms our assessment."