SAN DIEGO, Feb. 15 /PRNewswire-FirstCall/ -- Akesis Pharmaceuticals, Inc. , an emerging diabetes company with unique, patent-protected product candidates that combine approved prescription drugs with the pure trace minerals chromium and vanadium, today announced corporate highlights and financial results for the fourth quarter and year ended December 31, 2006.
2006 Corporate and Product Highlights - Appointed industry expert Jay Lichter, Ph.D. to serve as President and CEO - Raised approximately $4.3 million in private financings conducted in November and December - Developed a plan to allocate funds to initiating a Phase 2 trial of AKP-111, the Company's propriety diabetes product candidate combining chromium and vanadium with metformin - Secured $1 million debt instrument from Square 1 Bank for operating expenses - Diabetes Care August issue article on study showed addition of chromium to sulfonylurea drug in type 2 diabetes significantly improved insulin sensitivity, glucose control and attenuated body weight gain. This study was conducted using similar elements in Akesis compound (AKP-201), but this was not our actual compound.
"We are on track to execute important elements of our business plan including moving proprietary and in-licensed anti-diabetes products forward in clinical trials," said President and Chief Executive Officer, Jay Lichter.
Financial Results
There were no revenues for the fourth quarter of 2006 or for the same period in 2005. Total operating expenses were $1.03 million in the fourth quarter of 2006 compared to $0.57 million during the fourth quarter of 2005.
For the fourth quarter of 2006, Akesis reported a net loss of $1.03 million, or a net loss per share of $0.06. This compares to a net loss of $0.57 million, or $0.04 per share for the fourth quarter of 2005.
There were no revenues recorded in the year ended December 31, 2006 or for the same period in 2005. Total operating expenses for the year were $2.4 million compared to $3.1 million for 2005. During the fourth quarter of 2006 the Company completed private placements of its common stock resulting in aggregate net proceeds to the Company of approximately $4.3 million. The proceeds from these private placements will be used for planning and executing feasibility clinical trials for the Company's anti-diabetes compounds, as well as for other general corporate purposes.
For the year ended December 31, 2006, Akesis reported a net loss of $2.4 million, or a net loss per share of $0.15. This compares to a net loss for 2005 of $3.1 million, or $0.21.
At December 31, 2006, cash, cash equivalents and unrestricted marketable securities totaled approximately $4.1 million.
About Akesis Pharmaceuticals
Akesis Pharmaceuticals is an early stage biopharmaceutical company engaged in the discovery, development and commercialization of complementary and alternative therapies for the treatment of three principal forms of carbohydrate intolerance -- Type 2 diabetes, Syndrome X, and impaired glucose tolerance -- and their associated complications. We have been granted patents and filed patent applications for a number of proprietary combination therapies, including combinations with existing diabetes medications, for use in the treatment of Type 2 diabetes. Our therapies are directed to combinations of vanadium, an insulin mimetic, and chromium, a glucose mobilizer, with current and future diabetes treatments, such as metformin. We intend to use our proprietary combinations to develop prescription treatments for Type 2 diabetes and related metabolic disorders. These products are in an early stage of development and no regulatory filings to commercialize our products have yet been made with the United States Food and Drug Administration, or the FDA, or any similar state or foreign authorities. Find more information about Akesis Pharmaceuticals at www.akesis.com.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the future plans and intentions of the Company. These forward-looking statements can generally be identified as such because the context of the statement will include words such as "will", "expects", "should", "believes", "anticipates" or words or phrases of similar meaning. Examples of such statements include, without limitation, the statements of Dr. Lichter and the statements relating to the anticipated use of proceeds from the Company's recent private placements. Stockholders, potential investors and other readers are cautioned that these forward-looking statements are predictions based only on current information and expectations that are inherently subject to risks and uncertainties that could cause future events or results to differ materially from those set forth or implied by the forward-looking statements. Certain of those risks and uncertainties are discussed in the Company's filings with the Securities and Exchange Commission, including the Company's most recent annual report on Form 10-K and quarterly reports on Form 10-Q. These forward-looking statements are only made as of the date of this press release, and the Company does not undertake any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
Akesis Pharmaceuticals, Inc. Consolidated Balance Sheets As of December 31, 2006 and 2005 2006 2005 Assets Current assets: Cash and cash equivalents $4,111,070 $388,551 Prepaid insurance and other current assets 2,551 9,164 Total current assets 4,113,621 397,715 Property and equipment, net -- 17,392 Debt issuance costs, net 85,462 -- Total assets $4,199,083 $415,107 Liabilities and Stockholders' Equity (Deficit) Current liabilities: Accounts payable $140,468 $77,437 Total current liabilities 140,468 77,437 Total liabilities 140,468 77,437 Stockholders' equity: Convertible preferred stock, $0.001 par value, 10,000,000 shares authorized, and zero shares issued and outstanding as of December 31, 2006 and December 31, 2005 -- -- Common stock, $0.001 par value, 50,000,000 shares authorized: 22,580,884 and 15,167,552 shares issued and outstanding at December 31, 2006 and December 31, 2005, respectively 22,581 15,168 Additional paid-in capital 12,292,655 6,173,556 Accumulated deficit (8,256,621) (5,851,054) Total stockholders' equity 4,058,615 337,670 Total liabilities and stockholders' equity $4,199,083 $415,107 Akesis Pharmaceuticals, Inc. Consolidated Statements of Operations For the Three and Twelve Months Ended December 31, 2006 and 2005 (Unaudited) Three months ended Twelve months ended December 31, December 31, 2006 2005 2006 2005 Revenue $-- $-- $-- $-- Cost of goods sold -- -- -- -- Gross margin -- -- -- -- Operating costs and expenses: Selling, general and administrative 961,961 573,959 2,316,935 3,110,246 Research and development 70,984 -- 98,184 -- Total expenses 1,032,945 573,959 2,415,119 3,110,246 Loss from operations (1,032,945) (573,959) (2,415,119) (3,110,246) Interest income, net 17,752 446 25,157 7,620 Loss on disposal of assets (13,805) -- (13,805) -- Loss before income taxes (1,028,998) (573,513) (2,403,767) (3,102,626) Provision for income taxes -- -- 1,800 3,200 Net loss $(1,028,998) $(573,513) $(2,405,567) $(3,105,826) Net loss per common share - basic and diluted $(0.06) $(0.04) $(0.15) $(0.21) Weighted-average common shares outstanding - basic and diluted 18,131,609 14,994,454 16,020,232 14,993,031
Akesis Pharmaceuticals, Inc.CONTACT: Media & Investors, Emily Zanovich of Porter Novelli LifeSciences, +1-619-849-5376, for Akesis Pharmaceuticals, Inc.; or JayLichter, President & CEO of Akesis Pharmaceuticals, Inc., +1-858-354-1472
Web site: http://www.akesis.com/
