MONTVALE, N.J., March 6 /PRNewswire-FirstCall/ -- Memory Pharmaceuticals Corp. , a biopharmaceutical company focused on the discovery and development of innovative drug candidates for the treatment of a broad range of central nervous system (CNS) conditions, today reported its financial results for the fourth quarter and year ended December 31, 2007.
“We have made significant progress with our clinical and business development efforts in recent months, highlighted by our positive Phase 2a data for MEM 3454 in Alzheimer’s disease, the expansion of our schizophrenia development program for MEM 3454 with our partner Roche, and the completion of our single ascending dose Phase 1 study for R4996/MEM 63908,” said Vaughn M. Kailian, President & Chief Executive Officer. “During 2008, we look forward to building on this progress as we advance our clinical programs. We expect to complete our ongoing Phase 2a trial for MEM 3454 in cognitive impairment associated with schizophrenia and report top-line data from the study, complete the remaining studies in our Phase 1 program for R4996/MEM 63908, and initiate a biomarker study for MEM 3454 in schizophrenia.”
Financial Results
For the quarter ended December 31, 2007, the Company reported a net loss of $9.6 million, or $0.13 per share, compared to a net loss of $14.7 million, or $0.23 per share, for the same period in 2006. For the year ended December 31, 2007, the Company reported a net loss of $35.3 million, or $0.49 per share, compared to a net loss of $31.1 million, or $0.70 per share, in 2006.
For the quarter ended December 31, 2007, the Company reported revenue of $1.1 million, compared to revenue of $2.6 million for the same period in 2006. For the year ended December 31, 2007, the Company reported revenue of $11.5 million, compared to revenue of $9.3 million in 2006. The increase in revenue for the year ended December 31, 2007 is related to recognizing the $2.2 million in milestone payments received from the Stanley Medical Research Institute in connection with the MEM 1003 Phase 2a bipolar disorder clinical trial.
Research and development expenses for the quarter ended December 31, 2007 were $8.3 million compared to $10.5 million for the same period in 2006. The change included a decrease of $3.0 million associated with the clinical development of MEM 1003, offset by an increase of $0.5 million in manufacturing costs. Research and development expenses for the year ended December 31, 2007 were $38.4 million compared to $33.8 million for the same period in 2006. The change included an increase of $4.2 million associated primarily with the clinical development of MEM 3454 and an increase of $0.7 million in personnel and personnel-related costs.
General and administrative expenses for the quarter ended December 31, 2007 were $2.2 million, compared to $1.8 million for the same period in 2006. The change included an increase of $0.4 million in personnel and personnel- related costs. General and administrative expenses for the year ended December 31, 2007 were $9.3 million compared to $8.4 million for the same period in 2006. The change included an increase of $0.8 million in personnel and personnel-related costs.
At December 31, 2007, the Company had cash, cash equivalents and marketable securities of approximately $38.2 million, compared to $51.3 million at the end of 2006. The Company now expects that its existing cash, cash equivalents, and marketable securities, together with payments expected to be made under its collaboration agreements, should be sufficient to fund operating expenses, debt obligations and capital equipment requirements into the first half of 2009.
Conference Call and Webcast Information
Memory Pharmaceuticals will hold a conference call on March 6, 2008, at 9:00 a.m. EST to discuss the Company’s fourth quarter and full year 2007 financial results. The conference call will also be broadcast live from the “Investors” section of the Company’s website. Memory Pharmaceuticals’ senior management will host the conference call. Investors and other interested parties may access the call as follows:
http://www.memorypharma.com
An audio replay of the conference call will be available from 11:00 a.m. EST on Thursday, March 6, 2008, until Thursday, March 13, 2008. To access the replay, please dial 888.286.8010 (U.S.) or 617.801.6888 (international) and enter passcode number 63677090. An audio replay of the conference call will also be available under the “Investors” section of the Company’s website during the same period.
About the Company
Memory Pharmaceuticals Corp., a biopharmaceutical company, is focused on developing innovative drugs for the treatment of debilitating CNS disorders, many of which exhibit significant impairment of memory and other cognitive functions, including Alzheimer’s disease and schizophrenia. For additional information, please visit our website at http://www.memorypharma.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. All statements, other than statements of historical facts, regarding management’s expectations, beliefs, goals, plans or Memory Pharmaceuticals’ prospects, future financial position, future revenues and projected costs should be considered forward-looking. Readers are cautioned that actual results may differ materially from projections or estimates due to a variety of important factors, including the outcome of clinical trials of Memory Pharmaceuticals’ drug candidates and whether they demonstrate these candidates’ safety and effectiveness; the risks and uncertainties associated with: obtaining additional financing to support Memory Pharmaceuticals’ R&D and clinical activities and operations; obtaining regulatory approvals to conduct clinical trials and to commercialize Memory Pharmaceuticals’ drug candidates; Memory Pharmaceuticals’ ability to enter into and maintain collaborations with third parties for its drug development programs; Memory Pharmaceuticals’ dependence on its collaborations and its license relationships; achieving milestones under Memory Pharmaceuticals’ collaborations; Memory Pharmaceuticals’ dependence on preclinical and clinical investigators, preclinical and clinical research organizations, manufacturers and consultants; protecting the intellectual property developed by or licensed to Memory Pharmaceuticals; and Memory Pharmaceuticals ability to maintain listing on the Nasdaq Global Market. These and other risks are described in greater detail in Memory Pharmaceuticals’ filings with the Securities and Exchange Commission. Memory Pharmaceuticals may not actually achieve the goals or plans described in its forward-looking statements, and investors should not place undue reliance on these statements. Memory Pharmaceuticals disclaims any intent or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.
CONTACT: Jzaneen Lalani, General Counsel, +1-201-802-7249; or Laura Perry
of LMP Investor Relations, +1-646-719-1055, both for of Memory
Pharmaceuticals Corp.
Web site: http://www.memorypharma.com/
