PALO ALTO, Calif., May 7 /PRNewswire-FirstCall/ -- Telik, Inc. today reported financial results for the first quarter ended March 31, 2009. The net loss for the quarter ended March 31, 2009, was $7.7 million, or $0.14 per share, compared with a net loss of $9.8 million, or $0.19 per share, for the same period in 2008.
As of March 31, 2009, cash, cash equivalents, restricted cash and investments totaled $57.3 million, compared with $63.5 million for the quarter ended December 31, 2008.
Total research and development expenses (R&D) in the first quarter of 2009 were $4.0 million, compared to $8.2 million for the same period in 2008. The decrease in R&D expenses was primarily due to the reduction of headcount, lower clinical development expenditures in TELCYTA(R), and lower stock-based compensation expense.
Total general and administrative expenses (G&A) in the first quarter of 2009 were $2.9 million, compared to $2.4 million for the same period in 2008. The increase in G&A expenses was primarily due to lower stock-based compensation expense in the three months ended March 31, 2008 due to the cancellation of options. Excluding stock based compensation expense, G&A expenses were approximately $2.3 million for each of the three months ended March 31, 2009 and 2008.
Total operating expenses include a charge of approximately $0.9 million which primarily includes employee severance and related costs resulting from the implementation of our restructuring plan in February 2009. The company anticipates its 2009 net cash utilization to be in the range of $26.0 million to $28.0 million, with total operating expenses in the range of $28.0 million to $30.0 million of which approximately 65% is expected to be R&D expense and 35% G&A expense.
Telik implemented a reorganization to conserve financial resources in a challenging fiscal environment, and to focus its development efforts on its most advanced preclinical and clinical programs. The reorganization, which involved primarily early stage development and support positions, was to enable the company to continue development of TELINTRA(R) and its two leading preclinical oncology drug candidates, TLK58747 and its novel, dual Aurora Kinase/VEGFR inhibitors.
Recent and Upcoming Milestones
About Telik
Telik, Inc. of Palo Alto, CA, is a clinical stage drug development company focused on discovering and developing small molecule drugs to treat cancer and inflammatory diseases. The company’s most advanced investigational drug candidates in clinical development are TELINTRA, a modified glutathione analog for the treatment of cytopenias due to myelodysplastic syndrome or chemotherapy, and TELCYTA, a tumor-activated prodrug for the treatment of advanced ovarian cancer and non-small cell lung cancer. Telik’s product candidates were discovered using its proprietary drug discovery technology, TRAP(R), which enables the rapid and efficient discovery of small molecule drug candidates. Additional information is available at www.telik.com.
This press release contains “forward-looking” statements, including statements regarding the future development of TELINTRA and TELCYTA. These forward-looking statements are based upon Telik’s current expectations. There are important factors that could cause Telik’s results to differ materially from those indicated by these forward-looking statements, including, among others, if clinical trials of TELCYTA or TELINTRA are delayed or unsuccessful, Telik’s business would suffer, if Telik’s competitors develop and market products that are more effective than its product candidates, or obtain marketing approval before Telik does, Telik’s commercial opportunity will be reduced or eliminated, and if Telik does not obtain regulatory approval to market products in the U.S. and foreign countries, Telik will not be permitted to commercialize these product candidates. Detailed information regarding factors that may cause actual results to differ materially from the results expressed or implied by statements in this press release may be found in Telik’s periodic filings with the Securities and Exchange Commission, including factors descried in the section entitled “Risk Factors” in its annual report on Form 10-K for the year ended December 31, 2008. Telik does not undertake any obligation to update forward-looking statements contained in this press release.
TELIK, the Telik logo, TELINTRA, TELCYTA and TRAP are trademarks or registered trademarks of Telik, Inc.
CONTACT: Patricia P. Frias, Corporate Communications of Telik, Inc.,
+1-650-845-7927, pfrias@telik.com
Web site: http://www.telik.com/
