PALO ALTO, Calif., Feb. 22 /PRNewswire-FirstCall/ -- Telik, Inc. reported a net loss of $17.6 million, or $0.34 per share, for the fourth quarter ended December 31, 2006, compared with a net loss of $16.2 million, or $0.31 per share, for the comparable period in 2005.
For the quarter ended December 31, 2006, total operating costs and expenses increased to $19.5 million from $18.2 million in the comparable quarter in 2005. The increase in operating expenses in the fourth quarter of 2006 compared with the fourth quarter of 2005 was primarily due to $3.6 million in stock-based compensation expense, partially offset by decreased costs associated with TELCYTA(TM) Phase 3 clinical trials. Telik began recognizing stock-based compensation expense in the first quarter of 2006 in accordance with Statement of Financial Accounting Standards No. 123R “Share- Based Payment.”
For the year ended December 31, 2006, Telik reported a net loss of $79.6 million, or $1.52 per share, compared with a net loss of $75.5 million, or $1.47 per share, for the year ended December 31, 2005. Total operating costs and expenses increased to $87.8 million for the year ended December 31, 2006 from $82.6 million for the year ended December 31, 2005. The increase in operating expenses in the year ended December 31, 2006 compared with the year ended December 31, 2005 was primarily due to $14.6 million in stock-based compensation expense, partially offset by decreased costs associated with TELCYTA Phase 3 clinical trials.
At December 31, 2006, Telik had $141.7 million in cash, cash equivalents and investments including restricted investments, compared to $205.6 million at December 31, 2005.
Telik also announced its financial guidance for 2007. Telik is forecasting total operating expenses of approximately $72 million, including approximately $16 million in stock-based compensation expense. This represents a decrease of approximately $16 million in operating expenses as compared with the year ended December 31, 2006, and reflects a restructuring implemented earlier this month which resulted in a reduction in the size of the company’s workforce of approximately 25%. The stock-based compensation expense estimate is dependent on market price assumptions used in estimating the fair value and the levels of share-based payments. Telik is forecasting net cash utilization in 2007 of approximately $55 million.
Conference Call and Webcast
Telik will discuss its 2006 results and its 2007 financial guidance and corporate objectives during its quarterly conference call today at 4:30 p.m. Eastern time (1:30 pm. Pacific time). The conference call will be accessible via Telik’s website at http://www.telik.com or by telephone at 800-230-1085 or 612-234-9960. An archive of the conference call will be available on the Telik website or by telephone at 800-475-6701 or 320-365-3844, access code 863181. The archive will be available from approximately 8:30 p.m. Eastern time on February 22 through March 1, 2007.
About Telik
Telik, Inc. of Palo Alto, CA is a biopharmaceutical company focused on discovering, developing and commercializing novel small molecule drugs to treat serious diseases. The company’s most advanced drug development candidate is TELCYTA, a tumor-activated small molecule product candidate in clinical development for the treatment of advanced ovarian cancer and non-small cell lung cancer. A second drug development candidate, TELINTRA(TM) (TLK199), is in clinical development in myelodysplastic syndrome. Telik’s product candidates were discovered using its proprietary drug discovery technology, TRAP(TM), which enables the rapid and efficient discovery of small molecule drug candidates. Additional information is available at http://www.telik.com.
This press release contains “forward-looking” statements, including statements regarding 2007 financial guidance, anticipated expenses in 2007 and the potential for TELCYTA or TELINTRA to treat one or more types of cancer. There are important factors that could cause Telik’s results to differ materially from those indicated by these forward-looking statements, including, among others, that none of Telik’s product candidates have been determined to be safe or effective in humans or been approved for marketing, clinical trials of Telik’s product candidates may take several years to complete and may not be successful, success in preclinical testing and early clinical trials does not ensure that later clinical trials will be successful and interim results of clinical trials do not necessarily predict final results. 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 the factors described in the section entitled “Risk Factors” in its quarterly report on Form 10-Q for the quarter ended September 30, 2006. Telik does not undertake any obligation to update forward-looking statements contained in this press release.
NOTE: TELIK, the Telik logo, TELCYTA, TELINTRA and TRAP are trademarks or registered trademarks of Telik, Inc.
Telik, Inc. Statements of Operations (In thousands, except per share amounts) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2006 2005 2006 2005 Contract revenue from collaborations $- $- $- $19 Operating costs and expenses: Research and development 16,341 15,487 71,522 71,345 General and administrative 3,156 2,744 16,288 11,278 Total operating costs and expenses 19,497 18,231 87,810 82,623 Loss from operations (19,497) (18,231) (87,810) (82,604) Interest income, net 1,922 1,992 8,186 7,062 Net loss $(17,575) $(16,239) $(79,624) $(75,542) Basic and diluted net loss per share $(0.34) $(0.31) $(1.52) $(1.47) Weighted average shares used to calculate basic and diluted net loss per share 52,362 52,028 52,271 51,249 Selected Balance Sheet Data (in thousands) (Unaudited) December 31, 2006 2005 Cash, cash equivalents, investments and restricted investments $141,665 $205,643 Total assets 149,214 213,346 Stockholders’ equity 132,622 194,525
Telik, Inc.
CONTACT: Carol D. DeGuzman, Senior Director, Corporate Communications,Telik, Inc., +1-650-845-7728, or cdeguzman@telik.com
Web site: http://www.telik.com//
