Alteon Announces Financial Results for the First Quarter Ended March 31, 2005
May 10 2005 - 4:15PM
PR Newswire (US)
Alteon Announces Financial Results for the First Quarter Ended
March 31, 2005 PARSIPPANY, N.J., May 10 /PRNewswire-FirstCall/ --
Alteon Inc. (AMEX:ALT) announced today a net loss of $4,642,299 for
the three months ended March 31, 2005. This compares to a net loss
of $3,734,993 for the same period in 2004. The net loss applicable
to common stockholders, which includes a non-cash preferred stock
dividend, was $5,713,877 or $0.10 per basic/diluted share for the
three months ended March 31, 2005, as compared to $4,730,846 or
$0.12 per basic/diluted share for the same period in 2004. Research
and development expenses were $3,641,100 for the three months ended
March 31, 2005 as compared to $2,684,135 for the three months ended
March 31, 2004. This is an increase of $956,965 or 35.7%, which is
primarily attributed to higher clinical costs and personnel and
personnel-related expenses associated with our Phase 2b trial of
alagebrium for the treatment of systolic hypertension, known as
SPECTRA, and increased pre-clinical expenses related to additional
toxicity studies. General and administrative expenses were
$1,100,348 for the three months ended March 31, 2005 as compared to
$1,140,045 for the three months ended March 31, 2004. Although
general and administrative expenses remained relatively flat, 2005
includes approximately $200,000 in Sarbanes-Oxley compliance fees
offset by lower business development and patent fees. Cash and cash
equivalents at March 31, 2005, totaled $15.4 million. Separately,
Alteon announced that Elizabeth O'Dell, Vice President of Finance,
has announced her intention to retire effective May 18, 2005. Ms.
O'Dell joined Alteon in February 1992 as Controller and became Vice
President of Finance in October 1993. "Liz has been a valued
associate for 13 years," said Kenneth I. Moch, President and Chief
Executive Officer. "She has helped manage the company through the
many complex cycles of a biotechnology firm. We will indeed miss
her skills, but more than that we will miss her consistency and
strength of character. We wish her well." Alteon also announced
that Mary Phelan, Director of Finance and Financial Reporting, will
serve as the Company's Principal Accounting Officer. Ms. Phelan
joined Alteon in July 2000 as Assistant Controller, and has served
as Controller since October 2003. She is a CPA who has held several
accounting positions, including Senior Accountant at KPMG, LLP.
Alteon will hold an investor update conference call tomorrow,
Wednesday, May 11, 2005, at 4:00 p.m. ET. The dial-in telephone
number for the conference call will be 1-888-208-1812.
International participants may call +719-457-2654. Alteon's Annual
Meeting of Stockholders will be held at 9:00 A.M., local time, on
June 29, 2005, at The Hanover Marriott, 1401 Route 10 East,
Whippany, New Jersey 07981. About Alteon Alteon is developing
several new classes of drugs that have shown the potential to
reverse or slow down diseases of aging and complications of
diabetes. These compounds appear to have an impact on a fundamental
pathological process caused by the progressive formation of
protein-glucose complexes called Advanced Glycation End-products
(A.G.E.s). The formation and crosslinking of A.G.E.s lead to a loss
of flexibility and function in body tissues and organs and have
been shown to be a causative factor in many age-related diseases
and diabetic complications. Alteon has created a library of novel
classes of compounds targeting the A.G.E. pathway. Alteon's lead
compound alagebrium chloride (formerly ALT-711), the only A.G.E.
Crosslink Breaker in advanced human testing, has demonstrated
promising results in several Phase 2 trials and is being developed
for systolic hypertension, heart failure and erectile dysfunction.
Approximately 1,300 patients have been involved in alagebrium's
human clinical trials to date, of whom approximately 1,000 have
received active compound. Clinical trials of alagebrium include the
Phase 2b systolic hypertension study, SPECTRA (Systolic Pressure
Efficacy and Safety Trial of Alagebrium), the Phase 2a heart
failure study, PEDESTAL (Patients with Impaired Ejection Fraction
and Diastolic Dysfunction: Efficacy and Safety Trial of
ALagebrium), the Phase 2a study EMERALD (Evaluation of Alagebrium
in Erectile Dysfunction in Diabetic Males on PDE5 Inhibitors), as
well as a fourth study exploring mechanism of action in endothelial
dysfunction. In February 2005, Alteon voluntarily and temporarily
suspended enrollment of new patients into the Company's ongoing
alagebrium clinical studies pending receipt of additional
pre-clinical toxicity data. In May 2005, the Company announced
encouraging interim results from these ongoing toxicity tests, and
announced its intention to conduct an interim analysis of data from
the SPECTRA trial; the results of both are expected approximately
mid-year 2005. The Company expects that decisions regarding
resumption of enrollment into each of the trials will be made at
that time. For more detailed information about alagebrium, please
visit the scientific publications section of the Alteon website,
http://www.alteon.com/. Any statements contained in this press
release that relate to future plans, events or performance are
forward-looking statements that involve risks and uncertainties
including, but not limited to, those relating to technology and
product development (including the possibility that early clinical
trial results may not be predictive of results that will be
obtained in large-scale testing or that any clinical trials will
not demonstrate sufficient safety and efficacy to obtain requisite
approvals or will not result in marketable products), regulatory
approval processes, intellectual property rights and litigation,
competitive products, ability to obtain financing, and other risks
identified in Alteon's filings with the Securities and Exchange
Commission. The information contained in this press release is
accurate as of the date indicated. Actual results, events or
performance may differ materially. Alteon undertakes no obligation
to publicly release the result of any revision to these
forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events. Alteon Inc. Statements of Operations
(Unaudited) Three Months Ended March 31, 2005 2004 Income:
Investment Income $99,149 $37,366 Other Income --- 51,821 Total
Income 99,149 89,187 Expenses: Research and Development 3,641,100
2,684,135 General and Administrative 1,100,348 1,140,045 Total
Expenses 4,741,448 3,824,180 Net Loss (4,642,299) (3,734,993)
Preferred Stock Dividends 1,071,578 995,853 Net Loss Applicable to
Common Stockholders $(5,713,877) $(4,730,846) Basic/Diluted Net
Loss Per Share Applicable to Common Stockholders $(0.10) $(0.12)
Weighted Average Common Shares Used in Computing Basic/Diluted Net
Loss Per Share Applicable to Common Stockholders 56,547,028
40,471,349 Selected Balance Sheet Data (Unaudited) March 31,
December 31, 2005 2004 Cash and Cash Equivalents $15,415,788
$11,175,762 Total Assets 16,198,106 11,642,395 Accumulated Deficit
(211,426,527) (205,712,650) Total Stockholders' Equity 14,002,623
9,046,920 DATASOURCE: Alteon Inc. CONTACT: Susan M. Pietropaolo,
Director, Corporate Communications & Investor Relations of
Alteon, +1-201-818-5537, Web site: http://www.alteon.com/
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