EMERYVILLE, Calif., May 12 /PRNewswire-FirstCall/ -- Neurobiological
Technologies, Inc. (NTI(R)) (Nasdaq: NTII) today announced financial results
for its fiscal third quarter and the nine months ended March 31, 2008.
Revenues for the three months ended March 31, 2008 were $3.7 million
compared to $4.9 million for the same three months last year.
Research and development expenses were $5.9 million for the third quarter
of 2008 compared to $7.7 million for the same quarter last year. General and
administrative expenses were $1.8 million for the three months ended March 31,
2008 compared to $1.7 million in the same period last year.
The net loss for the third quarter of fiscal 2008 was $5.1 million, or
$0.19 per share, compared with a net loss of $4.4 million, or $1.04 per share,
for the third quarter of 2007.
Revenues for the first nine months of fiscal 2008 were $11.2 million
compared to $13.7 million in the same period of 2007. Research and
development expenses were $18.8 million for the nine months ended March 31,
2008 compared to $19.2 million for the same period of 2007. General and
administrative expenses were $5.3 million for the nine months ended March 31
compared to expenses of $4.7 million for the same period in 2007. The net
loss for the nine months ended March 31, 2008 was $12.9 million, or $0.76 per
share, compared to a net loss of $9.9 million, or $2.35 per share, for the
nine months ended March 31, 2007.
Cash, cash equivalents and short-term investments were $34.6 million at
March 31, 2008, and long-term investments were $11.7 million, totaling $46.3
million. During the three months ended March 31, 2008, NTI wrote-down the
value of its auction rate securities, which are now classified as long-term
investments, by approximately $1.8 million based on uncertainties in the
credit markets.
"We are very pleased to have recently and successfully passed our fifth
Data Safety Monitoring Board assessment of the Viprinex(TM) phase 3 clinical
trials that are currently underway," stated Paul E. Freiman, president and
chief executive officer of NTI. "In addition, during the quarter we signed an
agreement with the Buck Institute for Age Research that provides us
development rights to an exciting compound in early development for the
potential treatment of Alzheimer's disease. We also amended our agreement
with Merz Pharmaceuticals and Children's Medical Center Corporation,
effectively lengthening the term for which they are committed to pay us
royalties on the sales of memantine, although at a lower rate than we received
previously."
"Looking forward, we are excited about the prospects for our key asset,
Viprinex, which has the potential to be the first new drug approved for the
treatment of stroke in over ten years," continued Mr. Freiman. "Our main focus
as a company is the development of this drug candidate, and the development of
this asset is where substantially all of our operating funds are being spent.
We believe Viprinex has the potential to double the treatment window over the
current approved drug, while at the same time reducing the major side effect
of symptomatic intracranial hemorrhage."
Conference Call Information
NTI will webcast its quarterly financial results and host a conference
call on Tuesday, May 13, 2008 at 10:30 a.m. (ET), 7:30 a.m. (PT). Dial-in
number (877) 591-4953 (U.S. and Canada) and 719-325-4851 (International). The
live webcast can be accessed by going to
http://investor.shareholder.com/ntii/events.cfm . A playback of the
conference call will be available from 1:30 p.m. (ET) on May 13, 2008 through
midnight on May 17, 2008. Replay number: (888) 203-1112 (U.S. and Canada) /
(719) 457-0820 (international). Replay access code: 3838724.
About Neurobiological Technologies, Inc.
Neurobiological Technologies is a biopharmaceutical company focused on
developing novel, first-in-class agents for central nervous system conditions
and other serious unmet medical needs. The Company's most advanced product
candidate, Viprinex(TM) (ancrod), is in Phase 3 clinical testing as a novel
investigational drug with multiple mechanisms of action that is specifically
designed to double the time period that patients can be treated after the
onset of a stroke. NTI also has the right to receive royalty payments from
sales of Namenda(R) (memantine HCL), an approved drug marketed for Alzheimer's
disease, and the right to receive payments from the development and marketing
of XERECEPT(R) (corticorelin acetate injection), an investigational drug in
Phase 3 clinical development for swelling associated with brain tumors.
Additionally, NTI has rights to two compounds in early-stage development for
Alzheimer's and Huntington's diseases.
Forward-Looking Statements
Except for the historical information contained herein, the matters
discussed in this press release are forward-looking statements that involve
risks and uncertainties, including uncertainties regarding the timing for
completion of clinical trials, obtaining approval for Viprinex, our levels of
future expenditures and capital resources and our need to raise additional
capital to fund our operations, as well as other risks detailed from time to
time in our Annual Report of Form 10-K, and updated periodically in our
Quarterly Reports on Form 10-Q, and other filings with the Securities and
Exchange Commission. Actual results may differ materially from those
projected. These forward-looking statements represent our judgment as of the
date of the release. We undertake no obligation to update these forward-
looking statements.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited - in thousands, except per share amounts)
Three months ended Nine months ended
March 31, March 31,
2008 2007 2008 2007
REVENUES
Technology sale and
collaboration services $1,523 $3,170 $5,002 $8,727
Royalty 2,161 1,708 6,245 4,952
Total revenues 3,684 4,878 11,247 13,679
EXPENSES
Research and development 5,945 7,690 18,822 19,230
General and
administrative 1,757 1,686 5,327 4,745
Total expenses 7,702 9,376 24,149 23,975
Operating loss (4,018) (4,498) (12,902) (10,296)
Interest income 540 84 1,020 353
Interest expense, including
non-cash amortization of
$2,336 discount on
notes for the nine months
ended March 31, 2008 - - (2,479) -
Non-cash gain on change
in fair value of warrants 193 - 3,271 -
Impairment charge for
decrease in value of
investments (1,778) - (1,778) -
NET LOSS $(5,063) $(4,414) $(12,868) $(9,943)
BASIC AND DILUTED
NET LOSS PER SHARE $(0.19) $(1.04) $(0.76) $(2.35)
Shares used in basic and
diluted net loss per
share calculation 26,913 4,238 16,963 4,228
SELECTED BALANCE SHEET DATA
(in thousands)
March 31, 2008 June 30, 2007
(unaudited) (1)
Cash, cash equivalents & short-term
investments $34,550 $8,904
Working capital 25,676 (3,973)
Long-term investments 11,709 -
Total assets 47,838 10,921
Stockholders' equity (deficit) 22,957 (22,093)
(1) Derived from audited financial
statements.
SOURCE Neurobiological Technologies, Inc.
