AEGiS-PRn: Aronex Pharmaceuticals, Inc. Reports Third Quarter 1995 Results PRNewswireImportant note: Information in this article was accurate in 1995. The state of the art may have changed since the publication date.
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Aronex Pharmaceuticals, Inc. Reports Third Quarter 1995 Results

PR Newswire - November 22, 1995 .


THE WOODLANDS, Texas, Nov. 22 /PRNewswire/ -- Aronex Pharmaceuticals, Inc. (Nasdaq: ARNX), which was recently formed by the merger of Argus Pharmaceuticals, Inc., with Triplex Pharmaceutical Corporation and Oncologix, Inc., today reported a net loss for the third quarter ended September 30, 1995 of $9.8 million, or $0.80 per share, compared with a net loss of $2.2 million, or $0.20 per share, for the third quarter of 1994. The results reflect a one-time non-cash charge of $7.4 million for the purchase of in-process research and development as a result of the merger with Triplex Pharmaceutical Corporation and Oncologix, Inc. Total revenues, comprised of interest income and contract research, were $276,000 compared with $251,000 in the same period last year. General and administrative expenses were $718,000 for the third quarter compared to $407,000 for the same period in 1994 due to costs relating to the merger.

"During the third quarter, we launched a Phase I trial of AR177 for HIV infection, as well as a Phase II trial of Tretinoin(LF) for acute promyelocytic leukemia. The initiation of these trials is an important step in executing our commercialization strategy to capitalize on Aronex's broad technology base and to diversify risk," said James M. Chubb, Ph.D., President of the Company. "AR177 and Tretinoin are two of six Aronex products in clinical development, contributing to a strong and diverse portfolio for the Company," added Dr. Chubb.

"Also in the third quarter, Aronex received funding from the National Institute of Allergy and Infectious Diseases for the development of two novel compounds that have emerged from Aronex's pipeline: AR177 for HIV, and AR132 for cytomegalovirus."

Aronex anticipates the initiation of a Phase III trial of Nystatin(LF), for systemic fungal infections, and a Phase II trial of its solid tumor drug, Annamycin(LF), in early 1996. The Company continues to pursue corporate alliances, such as the collaborations with Genzyme Corporation and Hoechst AG, for the development of several compounds in the preclinical or early clinical stage.

For the nine months ended September 30, 1995, Aronex reported a net loss of $13.8 million, or $1.24 per share, compared with a net loss of $6.7 million, or $0.65 per share for the first nine months of 1994. Total revenues for the nine months ended September 30, 1995, comprised of income and contract research, were $780,000 compared with $567,000 for the same period in 1994. Research and development revenues from affiliates for the first nine months of 1995 were $491,000, compared to $197,000 for the nine months ended September 30, 1994. The increase in revenues is a result of pharmaceutical development being conducted in collaboration with its corporate partners Hoechst AG, Genzyme Corporation and RGene Therapeutics, Inc.

Aronex Pharmaceuticals, Inc. is developing and commercializing innovative pharmaceuticals for treating cancer and infectious diseases. Aronex has several products in clinical development including Nystatin(LF) for the treatment of systemic fungal infections; Annamycin(LF) for the treatment of solid tumors; and AR177 for HIV infection. The Company has a collaboration with Genzyme Corporation to develop Tretinoin(LF) for the treatment of Kaposi's sarcoma and acute promyelocytic leukemia.

ARONEX PHARMACEUTICALS, INC. (A development stage company) CONDENSED STATEMENTS OF OPERATIONS (All amounts in thousands, except loss per share data) (Unaudited)

Nine Months Ended Three months Ended September 30, September 30, 1995 1994 1995 1994

Revenues:

Interest income $289 $370 $76 $144

Research and Development Revenue from affiliates 491 197 200 107

Total revenues 780 567 276 251

Expenses:

Research and development 5,452 5,595 1,910 1,941 Charge for purchase of in-process research and development 7,419 --- 7,419 ---

General and administrative 1,534 1,540 718 407

Interest expense 144 141 46 55

Total expenses 14,549 7,276 10,093 2,403

Net loss $(13,769) $(6,709) $(9,817) $(2,152)

Net loss per share $(1.24) $(0.65) $(0.80) $(0.20)

Weighted average common shares outstanding 11,071 10,272 12,297 10,302

CONDENSED BALANCE SHEETS

Sept. 30, Dec. 31, 1995 1994 (Unaudited)

ASSETS Current assets:

Cash and cash equivalents $3,589 $1,426 Securities held to maturity 5,735 7,006 Prepaid expenses and other assets 365 415

Total current assets 9,689 8,847

Available-for-sale securities $1,699 $1,587 Furniture, equipment and leasehold improvements, net 3,012 2,174

Investment in RGene Therapeutics, Inc. 125 350

Total assets $14,525 $12,958

LIABILITIES AND STOCKHOLDERS' EQUITY

Total current liabilities 1,896 1,080 Total long-term liabilities 1,330 1,218 Total stockholders' equity 11,299 10,660 Total liabilities and stockholders' equity $14,525 $12,958

CONTACT: Terance A. Murnane, Controller of Aronex Pharmaceuticals, Inc., 713-367-1666, or Michelle L. Linn, Sr. Account Executive of Feinstein Partners Inc., 617-577-8110/ 12:30 EST

Copyright (c) 1995/PR NewsWire. Reproduced with permission. Reproduction of this article (other than one copy for personal reference) must be cleared through the Permissions Desk, PR Newswire, 810 Seventh Avenue, New York, NY 10019.
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