PALO ALTO, Calif., Feb. 21 /PRNewswire-FirstCall/ -- IntraBiotics Pharmaceuticals, Inc. (Pink Sheets: IBPI) today reported financial results for the fourth quarter and twelve months ended December 31, 2005.
IntraBiotics reported a net loss applicable to common stockholders of $767,000, or $0.08 per basic and diluted share, for the fourth quarter of 2005. For the twelve months ended December 31, 2005, the loss applicable to common stockholders was $3.4 million, or $0.37 per basic and diluted share. The results for the quarter and twelve months include a non-cash charge of $789,000 ($0.09 per share) to reflect the fair market value adjustment of warrants to purchase shares of its common stock issued in connection with its Series A convertible preferred stock offering on May 1, 2003. As previously disclosed, the preferred stock agreement provided that if the Company's common stock is delisted from NASDAQ National Market, the purchase price for the stock upon exercise of the warrants will be reduced by 50% without any increase in the number of shares of common stock for which the warrants are then exercisable. This provision was triggered by the Company's October 2005 delisting. On September 30, 2005, the Company had warrants to purchase 789,171 shares of its common stock outstanding with an exercise price of $2.066 per share. As a result of the October 14, 2005 delisting, the exercise price dropped from $2.066 to $1.033 per share.
The Company's cash, cash equivalents, and short-term investments increased $0.3 million in the fourth quarter to $48.8 million on December 31, 2005. Recorded liabilities were $0.4 million. Based on current projections, the Company expects cash, cash equivalents and short-term investments on December 31, 2006 to be between $47.8 and $48.3 million. This estimate does not include any costs that may be associated with completing a merger, acquisition, in licensing of a product candidate, liquidation of the Company, or costs associated with pending litigation. There can be no assurance that such a range will be achieved, as actual expenditures and interest income may differ significantly from projected levels.
Approximately 10.9 million common equivalent shares were issued and outstanding on December 31, 2005, including 1.6 million shares underlying outstanding convertible preferred stock. Assuming the net exercise of in-the-money warrants and options at the closing price of the Company's stock as quoted on the Pink Sheets as of December 31, 2005, approximately 11.5 million common equivalent shares would be outstanding on December 31, 2005.
Certain of the foregoing statements, including statements regarding the Company's cash position on December 31, 2006 are forward-looking statements. Actual results could differ materially, depending on a variety of factors, including costs associated with pursuing various strategic alternatives, pending litigation and other risks and uncertainties described in the Company's filings with the Securities and Exchange Commission, including the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Moreover, the enumeration of potential strategic alternatives in this release does not mean that the Company will be able to achieve any of them successfully. These forward-looking statements speak only as of the date hereof and the Company disclaims any intent or obligation to update them.
IntraBiotics Pharmaceuticals, Inc.
Statements of Operations
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2005 2004 2005 2004
Operating expenses:
Research and development $-- $500 $255 $11,519
General and administrative 375 1,060 2,980 4,819
Restructuring charge -- 67 648 858
Total operating expenses 375 1,627 3,883 17,196
Operating loss (375) (1,627) (3,883) (17,196)
Interest income 459 292 1,502 700
Other income, (expense) (2) (29) (1) (204)
Change in fair value on
revaluation of warrants (789) (789) --
Net loss (707) (1,364) (3,171) (16,700)
Non-cash dividends on Series A
preferred stock (60) (65) (240) (260)
Net loss applicable to common
stockholders $(767) $(1,429) $(3,411) $(16,960)
Basic and diluted net loss per
share applicable to
common stockholders $(0.08) $(0.16) $(0.37) $(2.24)
Shares used to compute basic
and diluted net loss per
share applicable to common
stockholders 9,272 8,872 9,134 7,559
Condensed Balance Sheet Data
(In thousands)
December 31, December 31,
2005 2004
Cash, cash equivalents and short-term
investments $48,830 $50,743
Total assets $49,171 $51,185
Total stockholders' equity $48,815 $50,508
First Call Analyst:
FCMN Contact: spieker@hickeyhill.com
