BRANFORD, Conn., Jan. 31 CuraGen Corporation(Nasdaq: CRGN) today reported its consolidated financial results for thefourth quarter and fiscal year ended December 31, 2007.
CuraGen reported a loss from operations for the fourth quarter of 2007 of$11.0 million, or $0.20 per share, which included restructuring chargestotaling $2.7 million, or $0.05 per share, compared to a loss from operationsof $14.2 million, or $0.26 per share, for the fourth quarter of 2006.
For the year ended December 31, 2007, CuraGen reported a loss fromoperations of $59.6 million, or $1.07 per share, which included restructuringcharges totaling $11.3 million, or $0.20 per share. For the year endedDecember 31, 2007, CuraGen reported consolidated net income of $25.4 million,or $0.45 per share, driven by the recognition of the gain on the sale of non-core assets and on the repurchase of $40.1 million of CuraGen's convertiblesubordinated debentures.
As of December 31, 2007, CuraGen had cash, restricted cash and investmentsof $115.0 million. At December 31, 2007, CuraGen had outstanding convertibledebt of $69.9 million due February 2011, compared to $176.2 million atDecember 31, 2006.
2008 Guidance and Oncology Pipeline Milestones
During 2008, clinical trial results from ongoing studies evaluatingbelinostat and CR011-vcMMAE are expected to be reported. CuraGen currentlyanticipates using approximately $25 million of cash, including capitalexpenditures, to fund its operations, during 2008.
"Over the course of 2007, we strengthened our balance sheet by monetizingapproximately $91 million of non-core assets, and reducing our convertibledebt by approximately $106 million. With $115 million of cash and investmentsand a projected operating cash burn of approximately $25 million, we believethat we are in an excellent position to advance our core products, belinostatand CR011-vcMMAE, toward registrational development during 2008 and to fundoperations into 2011," commented Timothy Shannon, M.D., President and ChiefExecutive Officer of CuraGen.
A replay of the conference call will be available starting at 2:00 p.m.Eastern time on Thursday, January 31, 2008 through Saturday, March 1, 2008 bydialing 800-642-1687 (domestic) or 706-645-9291 (international). The passcodefor the replay is 31898426. An archive of the webcast will be available for 30days at http://www.curagen.com.
CuraGen Corporation (Nasdaq: CRGN) is a dedicated clinical-stagebiopharmaceutical company developing diverse approaches for the treatment ofcancer including the histone deacetylase inhibitor, belinostat, and theantibody-drug conjugate, CR011-vcMMAE. By leveraging drug developmentstrengths cultivated over the years, CuraGen expects to make a difference byadvancing its promising therapeutics to address the unmet medical needs ofcancer patients. CuraGen Corporation is headquartered in Branford,Connecticut. For additional information please visit http://www.curagen.com.
Statements in this press release regarding management's futureexpectations, beliefs, intentions, goals, strategies, plans or prospects,including statements relating to CuraGen's revenue, expenses, losses, income,and future cash and investment positions, including with respect to the fourthquarter and year ended December 31, 2007 and fiscal year 2008, the timing andexpected results of our clinical programs, and the development andmarketability of planned drugs, may constitute forward-looking statementswithin the meaning of the Private Securities Litigation Reform Act of 1995.Forward-looking statements can be identified by terminology such as"anticipate," "believe," "could," "could increase the likelihood," "estimate,""expect," "intend," "is planned," "may," "should," "will," "will enable,""would be expected," "look forward," "may provide," "would" or simila