During the three month period ended September 30, 2008, CuraGen utilized$3.6 million of cash for operations and ended the quarter with $91.4 millionof cash and investments. CuraGen expects to utilize an average of $3 to$4 million of cash per quarter through June 2009. The company expects to endthe fourth quarter of 2008 with approximately $87 to $89 million in cash andinvestments, and end the second quarter of 2009 with approximately $79 to$81 million in cash and investments. CuraGen is also pursuing partnershipopportunities around CR011-vcMMAE.
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"Since the beginning of 2007, we have systematically strengthened our netcash position by $84 million and reduced our cash burn by 73%. We have soldclinical programs and non-core assets generating $129 million, repurchaseddebt of $91 million at a discount of $17 million and reduced the operatingburn from $13.3 million in the first quarter of 2007 to $3.6 million in thethird quarter of 2008. We are now in a position to take advantage of ourprudent actions in what has become a financially-distressed environment,"commented Dr. Timothy M. Shannon, President and Chief Executive Officer.
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For the quarter ended September 30, 2008, CuraGen reported a net loss of$4.0 million, or $0.07 per share, compared to a loss of $9.9 million, or $0.18per share, for the same period in 2007. For the nine months ended September30, 2008, CuraGen reported net income of $28.5 million, or $0.50 per share, ascompared to net income of $28.0 million, or $0.50 per share, for the sameperiod in 2007. Net income for the nine months ended September 30, 2008 and2007 was primarily due to a gain of the sale of belinostat and a gain on theextinguishment of debt in the second quarter of 2008, and the sale of 454 LifeSciences Corporation in the second quarter of 2007.
"We are encouraged by the Phase II results and activity of CR011-vcMMAE inpatients with metastatic melanoma that we announced concurrently today, and wewill be engaging in discussions with potential partners as we develop plansfor the advanced stages of development. The goal of a partnership will be tosupport the financial, development and commercial resources that will berequired in advanced development, improving the risk profile to CuraGenshareholders while maintaining upside potential," stated Dr. Shannon. "We arealso actively evaluating strategic opportunities that can accelerate anincrease in shareholder value."
A replay of the conference call will be available starting at 2:00 p.m.Eastern time on Monday, November 3, 2008 through Wednesday, December 3, 2008by dialing 800-642-1687 (domestic) or 706-645-9291 (international). Thepasscode for the replay is 71190212. An archive of the webcast will beavailable for 30 days at http://www.curagen.com.
About CuraGen
CuraGen Corporation (Nasdaq: CRGN) is a clinical-stage biopharmaceuticalcompany developing promising approaches for the treatment of cancer. CuraGenCorporation is headquartered in Branford, Connecticut. For additionalinformation please visit http://www.curagen.com.
Forward-Looking Statements
Statements in this press release regarding management's futureexpectations, beliefs, intentions, goals, strategies, plans or prospects,including statements relating to the CuraGen's pursuit of partnershipopportunities and discussion with potential partners, revenue, expenses,depreciation, amortization, asset impairment charges, losses, income, andfuture cash utilization and cash and investment positions, the timing andexpected results of its 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 similar terms,variations of such terms or the negative of those terms. Such forward-lookingstatements involve known and unknown risks, uncertainties and other factors,including the risk that CuraGen's pursuit of partnership opportunities willnot proceed as planned or that any one or more of CuraGen's drug developmentprograms will not proceed as planned for technical, scientific or commercialreasons or due to patient enrollment issues or based on new information fromnonclinical or clinical studies or from other sources, as well as riskassociated with the success of competing products and technologies, CuraGen'sstage of development as a biopharmaceutical company, government regulation andhealthcare reform, technological uncertainty and product development risks,product liability exposure, uncertainty of additional funding, CuraGen'sability to comply with Nasdaq listing requirements, CuraGen's history ofincurring losses and the uncertainty of achieving profitability, reliance onresearch collaborations and strategic alliances, competition, patentinfringement claims against CuraGen's products, processes and technologies,CuraGen's ability to protect its patents and proprietary rights anduncertainties relating to commercialization rights, as well as those risks,uncertainties and factors referred to under the section "Risk Factors" inCuraGen's Quarterly Report on Form 10-Q for the quarter ended June 30, 2008,filed with the Securities and Exchange Commission as well as other documentsthat may be filed by CuraGen from time to time with the Securities andExchange Commission. As a result of such risks, uncertainties and factors,CuraGen's actual results may differ materially from any future results,performance or achievements discussed in or implied by the forward-lookingstatements contained herein. CuraGen is providing the information in thispress release as of this date and assumes no obligations to update theinformation included in this press release or revise any forward-lookingstatements, whether as a result of new information, future events orotherwise.Conference Call Details and Dial-in Information Date: Monday, November 3, 2008 Time: 11:00 a.m. EDT Dial-in: 877-272-5391 (domestic) 706-758-4315 (international) Passcode: 71190212 Webcast: Access available at http://www.curagen.com
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