Medindia LOGIN REGISTER
Medindia
Advertisement

Kosan Announces First Quarter 2008 Financial Results

Friday, May 2, 2008 General News
Advertisement
HAYWARD, Calif., May 1 Kosan BiosciencesIncorporated (Nasdaq: KOSN) today reported financial results for the quarterended March 31, 2008.

Net loss for the quarter ended March 31, 2008 was $8.5 million, or $0.20per share, compared to net income of $2.7 million, or $0.07 per share, in thesame period last year.
Advertisement

Revenues were $4.6 million for the first quarter of 2008, compared to$12.9 million in the same period in 2007. Revenues for the quarter were fordevelopment activities under the Roche-Kosan global development andcommercialization agreement for epothilones and included $3.3 million for theremaining amortization of the up-front fee from Roche. Revenues for the sameperiod last year included $10.7 million for amortization of the up-front feereceived from Pfizer, Inc for the Company's worldwide motilin agonistagreement.
Advertisement

Total operating expenses were $13.7 million, including non-cashstock-based compensation expense of $0.5 million, for the quarter ended March31, 2008, compared to $11.1 million for the same period last year. Researchand development expenses were $10.8 million for the quarter ended March 31,2008, compared to $9.0 million in the same period in 2007. The increase forthe first quarter compared to the same period in the prior year is primarilydue to the continued clinical development of the Kosan's Hsp90 inhibitor andepothilone programs, including the initiation of TIME-1, Kosan's pivotal Phase3 trial for tanespimycin as a potential treatment for multiple myeloma, and aPhase 2 trial of epothilone KOS-1584 in patients with non-small cell lungcancer, and costs associated with the Company's previously announced corporaterestructuring.

General and administrative expenses were $2.9 million for the quarterended March 31, 2008, compared to $2.2 million in the same period in 2007. Theincrease for the first quarter compared to the same period in the prior yearwas primarily due to costs associated with the Company's restructuring and theresignation of the former chief executive officer.

At March 31, 2008, cash, restricted cash and marketable securities totaled$59.0 million, compared to $71.0 million at December 31, 2007.

"In the first quarter of 2008, we advanced tanespimycin into aregistration trial for multiple myeloma, initiated a Phase 2 trial innon-small cell lung cancer for our lead epothilone, KOS-1584 and transformedour company into a leaner, stronger and more strategically focusedorganization," said Helen S. Kim, Kosan's President and Chief ExecutiveOfficer. "Kosan today is operating as a product-focused, commercially drivenenterprise. Our resources, efforts and personnel are focused on advancingtanespimycin and KOS-1584, our lead product candidates, along clearly definedclinical and regulatory paths."

Conference Call and Webcast Today

Kosan will hold a conference call to discuss the Company's first quarter2008 financial results today at 1:30 p.m. Pacific / 4:30 p.m. Eastern. Toaccess the live call, please dial 888.680.0878 (US) or 617.213.4855(international), access code 63268386. Interested parties may listen to thewebcast live at http://www.kosan.com by clicking on the "Webcasts" tab underthe heading "Investors/Press." The webcast is also being distributed overThomson's Investor Distribution Network to both institutional and individualinvestors. Individual investors can listen to the call through Thomson'sindividual investor center at http://www.earnings.com or by visiting any ofthe investor sites in Thomson's Individual Investor Network. Institutionalinvestors can access the call via Thomson's password-protected eventmanagement site, StreetEvents, at http://www.streetevents.com. A telephonicreplay will be available through May 8, 2008 by dialing 888.286.8010, accesscode: 17626068. International callers can dial 617.801.6888, access code:17626068.

About Kosan

Kosan Bi
Sponsored Post and Backlink Submission


Latest Press Release on General News

This site uses cookies to deliver our services.By using our site, you acknowledge that you have read and understand our Cookie Policy, Privacy Policy, and our Terms of Use  Ok, Got it. Close