Lexicon Pharmaceuticals Reports 2007 Third Quarter Financial Results
"We continued to make progress in our 10to10 initiative in the thirdquarter, completing the Phase 1b clinical trial of LX1031, our drug candidatefor the treatment of irritable bowel syndrome," said Arthur T. Sands, M.D.,Ph.D., Lexicon's president and chief executive officer. "The studiesdemonstrated that LX1031 was well-tolerated at all dose levels and we lookforward to advancing it into Phase 2 clinical trials in 2008."
"We were pleased to complete our strategically-important investment fromInvus in August," added Julia P. Gregory, Lexicon's executive vice presidentand chief financial officer. "Lexicon is on solid financial footing to executeour 10to10 drug discovery and development initiative."
Revenues: Lexicon's revenues for the three months ended September 30,2007 decreased 48 percent to $10.2 million from $19.6 million for thecorresponding period in 2006. The decrease was primarily attributable to therecognition of revenue in the year-earlier period under a contract with theNational Institutes of Health as well as reduced revenue under Lexicon'sneuroscience alliance with Bristol-Myers Squibb Company resulting from theconclusion of the revenue recognition period for the upfront payment receivedunder the alliance. For the nine months ended September 30, 2007, revenuesdecreased 36 percent to $36.3 million from $56.7 million for the correspondingperiod in 2006.
Research and Development Expenses: Research and development expenses forthe three months ended September 30, 2007 decreased nine percent to $24.5million from $27.0 million for the corresponding period in 2006. The decreasewas primarily due to the Company's early 2007 strategic realignmentreallocating resources from genetics research efforts to drug development.Lexicon's realignment was made possible by the scheduled completion of itsGenome5000(TM) program. This decrease was offset in part by higher externalpreclinical and clinical costs related to the advancement of Lexicon's drugdevelopment programs. For the nine months ended September 30, 2007, researchand development expenses decreased five percent to $77.4 million from $81.1million for the corresponding period in 2006.
General and Administrative Expenses: General and administrative expensesfor the three months ended September 30, 2007 decreased four percent to $5.1million from $5.3 million for the corresponding period in 2006. The decreasewas primarily attributable to lower personnel costs as a result of theCompany's personnel reductions in early 2007, offset by higher professional,legal and consulting fees. For the nine months ended September 30, 2007,general and administrative expenses decreased five percent to $15.4 millionfrom $16.3 million for the corresponding period in 2006.
Net Loss: Net loss for the three months ended September 30, 2007 was$14.1 million, or $0.14 per share, compared to a net loss of $12.8 million, or$0.20 per share, for the corresponding period in 2006. Net loss for the ninemonths ended September 30, 2007 was $46.6 million, or $0.53 per share,compared to a net loss of $40.5 million, or $0.63 per share, for thecorresponding period in 2006. The net loss for the three and nine monthsended September 30, 2007 included a benefit of $3.9 million and $8.2 million,respectively, attributable to the loss from noncontrolling interest inSymphony Icon, resulting from Lexicon's consolidation of Symphony Icon. Forthe three and nine months ended September 30, 2007, net loss includednon-cash, stock-based compensation expense of $1.6 million and $4.8 million,respectively.
Cash and Inv
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