SAN DIEGO, Nov. 13 SGX Pharmaceuticals(Nasdaq: SGXP) today announced financial results for the three and nine monthsended September 30, 2007. For the three months ended September 30, 2007, theCompany posted revenues of $7.6 million and a net loss of $4.8 million. Forthe nine months ended September 30, 2007, revenues were $27.1 million and thenet loss was $9.9 million. Cash, cash equivalents and short-term investmentstotaled $21.4 million at September 30, 2007 compared to $33.9 million atDecember 31, 2006.
"We are excited about the progress of our pipeline candidates thisquarter, particularly in our MET program, with submission of the SGX523 INDnow expected to take place ahead of schedule," said Mike Grey, President andChief Executive Officer. "We are continuing to evaluate partneringopportunities for our MET program and remain committed to maximizing the valueof this program for SGX and its stockholders while concurrently focusing ourenergies on submitting the IND in 2007 and initiating clinical studies ofSGX523 in early 2008."
Financial Results for the Three and Nine Months Ended September 30, 2007
Total revenues for the three months ended September 30, 2007 were$7.6 million, compared to $6.8 million for the three months endedSeptember 30, 2006. Total revenues for the nine months ended September 30,2007 were $27.1 million, compared to $19.3 million in the nine months endedSeptember 30, 2006. The increase of $0.8 million for the three month periodwas primarily attributable to additional revenues associated with theadditional expenditures incurred in connection with our federal research grantand additional services provided under other commercial agreements. Theincrease of $7.8 million for the nine month period was primarily due toadditional revenue earned through our collaboration with Novartis, togetherwith the achievement of a milestone, and additional services provided, underother commercial agreements. The increase for the nine month period endedSeptember 30, 2007 also reflects the recognition of revenue in the firstquarter of 2007 related to the reimbursement of overhead costs incurred ongrant research efforts since the commencement of the grant in July 2005.
Research and development expenses for the three months ended September 30,2007 and 2006 were $10.5 million and $8.6 million, respectively. Research anddevelopment expenses for the nine months ended September 30, 2007 and 2006were $31.0 million and $35.6 million, respectively. The increase of$1.9 million for the three month period was primarily attributable toincreased costs related to the development of our MET inhibitors. Thedecrease of $4.6 million for the nine month period was primarily attributableto a decrease of costs incurred for Troxatyl(TM) clinical trial activities, areduction in subcontractor expenditures associated with our federal researchgrant, and lower depreciation expense.
General and administrative expenses for the three months ended September30, 2007 and 2006 were $2.1 million and $1.9 million, respectively. Generaland administrative expenses for the nine months ended September 30, 2007 and2006 were $6.4 million and $7.4 million, respectively. The increase of$0.2 million for the three month period was primarily attributable toincreased professional services. The decrease of $1.0 million for the ninemonth period was primarily attributable to a decrease in non-cash stock-basedcompensation expense, together with a decrease in recruiting, salaries andprofessional services.
SGX reported a net loss attributable to common stockholders for the threemonths ended September 30, 2007 of $4.8 million, or $0.31 per share. Thiscompares with a net loss attributable to common stockholders for the threemonths ended September 30, 2006 of $3.4 million, or $0.23 per share. For thenine months ended September 30, 2007, the net loss attributable to com