PALO ALTO, Calif., Nov. 7 Telik, Inc.(Nasdaq: TELK) reported a net loss of $11.6 million, or $0.22 per share, forthe third quarter ended September 30, 2007, compared with a net loss of $20.5million, or $0.39 per share, for the comparable period in 2006.
For the quarter ended September 30, 2007, total operating costs andexpenses were $13.0 million, compared with $22.6 million in the 2006 thirdquarter. Operating expenses in the 2007 third quarter included stock-basedcompensation expense of approximately $1.9 million. Operating expenses wereapproximately 42% lower in the third quarter of 2007 compared with the sameperiod in 2006, primarily as a result of reduced headcount following thecompany's restructuring implemented in February 2007, reduced clinical trialand related expenses, and lower stock-based compensation expense.
For the nine months ended September 30, 2007, Telik reported a net loss of$42.3 million, or $0.81 per share, compared with a net loss of $62.0 million,or $1.19 per share, for the nine months ended September 30, 2006. Totaloperating expenses for the first nine months of 2007 were $46.8 million,compared with $68.3 million for the first nine months of 2006. Operatingexpenses in the first nine months of 2007 included approximately $6.8 millionin stock-based compensation expense. The reduction in operating expenses ofapproximately 31% in the first nine months of 2007 compared with the sameperiod in 2006 was primarily due to reduced headcount following therestructuring, which was completed during the second quarter of 2007, reducedclinical trial and related expenses, and lower stock-based compensationexpense.
At September 30, 2007, Telik had $102.3 million in cash, cash equivalentsand investments including restricted investments, compared to $141.7 millionat December 31, 2006.
In October 2007, Telik announced that the U.S. Food and DrugAdministration (FDA) removed the partial hold on TELCYTA(R) (canfosfamide HCl,TLK286) clinical trials following a complete review of TELCYTA safety andefficacy documentation. The agency also examined records of the independentData Monitoring Committees that conducted oversight of the trials andconcluded that TELCYTA clinical trials may continue.
Also in October, Telik reported positive preclinical data from its programto develop novel small molecule inhibitors of validated cancer targetsincluding dual inhibitors of aurora kinases and VEGFR2. These potentialproduct candidates were discovered using the company's proprietary drugdiscovery technology, TRAP(R). The data were presented at the AACR-NCI-EORTCConference on Molecular Targets and Cancer Therapeutics.
Conference Call and Webcast
Telik will conduct its quarterly conference call today at 4:30 p.m.Eastern time (1:30 pm. Pacific time). The conference call will be accessiblevia Telik's website at http://www.telik.com or by telephone at 888-276-0009 or612-332-0819. An archive of the conference call will be available on the Telikwebsite or by telephone at 800-475-6701 or 320-365-3844, access code 893462.The archive will be available from approximately 8:30 p.m. Eastern time onNovember 7 through November 15, 2007.
Telik, Inc. of Palo Alto, CA is a biopharmaceutical company focused ondiscovering, developing and commercializing novel small molecule drugs totreat serious diseases. The company's most advanced drug developmentcandidates are TELCYTA(R), a tumor-activated small molecule product candidatein clinical development for the treatment of advanced ovarian cancer andnon-small cell lung cancer; and TELINTRA(R), which is in clinical developmentfor the treatment of myelodysplastic syndrome. Telik's product candidates werediscovered using its proprietary drug discovery technology, TRAP(TM), whichenables the rapid and efficient discovery of small molecule drug candidates.