PRESS RELEASE DATED MARCH 20, 2003
Published on March 21, 2003
EXHIBIT 99.1
[eXEGENICS LOGO]
Contact: WaLisa M. Davenport
EXEGENICS Inc.
(214) 358-2000
E. Blair Clark (Investors)
Kathy Jones, Ph.D. (Media)
Burns McClellan
(212) 213-0006
eXEGENICS REPORTS 2002 YEAR-END RESULTS
-- COMPANY FINISHES 2002 WITH $16.7 MILLION --
DALLAS, MARCH 20, 2003 - EXEGENICS Inc. (Nasdaq: EXEG) today announced results
for its year ended December 31, 2002.
For the year ended December 31, 2002, revenues decreased 58 percent to $562,000,
down from $1.3 million in 2001. The decrease was due primarily to the completion
of funding related to the company's research and development agreement with
Bristol-Meyers Squibb (NYSE: BMY), which agreement expired in June 2002.
The company reported a net loss in 2002 of $10.4 million, or ($0.67) per share,
as compared to a net loss in 2001 of $8.8 million, or ($0.51) per share. During
2002, the company modified its strategy to increase focus on the acquisition and
development of clinical drug candidates and eliminate most internal discovery
research. In connection with this strategic redirection, the Company recorded an
$864,000 charge, which compares to a similar charge of $560,000 in 2001. In the
fourth quarter of 2002, EXEGENICS incurred merger expenses of $2.0 million.
These expenses reflect costs associated with the company's agreement to merge
with a private entity and subsequent determination by both companies to
terminate the merger due to market conditions. Excluding the 2002 merger
expenses and strategic redirection charges in both years, the adjusted net loss
was 7.6 million, or ($0.48) per share in 2002 compared to $8.2 million, or
($0.52) per share, in 2001.
Research and development expenses in 2002 decreased 18 percent to $3.9 million
compared to $4.8 million in 2001. The decrease resulted from the company's
discontinuation of certain research programs. General and administrative
expenses decreased 26 percent to $4.8 million in 2002 compared to $6.4 million
in 2001. The decrease was due primarily to lower legal expenses and reduced
personnel costs. At December 31, 2002, the company had cash, cash equivalents,
restricted cash and investments of $16.7 million.
"2002 was a year in which we eliminated unpromising programs, reorganized and
initiated new projects and strategies in response to ongoing changes in markets
and technology," said Dr. Ronald L. Goode, Chairman, Chief Executive Officer and
President of EXEGENICS. "We have taken steps to significantly reduce our use of
cash while positioning ourselves to acquire and develop promising human drug
candidates that can lead to revenues. To assist us in achieving our goals we
have strengthened our board of directors and executive team by adding
experienced leaders in our industry."
ABOUT EXEGENICS INC.
EXEGENICS is a company focused on the acquisition and advancement of early stage
clinical drug candidates towards FDA approval. The company strategically selects
candidates for clinical trial advancement, choosing from technologies acquired
or licensed from external sources. For more information, please visit
http://www.eXegenicsinc.com.
SAFE HARBOR
THIS NEWS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS. SUCH STATEMENTS ARE VALID
ONLY AS OF TODAY, AND WE DISCLAIM ANY OBLIGATION TO UPDATE THIS INFORMATION.
THESE STATEMENTS ARE SUBJECT TO KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES THAT
MAY CAUSE ACTUAL FUTURE EXPERIENCE AND RESULTS TO DIFFER MATERIALLY FROM THE
STATEMENTS MADE. THESE STATEMENTS ARE BASED ON OUR CURRENT BELIEFS AND
EXPECTATIONS AS TO SUCH FUTURE OUTCOMES. DRUG DISCOVERY AND DEVELOPMENT INVOLVE
A HIGH DEGREE OF RISK. IN ADDITION, WE MAY NOT BE SUCCESSFUL IN OUR EFFORTS TO
OUTLICENSE CERTAIN OF OUR NON-CORE TECHNOLOGIES OR TO ACQUIRE CLINICAL
CANDIDATES FROM OUTSIDE SOURCES. FACTORS THAT MIGHT CAUSE SUCH A MATERIAL
DIFFERENCE INCLUDE, AMONG OTHERS, UNCERTAINTIES RELATED TO THE ABILITY TO
ATTRACT AND TO RETAIN PARTNERS FOR OUR TECHNOLOGIES, THE IDENTIFICATION OF LEAD
COMPOUNDS, THE SUCCESSFUL PRE-CLINICAL DEVELOPMENT THEREOF, THE COMPLETION OF
CLINICAL TRIALS, THE FDA REVIEW PROCESS AND OTHER GOVERNMENTAL REGULATION, ANY
PHARMACEUTICAL COLLABORATOR'S ABILITY TO SUCCESSFULLY DEVELOP AND COMMERCIALIZE
DRUG CANDIDATES, COMPETITION FROM OTHER PHARMACEUTICAL COMPANIES, PRODUCT
PRICING AND THIRD PARTY REIMBURSEMENT, AND OTHER FACTORS DESCRIBED IN OUR
FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.
EXEGENICS INC.
Condensed Financial Highlights
($,000 except EPS Data)