UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2000
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission file number: 0-28006
MICROCIDE PHARMACEUTICALS, INC.
(Exact name of registrant as specified in its charter)
Delaware 94-3186021
(State or other jurisdiction (I.R.S. Employer
of incorporation of organization) Identification Number)
850 Maude Avenue, Mountain View, California 94043
(Address of principal executive offices) (ZIP Code)
Registrant's telephone number, including area code: 650-428-1550
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes _X_ No ___
Number of shares of Common Stock, no par value, outstanding as of July 31, 2000:
11,343,381
<PAGE>
MICROCIDE PHARMACEUTICALS, INC.
INDEX FOR FORM 10-Q
JUNE 30, 2000
PAGE
NUMBER
PART I FINANCIAL INFORMATION
Item 1. Financial Statements and Notes
Condensed Balance Sheets as of June 30, 2000 3
and December 31, 1999
Condensed Statements of Operations for the three and six
months ended June 30, 2000 and June 30, 1999 4
Condensed Statements of Cash Flows for the six months
ended June 30, 2000 and June 30, 1999 5
Notes to Condensed Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
Item 3. Quantitative and Qualitative Disclosures about Market Risk 12
PART II OTHER INFORMATION 13
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults in Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES 15
2
<PAGE>
<TABLE>
MICROCIDE PHARMACEUTICALS, INC.
CONDENSED BALANCE SHEETS
(in thousands)
<CAPTION>
June 30, December 31,
2000 1999
----------- ------------
(Unaudited) (Note)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 4,209 $ 5,660
Short-term investments 14,914 19,208
Receivables, prepaid expenses and other current assets 1,071 443
-------- --------
Total current assets 20,194 25,311
Property and equipment, net 6,711 7,592
Other assets 921 928
-------- --------
Total assets $ 27,826 $ 33,831
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 478 $ 358
Accrued compensation 976 984
Current portion of notes payable 1,522 1,440
Deferred revenue 1,043 387
Other accrued liabilities 718 695
-------- --------
Total current liabilities 4,737 3,864
Long-term portion of notes payable 1,127 1,907
Accrued rent 226 257
Stockholders' equity:
Common stock 68,010 67,112
Accumulated deficit (46,214) (39,243)
Accumulated other comprehensive loss (60) (66)
-------- --------
Total stockholders' equity 21,736 27,803
-------- --------
Total liabilities and stockholders' equity $ 27,826 $ 33,831
======== ========
<FN>
NOTE: The balance sheet at December 31, 1999 has been derived from the audited financial statements
at that date but does not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements.
See Notes to Condensed Financial Statements.
</FN>
</TABLE>
3
<PAGE>
<TABLE>
MICROCIDE PHARMACEUTICALS, INC.
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------- ------------------------------
2000 1999 2000 1999
-------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Research revenues $ 1,521 $ 1,545 $ 2,654 $ 3,938
Other revenues -- -- -- 299
-------- -------- -------- --------
Total revenues 1,521 1,545 2,654 4,237
Operating expenses:
Research and development 4,112 4,457 8,169 9,205
General and administrative 1,083 979 1,925 1,984
-------- -------- -------- --------
Total operating expenses 5,195 5,436 10,094 11,189
-------- -------- -------- --------
Loss from operations (3,674) (3,891) (7,440) (6,952)
Interest and other income, net 223 248 469 587
-------- -------- -------- --------
Net loss $ (3,451) $ (3,643) $ (6,971) $ (6,365)
======== ======== ======== ========
Basic and diluted net loss per share $ (0.31) $ (0.33) $ (0.62) $ (0.58)
======== ======== ======== ========
Shares used in computing
basic and diluted net loss per share 11,309 11,078 11,261 11,052
<FN>
See Notes to Condensed Financial Statements.
</FN>
</TABLE>
4
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<TABLE>
MICROCIDE PHARMACEUTICALS, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
Increase (decrease) in cash and cash equivalents
(unaudited)
<CAPTION>
Six Months Ended
June 30,
---------------------------------------
2000 1999
---------------- ---------------
<S> <C> <C>
Cash flows used in operating activities:
Net loss $ (6,971) $ (6,365)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation and amortization 1,260 1,396
Amortization of deferred compensation -- 251
Accrued rent (31) 102
Changes in assets and liabilities:
Receivables, prepaid expenses and other current assets (628) (1,831)
Other assets 7 42
Accounts payable 120 (482)
Accrued compensation and other accrued liabilities 15 (71)
Deferred revenue 656 37
-------- --------
Net cash used in operating activities (5,572) (6,921)
-------- --------
Cash flows used in investing activities:
Purchase of short-term investments (6,700) (16,212)
Maturities of short-term investments 11,000 25,907
Capital expenditures (379) (403)
-------- --------
Net cash provided by investing activities 3,921 9,292
-------- --------
Cash flows from financing activities:
Principal payments on notes payable (698) (513)
Net proceeds from issuance of common stock 898 91
-------- --------
Net cash provided by (used in) financing activities 200 (422)
-------- --------
Net increase (decrease) in cash and cash equivalents (1,451) 1,949
Cash and cash equivalents, beginning of period 5,660 7,794
-------- --------
Cash and cash equivalents, end of period $ 4,209 $ 9,743
======== ========
Supplemental disclosure of cash flow information:
Interest paid $ 143 $ 189
======== ========
<FN>
See Notes to Condensed Financial Statements.
</FN>
</TABLE>
5
<PAGE>
MICROCIDE PHARMACEUTICALS, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
June 30, 2000
(Unaudited)
1. Summary of Significant Accounting Policies
Organization and Basis of Presentation
Microcide Pharmaceuticals, Inc. (the "Company") is a biopharmaceutical
company whose mission is to discover, develop and commercialize novel
antimicrobials for the improved treatment of serious bacterial, fungal and viral
infections. The Company's discovery and development programs address the growing
problem of bacterial drug resistance and the need for improved antifungal and
antiviral agents through two principal themes: (i) Targeted Antibiotics, which
focuses on developing novel antibiotics and antibiotic potentiators to directly
address existing bacterial and fungal resistance problems, and (ii) Targeted
Genomics, which utilizes bacterial, fungal and viral genetics to discover new
classes of antimicrobials and other novel treatments for infectious diseases.
The accompanying unaudited condensed financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Rule 10-01 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. The results of operations for the interim periods shown herein
are not necessarily indicative of operating results for the entire year.
This unaudited financial data should be read in conjunction with the
financial statements and footnotes contained in the Company's annual report on
Form 10-K for the year ended December 31, 1999.
2. Net Loss per Share
Basic earnings (loss) per share is calculated using the weighted
average number of common shares outstanding. Because the Company is in a net
loss position, diluted earnings per share is calculated using the weighted
average number of common shares outstanding and excludes the effects of options
which are antidilutive. Had the Company been in a net income position, diluted
earnings per share would have included the shares used in the computation of
basic net loss per share as well as an additional 1,706,304 and 1,513,148 shares
for 2000 and 1999, respectively, related to outstanding options not included
above (as determined using the treasury stock method at the estimated average
market value).
3. Comprehensive Loss
Comprehensive income (loss) is comprised of net income (loss) and other
comprehensive income (loss). Other comprehensive income (loss) includes certain
changes in equity that are excluded from net income (loss). Specifically,
unrealized holding gains and losses on our available-for-sale securities, which
were reported separately in stockholders' equity, is included in accumulated
other comprehensive income (loss). Comprehensive income (loss) for years ended
December 31, 1999, 1998 and 1997 has been reflected in the Statement of
Stockholders' Equity.
6
<PAGE>
4. Revenue Recognition
In December 1999, the Securities and Exchange Commission issued Staff
Accounting Bulletin No. 101 ("SAB 101"), "Revenue Recognition in Financial
Statements." SAB 101 summarizes certain areas of the staff's views in applying
generally accepted accounting principles to revenue recognition. SAB 101 is
required to be adopted by December 31, 2000. The Company is in the process of
assessing the impact of SAB 101 and does not expect that the implementation of
SAB 101 will have a material effect.
5. Subsequent Events
In August 2000, Iconix Pharmaceuticals, Inc. ("Iconix"), a
biotechnology company in which Microcide held approximately a 32% interest,
announced that it had entered into a strategic relationship with Motorola's
BioChip Systems unit to enable the creation of a next-generation chemical
genomic database. The partnership includes a multiyear agreement under which
Iconix will validate the beta release of Motorola's new CodeLink(TM) Expression
System and then become one of the first high volume users of the system. As part
of the relationship, Motorola has made an equity investment in Iconix and
received rights to distribute the resulting Iconix ChemExpress(TM) product, a
large-scale database that connects gene expression profiles, chemicals and
biological activities within a flexible informatics system, as a part of future
BioChip System solutions. This investment reduced Microcide's holdings in Iconix
to approximately 29%.
7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Overview
As part of the Company's strategy to enhance its research and
development capabilities and to fund, in part, its capital requirements,
Microcide entered into collaborative agreements with three major pharmaceutical
companies. Pursuant to the Company's collaborative agreements with Johnson &
Johnson ("J&J"), Daiichi and Pfizer (the "Collaborative Agreements"), the
Company has received license fees, milestone payments and research support
payments, and can potentially receive additional research support payments,
milestone payments and royalty payments. License payments are typically
nonrefundable up-front payments for licenses to develop, manufacture and market
products, if any, that are developed as a result of the collaboration. Research
support payments are typically contractually obligated payments to fund research
and development over the term of the collaboration. Milestone payments are
payments contingent upon the achievement of specified milestones, such as
selection of candidates for drug development, the commencement of clinical
trials or receipt of regulatory approvals. If drugs are successfully developed
and commercialized as a result of the Collaborative Agreements, the Company will
receive royalty payments based upon the net sales of such drugs. In addition,
the Company has derived other revenues principally through the sale of molecular
diversity to other pharmaceutical and biotechnology companies for use in their
research programs, and through short-term contract research.
Through June 30, 2000, the Company had received in the aggregate $52.0
million in license fees, milestone payments and research support payments under
the Collaborative Agreements. The funded research portion of the Collaborative
Agreements with Daiichi and J&J concluded at the end of the first and fourth
quarters of 1999, respectively. In November 1999, J&J commenced Phase I clinical
trials of the cephalosporin compound developed during the Microcide-J&J
Gram-positive research collaboration. In February 2000, the November 1995
Daiichi agreement was amended to focus on advancing a particular class of efflux
pump inhibitor compounds for pre-clinical development. The March 1996 Pfizer
agreement was amended effective March 2000, and funding for the fifth year is at
a reduced amount.
In May 2000, the Company and Daiichi signed a new joint research
agreement for a one year term whereby Daiichi will provide research support
payments for discovering and developing inhibitors that will overcome the effect
of efflux pumps in Pseudomonas aeruginosa. The Company also signed an agreement
with Coelacanth Corporation for joint research, in which Coelacanth will provide
novel libraries of compounds for screening in a broad range of Microcide assays
directed at the identification of innovative antiviral, antifungal and
antibacterial therapeutic agents. The agreement gives the Company worldwide
rights to develop compounds that emerge from the collaboration, while Coelacanth
will receive development milestone payments and royalties on product sales.
Assuming that the Daiichi and Pfizer Agreements are not terminated prior to
their scheduled expiration dates, the Company will be entitled to receive an
additional $2.9 million in research support payments.
In the event that the Company and its collaborators achieve the
specified research and product development milestones, it will be entitled to
receive milestone payments as follows: up to $16.5 million for the first product
and up to $15.5 million for each additional product developed pursuant to the
J&J Agreements, up to $13.0 million for each product developed pursuant to the
Daiichi Agreements and up to $32.5 million for each product developed pursuant
to the Pfizer Agreements. The Pfizer Animal Health collaboration provides for a
lower level of milestone payments than those applicable to human health
applications. Receipt of these milestone payments is contingent upon achieving
specified research and product development milestones, a number of which may not
be achieved for several years, if ever. While the Collaborative Agreements
provide for royalty payments on future products that may result, the Company
does not expect to receive royalties based upon net sales of drugs for a
significant number of years, if at all.
The Company has incurred substantial losses in the past and expects to
continue to incur operating losses over the next several years. Quarterly
results of operations are subject to significant fluctuations based on the
timing and amount of certain revenues earned under the Collaborative Agreements.
Fluctuations in the Company's operating results
8
<PAGE>
and market conditions for biotechnology stocks in general could have a
significant impact on the volatility of the market price for the common stock
and on the future price of the common stock. The stock market has experienced
significant price and volume fluctuations that are often unrelated to the
operating performance of particular companies. The market price of the common
stock, like that of the securities of many other biopharmaceutical companies,
has been and is likely to continue to be highly volatile.
The biotechnology industry is highly competitive, and new developments
are occurring at an increasing pace. Competition from biotechnology and
pharmaceutical companies, joint ventures, academic and other research
institutions and others is intense and is expected to increase. Many competitors
have substantially greater financial, technical and personnel resources than the
Company has. Although the Company believes that it has identified new and
distinct approaches to drug discovery, there are other companies with drug
discovery programs, at least some of the objectives of which are the same as or
similar to the Company's. Competing technologies may be developed which would
render the Company's technologies obsolete or non-competitive.
This Form 10-Q contains forward-looking statements based upon current
expectations, including statements with regard to the potential receipt of
additional research support payments, milestone payments and royalties from the
Company's collaborative partners, the successful development and
commercialization of drugs and the receipt of royalties thereon or sales revenue
therefrom, and the period of time for which the Company's existing financial
resources, interest income and future payments under Collaborative Agreements
will be sufficient to enable the Company to maintain current and planned
operations, the continuation of the Company's Collaborative Agreements with its
strategic partners, the potential impact of any latent Year 2000 issues and the
market risk of the Company's investments. Such forward-looking statements
involve risks and uncertainties, including, without limitation, the following.
There is no assurance that any compounds discovered will successfully proceed
through pre-clinical development and clinical trials, obtain requisite
regulatory approvals for marketing or result in a commercially useful product.
There is no assurance that the Company will successfully continue existing
corporate collaborations. There is no assurance that any development candidates
will be identified, that any selected development candidates will proceed
through pre-clinical trials or will prove safe and effective for treatment of
humans or animals in clinical trials. There is no assurance that the
identification, selection, manufacture, pre-clinical testing, and clinical
testing of development candidates will not take substantially longer or not be
substantially more expensive than contemplated by the Company. There is no
assurance that the Company will be able to obtain on a timely basis government
regulatory clearance required for clinical testing, manufacturing, and marketing
of its products. There is no assurance that any latent Year 2000 issues will not
have a material impact on the Company. For a discussion of other risks and
uncertainties affecting the Company's business, see the Company's annual report
on Form 10-K for the year ended December 31, 1999. The Company's actual results
and timing of certain events may differ significantly from the results discussed
in such forward-looking statements as a result of these or other factors.
Results of Operations
Three Months Ended June 30, 2000 and June 30, 1999
Revenues. Total revenues for the second quarter of 2000 were $1.5 million, the
same as in the second quarter of 1999. Revenues were largely derived from the
corporate collaborations with Pfizer and Daiichi. The decline in comparative
revenues from J&J and Pfizer is offset by an increase in research support
revenues from the new joint research agreement with Daiichi and contract
research revenues from other companies funding exploratory research.
Research and Development Expenses. Research and development expenses for the
second quarter decreased from $4.5 million in 1999 to $4.1 million in 2000. The
decrease was due primarily to lower compensation expenses resulting from a
reduction in headcount and lower spending for outside services. Research and
development expenses are not expected to materially change in the third quarter.
General and Administrative Expenses. General and administrative expenses for the
second quarter were $1.1 million, approximately the same as the first quarter of
1999.
9
<PAGE>
Interest Income, net. Interest income for the second quarter decreased from
$365,000 in 1999 to $288,000 in 2000, primarily due to a decrease in average
cash balances. Interest expense for the second quarter of 2000 decreased from
$117,000 in the second quarter of 1999 to $66,000 in the second quarter of 2000
primarily due to the declining balance on an equipment financing loan.
Six Months Ended June 30, 2000 and June 30, 1999
Revenues. Total revenues for the first half of 2000 were $2.7 million, a
decrease from $4.2 million in revenues recognized in the first half of 1999.
Revenues were largely derived from the corporate collaborations with Pfizer and
Daiichi. The decline in comparative revenues from Daiichi, J&J and Pfizer is
offset by an increase in research support revenues from the new joint research
agreement with Daiichi and contract research revenues from other companies
funding exploratory research.
Research and Development Expenses. Research and development expenses for the
first half of 2000 decreased from $9.2 million in 1999 to $8.2 million in 2000.
The decrease was due primarily to lower compensation expenses resulting from a
reduction in headcount, lower research support expenses associated with the
Company's antiviral discovery program with Iconix and lower spending for
research supplies and outside services.
General and Administrative Expenses. General and administrative expenses for the
first half of 2000 decreased from $2.0 million in 1999 to $1.9 million in 2000.
The decrease was due primarily to lower compensation expenses resulting from a
reduction in headcount.
Interest Income, net. Interest income for the first half of 2000 decreased from
$770,000 in 1999 to $610,000 in 2000, primarily due to a decrease in average
cash balances. Interest expense for the first half of 2000 decreased from
$188,000 in 1999 to $143,000 in 2000 primarily due to the declining balance on
an equipment financing loan.
Liquidity and Capital Resources
The Company has financed its operations since inception primarily
through the sale of equity securities, through funds provided under the
Collaborative Agreements, through other revenues principally consisting of sales
of molecular diversity and contract research and through equipment financing. As
of June 30, 2000, the Company had received $65.7 million from the sale of equity
and $52.0 million in cash from license and milestone fees and research support
payments under the Collaborative Agreements.
Cash, cash equivalents and short-term investments at June 30, 2000 were
$19.1 million compared to $24.9 million at December 31, 1999. The decrease
during the first half of 2000 was due primarily to cash used by operations of
$5.6 million, $379,000 in capital expenditures and $698,000 utilized in
financing activities, mainly principal payments on the Company's equipment
financing arrangement. This was partially offset by $898,000 in net proceeds
from the issuance of common stock from the exercise of stock options.
The Company expects that its existing capital resources, interest
income and future payments due under the Collaborative Agreements will enable
the Company to maintain current and planned operations at least through 2001. In
the event that the Company requires additional funding at any point in the
future, the Company will seek to raise such additional funding from other
sources, including other collaborative arrangements, and through public or
private financings, including sales of equity or debt securities. Any such
collaborative or licensing arrangement could result in limitations on the
Company's ability to control the commercialization of resulting drugs, if any,
and could limit profits, if any, therefrom. Any such equity financing could
result in dilution to the Company's then-existing stockholders. There can be no
assurance that additional funds will be available on favorable terms or at all,
or that such funds, if raised, would be sufficient to permit the Company to
continue to conduct its operations. If adequate funds are not available, the
Company may be required to curtail significantly or eliminate one or more of its
research programs.
10
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Impact of Year 2000
In prior periods, the Company has discussed its plans and status
relating to potential computer system malfunctions relating to the "Year 2000"
issue, whereby computer systems would not be able to distinguish between dates
in the 20th century versus the 21st century. In late 1999, the Company completed
its assessment, repair, upgrade and replacement of its computer systems and
research equipment, as well as an analysis of the readiness of third parties
with whom the Company interacts. As a result of its planning and remediation
efforts, the Company experienced no significant disruptions in its information
technology and non-information technology systems and believes that those
systems successfully responded to the Year 2000 date change.
As of June 30, 2000, the Company is not aware of any material problems
resulting from Year 2000 issues, either with its computer systems or research
equipment with embedded chips or software. The Company will continue to monitor
its information technology systems and those of its suppliers and vendors
throughout the Year 2000 to ensure that any latent Year 2000 matters that may
arise are addressed promptly. Management does not believe that any latent Year
2000 changes will have a material adverse impact on the Company's financial
condition or results of operations. To date, costs related to the Year 2000
issues have not been material.
11
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The following discussion about the Company's market risk disclosure
involves forward-looking statements. The Company is exposed to market risk
related mainly to changes in interest rates. The Company does not invest in
derivative financial instruments.
Interest Rate Sensitivity
The fair value of the Company's investments in marketable
securities at June 30, 2000 was $17.6 million. The Company's investment policy
is to manage its marketable securities portfolio to preserve principal and
liquidity while maximizing the return on the investment portfolio. The Company's
marketable securities portfolio is primarily invested in corporate debt
securities with an average maturity of under one year and a minimum investment
grade rating of A or A-1 or better to minimize credit risk. Although changes in
interest rates may affect the fair value of the marketable securities portfolio
and cause unrealized gains or losses, such gains or losses would not be realized
unless the investments are sold prior to maturity.
Foreign Currency Exchange Risk
At this time, the Company does not participate in any foreign
currency exchange activities; therefore, is not subject to risk of gains or
losses for changes in foreign exchange rates.
12
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PART II OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities
None.
Item 3. Defaults in Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
(a) The Annual Meeting of Stockholders of Microcide Pharmaceuticals,
Inc. was held on June 15, 2000.
(b) The following Class I Directors were elected to serve for a term of
three years to expire at the Company's 2003 Annual Meeting of
Stockholders:
Name Position Term Expires
----------------------- ------------------- ------------
Daniel L. Kisner, M.D. Class I Director 2003
David Schnell, M.D. Class I Director 2003
Mark B. Skaletsky Class I Director 2003
The following Class II and III Directors continue to serve their
respective terms which expire at the Company's Annual Meeting of
Stockholders in the year as noted:
Name Position Term Expires
---------------------------- -------------------------- ------------
Keith A. Bostian, Ph.D. Class III Director 2002
Hugh Y. Rienhoff, Jr., M.D. Class II Director 2001
James E. Rurka Class III Director 2002
John P. Walker Chairman, Class II Director 2001
(c) The matters voted upon at the meeting and the voting results were
as follows:
(i) The election of three Class I Directors for a term of three
years:
Name For Against Not Voted
--------------------- ----------- ----------- ---------
Daniel L. Kisner, M.D. 8,828,240 394,849 2,070,178
David Schnell, M.D. 8,826,696 396,393 2,070,178
Mark B. Skaletsky 8,821,009 402,080 2,070,178
(ii) Approval of amendment to the Company's 1993 Amended Incentive
Stock Plan, increasing the number of shares of Common Stock
reserved for issuance from 2,580,000 to 3,030,000:
For Against Abstain Not Voted
-------------- ------------- ------------ ---------
8,540,631 671,519 10,939 2,070,178
13
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(iii)Ratification of the appointment of Ernst & Young LLP as
independent auditors for the fiscal year ending December 31,
2000:
For Against Abstain Not Voted
-------------- ------------- ------------ ---------
9,205,342 8,187 9,560 2,070,178
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
(a) The following exhibits have been filed with this report:
10.31 Research Agreement by and between the Registrant and Daiichi
Pharmaceutical Co., Ltd. dated May 8, 2000.
27.1 Financial Data Schedule
(b) Reports on Form 8-K.
No reports on Form 8-K were filed during the quarter ended June 30,
2000.
14
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Dated: August 14, 2000
MICROCIDE PHARMACEUTICALS, INC.
-------------------------------
(Registrant)
/s/ James E. Rurka
------------------------------------------------
James E. Rurka
President, Chief Executive Officer and Director,
(principal executive officer)
/s/ Donald D. Huffman
------------------------------------------------
Donald D. Huffman
Vice President, Finance and Corporate Development,
Chief Financial Officer
(principal financial and accounting officer)
15
