<PAGE>
Contact:
Robin Fastenau Douglas MacDougall
Director of Investor Relations Kari Lampka
Triangle Pharmaceuticals, Inc. Feinstein Kean Healthcare
(919) 493-5980 (617) 577-8110
www.tripharm.com www.fkhealth.com
For Immediate Release:
TRIANGLE PHARMACEUTICALS, INC. REPORTS FINANCIAL RESULTS
FOR THE THIRD QUARTER 2000
- COMPANY SECURES $100 MILLION EQUITY FINANCING COMMITMENT -
Durham, N.C., November 2, 2000 -- Triangle Pharmaceuticals, Inc. (Nasdaq: VIRS)
today reported financial results for the third quarter ended September 30, 2000.
For the quarter ended September 30, 2000, the Company reported a net loss of
$26,057,000, or ($0.68) per share, compared to a net loss of $22,563,000, or
($0.64) per share in the third quarter of 1999. For the nine months ended
September 30, 2000, the Company reported a net loss of $84,200,000, or ($2.21)
per share, compared to a net loss of $73,423,000, or ($2.34) per share for the
same nine month period in 1999. Cash, cash equivalents and total investments
were $90,563,000 on September 30, 2000, compared to $157,751,000 on December 31,
1999.
Revenues for the third quarter of 2000 were $1,744,000, reflecting collaborative
revenue recognized under the Company's strategic alliance with Abbott
Laboratories, compared to no revenue for the third quarter of 1999. Total
operating expenses were $29,524,000, for the third quarter of 2000, as compared
to $24,510,000, for the third quarter of 1999.
For the nine months ended September 30, 2000, the Company reported revenues of
$5,550,000, and operating expenses of $95,744,000, yielding a net loss of
$84,200,000, compared to no revenue and operating expenses of $77,920,000,
yielding a net loss of $73,423,000, for the nine months ended September 30,
1999.
"I'm pleased with the progress of our lead compounds over the past few months,"
said David W. Barry, M.D., Chairman and Chief Executive Officer of Triangle
Pharmaceuticals. "We presented data at national and international scientific
meetings that a once-a-day, multi-drug regimen containing Coviracil(R) had
potent and sustained antiviral activity in HIV-infected patients, and that DAPD
had significant antiviral activity in HIV-infected patients who were failing
other drug regimens. We also recently presented data at the 5th International
Congress on Drug Therapy in HIV Infection in Glasgow that Coviracil was not the
cause of the adverse liver reactions that occurred in Study 302 in South Africa.
In
-more-
<PAGE>
Triangle Pharmaceuticals Reports Financial Results for the Third Quarter 2000
Page 2
the coming year, we plan to focus our efforts towards bringing our most advanced
and promising drug candidates to the market in the shortest possible timeframe."
Equity Financing
The Company also announced today that it has entered into an equity financing
agreement with Ramius Securities LLC. Under this agreement, Ramius Securities
will, as an underwriter, provide Triangle with a firm underwritten equity
facility (FUEL) commitment of up to $100 million. This facility will be
available for thirty-six months and will allow Triangle the right to
periodically issue and sell a total of up to $100 million of its Common Stock
during sequential 15-day selling periods selected by Triangle.
Robert Amundsen, Triangle's Chief Financial Officer, stated, "This facility
gives us the ability to raise cash incrementally over time to take advantage of
favorable market conditions when they exist. Triangle has the flexibility to
decide when to make a selling request, how much to sell and the minimum price at
which our stock may be sold. We intend to strategically use the facility to add
to our treasury by engaging in a gradual and orderly sale of shares. In this
way, we hope to minimize dilution while continuing to fund our multi-drug
development strategy. The facility does not preclude us from issuing shares in
other forms should market conditions make those options advantageous."
Sales under the facility are subject to minimum and maximum draw down amounts
and certain trading volume limitations. The FUEL program includes a firm
commitment from Ramius Capital Group, which is the parent of Ramius Securities.
Triangle Pharmaceuticals, Inc. is a specialty pharmaceutical company engaged in
the development of new antiviral drug candidates, with a particular focus on
therapies for the human immunodeficiency virus (HIV), including the acquired
immunodeficiency syndrome (AIDS), the hepatitis B virus (HBV) and hepatitis C
virus (HCV). Triangle's proprietary drug candidates under development for HIV
and/or HBV include Coviracil(R) (emtricitabine), Coactinon(R) (emivirine), DAPD,
clevudine (formerly L-FMAU) and mozenavir dimosylate (formerly DMP-450).
Triangle is also developing immunotherapies for HIV, HBV and HCV in
collaboration with Dynavax Technologies Corporation (Dynavax) utilizing Dynavax'
immunostimulatory sequence (ISS) technology. More information about Triangle's
portfolio, management and product development strategy is available on
Triangle's website at: http://www.tripharm.com.
This does not constitute an offer to sell or a solicitation of an offer to buy
Common Stock of Triangle Pharmaceuticals, Inc. Statements in this press release
that are not historical facts are forward-looking statements and are subject to
numerous risks and uncertainties, including the risk that the Company could fail
to successfully complete pivotal clinical trials or that such trials could be
halted or terminated by regulatory authorities, the Company's future capital
needs, the inability to commercialize Coviracil, DAPD and ISS-based therapies
due to patent rights held by third parties, the Company's ability to obtain
additional funding (including contingent contractual milestone payments), patent
protection and required regulatory approvals for its drug candidates, the
development of competitive products by others, the cost of coactive therapy and
the extent to which coactive therapy achieves market acceptance, the Company's
success in identifying new drug candidates, acquiring rights to the candidates
on favorable terms and developing any candidates to which the Company acquires
any rights, that the Company's collaborations with third parties may not prove
successful and these and other risks detailed from time to time in the Company's
filings with the Securities and Exchange Commission. As a result of these and
other risks and
<PAGE>
Triangle Pharmaceuticals Reports Financial Results for the Third Quarter 2000
Page 3
uncertainties, actual results may differ materially from those predicted in this
press release. The Company disclaims any obligations to update any
forward-looking statements in this press release.
- Financial chart follows -
<PAGE>
TRIANGLE PHARMACEUTICALS, INC.
(A Development Stage Company)
CONDENSED C0NSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, Except Per Share Amounts)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2000 1999 2000 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Total revenues $ 1,744 $ -- $ 5,550 $ --
Operating expenses:
License fees 2,978 210 3,818 9,655
Development 22,925 19,660 76,736 56,129
Purchased research and development -- -- 5,350 1,247
Selling, general and administrative 3,621 4,640 9,840 10,889
-------- -------- -------- --------
Total operating expenses 29,524 24,510 95,744 77,920
-------- -------- -------- --------
Loss from operations (27,780) (24,510) (90,194) (77,920)
Interest income, net 1,723 1,947 5,994 4,497
-------- -------- -------- --------
Net loss $(26,057) $(22,563) $(84,200) $(73,423)
======== ======== ======== ========
Basic and diluted net loss per
common share $ (0.68) $ (0.64) $ (2.21) $ (2.34)
======== ======== ======== ========
Shares used in computing basic and
diluted net loss per common share 38,301 35,157 38,037 31,354
======== ======== ======== ========
</TABLE>
SELECTED CONSOLIDATED BALANCE SHEET INFORMATION
(In Thousands)
September 30, December 31,
2000 1999
------------- ------------
(Unaudited)
Cash, cash equivalents and
investments $90,563 $157,751
Working capital 39,192 123,649
Total assets 98,235 166,497
Total stockholders' equity 38,185 115,273
###
