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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
_____________________________
Date of report (Date of earliest event reported) November 11, 1999
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ALTEON INC.
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(Exact Name of Registrant as Specified in Charter)
Delaware 0-19529 13-3304550
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(State or Other Juris- (Commission (I.R.S. Employer
diction of Incorporation) File Number) Identification No.)
170 Williams Drive, Ramsey, New Jersey 07446
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (201) 934-5000
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(Former Name or Former Address, If Changed Since Last Report)
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Item 5. Other Events.
On November 11, 1999 the Registrant issued the following press
release:
"ALTEON ANNOUNCES FINANCIAL RESULTS FOR THE THIRD QUARTER ENDED
SEPTEMBER 30, 1999
"RAMSEY, N.J., Nov. 11 -- Alteon Inc. (Nasdaq: ALTN) announced
today contract revenue and investment income of $876,000 and a net
loss applicable to common stockholders of $13,480,000 or $0.71
diluted loss per share for the nine months ended September 30,
1999. This compares to investment income of $943,000 and a net
loss applicable to common stockholders of $20,379,000 or $1.13
diluted loss per share for the same period in 1998. For the three
months ended September 30, 1999, Alteon had contract revenue and
investment income of $370,000 and a net loss applicable to common
stockholders of $2,808,000 or $0.15 diluted loss per share which
compares to investment income of $270,000 and a net loss
applicable to common stockholders of $8,995,000 or $0.50 diluted
loss per share for the same period in 1998.
"The net loss decreased in these periods primarily as a result of
contract revenue and decreased research and development
expenditures related to the clinical trials offset by the
elimination of a previously accrued loss contingency recorded in
the second quarter of 1998 and decreased investment income. Cash,
cash equivalents and short-term investments at September 30, 1999,
totaled $11.5 million.
"'We have taken measures to tightly manage our burn rate as we
continue our efforts to increase stockholder value through
strategic partnerships,' said Kenneth I. Moch, President and Chief
Executive Officer. 'In addition, Alteon expects to receive
additional funding from New Jersey State's Technology Business Tax
Certificate Transfer Program, under which Alteon will sell its net
operating loss carryovers.'
"Alteon is a leader in the discovery and development of
pharmaceutical products for the treatment of the complications of
diabetes, cardiovascular and other age-related diseases. Alteon's
proprietary technology focuses on Advanced Glycosylation End-products,
or A.G.E.s, formed as a result of circulating blood
glucose reacting with proteins. A.G.E.s have been shown to be a
causative factor in many of the complications of diabetes and
age-related diseases, including kidney disease, nerve damage,
atherosclerosis and retinopathy. Alteon's approach is to inhibit
or break A.G.E.s or their chemical crosslinks, thereby potentially
impacting such disease states. The Company is seeking a corporate
partner to help fund the continued development of its A.G.E.-formation
inhibitor, pimagedine, based on the results of the Phase
III trial of pimagedine in Type 1 diabetic patients with
progressive kidney disease. Alteon's lead A.G.E. crosslink
breaker, ALT-711, has completed a series of Phase I human clinical
trials and is currently in dose-escalating studies in preparation
for a Phase II program. Alteon is also pursuing the development of
a novel series of glucose lowering agent (GLA) compounds.
"Any statements contained in this press release that relate to
future plans, events or performance are forward-looking statements
that involve risks and uncertainties including, but not limited
to, those relating to technology and product development,
regulatory approval processes, intellectual property rights and
litigation, competitive products, ability to obtain financing, and
other risks identified in Alteon's filings with the Securities and
Exchange Commission. Actual results, events or performances may
differ materially. Alteon undertakes no obligation to publicly
release the result of any revision to these forward-looking
statements that may be made to reflect events or circumstances
after the date hereof or to reflect the occurrence of
unanticipated events.
"This press release is also available at
http://www.alteonpharma.com
"Alteon Inc.
Condensed Statements of Operations
(Dollars in Thousands Except per Share Amounts)
(Unaudited)
Nine Months Ended Three Months Ended
September 30, September 30,
1999 1998 1999 1998
Contract Revenue $169 $-- $169 $--
Investment Income 707 943 201 270
Expenses:
Research and
Development 9,077 18,905 1,379 7,623
Elimination of Previously
Accrued Loss Contingency-- (1,771) -- --
General and
Administrative 3,275 3,060 1,110 919
Interest Expense - 4 - -
Total Expenses $12,352 $20,198 $ 2,489 $ 8,542
Net Loss $(11,476) $(19,255) $(2,119) $(8,272)
Preferred Stock
Dividends 2,004 1,124 689 723
Net Loss Applicable
to Common
Stockholders $(13,480) $(20,379) $(2,808) $(8,995)
Basic Loss Per Share
to Common
Stockholders $(0.71) $(1.13) $ (0.15) $ (0.50)
Diluted Loss Per Share
to Common
Stockholders $(0.71) $(1.13) $ (0.15) $ (0.50)
Weighted Average Common
Shares Used in Computing
Basic and Diluted
Loss Per Share 19,009,271 18,007,848 19,184,167 18,091,93
"Selected Balance Sheet Data
(Dollars in Thousands)
(Unaudited)
June 30, December 31,
1999 1998
Cash and Investments $11,512 $24,132
Total Assets 15,069 27,652
Accumulated Deficit (121,337) (107,857)
Stockholders' Equity 12,221 23,338"
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SIGNATURE
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 hereunto duly authorized.
Alteon Inc.
By: /s/ Kenneth I. Moch
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Kenneth I. Moch
President and
Chief Executive Officer
Date: November 12, 1999
