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EXHIBIT 99.1
CONTACT: Gerard A. Wills Cynthia Reindal
Chief Financial Officer Associate, Corporate Communications
858-410-6695 & Investor Relations
858-410-6601
FOR IMMEDIATE RELEASE
TREGA BIOSCIENCES REPORTS SECOND QUARTER 2000 RESULTS
SAN DIEGO, Calif. - August 3, 2000 -- Trega Biosciences, Inc. (Nasdaq: TRGA),
focused on commercializing technologies and products for accelerating drug
discovery and development, today reported that revenues for its second quarter
ending June 30, 2000 were $2.0 million, compared to $2.6 million for the same
period last year. The net loss for the second quarter was $3.1 million, or $0.14
per share, compared with a net loss of $3.5 million, or $0.19 per share, for the
comparable period in 1999. Trega ended the quarter with approximately $9.7
million in cash, cash equivalents and short-term investments.
Revenues for the six months ended June 30, 2000 were $4.6 million, compared to
$4.8 million for the same period last year. Among the revenues for the first six
months of 1999 was $1.1 million recognized for funded drug discovery activities
completed during the period. On February 11, 2000, the company announced its
intention to shift its focus to the development and commercialization of its
iDiscovery-TM- technologies and away from drug discovery activities. The net
loss for the six months was $7.4 million, or $0.35 per share, compared to $6.2
million, or $0.34 per share for the six months ended June 30, 1999.
"We were pleased to recently announce that following a successful validation
study of our IDEA-TM- predictive model for drug absorption, F. Hoffmann-LaRoche
Ltd. took an initial license to the model for use in its drug discovery efforts.
The results of the study represents a validation of the ability of our
absorption model to efficiently and accurately predict how drug compounds are
absorbed in the body. We will continue to pursue additional pharmaceutical
relationships," said Michael G. Grey, Trega's president and chief executive
officer. "As an increasing number of targets and compounds become available,
researchers will need to find ways to more rapidly and accurately select the
best drug candidates for development. Trega's iDiscovery-TM- technologies,
consisting of IDEA-TM- predictive models and Chem.Folio-Registered Trademark-
libraries, are designed to enable researchers to accelerate this process."
Mr. Grey continued, "During the second quarter we developed a prototype of a
predictive model for metabolism and in the coming months we plan to carry out
the necessary development work to enable the release of a commercial version of
this important model. This will represent a significant step towards achieving
our goal of an integrated model designed to predict bioavailability in humans."
--more--
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TREGA REPORTS SECOND QUARTER 2000 RESULTS--PAGE 2--
Management also noted that it entered into an additional agreement in the second
quarter with Boehringer Ingelheim International GmbH using Trega's
Chem.Folio-Registered Trademark- program for the custom synthesis of exclusive
compound libraries.
Trega Biosciences, Inc. is a premier provider of products that accelerate and
improve drug discovery through its iDiscovery-TM- technologies linking biology
and chemistry with information technologies. Trega's IDEA-TM- family of
information-based models simulate, in silico, how drug candidates will be
processed in the body, thereby enabling selection of those with optimal
characteristics for clinical development. Together with its IDEA-TM- products,
Trega's ChemFolio-Registered Trademark- libraries of information-enhanced small
molecules are designed to facilitate the identification and optimization of drug
candidates. For additional information on Trega, please visit our Web site at
http://www.trega.com.
EXCEPT FOR THE HISTORICAL INFORMATION CONTAINED HEREIN, THE MATTERS DISCUSSED IN
THIS NEWS RELEASE ARE FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS AND
UNCERTAINTIES. THE COMPANY'S QUARTERLY AND ANNUAL FINANCIAL PERFORMANCE MAY BE
SUBJECT TO FLUCTUATIONS DEPENDING ON FACTORS SUCH AS THE RECEIPT AND TIMING OF
REVENUE RECOGNIZED FROM SALES, LICENSES AND COLLABORATIONS, TIMING OF THE
DELIVERY OF PRODUCTS AND TECHNOLOGIES, THE COMPLETION OF CONTRACTED SERVICE
COMMITMENTS TO TREGA'S CUSTOMERS AND PARTNERS, AND POTENTIAL FUTURE ACQUISITIONS
OR DISPOSITION OF COMPLEMENTARY ASSETS OR TECHNOLOGIES. ACCORDINGLY, REVENUE AND
OPERATING RESULTS FOR PRIOR PERIODS MAY NOT BE INDICATIVE OF TREGA'S FUTURE
FINANCIAL RESULTS. OTHER FORWARD-LOOKING STATEMENTS COULD INCLUDE WHETHER THE
COMPANY'S RESOURCES ARE SUFFICIENT TO ENABLE IT TO REACH ITS BUSINESS
OBJECTIVES, WHETHER ANY RESEARCH OR DEVELOPMENT ACTIVITIES TO BE CONDUCTED AS
DESCRIBED WILL BE SUCCESSFUL, WHETHER ANY ADDITIONAL COLLABORATIONS OR ALLIANCES
WILL BE FORMED OR EXPANDED, WHETHER ANY SUCH PRODUCTS CAN BE SUCCESSFULLY
MARKETED, THE IMPACT OF COMPETITIVE PRODUCTS AND PRICING IN MARKETING SUCCESS,
WHETHER ANY OTHER CORPORATE COLLABORATIONS OR ALLIANCES WILL BE SUCCESSFUL, AND
OTHER RISKS DETAILED FROM TIME TO TIME IN TREGA'S SECURITIES AND EXCHANGE
COMMISSION FILINGS. THESE FORWARD-LOOKING STATEMENTS REPRESENT TREGA'S JUDGMENT
AS OF THE DATE OF THIS RELEASE. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE
PROJECTED. TREGA DISCLAIMS, HOWEVER, ANY INTENT OR OBLIGATION TO UPDATE THESE
FORWARD-LOOKING STATEMENTS.
--Financials Attached--
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TREGA BIOSCIENCES, INC.
Condensed Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
---------------------------------- -----------------------------------
2000 1999 2000 1999
---------------- -------------- ----------------- ----------------
<S> <C> <C> <C> <C>
Revenues:
Compound revenues $ 861 $ 1,196 $ 2,310 $ 1,561
Contract research and licenses fees 1,180 1,365 2,283 3,031
Net sales 6 84 44 189
---------------- -------------- ----------------- ----------------
Total revenues 2,047 2,645 4,637 4,781
Costs and expenses:
Cost of sales 72 99 107 158
Research and development 4,151 4,353 8,599 8,941
Selling, general and administrative 2,131 1,709 4,297 3,505
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Total costs and expenses 6,354 6,161 13,003 12,604
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Loss from operations before equity in losses
of affiliate $ (4,307) $ (3,516) $ (8,366) $ (7,823)
Equity in losses of affiliate (154) - (340) -
---------------- -------------- ----------------- ----------------
Loss from operations (4,461) (3,516) (8,706) (7,823)
Interest and other income (expense), net 1,313 27 1,258 1,654
---------------- -------------- ----------------- ----------------
Net loss $ (3,148) $ (3,489) $ (7,448) $ (6,169)
================ ============== ================= ================
Basic and diluted net loss per share $ (0.14) $ (0.19) $ (0.35) $ (0.34)
================ ============== ================= ================
Shares used in computing basic and diluted
net loss per share 23,191 18,053 21,302 17,953
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TREGA BIOSCIENCES, INC.
Condensed Consolidated Balance Sheets
(in thousands)
<TABLE>
<CAPTION>
June 30, December 31,
2000 1999
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(unaudited)
<S> <C> <C>
Cash, cash equivalents and short-term investments $ 9,718 $ 6,434
Accounts receivable and other current assets 2,612 2,541
Property and equipment, net 4,245 4,179
Other assets 8,864 9,507
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Total assets $ 25,439 $ 22,661
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Current liabilities $ 7,347 $ 8,155
Long-term liabilities 2,908 2,996
Stockholders' equity 15,184 11,510
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Total liabilities and stockholders' equity $ 25,439 $ 22,661
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