<PAGE> 1
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 September 30, 1996.
[ ] Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934. For the transition period from _______ to ______.
Commission File Number
0-23160
ANESTA CORP.
(Exact name of registrant as specified in its charter)
Delaware 87-0424798
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
4745 Wiley Post Way
Plaza 6, Suite 650
Salt Lake City, UT 84116
(801) 595-1405
(Address, including zip code, and telephone number,
including area code, of principal executive offices)
Securities registered pursuant to Section 12(g) of the Act:
Common Stock $.001 par value
(Title of Class)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Sections 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
--- ---
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date .
Common Stock $.001 par value 9,406,328
Class Outstanding at November 5, 1996
<PAGE> 2
ANESTA CORP.
INDEX
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION PAGE NO.
--------
<S> <C>
Balance Sheets -
September 30, 1996 (unaudited) and December 31, 1995 2
Statements of Operations -
for the three and nine months ended September 30, 1996 and 1995
(unaudited) and the period from August 1, 1985 (inception)
to September 30, 1996 (unaudited) 3
Statements of Cash Flows -
for the nine months ended September 30, 1996 and 1995 (unaudited)
and the period from August 1, 1985 (inception) to
September 30, 1996 (unaudited) 4
Notes to Financial Statements (unaudited) 6
Management's Discussion and Analysis of
Financial Condition and Results
of Operations 9
PART II. OTHER INFORMATION 12
SIGNATURES 13
</TABLE>
1
<PAGE> 3
ANESTA CORP.
(A Development Stage Company)
BALANCE SHEETS
-----------
<TABLE>
<CAPTION>
September 30, December 31,
ASSETS 1996 1995
------------ ------------
(Unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 27,902,889 $ 3,540,147
Current portion of certificate of deposit 153,000 153,000
Marketable debt securities,
available-for-sale 14,150,798 16,773,547
Accounts receivable 473,713 410,432
Prepaid expenses and other current assets 451,120 77,134
------------ ------------
Total current assets 43,131,520 20,954,260
------------ ------------
Property and equipment, at cost:
Furniture and equipment 832,929 870,042
Leasehold improvements 1,474,710 1,509,430
Accumulated depreciation (557,519) (480,372)
------------ ------------
1,750,120 1,899,100
------------ ------------
Other assets:
Certificate of deposit 1,224,000 1,377,000
Other assets 35,419 11,568
------------ ------------
1,259,419 1,388,568
------------ ------------
Total assets $ 46,141,059 $ 24,241,928
============ ============
<CAPTION>
September 30, December 31,
LIABILITIES AND STOCKHOLDERS' EQUITY 1996 1995
------------ ------------
(Unaudited)
<S> <C> <C>
Current liabilities:
Accounts payable $ 166,500 $ 231,288
Accrued liabilities
Accrued compensation 362,129 247,741
Other 240,757 219,131
Current portion of notes payable 150,000 150,000
Current portion of obligations under
capital leases 1,409 16,363
------------ ------------
Total current liabilities 920,795 864,523
Unearned advance royalty revenues 350,000 350,000
Notes payable 1,200,000 1,350,000
------------ ------------
Total liabilities 2,470,795 2,564,523
------------ ------------
Stockholders' equity:
Common stock, par value, $.001 per share;
Authorized: 15,000,000 shares; Issued:
9,406,673 in 1996 and 7,207,716 in 1995 9,407 7,208
Additional paid-in capital 61,344,240 33,270,848
Deficit accumulated during the development
stage (17,667,431) (11,723,314)
Treasury stock (345 shares), at cost (4,226) (4,226)
Notes receivable from issuance of
common stock (7,000) (7,000)
Unrealized gain (loss) on marketable debt
securities, available-for-sale (4,726) 133,889
------------ ------------
Total stockholders' equity 43,670,264 21,677,405
------------ ------------
Total liabilities and stockholders'
equity $ 46,141,059 $ 24,241,928
============ ============
</TABLE>
The accompanying notes are an integral
part of the financial statements
2
<PAGE> 4
ANESTA CORP.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
(Unaudited)
---------
<TABLE>
<CAPTION>
Three months ended Nine months ended
---------------------------- ---------------------------- Period from inception
September 30, September 30, September 30, September 30, (August 1, 1985) to
1996 1995 1996 1995 September 30, 1996
------------ ------------ ------------ ------------ ---------------------
Revenues:
<S> <C> <C> <C> <C> <C>
Product sales $ 19,999 $ 10,353 $ 69,949 $ 39,621 $ 167,950
Royalty revenue 578 302 2,037 1,159 104,928
Revenues from contract research 378,000 380,000 1,128,000 1,139,000 9,603,931
------------ ------------ ------------ ------------ ------------
Total revenues 398,577 390,655 1,199,986 1,179,780 9,876,809
------------ ------------ ------------ ------------ ------------
Operating costs and expenses:
Cost of goods sold 5,047 3,200 20,487 12,247 60,886
Royalties 617 320 2,160 1,223 7,160
Research and development 2,001,270 1,329,759 5,757,184 3,452,731 20,299,190
Depreciation and amortization 57,334 35,493 177,532 80,798 767,467
Marketing, general and administrative 888,723 473,928 2,451,508 1,148,721 8,272,226
------------ ------------ ------------ ------------ ------------
Total costs and expenses 2,952,991 1,842,700 8,408,871 4,695,720 29,406,929
------------ ------------ ------------ ------------ ------------
Loss from operations (2,554,414) (1,452,045) (7,208,885) (3,515,940) (19,530,120)
Non operating income (expense):
Interest income 583,273 333,502 1,353,012 1,201,475 3,739,296
Interest expense (26,950) (33,018) (84,211) (73,626) (325,681)
Other (12,326) (620) (3,933) (10,315) (16,886)
------------ ------------ ------------ ------------ ------------
Loss before provision for income
taxes, extraordinary item and cumulative
effect of change in accounting (2,010,417) (1,152,181) (5,944,017) (2,398,406) (16,133,391)
Provision for income taxes (100) (100) (23,405)
------------ ------------ ------------ ------------ ------------
Loss before extraordinary item and
cumulative effect of change in accounting (2,010,417) (1,152,181) (5,944,117) (2,398,506) (16,156,796)
Extraordinary item - reduction of income
taxes arising from carryforward of prior
years' operating losses 22,296
Cumulative effect of change in accounting (1,041,047) (1,041,047)
------------ ------------ ------------ ------------ ------------
Net loss $ (2,010,417) $ (1,152,181) $ (5,944,117) $ (3,439,553) $(17,175,547)
============ ============ ============ ============ ============
Loss per common share amounts--
Loss before extraordinary item and cumulative
effect of change in accounting $ (0.21) $ (0.16) $ (0.73) $ (0.33)
Cumulative effect of change in accounting (0.15)
------------ ------------ ------------ ------------
Net loss per common share $ (0.21) $ (0.16) $ (0.73) $ (0.48)
============ ============ ============ ============
Shares used in computing net
loss per common share 9,403,509 7,187,047 8,191,839 7,170,846
============ ============ ============ ============
</TABLE>
The accompanying notes are an integral
part of the financial statements
3
<PAGE> 5
ANESTA CORP.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
(Unaudited)
---------
<TABLE>
<CAPTION>
Nine months ended
---------------------------- Period from inception
September 30, September 30, (August 1, 1985) to
1996 1995 September 30, 1996
------------ ------------ ---------------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss $ (5,944,117) $ (3,439,553) $(17,175,547)
Adjustments to reconcile net loss to net cash
used in operating activities
Cumulative effect of change in accounting 1,041,047 1,041,047
Depreciation and amortization 177,532 80,798 767,467
Debt conversion expense 101,330
Interest converted to equity 94,104
Compensatory stock options and stock 3,539
Loss on retirement of assets 13,783 10,364 50,397
Increase (decrease) due to changes in:
Accounts receivable (63,281) (378,471) (473,713)
Prepaid expenses and other current assets (373,986) (178,161) (451,120)
Other assets (23,851) (1,806) (37,996)
Accounts payable (64,788) (349,734) 166,500
Accrued liabilities 136,014 85,285 602,886
Unearned advance royalty revenues 350,000
------------ ------------ ------------
Net cash used in operating activities (6,142,694) (3,130,231) (14,961,106)
------------ ------------ ------------
Cash flows from investing activities:
Capital expenditures (40,877) (1,235,451) (2,308,127)
Proceeds from sale of assets 150 1,775 10,125
Costs associated with license agreements (1,109,533)
Advances to employees (1,650)
Purchase of marketable debt securities,
available-for-sale (6,063,003) (8,540,650) (35,581,889)
Proceeds from maturities of marketable debt securities,
available-for-sale 8,545,530 9,715,271 21,424,758
Purchase of treasury bills (1,174,419)
Proceeds from maturity of treasury bills 1,174,419
Purchase of certificate of deposit (1,530,000) (1,530,000)
Proceeds from maturity of certificate of deposit 153,000 153,000
------------ ------------ ------------
Net cash provided by (used in) investing activities 2,594,800 (1,589,055) (18,943,316)
------------ ------------ ------------
Cash flows from financing activities:
Principal payments on notes payable (150,000) (187,500)
Proceeds from issuance of notes payable 1,500,000 2,537,700
Principal payments on obligations under capital leases (14,954) (31,049) (193,080)
Proceeds from issuance of common stock 28,075,590 88,336 59,604,956
Collections on notes receivable from
issuance of common stock 58,000 58,000
Proceeds from issuance of preferred stock 756,222
Deferred offering costs (277,103)
Dividends paid on preferred stock (491,884)
------------ ------------ ------------
Net cash provided by financing activities 27,910,636 1,615,287 61,807,311
------------ ------------ ------------
Net increase (decrease) in cash and cash equivalents 24,362,742 (3,103,999) 27,902,889
Cash and cash equivalents at beginning of period 3,540,147 11,489,097
------------ ------------ ------------
Cash and cash equivalents at end of period $ 27,902,889 $ 8,385,098 $ 27,902,889
============ ============ ============
</TABLE>
- Continued -
The accompanying notes are an integral
part of the financial statements
4
<PAGE> 6
ANESTA CORP.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS, Continued
(Unaudited)
---------
<TABLE>
<CAPTION>
Nine months ended
---------------------------- Period from inception
September 30, September 30, (August 1, 1985) to
1996 1995 September 30, 1996
------------ ------------ ---------------------
<S> <C> <C> <C>
SUPPLEMENTAL SCHEDULE OF NONCASH ACTIVITIES:
The Company issued stock and stock options for:
Purchase of additional license agreement $ 5,400
Notes receivable 71,000
The Company purchased leasehold improvements
using accounts payable 251,507
The Company entered into various capital lease
arrangements 204,610
The Company received stock as payment of a
note receivable 4,226
</TABLE>
The accompanying notes are an integral
part of the financial statements
5
<PAGE> 7
ANESTA CORP.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
---------
1. Significant Accounting Policies:
In the opinion of management, the accompanying financial statements
contain all adjustments (consisting only of normal recurring items)
necessary to present fairly the financial position of Anesta Corp. (a
development stage company) (the Company) as of September 30, 1996, and the
results of its operations for the three and nine months ended September
30, 1996 and 1995 and for the period from inception (August 1, 1985) to
September 30, 1996, and its cash flows for the nine months ended September
30, 1996 and 1995 and for the period from inception (August 1, 1985) to
September 30, 1996. The results of operations for the periods presented
are not necessarily indicative of the results to be expected for the full
year period.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted. It is suggested that
these financial statements be read in conjunction with the Company's
Annual Report on Form 10-K for the period ended December 31, 1995.
Net Loss Per Share
Net loss per common share is computed using the weighted average number of
common and common equivalent shares outstanding during each period. Common
stock equivalents consist of convertible preferred stock, common stock
options and warrants. Common equivalent shares are excluded from the
computation when their effect is antidilutive. Net loss per common share
for the period from inception to September 30, 1996 has not been presented
as such information is not considered to be relevant or meaningful.
Reclassifications
Certain balances in the September 30, 1995 financial statements have been
reclassified to conform to the current year presentation. These changes
had an immaterial effect on the previously reported net loss.
2. Cash and Cash Equivalents and Marketable Debt Securities:
At September 30, 1996, the Company maintained a majority of its cash and
cash equivalents and marketable debt securities in two banks in San
Francisco, California.
3. Income Taxes:
The provision for income taxes for the nine months ended September 30,
1996 and 1995 is related solely to state income taxes.
6
<PAGE> 8
ANESTA CORP.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS, Continued
(Unaudited)
---------
4. Revolving/Term Promissory Note Agreement:
On January 11, 1995, the Company entered into a revolving/term promissory
note in the amount of $1.5 million. The agreement provides for an interest
rate of "160 basis points" above the financial institution's certificate
of deposit rate (6.85% at September 30, 1996). On May 15, 1995, the term
of the revolving promissory note ended and the Company entered into a 10
year term note in the amount of $1.5 million. The interest rate remains
the same and the Company will make annual payments on the note on
approximately July 15 of each of the next ten years beginning in 1996. The
first payment of $150,000 was made on July 15, 1996 leaving a balance of
$1,350,000. Borrowings under the agreement are collateralized by a
certificate of deposit in the amount of $1,377,000, which is maintained in
a bank in Salt Lake City, Utah.
5. Funding Agreements:
Effective September 8, 1995, the Company entered into a 1996 funding
agreement with Abbott Laboratories Hospital Products Division (Abbott),
under which Abbott will provide up to $1,500,000 of funding to further the
clinical development of Actiq(TM) to treat cancer-related pain (the "Actiq
Cancer Pain Program"). The funding will be provided in equal quarterly
payments of $375,000 for qualifying work performed and expenses incurred
during the year ended December 31, 1996 in connection with the Actiq
Cancer Pain Program. Under the agreement, the Company will provide the
additional funding required for this program during the year ended
December 31, 1996 and will complete certain program milestones. Through
September 30, 1996, the Company had recognized revenue of $1,125,000 which
represents the funding for qualifying expenses incurred. As of September
30, 1996, $375,000 of such revenue was included in accounts receivable.
7
<PAGE> 9
ANESTA CORP.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS, Continued
(Unaudited)
---------
6. Stockholders' Equity:
The table below presents the activity in stockholders' equity from January
1, 1996 to September 30, 1996:
<TABLE>
<CAPTION>
Deficit
Accumulated
Common Stock During the
---------------------------- Paid-in Development
Shares Amount Capital Stage
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Balance at January 1, 1996 7,207,716 $ 7,208 $ 33,270,848 $(11,723,314)
Exercise of stock options in Jan. 1996
(at $.80 to $5.25 per share) 5,074 5 15,509
Exercise of stock options in Feb. 1996
(at $.80 to $6.75 per share) 12,507 13 23,640
Exercise of stock options in Mar. 1996
(at $.80 to $6.75 per share) 379 0 1,896
Issuance of common stock for cash
on June 7, 1996 (at $15.00
per share) net of offering costs
of $2,141,775 2,000,000 2,000 27,856,225
Exercise of stock options in June 1996
(at $.80 to $11.00 per share) 176,769 177 164,046
Exercise of stock options in Sept. 1996
(at $1.00 to $5.375 per share) 4,228 4 12,076
Net change in unrealized gain (loss) on
marketable debt securities, available-
for-sale
Net loss (5,944,117)
------------ ------------ ------------ ------------
Balance at September 30, 1996 9,406,673 $ 9,407 $ 61,344,240 $(17,667,431)
============ ============ ============ ============
<CAPTION>
Unrealized
Notes gain (loss) on
Receivable Marketable Debt
Treasury Stock from Issuance Securities,
--------------------------- of Common Available-for-
Shares Amount Stock Sale Total
------------ ------------ ------------ ------------- ------------
<S> <C> <C> <C> <C> <C>
Balance at January 1, 1996 345 $ (4,226) $ (7,000) $ 133,889 $ 21,677,405
Exercise of stock options in Jan. 1996
(at $.80 to $5.25 per share) 15,514
Exercise of stock options in Feb. 1996
(at $.80 to $6.75 per share) 23,653
Exercise of stock options in Mar. 1996
(at $.80 to $6.75 per share) 1,896
Issuance of common stock for cash
on June 7, 1996 (at $15.00
per share) net of offering costs
of $2,141,775 27,858,225
Exercise of stock options in June 1996
(at $.80 to $11.00 per share) 164,223
Exercise of stock options in Sept. 1996
(at $1.00 to $5.375 per share) 12,080
Net change in unrealized gain (loss) on
marketable debt securities, available-
for-sale (138,615) (138,615)
Net loss (5,944,117)
------------ ------------ ------------ ------------ ------------
Balance at September 30, 1996 345 $ (4,226) $ (7,000) $ (4,726) $ 43,670,264
============ ============ ============ ============ ============
</TABLE>
8
<PAGE> 10
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The following Management's Discussion and Analysis of Financial Condition and
Results of Operations contains forward-looking statements which involve risks
and uncertainties. The Company's actual results could differ materially from
those anticipated in these forward-looking statements as a result of certain
factors discussed in this section.
RESULTS OF OPERATIONS
Revenues.
Total revenues increased by $7,900 or 2.0% for the three months ended September
30, 1996 as compared to the corresponding period in 1995 and by $20,200 or 1.7%
for the nine months ended September 30, 1996 as compared to the corresponding
period in 1995. The increase is primarily a result of revenues from Fentanyl
Oralet(R), the Company's first product. Substantially all revenues in both
years were from development funding and milestone payments under collaborative
agreements with Abbott Laboratories (Abbott) relating to the Actiq cancer pain
program (See Note 5 to Financial Statements). Amounts earned under the
collaborative agreements with Abbott may vary substantially in the future.
Under the Company's agreement with Abbott, Abbott manufactures Fentanyl Oralet
and sells it to the Company at a price which reflects Abbott's cost of
manufacturing. The Company resells the product to Abbott at a price which
results in a gross profit to the Company ranging from approximately 40% to 70%.
In addition, the Company is entitled to receive a royalty on product sales by
Abbott.
Operating Expenses.
Research and development expenses increased by $671,500 or 50% for the three
months ended September 30, 1996 as compared to the corresponding period in 1995
and by $2,304,500 or 67% for the nine months ended September 30, 1996 as
compared to the corresponding period in 1995. The increase in research and
development expenses is due primarily to higher expenditures for the Actiq
cancer pain clinical development program (See Note 5 to Financial Statements),
new product development and other expenditures for product development,
including clinical trials. The Company expects that its research and
development expenses will grow significantly during the remainder of 1996 as a
result of increased expenses related to the hiring of additional personnel,
preclinical studies, clinical trials, product development and process
development activities.
Depreciation expense increased by $21,800 or 61% for the three months ended
September 30, 1996 as compared to the corresponding period in 1995 and by
$96,700 or 120% for the nine months ended September 30, 1996 as compared to the
corresponding period in 1995. The increase is primarily due to a decrease in
the estimated useful life of specific leasehold improvements.
Marketing, general and administrative expenses increased by $414,800 or 88% for
the three months ended September 30, 1996 as compared to the corresponding
period in 1995 and by $1,302,800 or 113% for the nine months ended September
30, 1996 as compared to the corresponding period in 1996. The increase in
marketing, general and administrative expenses is due primarily to higher
expenditures for corporate development activities, marketing research, Actiq
pre-marketing activities, rent on new facilities, patent activities and
equipment leasing. The Company expects that its marketing, general and
administrative expenses will increase significantly during the remainder of
1996 as a result of the increased support required for research and
development, marketing research, patent, and corporate development activities.
9
<PAGE> 11
Non Operating Income (Expense).
Interest income increased by $249,800 for the three months ended September 30,
1996 as compared to the corresponding period in 1995 and increased by $151,500
for the nine months ended September 30, 1996 as compared to the corresponding
period in 1995. The increase is primarily due to invested net proceeds of
$27,858,225 from the Company's secondary offering in June 1996.
Interest expense decreased by $6,100 for the three months ended September 30,
1996 as compared to the corresponding period in 1995 and increased by $10,600
for the nine months ended September 30, 1996 as compared to the corresponding
period in 1995. The decrease for the three months is primarily due to a lower
balance of capital lease obligations. The increase for the nine months is
primarily due to interest expense related to borrowings on the Company's
revolving/term loan in 1995.
Accounting Change.
Effective January 1, 1995, the Company changed its method of accounting for
external legal costs related to patents. Prior to the change, the Company
capitalized these costs and amortized them over the term of the related patent.
Under the new method, these costs are expensed as incurred.
Net Loss.
As a result of the increase in research and development, marketing, general and
administrative activities and other factors discussed above, the net loss for
the three months ended September 30, 1996 was $2,010,400 or $0.21 per share as
compared to $1,152,200 or $0.16 per share for the same period in 1995. The net
loss for the nine months ended September 30, 1996 was $5,944,100 or $0.73 per
share as compared to $3,439,600 or $0.48 per share for the same period in 1995.
The net loss for the nine months ended September 30, 1995 includes the
cumulative effect of a change in accounting for patent costs of $1,041,000 or
$0.15 per share.
LIQUIDITY AND CAPITAL RESOURCES
In June 1996 the Company realized net proceeds of $27,858,225 through the
issuance of common stock in a secondary offering. As of September 30, 1996, the
Company had cash and cash equivalents totaling $27,902,900, $1,377,000 in a
certificate of deposit used as collateral for a revolving/term loan as
described below and $14,150,800 in marketable debt securities which are
available for sale. Thus cash, cash equivalents, certificate of deposit and
marketable debt securities totaled $43,430,700 as of September 30, 1996. Cash
in excess of immediate requirements is invested according to the Company's
investment policy, which provides guidelines with regard to liquidity and
return, and, wherever possible, seeks to minimize the potential effects of
concentration of credit risk.
The Company used cash in operating activities of $6,142,700 for the nine months
ended September 30, 1996 compared to $3,130,200 for the corresponding period in
1995. The increase in cash used in the period is a direct result of the
increase in research and development and marketing, general and administrative
activities discussed above.
During the nine months ended September 30, 1996, the Company made capital
expenditures of approximately $40,900, as compared to capital expenditures of
$1,235,500 during the corresponding period in 1995. The decrease in capital
expenditures is due to the completion of the Company's remodeling of new
facilities in May 1995. In order to help finance the remodeling of new
facilities, the Company, in January 1995, secured a revolving/term loan in the
amount of $1,500,000 (See Note 4 to Financial Statements), of which $1,500,000
was funded during the nine months ended September 30, 1995.
10
<PAGE> 12
During the nine months ended September 30, 1996, the Company realized cash
proceeds of $217,400 relating to the exercise of stock options as compared to
$88,300 during the corresponding period in 1995.
During the nine months ended September 30, 1996, the Company made principal
payments on capital lease obligations of $15,000 as compared to $31,000 for the
corresponding period in 1995.
The Company expects to continue to incur substantial expenses related to the
continuation and expansion of research and development, including clinical
trials, and increased marketing, general and administrative activities over at
least the next several years. The Company anticipates that the existing cash,
cash equivalents and marketable debt securities, interest earned thereon, and
funding under the 1996 agreement with Abbott provides adequate working capital
through 1999.
The Company's working capital requirements may change depending on numerous
factors, including the following, the progress of the Company's research and
development programs, the results of clinical studies, the number and nature of
the indications the Company pursues in clinical studies, the timing of
regulatory approvals, technological advances, determinations as to the
commercial potential of the Company's products, the status of competitive
products, the establishment of collaborative relationships with other companies
and other factors.
In June 1996, the Financial Accounting Standards Board issued SFAS No. 125,
Accounting for Transfers and Servicing of Financial Assets and Extinguishments
of Liabilities. SFAS No. 125 becomes effective at the beginning of 1997. The
Company does not believe that SFAS No. 125 will have a significant impact on
the financial statements of the Company.
11
<PAGE> 13
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K.
a) Exhibits.
(27) Financial Data Schedule
b) Reports on Form 8-K.
None.
12
<PAGE> 14
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.
Date: November 14, 1996 ANESTA CORP.
By: /s/ William C. Moeller
------------------------------
William C. Moeller, President,
Chief Executive Officer and
Treasurer
(Authorized Signatory and
Principal Financial Officer)
By: /s/ Roger P. Evans
------------------------------
Roger P. Evans, Controller
(Principal Accounting Officer)
13
<PAGE> 15
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
<S> <C>
27 - Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 27,903
<SECURITIES> 14,151
<RECEIVABLES> 474
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 43,132
<PP&E> 2,308
<DEPRECIATION> 558
<TOTAL-ASSETS> 46,141
<CURRENT-LIABILITIES> 921
<BONDS> 1,200
0
0
<COMMON> 9
<OTHER-SE> 43,661
<TOTAL-LIABILITY-AND-EQUITY> 46,141
<SALES> 70
<TOTAL-REVENUES> 1,200
<CGS> 23
<TOTAL-COSTS> 8,409
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 84
<INCOME-PRETAX> (5,944)
<INCOME-TAX> 0
<INCOME-CONTINUING> (5,944)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (5,944)
<EPS-PRIMARY> (0.73)
<EPS-DILUTED> (0.73)
</TABLE>
