Synergen Inc. on Friday announced a net loss of $86.6 millionfor the year ended Dec. 31, 1993 -- more than double theprevious year's loss (see Page 4).
The Boulder, Colo., company reported revenues of $23.5 millionfor the year compared with 1992 revenues of $51.4 million.Synergen's net loss of $86.6 million, or $3.42 per share,compared with a net loss of $41.2 million, or $1.66 per share,for 1992. In 1991, the company reported a net loss of $7.1million, or 36 cents per share, and revenues of $23.8 million.
Synergen pointed out that it took a non-cash charge of $2.4million in 1993 from the cumulative effect of expensing patentcosts, which were previously capitalized.
The company reported fourth-quarter revenues of $5.7 millionin 1993 compared with $11.4 million for the same quarter in1992. The net loss for the quarter was $19.2 million, or 75cents per share, compared with $35.6 million, or $1.43 pershare, in 1992. Expenses for the fourth quarter of 1992included an $18.1 million non-cash charge for the purchase ofSynergen Development Partners Ltd., which was formed in1983 to fund development of certain products.
Synergen attributed its increased net loss for 1993 to researchand development costs that were up 46 percent and the 54percent decrease in total revenues. "Sponsored research anddevelopment revenues decreased primarily because fundingfrom Synergen Clinical Partners, a partnership formed in 1991to fund clinical development of Antril, was fully accrued duringthe first quarter of 1993," Synergen reported.
Last year was disastrous for Antril. In February 1993,Synergen reported disappointing results from its first Phase IIItrial of the sepsis drug; the study found no significantdifference in survival times among all treatment groups.However, two-thirds of the patients with severe sepsis whoreceived Antril experienced a 22 percent reduction in risk ofmortality compared with placebo.
Synergen has persevered with the drug. Last August thecompany began a second Phase III trial of the recombinantinterleukin-1 receptor. For this study, Synergen prospectivelydefined the patient population in which the drug is to beeffective. The company also filed for Antril marketing approvalin Europe based on data from the initial Phase III trial (seeBioWorld, Jan. 28).
Antril and ciliary neurotrophic factor (CNTF) are Synergen'slead products. The company said it expects its second Phase IIItrial of Antril for severe sepsis and its Phase II/III trial ofCNTF for amyotrophic lateral sclerosis (ALS) to be completedtoward the end of this year.
The company reported that it ended 1993 with $161 million incash and $276 million in total assets. Synergen's stock(NASDAQ:SYGN) closed at $12.25 a share on Friday, off 13 cents.
-- Brenda Sandburg News Editor
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