EPIX's 2005 results reveal drop in revenue, increased losses

By Angela McDaniels

Seattle, Feb. 16 - EPIX Pharmaceuticals Inc.'s revenue decreased and its net loss widened during the three- and 12-month periods ended Dec. 31, according to a company news release.

Additionally, the company is in discussions with four companies regarding a potential acquisition and continues to move toward the potential consummation of what it described as "a transformative transaction."

In a December news release, EPIX said it is attempting to transform itself into a specialty pharmaceutical with a decreased focus on imaging products related to Magnetic Resonance Imaging (MRI) technology.

Revenue decreased to $1.8 million in the fourth quarter of 2005 from $2.2 million in the same period a year earlier. For the year ended Dec. 31, revenue decreased to $7.2 million from $12.3 million in 2004.

Net loss increased to $5.3 million, or $0.23 per share, for the quarter ended Dec. 31 from a net loss of $5.1 million, or $0.22 per share, for the fourth quarter of 2004.

The net loss was $24.3 million, or $1.05 per share in 2005, compared to a net loss of $20.4 million, or $0.89 per share for the year ended Dec. 31, 2004.

Operating expenses decreased slightly to $32.0 million in 2005 from $32.4 million in 2004.

Operating expenses for the quarter increased to $7.4 million from $7.1 million a year earlier. Expenses included a $1 million charge related to a 50% reduction in the company's workforce during December 2005.

The layoffs followed a request from the Food and Drug Administration for additional studies in connection with the company's application for its lead product, blood-pool contrast agent Vasovist.

The company said it has scheduled a meeting with the FDA for early in the second quarter of 2006 to discuss a draft protocol for an additional pivotal study of Vasovist and the possibility of entering into a Special Protocol Assessment agreement.

"We are looking forward to the European launch of Vasovist and to working with the FDA to try to move Vasovist forward on the path to approval in the United States," interim chief executive officer Michael Astrue said in a company news release.

"Our other product candidate, EP-2104R, has almost completed its phase 2a study, and we have completed the therapeutic program associated with the thrombus-imaging program, with both efforts providing encouraging data."

EPIX is a development-stage pharmaceutical company based in Cambridge, Mass., that discovers and develops pharmaceuticals designed to be used in conjunction with imaging for the diagnosis, treatment and monitoring of disease.

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