EntreMed loss doubles for 3rd quarter Revenue up, but costs of research also grew

October 28, 1998|By Mark Guidera | Mark Guidera,SUN STAFF

EntreMed Inc., which earlier this year received wide attention for its experimental drugs that were touted as a possible cure for cancer, reported yesterday that its third-quarter losses more than doubled.

The Rockville company said it had a net loss of $3.9 million, or 31 cents per share, compared with a loss of $1.8 million, or 15 cents per share, in the same period a year ago.

Revenue for the period that ended Sept. 30 was $1.3 million, compared with $1.2 million a year ago.

EntreMed is attempting to develop thalidomide and two human protein-based drugs to treat cancerous tumors.

Last May, the New York Times portrayed EntreMed's experimental protein drugs as leading to a possible cure for cancer, propelling the company's stock 330 percent in one day, to $51.8125. Since then, EntreMed's shares have fallen back as analysts and others have cautioned that the article was misleading. The shares closed yesterday at $26, down $1.

The loss for the quarter was attributed in part to increased research and development costs. They rose to $4.5 million in the third quarter, compared with the $2.8 million that the company spent in the same quarter of last year.

Administrative costs also rose to $1.4 million in the quarter, up from $900,000 in the same quarter of 1997.

Dr. John W. Holaday, EntreMed's chairman and chief executive officer, said the company ended the quarter in "a strong cash position with no debt."

The company reported cash on hand at the close of the quarter of more than $31 million.

For the first nine months, the company said its net loss rose to $8.9 million, or 71 cents per share, compared with $4.4 million, or 36 cents per share, in the same period last year.

EntreMed had revenue of $3.7 million for the nine-month period, up from $3.4 million for the first nine months of 1997.

The company's revenue comes largely from payments due under research agreements with Bristol-Myers Squibb Co. and the National Cancer Institute.

Holaday said the company expects to expand clinical trials of thalidomide as a possible treatment for solid tumors, and is preparing to start human clinical trials of its Endostatin protein-based drug next year.

Endostatin is one of the experimental drugs that EntreMed is developing as a potential treatment to cut off blood vessel growth in tumors. Researchers theorize that would "starve" the tumors to death. That process is called anti-angiogenesis, a field of research pioneered by Dr. Judah Folkman of Boston. EntreMed has a research collaboration with Folkman.

Pub Date: 10/28/98

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