CytoTherapeutics Reports Second Quarter Loss and AstraZeneca Collaboration Termination

Strategic Insights -

CytoTherapeutics, Inc. announced a net loss of $1,840,000 for the second quarter ended June 30, 1999, compared to a net loss of $4,048,000 in the second quarter of 1998. The company's revenues from collaborative arrangements increased by 32% to $2,521,000, driven by funding from AstraZeneca Group plc for the encapsulated cell program. However, AstraZeneca terminated its collaboration agreement on June 24, 1999, resulting in substantial wind down costs for the company. The net loss for the first six months of 1999 was $3,773,000, compared to $7,567,000 for the same period in 1998.

Key Takeaways:

  • CytoTherapeutics reported a net loss of $1,840,000 for the second quarter ended June 30, 1999, improving from a net loss of $4,048,000 in the second quarter of 1998.
  • Revenues from collaborative arrangements increased by 32% to $2,521,000, driven by funding from AstraZeneca Group plc for the encapsulated cell program.
  • AstraZeneca terminated its collaboration agreement on June 24, 1999, resulting in substantial wind down costs for the company.
  • The net loss for the first six months of 1999 was $3,773,000, compared to $7,567,000 for the same period in 1998.
  • Revenues from collaborative arrangements for the first six months ended June 30, 1999 and 1998 were $5,022,000 and $3,750,000, respectively.
  • Cash, cash equivalents, and marketable securities totaled $11,788,000 on a consolidated basis at June 30, 1999.
  • CytoTherapeutics expects to incur substantial wind down costs in the second half of 1999 due to the termination of the AstraZeneca agreement.

Statistics:

  • Net loss for the second quarter ended June 30, 1999: $1,840,000
  • Net loss for the first six months of 1999: $3,773,000
  • Revenues from collaborative arrangements for the second quarter ended June 30, 1999: $2,521,000
  • Revenues from collaborative arrangements for the first six months ended June 30, 1999: $5,022,000
  • Cash, cash equivalents, and marketable securities at June 30, 1999: $11,788,000

Sources:

  • CytoTherapeutics, Inc. press release, August 16, 1999
  • CytoTherapeutics, Inc. Annual Report on Form 10-K, Exhibit 99 (Cautionary Factors Relevant to Forward Looking Statements)