Altus Pharmaceuticals Reports Second Quarter 2009 Financial Results
WALTHAM, Mass. - (Business Wire) Altus Pharmaceuticals Inc. (NASDAQ: ALTU) today reported financial results for the quarter ended June 30, 2009.
For the second quarter of 2009, the Company reported a net loss attributable to common stockholders of $4.9 million, or $0.16 per share, compared to a net loss attributable to common stockholders of $25.3 million, or $0.82 per share, in the second quarter of 2008. The Company did not recognize any revenue in the second quarter of 2009 or 2008.
Research and development expenses totaled $4.9 million in the second quarter of 2009 compared to $21.0 million in the second quarter of 2008. Research and development expenses for the second quarter of 2009 decreased primarily due to discontinuing activities related to the Trizytek program in the first quarter of 2009. General and administrative expenses were $2.1 million in the second quarter of 2009 compared to $4.7 million in the second quarter of 2008. The decrease in general and administrative expense is due to the downsizing of the Company's corporate infrastructure in the first quarter of 2009. The total expenses for the second quarter of 2009 were $8.5 million compared to $25.7 million in the second quarter of 2008.
In March 2009, the Company implemented a strategic realignment to focus on the advancement of ALTU-238 and, to conserve capital resources, discontinue its Trizytek development activities. In connection with the realignment, the Company implemented a workforce reduction of approximately 70%, primarily in functions related to the Trizytek program as well as certain general and administrative positions. The Company recorded restructuring charges of $5.1 million in the six months ended June 30, 2009, primarily for severance benefits and facility related charges associated with consolidating operations. On July 1, 2009, the Company renegotiated the terms of its two facility leases in conjunction with consolidating its operations into one facility in the second quarter of 2009.
Cash and cash equivalents balances at June 30, 2009 totaled $8.1 million. Altus believes the current cash and cash equivalents position will last into September of 2009.
"Earlier this year, we strategically positioned Altus to focus on ALTU-238, a once-per-week treatment for adult and pediatric patients with growth hormone deficiency," stated Dr. Georges Gemayel, President and Chief Executive Officer of Altus Pharmaceuticals. "Altus has successfully completed an ALTU-238 Phase 2 trial in growth hormone deficient adult subjects and is currently conducting a Phase 2 trial in growth hormone deficiency pediatric subjects. As a result of our current cash position and in order to continue operating the Company, Altus needs to raise additional capital before the end of September."
About Altus Pharmaceuticals Inc.
Altus Pharmaceuticals is a biopharmaceutical company focused on the development and commercialization of oral and injectable protein therapeutics. The Company's website is www.altus.com.
Safe Harbor Statement
Certain statements in this news release concerning Altus' business are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, the time period during which existing cash resources can support our operations; the ability of the Company to raise additional capital in order to continue operations and continue developing ALTU-238; and the future of the ALTU-238 program. Any or all of the forward-looking statements in this press release may turn out to be wrong. They can be affected by inaccurate assumptions Altus might make or by known or unknown risks and uncertainties, including, but not limited to uncertainties as to the ability to obtain additional funding needed for further research and development of ALTU-238; the future cost, timing, enrollment and success of ongoing and planned clinical trials; the risk of demonstrating the ultimate potential of ALTU-238; the continuing risks associated with the development and manufacture of products to supply the clinical trials and the unproven safety and efficacy of ALTU-238. Consequently, no forward-looking statement can be guaranteed, and actual results may vary materially. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in Altus' reports to the Securities and Exchange Commission, including in Item 1A "Risk Factors" and elsewhere in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2009. However, Altus undertakes no obligation to publicly update forward-looking statements, whether because of new information, future events or otherwise.