Dyax Reports Third Quarter 2009 Financial Results

Dyax announced financial results for the third quarter ended September 30.

In an October 28 release, Dyax reported that total revenues for the third quarter ended September 30, were $4.5 million, as compared to $5.5 million for the comparable quarter in 2008. Total revenues for the nine months ended September 30, increased to $15.3 million from $12.0 million for the comparable period in 2008. For the nine month 2009 period, the increase in revenues was primarily due to additional revenue recognized under the company's Licensing and Funded Research Program (LFRP), as well as $1.6 million of revenue recognized under a collaboration agreement entered into during 2008. Quarterly revenues are expected to fluctuate due to the timing and amount of future milestone payments, the clinical activities of collaborators and licensees, and the timing and completion of contractual commitments.

Research and development expenses for the third quarter of 2009 decreased to $7.1 million, as compared to $16.5 million for the comparable quarter in 2008. For the nine months ended September 30, research and development expenses decreased to $37.8 million, as compared to $51.6 million for the comparable period in 2008. For the nine month 2009 period, the decrease in expenses was primarily due to cost savings resulting from the restructuring in March 2009, the closure of the company's Liege, Belgium research facility in mid-2008, and lower clinical trials costs. These decreases were offset by an increase of approximately $7.5 million in 2009 costs associated with the manufacture of DX-88.

General and administrative expenses for the third quarter of 2009 increased to $5.9 million, as compared to $4.9 million for the comparable quarter in 2008. For the nine months ended September 30, general and administrative costs increased to $18.9 million, as compared to $15.6 million for the comparable period in 2008. The higher general and administrative costs in 2009 were primarily due to increased infrastructure to support plans for commercialization of DX-88 for hereditary angioedema (HAE) and charges for share-based compensation expense.

For the quarter ended September 30, Dyax reported a net loss of $12.2 million or $0.17 per share, as compared to a net loss of $26.6 million or $0.43 per share for the comparable quarter in 2008. For the nine months ended September 30, the net loss was $51.5 million or $0.78 per share, as compared to $72.9 million or $1.19 per share for the comparable period in 2008.

As of September 30, Dyax had cash, cash equivalents, and short-term investments totaling $41.1 million, exclusive of restricted cash. Inclusive of the $20.5 million of net proceeds from the equity offering completed on October 5, Dyax would have had cash, cash equivalents, and short-term investments totaling $61.6 million, as of September 30.

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