Guilford Pharmaceuticals Reports First Quarter 1999

Results Baltimore (PROTEXT) - Guilford Pharmaceuticals Inc. (Nasdaq: GLFD) today reported financial results for the first quarter ended March 31, 1999. In the first quarter, Guilford reported a net loss of $8.5 million, or $0.44 per share, compared to a net loss of $7.1 million, or $0.36 per share, in the first quarter of 1998. Revenues for the first quarter of 1999 increased to $2.9 million compared to $2.4 million for the same period in 1998. Increased revenues in the first quarter reflect an increase in transfer sales of GLIADEL(R) Wafer to Guilford's partner, Rhone- Poulenc Rorer. Net product sales during the first quarter increased to $1.2 million in 1999 from $658,000 in 1998. Research and development costs increased to $9.1 million in the first quarter of 1999 from $8.7 million in the first quarter of 1998. Research and development expenditures increased due to costs associated with the preclinical development of Guilford's early stage neurological and drug delivery programs. General and administrative costs were $3.5 million in the first quarter of 1999 compared to $2.5 million in the first quarter of 1998. The increase was largely attributable to increased expenditures relating to Guilford's intellectual property. "During the first quarter, our total revenues increased 21% over the same period last year while our R&D costs increased less than 5%. While we continue to control our general and administrative expenses, the cost of expanding and managing our patent estate continues to grow and we are taking specific steps to minimize further increases in this area," commented Dr. Craig R. Smith, President and CEO. "Our Company's cash position remains strong and our product development programs continue to make solid progress. We are on target to introduce three novel product candidates in three different therapeutic areas into clinical trials this year." Guilford Pharmaceuticals Inc. is a biopharmaceutical company engaged in the development of polymer-based therapeutics for brain cancer and other cancers, and novel products for the treatment of neurological diseases, including Parkinson's disease, Alzheimer's disease, stroke, head trauma, spinal cord injuries, multiple sclerosis, and peripheral neuropathies. GUILFORD PHARMACEUTICALS INC. AND SUBSIDIARIES Financial Highlights Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three Months Ended March 31, 1999 1998 Revenues: Product sales 1,192 658 License and royalty revenues 547 580 Revenues under collaborative agreements 1,137 1,144 Total revenues 2,876 2,382 Costs and expenses: Cost of sales 630 339 Research and development 9,127 8,655 General and administrative 3,521 2,517 Total costs and expenses 13,278 11,511 Loss from operations (10,402) (9,129) Interest and other income, net 1,905 2,055 Net loss $(8,497) $(7,074) Basic and diluted (loss) per share $(0.44) $(0.36) Shares used in the calculation of basic and diluted (loss) per share 19,491 19,411 Condensed Consolidated Balance Sheets (In thousands) March 31, December 31, 1999 1998 (Unaudited) (Audited) Assets Cash, cash equivalents and investments $117,625 $128,261 Plant and equipment, net 18,297 18,790 Inventories 1,316 1,291 Other assets 2,781 2,686 $140,019 $151,028 Liabilities and Stockholders' Equity Current liabilities $12,049 $11,883 Long-term debt, net of current portion 8,227 8,766 Stockholders' equity 119,743 130,379 $140,019 $151,028 Internet Address: http://www.guilfordpharm.com For Press Releases: http://www.prnewswire.com This press release contains forward-looking statements that involve risks and uncertainties, including those described in the section entitled "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 1998, that could cause the Company's actual results and experience to differ materially from anticipated results and expectations expressed in these forward-looking statements. Among other things, there can be no assurance that the Company will be able to successfully complete all work necessary to put any of its preclinical leads into clinical trials in a timely and cost-effective manner, if at all, or meet and earn development milestones under existing collaboration. NOTE TO INVESTORS: CONFERENCE CALL ALERT! Tuesday, May 4th GUILFORD P H A R M A C E U T I C A L S (Nasdaq: GLFD) WILL DISCUSS ITS 1999 FIRST QUARTER RESULTS VIA CONFERENCE CALL from 11:00 a.m. to 12:00 p.m. (Eastern Time) Tuesday, May 4, 1999 Dial In Number: (USA) 212-896-6031 There will be a question and answer session following management's comments. Playback dial in number: 800-633-8284 (int'l callers (USA) 619-812-6440), then dial reservation number 12160160. The playback will run from 1:00 p.m. EDT on May 4th through 1:00 p.m. on May 5th. If you have any questions, please contact Stacey Jurchison (USA) 410-631-5022 or Angela Rubin (USA) 410-631-6449. ots Original Text Service: Guilford Pharmaceuticals Inc. Internet: http://www.newsaktuell.de Contact: Stacey Jurchison or Angela Rubin of Guilford Pharmaceuticals (USA) 410-631-6300 Company News On-Call: http://www.prnewswire.com/comp/112882.html or Fax: (USA) 800-758-5804, ext. 112882 Web site: http://www.guilfordpharm.com Subscribers please note that material bearing the slug "PROTEXT" is not part of CTK's news service and is not to be published under the "CTK" slug. Protext is a commercial service providing distribution of press releases from clients, who are identified in the text of Protext reports and who bear full responsibility for their contents.