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Telik Announces Fourth Quarter And 2009 Year End Financial Results And 2010 Financial Guidance

PALO ALTO, Calif., Feb. 25 /PRNewswire-FirstCall/ -- Telik, Inc. (Nasdaq: TELK) reported a net loss of $4.2 million, or $0.08 per share, for the three months ended December 31, 2009, compared with a net loss of $0.4 million, or $0.01 per share, for the comparable period in 2008. The results for the three months ended December 31, 2008 included an unrealized net gain of $4.6 million due to changes in fair value of investments and related rights.

For the quarter ended December 31, 2009, total operating costs and expenses were $4.3 million, compared with $5.3 million in the fourth quarter of 2008. Operating costs and expenses in the 2009 fourth quarter included stock-based compensation expense of approximately $0.4 million compared to $1.4 million for the same period in 2008. Operating costs and expenses were approximately 19% lower in the fourth quarter of 2009, compared with the same period in 2008, primarily due to reduced headcount following the company's restructuring implemented in the first quarter of 2009, and lower stock-based compensation and corporate expenses, partially offset by an increase in clinical trial and related expenses.

For the year ended December 31, 2009, Telik reported a net loss of $23.7 million, or $0.44 per share, compared with a net loss of $31.8 million, or $0.60 per share, for the year ended December 31, 2008. The results for the twelve months ended December 31, 2008 included an unrealized net gain of $0.7 million due to changes in fair value of investments and related rights. Operating costs and expenses for the year ended December 31, 2009 were $24.5 million, compared with $34.7 million for the same period in 2008. Operating costs and expenses in 2009 included approximately $2.2 million in stock-based compensation expense compared to $6.3 million in 2008. The reduction in operating costs and expenses of approximately 29% in the year ended December 31, 2009, compared with 2008, was primarily due to reduced headcount following the restructuring, reduced clinical trial and related expenses, lower stock-based compensation and corporate expenses.

At December 31, 2009, Telik had $40.4 million in cash, cash equivalents and restricted cash and investments, compared with $63.5 million at December 31, 2008.

2009 Highlights

  • Reported results on two early stage drug development programs at the 100th annual meeting of the American Association for Cancer Research (AACR) in Denver, CO. Results of the first study provided an in vivo characterization and mechanism of orally active Aurora Kinase/VEGFR Inhibitors (Fang L, Sho A, Hsu N, et al. In vivo Characterization and Mechanism of Orally Active Aurora Kinase/VEGFR Inhibitors. Proceedings of the American Association for Cancer Research; April 18-22, 2009; Denver, CO. Abstract #1764) and results from the second study provided anti-tumor efficacy and molecular mechanism of TLK58747 (Wang Z, Donaldson J, Yao H, et al. Anti-Tumor Efficacy and Molecular Mechanism of TLK58747. Proceedings of the American Association for Cancer Research; April 18-22, 2009; Denver, CO. Abstract #4515).
  • Published results from a Phase 1 multicenter, dose escalation study of ezatiostat hydrochloride (TELINTRA®, TLK199) tablets in patients with low to intermediate-1 risk Myelodysplastic Syndrome (MDS) were published in a leading peer reviewed journal (Raza, A. et al. Blood, 25 June 2009; Vol. 113, No. 26, pp. 6533-6540) and a Phase 1-2a study in MDS patients with the intravenous formulation of TELINTRA were published (Raza, A. et al. Journal of Hematology and Oncology, 13 May 2009; Vol. 2, No. 20, pp. 20-32). The findings from these studies support the further development of TELINTRA.
  • Results from the ASSIST-5 Phase 3 randomized, multinational study of canfosfamide HCl (TELCYTA®, TLK286) in combination with pegylated liposomal doxorubicin (PLD, Doxil®) vs. PLD (Doxil) alone in second-line therapy in platinum refractory or resistant ovarian cancer were presented at the 45th annual meeting of the American Society of Clinical Oncology (ASCO) (Vergote I, Finkler N, Hall J, et al. Randomized Phase 3 Study of Canfosfamide (C, TLK286) plus Pegylated Liposomal Doxorubicin (PLD) vs PLD as Second-line Therapy in Platinum (P) Refractory or Resistant Ovarian Cancer (OC). Proceedings of the American Society of Clinical Oncology; May 29-June 2, 2009; Orlando, FL. Abstract #5552; p. 289s).
  • Initiated enrollment in a Phase 2 randomized parallel-group, multicenter study of ezatiostat hydrochloride (TELINTRA, TLK199) Tablets for the treatment of Severe Chronic Idiopathic Neutropenia (SCN) in April 2009.
  • Published positive results from a Phase 1-2a multicenter, dose-ranging study of TELCYTA in combination with carboplatin and paclitaxel as first-line therapy for patients with non-small cell lung cancer (NSCLC) in a leading peer reviewed publication ( Journal of Thoracic Oncology, October 2009; Vol. 4, No. 11, pp. 1389-1396).
  • Initiated a Phase 1 multicenter, dose escalation study of ezatiostat hydrochloride (TELINTRA, TLK199) Tablets in combination with lenalidomide (Revlimid®) in patients with non-deletion (5q-) low to intermediate-1 risk MDS.

In 2010, Telik is focusing its resources on: (1) advancing the clinical development of TELINTRA in MDS by completing the ongoing Phase 2 single-agent trial, (2) enrolling the Phase 1 TELINTRA combination trial with lenalidomide, (3) advancing the clinical development of TELINTRA in SCN by continuing enrollment in the Phase 2 trial, (4) advancing its leading preclinical oncology drug candidates, (5) supporting TRAP® research collaborations, and (6) seeking corporate partnerships for development and commercialization of our drug product candidates.

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