Epix reports gains and losses after Schering partnership

Schering of Germany’s recent partnership with Epix Medical has paid off in revenue for the small research-based Massachusetts company, but not enough to prevent a dramatic loss, according to Epix’s second-quarter financial earnings.

Epix is in phase III clinical trials for MS-325, an MR contrast agent. As a development-stage company, Epix has no commercial products. Epix, Mallinckrodt, and Schering, whose American counterpart is Berlex, jointly announced a series of agreements covering Epix’s MS-325, which was formerly licensed by Mallinckrodt as AngioMark. Epix expects to complete patient trial enrollment for the agent in the first half of 2001 (SCAN 6/21/00).

Epix’s net loss for the second quarter (ending June 30) was $4.6 million, as compared to a net loss of $4 million for the second quarter of 1999. Second-quarter revenue was $2.3 million, compared to $267,000 for the same period in 1999, primarily due to development funding by Schering in the second quarter. Total operating expenses for second-quarter 2000 were $6.9 million as compared to $4.5 million for the second quarter of 1999. Research and development expenses increased $2 million during the second quarter of 2000, due to the Schering agreement and clinical trial expenses.

In the same month that it announced these dramatic losses, Epix filed a Form S-3 shelf registration statement with the Securities and Exchange Commission for the issuance of up to three million shares of common stock. Once registered, these shares will be available for sale by the company when it believes market conditions are favorable and investment opportunities are available.

Epix president and CEO Michael Webb said his company has “significant” funds available for the development of MS-325 and its thrombus-imaging research program. But acquiring more capital through the new stock issuance would allow Epix to accelerate and expand its development if demand warrants, he said.

In other Epix news, the company has promoted Pamela E. Carey to the positions of vice president of finance and administration and chief financial officer. Prior to the promotion, Carey was Epix’s treasurer and director of finance.