San Diego-based biotech Discovery Partners International Inc. announced a loss for the second quarter on Aug. 9.
Net loss for the quarter was $4.4 million, or a loss of 17 cents per share, compared to a net loss of $1.4 million, or a loss of 5 cents per share, for the second quarter of 2005.
Discovery Partners recorded no revenue for the second quarters of 2006 and 2005.
Net loss from continuing operations for the second quarter was $3.2 million, or a loss of 12 cents per share, compared to a net loss of $2.2 million, or a loss of 8 cents per share, for the same period in 2005.
On June 12, Discovery Partners sold its material operating assets and instrumentation product lines to Biofocus, an Ohio-incorporated company, for $5.4 million. Discovery Partners no longer reports related revenues or expenses stemming from the company’s operating activities. These items are reported as discontinued operations. The only remaining material assets recorded are cash and cash equivalents and short-term investments.
Net loss from discontinued operations for the second quarter was $1.2 million, or 5 cents per share, a $2 million drop from $800,000 in net income from discontinued operations for the same period in 2005.
Cash and cash equivalents and short-term investments were $75.4 million for the second quarter, but do not reflect the $5.4 million in proceeds from the sale of operating assets.
On July 31, Discovery Partners entered into a merger agreement with Infinity Pharmaceuticals Inc. Under the merger agreement, Infinity will become a wholly owned subsidiary of Discovery with Infinity as the surviving company. The agreement will give Infinity security holders approximately 69 percent of Discovery’s non-diluted stock, an amount roughly equal to $59 million based on Discovery’s market capitalization as of Aug. 8.
Discovery Partners is traded on the Nasdaq Global Market Exchange under the ticker symbol DPII. On Aug. 8, Discovery stock closed at $2.78, up 1 cent from the previous day’s close.
, Andy Killion
