PALO ALTO, Calif., Nov. 5 /PRNewswire-FirstCall/ -- Telik, Inc. (Nasdaq: TELK) reported a net loss of $8.0 million, or $0.15 per share, for the third quarter ended September 30, 2008, compared with a net loss of $11.6 million, or $0.22 per share, for the comparable period in 2007. The $8.0 million net loss includes a $670,000 impairment charge related to corporate and municipal notes investments with an auction reset feature, or auction rate securities, which is reflected in interest and other income (expense). As of September 30, 2008, Telik has recognized impairment charges totaling $6.2 million against $18.7 million of par value auction rate securities. At September 30, 2008, Telik had $64.6 million in cash, cash equivalents and investments including restricted investments, compared to $72.4 million at June 30, 2008 and $93.2 million at December 31, 2007.
All of Telik's auction rate securities were sold to the Company by UBS AG ("UBS"). In October 2008, UBS offered Telik the right to sell at par value all of its auction-rate securities to UBS during a two-year period beginning June 30, 2010. The offer to accept this right is non-transferable and expires on November 14, 2008.
For the quarter ended September 30, 2008, total operating costs and
expenses were $7.8 million, compared with $13.0 million in the 2007 third
quarter and $11.0 million in the second quarter of 2008. Operating expenses
in the 2008 third quarter included stock-based compensation expense of
approximately $1.6 million. Operating expenses were approximately 40% lower
in the third quarter of 2008 compared with the same period in 2007,
primarily as a result of reduced clinical trial and related expenses as
well as lower headcount and administrative expenses.
|SOURCE Telik, Inc.|
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