Facet Biotech Corporation offers biotechnology research services for drug and pharmaceutical products development. It is dedicated to advancing its pipeline of four clinical-stage products and leveraging its research and development capabilities to identify and develop new drugs. The ultimate goal of the company is of developing therapeutics that will improve people\'s lives. The company is based in Redwood City California. FACET BIOTECH CORPORATION has a market cap of $245.3 million; its shares were traded at around $9.99 with and P/S ratio of 13.4.
Highlight of Business Operations:In the second quarter of 2009, our total revenues were $10.6 million, an increase from $2.0 million in the comparable period in 2008. Our total costs and expenses in the second quarter of 2009 were $52.9 million, representing an increase from the $51.2 million in total costs and expenses reported in the comparable 2008 period. The increase in total costs and expenses in the second quarter of 2009 was due primarily to restructuring charges of $16.9 million and asset impairment charges of $0.8 million recognized in the second quarter of 2009, compared to restructuring and asset impairment charges of $2.9 million and $0.3 million, respectively, during the second quarter of 2008. In addition, in the second quarter of 2009, total costs and expenses included $4.0 million in stock-based compensation charges associated with our granting of approximately 699,000 fully-vested stock options to our employees in April 2009 (see discussion of the Value Transfer Grants in Note 2 to the Condensed Consolidated Financial Statements).
Our net loss for the second quarter of 2009 was $40.8 million, compared to $49.7 million in the prior-year comparable period. In the first half of 2009, net cash used in operating activities was $34.2 million, a decrease from $104.5 million used in operating activities in the comparable period in 2008. At June 30, 2009, we had cash, cash equivalents, marketable securities and restricted cash of $371.1 million, compared to $403.4 million at December 31, 2008.
The lease-related restructuring charges of $17.0 million are comprised of (i) a $23.0 million Lease Restructuring Liability, which represents the present value of the estimated future facility costs for which we will obtain no future economic benefit offset by estimated future sublease income, and (ii) a $6.0 million credit for an existing deferred rent liability associated with the vacated area of the Administration Building. The Lease Restructuring Liability incorporates our estimated contractual lease costs related to the vacated space of the building over the term of our lease as well as the estimated costs to sublease the vacant portions of the building (broker commissions, tenant improvements, etc.).
We have established a number of potential scenarios with differing assumptions and have calculated the present value of and applied probability weighting to each scenario based on managements judgment. Changes in the assumptions underlying these scenarios, as well as the relative likelihood applied to each scenario, could have a material impact on our restructuring charge and Lease Restructuring Liability. For example, using a set of assumptions of contracting the entire property with a single subtenant within one year for 100% of our lease costs would result in a favorable adjustment of approximately $5.2 million to our Lease Restructuring Liability. However, a scenario in which we would contract with several subtenants over a period of five years at lease rates approximating 75% of our costs, and assuming an average vacancy rate of 40% over the remaining term of our lease, would result in an unfavorable adjustment of $13.6 million to our Lease Restructuring Liability.
Total revenues increased by $8.6 million during the quarter ended June 30, 2009 from the comparable 2008 period due primarily to $1.0 million of license revenues and $5.8 million of reimbursement of research and development (R&D) expenses recognized under our collaboration with BMS, which was executed in the third quarter of 2008. In addition, we recognized $1.2 million of royalties received under our agreement with EKR in the second quarter of 2009.
The increase of $13.5 million in total revenues during the six months ended June 30, 2009 from the comparable period in 2008 was driven primarily by $12.0 million in license and R&D reimbursement revenues recognized in connection with our collaboration with BMS and the recognition of $2.9 million of royalties received under our agreement with EKR. This increase in revenues was partially offset by a $0.4 million reduction in revenues recognized under our collaboration with Biogen Idec and $2.0 million in milestone payments that we received in the first half of 2008 from certain of our licensees as compared to $0.5 million in milestone payments for the 2009 period, which were reflected as other revenue.
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