PASADENA, Calif., Aug. 10 /PRNewswire-FirstCall/ -- AutoImmune Inc. today reported a net loss of $0.18 million, or $0.01 per share basic and diluted, for the three months ended June 30, 2006 compared with a net loss of $0.19 million, or $0.01 per share basic and diluted, for the three months ended June 30, 2005. For the six months ended June 30, 2006, the net loss was $0.48 million, or $0.03 per share basic and diluted, compared with net loss of $0.37 million, or $0.02 per share basic and diluted for the same period in 2005. As of June 30, 2006, the Company reported $8.8 million in cash and marketable securities as compared to $9.3 million in cash and marketable securities as of December 31, 2005.
Robert C. Bishop, Ph.D., Chairman of the Board and Chief Executive Officer stated, "BioMS, one of the Company's licensees, made significant progress during the second quarter of this year. Over the same time period, Colloral LLC, our joint venture with Deseret Laboratories Inc. for dietary supplements, has had moderate success with continuing efforts to reach new customers." For the past three quarters, AutoImmune has consolidated Colloral LLC for financial reporting purposes in accordance with FIN 46 "Consolidation of Variable Interest Entities."
AutoImmune has exclusively licensed certain of its intellectual property rights to BioMS Medical Corp., a Canadian company. Under the license agreement, BioMS makes monthly diligence payments to AutoImmune and has a royalty obligation on sales of its lead drug MBP8298, a treatment for secondary progressive multiple sclerosis, should it reach the market. BioMS recently expanded its Phase II/III human clinical trial of MBP8298 into Denmark and the Netherlands. On May 9, 2006, BioMS announced that over 200 patients have been enrolled in the trial to date, and the first interim look for significant preliminary findings will be done after this group has completed 24 months in the clinical trial. Results from long-term follow-up treatment of MS patients with MBP 8298 are being published in the August 2006 issue of European Journal of Neurology.
AutoImmune has also exclusively licensed certain of its intellectual property rights to Teva Pharmaceutical Industries, Ltd. If Teva develops a product using the Company's intellectual property and is successful in bringing this product to market, AutoImmune will receive both a milestone payment and a royalty on sales under its license agreement.
AutoImmune is a biopharmaceutical company involved in the development of a new class of mucosally administered therapies for the treatment of autoimmune and cell-mediated inflammatory diseases and conditions.
This release contains forward-looking statements which involve risks and uncertainties. The Company's actual results may differ significantly from results discussed in the forward-looking statements due to a number of important factors, including, but not limited to the uncertainties of clinical trial results, the Company's dependence on third parties for licensing revenue, and the risks of technological change and competition. These factors are more fully discussed in the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission in the section "Risk Factors" The discussion in the Annual Report on Form 10-K is hereby referenced into this release.
STATEMENT OF OPERATIONS
Three months ended June 30, Six months ended June 30,
2005 2006 2005 2006
Revenue $37,000 $87,000 $75,000 $184,000
Costs and expenses:
development 21,000 17,000 148,000 147,000
administrative 182,000 358,000 297,000 720,000
and expenses 203,000 375,000 445,000 867,000
Interest income 72,000 105,000 133,000 202,000
Equity in net loss of
affiliate (100,000) - (130,000) -
(28,000) 105,000 3,000 202,000
Net income (loss) ($194,000) ($183,000) ($367,000) ($481,000)
Net income (loss)
per share - basic ($0.01) ($0.01) ($0.02) ($0.03)
Net income (loss)
per share - diluted ($0.01) ($0.01) ($0.02) ($0.03)
basic 16,919,623 16,919,623 16,919,623 16,919,623
diluted 16,919,623 16,919,623 17,398,633 16,919,623
CONDENSED BALANCE SHEET
December 31, June 30,
Cash and marketable securities $9,285,000 $8,817,000
Other current assets 136,000 138,000
Total assets $9,421,000 $8,955,000
Current liabilities $157,000 $150,000
Total stockholders' equity 9,264,000 8,805,000
Total liabilities and equity $9,421,000 $8,955,000