AutoImmune, Inc. Reports 2005 Third Quarter Financial Results
PASADENA, Calif., Nov. 10 /PRNewswire-FirstCall/ -- AutoImmune Inc. today reported a net loss of $0.20 million, or $0.01 per share basic and diluted, for the three months ended September 30, 2005 compared with a net loss of $0.10 million, or $0.01 per share basic and diluted, for the three months ended September 30, 2004. For the nine months ended September 30, 2005, the net loss was $0.57 million, or $0.03 per share basic and diluted, compared with net loss of $0.56 million, or $0.03 per share basic and diluted for the same period in 2004. As of September 30, 2005, the Company reported $9.4 million in cash and marketable securities as compared to $10.0 million in cash and marketable securities as of December 31, 2004.
Robert C. Bishop, Ph.D., Chairman of the Board and Chief Executive Officer, stated, "The Company's licensees continue to make progress with their ongoing clinical trials of products using AutoImmune technology. At the end of the quarter, Colloral LLC, our joint venture with Deseret Laboratories Inc. for dietary supplements, initiated a direct mail test program intended to identify the most effective positioning for its product with a plan to expand marketing efforts early next year." In August 2005, we amended the Colloral LLC operating agreement to increase our share of fund distributions and allocations of profits and losses in return for our commitment to fund the implementation of Colloral LLC's marketing plan. As a result of the terms of the amended operating agreement, we are now required to consolidate Colloral LLC in accordance with FIN 46 "Consolidation of Variable Interest Entities" effective in the third quarter of 2005.
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 is currently enrolling patients at multiple sites in a Phase II/III study of MBP8298 which recently passed its second Data Safety Monitoring Board review.
AutoImmune has also exclusively licensed certain of its intellectual property rights to Teva Pharmaceutical Industries, Ltd. Teva has an ongoing Phase II study looking at two different doses of an oral formulation of COPAXONE(R) (glatiramer acetate), a product for the treatment of multiple sclerosis. The oral formulation utilizes the intellectual property rights licensed from AutoImmune. If Teva 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 including statements about the Company's future operating results, strategic relationships and product development. 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 development stage of the Company's and its licensees' products, uncertainties of clinical trial results, the Company's dependence on third parties for licensing revenue, the risk that Colloral(R) may be classified as a drug rather than a dietary supplement, 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 "Business-Factors to be Considered." The discussion in the Annual Report on Form 10-K is hereby incorporated by reference into this release. The Company has no plans, and disclaims any obligation, to update or revise any forward looking statements whether as a result of new information, future events or other factors.
AUTOIMMUNE INC. STATEMENT OF OPERATIONS (Unaudited) Three months ended Nine months ended September 30, September 30, 2004 2005 2004 2005 Revenue $33,000 $44,000 $93,000 $119,000 Costs and expenses: Research and development 55,000 41,000 259,000 189,000 General and administrative 109,000 307,000 494,000 604,000 Total costs and expenses 164,000 348,000 753,000 793,000 Interest income 35,000 79,000 96,000 212,000 Equity in net loss of unconsolidated affiliate - - - (130,000) Other income - 25,000 - 25,000 35,000 104,000 96,000 107,000 Net income (loss) ($96,000) ($200,000) ($564,000) ($567,000) Net income (loss) per share - basic ($0.01) ($0.01) ($0.03) ($0.03) Net income (loss) per share - diluted ($0.01) ($0.01) ($0.03) ($0.03) Weighted average common shares outstanding - basic 16,919,623 16,919,623 16,919,623 16,919,623 Weighted average common shares outstanding - diluted 16,919,623 16,919,623 16,919,623 16,919,623 CONDENSED BALANCE SHEET (Unaudited) December 31, September 30, 2004 2005 Cash and marketable securities $9,996,000 $9,392,000 Other current assets 37,000 69,000 Other assets 5,000 - Total assets $10,038,000 $9,461,000 Current liabilities $108,000 $98,000 Total stockholders' equity 9,930,000 9,363,000 Total liabilities and equity $10,038,000 $9,461,000AutoImmune Inc.
CONTACT: Robert C. Bishop, Ph.D., Chairman and Chief Executive Officer ofAutoImmune Inc., +1-626-792-1235
Web site: http://www.autoimmuneinc.com/