AutoImmune, Inc. Reports 2006 Third Quarter Financial Results
PASADENA, Calif., Nov. 9 /PRNewswire-FirstCall/ -- AutoImmune Inc. today reported a net loss of $0.04 million, or $0.00 per share basic and diluted, for the three months ended September 30, 2006 compared with a net loss of $0.20 million, or $0.01 per share basic and diluted, for the three months ended September 30, 2005. For the nine months ended September 30, 2006, the net loss was $0.52 million, or $0.03 per share basic and diluted, compared with net loss of $0.57 million, or $0.03 per share basic and diluted for the same period in 2005. As of September 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, "We completed funding of the contract for sales and marketing support at Colloral LLC during the third quarter. As a result of that effort, we subsequently signed an option agreement with Futurebiotics LLC for retail distribution of product that should lead to increasing revenues before the end of this year. For the past four 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 announced during the third quarter it has received a fifth positive review by the Data Safety Monitoring Board in its Phase II/III human clinical trial of MBP8298, and that it has expanded this study into Spain and Germany. Results from long-term follow-up treatment of MS patients with MBP 8298 were published in the August 2006 issue of European Journal of Neurology. The data showed an unprecedented five-year delay in disease progression in an HLA-defined subgroup of MS patients (up to 75% of MS patients) treated with the drug.
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.
- Financial Chart Follows - AUTOIMMUNE INC. STATEMENT OF OPERATIONS (Unaudited) Three months ended Nine months ended September 30, September 30, 2005 2006 2005 2006 Revenue $44,000 $80,000 $119,000 $264,000 Costs and expenses: Research and development 41,000 25,000 189,000 172,000 General and administrative 307,000 204,000 604,000 924,000 Total costs and expenses 348,000 229,000 793,000 1,096,000 Interest income 79,000 113,000 212,000 315,000 Equity in net loss of unconsolidated affiliate - - (130,000) - Other income 25,000 - 25,000 - 104,000 113,000 107,000 315,000 Net income (loss) ($200,000) ($36,000) ($567,000) ($517,000) Net income (loss) per share - basic ($0.01) ($0.00) ($0.03) ($0.03) Net income (loss) per share - diluted ($0.01) ($0.00) ($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, 2005 2006 Cash and marketable securities $9,285,000 $8,759,000 Other current assets 136,000 138,000 Total assets $9,421,000 $8,897,000 Current liabilities $157,000 $119,000 Total stockholders' equity 9,264,000 8,778,000 Total liabilities and equity $9,421,000 $8,897,000AutoImmune Inc.
CONTACT: Robert C. Bishop, Ph.D., Chairman and Chief Executive Officer ofAutoImmune Inc., +1-626-792-1235
Web site: http://www.autoimmuneinc.com//