PASADENA, Calif., May 12 /PRNewswire-FirstCall/ -- AutoImmune Inc. today reported a net loss of $0.17 million, or $0.01 per share basic and diluted, for the three months ended March 31, 2004, compared with net income of $1.03 million, or $0.06 per share basic and diluted, for the three months ended March 31, 2003. Results for the three months ended March 31, 2003 reflect receipt of the final payment in March 2003 from a subsidiary of Elan Corporation plc for its purchase of AutoImmune’s rights to certain patent applications. As of March 31, 2004, the Company reported $10.5 million in cash and marketable securities as compared to $10.7 million in cash and marketable securities as of December 31, 2003.
Robert C. Bishop, Ph.D., Chairman of the Board and Chief Executive Officer stated, “AutoImmune continues to move forward through the efforts of its licensees and its joint venture for the manufacture, marketing and sale of Colloral(R) as a nutritional supplement. We should soon begin to see the impact of marketing efforts underway to support Colloral and remain optimistic sales will increase throughout the year. Under the currently applicable accounting model, AutoImmune will begin to recognize income when profits exceed cumulative start-up costs.”
AutoImmune has exclusively licensed certain of its intellectual property rights to BioMS, a Canadian company. Under the license agreement, BioMS makes monthly diligence payments to AutoImmune and has a royalty obligation on sales of MBP8298 should it reach the market. On March 18, 2004, BioMS reported that it raised Canadian $9.3 million the proceeds of which will principally be applied toward a pivotal human clinical trial of its lead drug, MBP8298, a treatment for secondary progressive multiple sclerosis, which utilizes the intellectual property rights licensed from AutoImmune.
AutoImmune has also exclusively licensed certain of its intellectual property rights to Teva Pharmaceutical Industries, Ltd. Teva has not yet started new human clinical studies on an oral formulation of COPAXONE(R) (glatiramer acetate), a product for the treatment of multiple sclerosis, but is expected to do so within the next several months. 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 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 “Business-Factors to be Considered.” The discussion in the Annual Report on Form 10-K is hereby referenced into this release.
Contact: Robert C. Bishop, Ph.D. Chairman and Chief Executive Officer AutoImmune Inc. 626-792-1235 website: http://www.autoimmuneinc.com/ - Financial Chart Follows - AUTOIMMUNE INC. STATEMENT OF OPERATIONS (Unaudited) Three months ended March 31, 2003 2004 Revenue $1,367,000 $30,000 Costs and expenses: Research and development 138,000 58,000 General and administrative 230,000 171,000 Total costs and expenses 368,000 229,000 Interest income 34,000 31,000 Equity in net loss of unconsolidated affiliate - - Other expense - - 34,000 31,000 Net income (loss) $1,033,000 ($168,000) Net income (loss) per share - basic $0.06 ($0.01) Net income (loss) per share - diluted $0.06 ($0.01) Weighted average common shares outstanding - basic 16,919,623 16,919,623 Weighted average common shares outstanding - diluted 17,073,834 16,919,623 CONDENSED BALANCE SHEET (Unaudited) December 31, March 31, 2003 2004 Cash and marketable securities $10,744,000 $10,484,000 Other current assets 35,000 144,000 Total assets $10,779,000 $10,628,000 Current liabilities $84,000 $99,000 Total stockholders’ equity 10,695,000 10,529,000 Total liabilities and equity $10,779,000 $10,628,000
AutoImmune Inc.
CONTACT: Robert C. Bishop, Ph.D., Chairman and Chief Executive Officerof AutoImmune Inc., +1-626-792-123
Web site: http://www.autoimmuneinc.com/