GAITHERSBURG, Md., March 23 /PRNewswire-FirstCall/ -- Iomai Corporation today reported financial results and corporate progress for the full year and fourth quarter ended Dec. 31, 2006.
"We moved all five of our innovative, patch-based vaccine and immunostimulant programs forward in 2006 and demonstrated the promise of our core technology, transcutaneous immunization (TCI), for improving vaccination for influenza and travelers' diarrhea. This year, we developed initial data showing that the Iomai patches are stable at room temperature and can be mailed or stockpiled, we began a key head-to-head trial of our seasonal influenza vaccine versus the traditional injected vaccine, and we collected important clinical data that will allow us to move our travelers' diarrhea vaccine into Phase 3 trials," said Stanley C. Erck, President and Chief Executive Officer of Iomai. "We are off to a strong start in 2007, winning a $128 million contract from the Department of Health and Human Services to accelerate work on our dose-sparing patch for use with a pandemic influenza vaccine, and we have substantially strengthened our financial position, raising more than $30 million in a private placement that closed earlier this month."
Full-Year and Fourth Quarter 2006 Financial Results
For the full year ended Dec. 31, 2006, Iomai reported a net loss available to common stockholders of $32.3 million, or $2.03 per share, compared to a net loss of $23.6 million, or $30.14 per share, for the year ended Dec. 31, 2005. The lower net loss per share in 2006 was attributable to the increase in the weighted average number of shares outstanding due to the Company's initial public offering in the first quarter of 2006 and a $10 million private placement completed in October 2006. For the fourth quarter of 2006, Iomai's net loss was $9.9 million, or $0.53 loss per share, compared to a net loss in the fourth quarter of 2005 of $6.3 million, or $7.94 loss per share.
The Company reported revenues of $1.5 million for the year ended Dec. 31, 2006, compared to $2.4 million in the year ended Dec. 31, 2005. The decrease in revenue was expected as several pre-existing grants ended during 2005. The revenue in 2006 was principally from the remaining $1.4 million of a two-year grant from the National Institutes of Health (NIH) for development of Iomai's immunostimulant technology for pandemic flu applications, which was completed in the first half of 2006. This grant was originally awarded in January 2005 to fund up to $2.9 million over two years. Iomai reported revenues of approximately $40,000 in the fourth quarter of 2006, compared to approximately $41,000 in the fourth quarter of 2005.
Total operating expenses were $33.9 million in 2006, compared to operating expenses of $20.3 million in 2005. The increase in operating expenses was primarily due to increased clinical trial costs for Iomai's needle-free vaccine patches for the prevention of travelers' diarrhea and influenza, increased development costs for our skin preparation system; and higher payroll costs associated with a year-to-year increase in headcount and expensing of stock options. Total operating costs for the fourth quarter of 2006 were $10.1 million as compared to $6.3 million for the fourth quarter of 2005. The increase in operating expenses was primarily due to increased clinical trial costs for Iomai's needle-free vaccine patches for the prevention of travelers' diarrhea and influenza, and higher payroll costs associated with a year-to-year increase in headcount and expensing of stock options.
As of Dec. 31, 2006, Iomai had unrestricted cash and cash equivalents and marketable securities of $15.3 million compared to $15.3 million on Sept. 30, 2006. In October 2006, the Company raised $10 million through a private placement of newly issued shares of common stock with two existing investors, Essex Woodlands Health Ventures and New Enterprise Associates (NEA). As of Dec. 31, 2006, Iomai had common stock outstanding of 19,197,387 shares.
On March 2, 2007, the Company raised an additional $30.3 million in net proceeds from the private placement of approximately 6.29 million units, each unit consisting of one share of common stock and two warrants to purchase, in total, 0.7 shares of common stock.
Iomai expects to be able to fund its capital expenditures and growing operations with its current working capital and reimbursement of expenses under our existing government grants and contracts through the second quarter of 2008.
Corporate Milestone Guidance
"With the DHHS contract awarded, we expect to accelerate our work on our immunostimulant patch for pandemic influenza, designed to stimulate an immune response to even small doses of vaccine and aid public health officials trying to stretch small supplies of vaccine," continued Erck. "In addition, we will complete the first head-to-head trial comparing our seasonal influenza patch with traditional vaccination, and we plan to partner that innovative influenza program in the coming months."
During 2007, Iomai expects to achieve the following milestones: -- Completion of our 300-patient Phase 1 study comparing the Iomai patch to an injected influenza vaccine; -- Signing of a corporate partnership for our needle-free influenza program; -- Initiation of clinical safety and immunogenicity studies of our immunostimulant (IS) patch for pandemic influenza; -- Initiation of a Phase 2 study of our IS patch to enhance the immune response to traditional seasonal influenza vaccination in the elderly; and -- Initiation of our final Phase 2 study, and announcement of results from our current Phase 2 studies, for our E. coli-related travelers' diarrhea vaccine. Conference Call Details
To access the live conference call on Friday, March 23, 2007 at 11:00 a.m. Eastern Time via phone, please dial 866-825-3209 from the United States and Canada or 617-213-8061 internationally. The conference ID is 80705357. Please dial in approximately ten minutes prior to the start of the call. A telephone replay will be available beginning approximately one hour after the call through March 30, 2007 and may be accessed by dialing 888-286-8010 from the United States and Canada or 617-801-6888 internationally. The replay passcode is 67915258.
To access the live and subsequently archived webcast of the conference call, go to the Investor Relations section of the Company's website at http://www.iomai.com. Please connect to the web site at least 15 minutes prior to the call to allow for any software download that may be necessary. The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at www.earnings.com, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents (www.streetevents.com), a password-protected event management site.
About Iomai Corporation
Iomai Corporation discovers and develops vaccines and immune system stimulants, delivered via a novel, needle-free technology called transcutaneous immunization (TCI). TCI taps into the unique benefits of a major group of antigen-presenting cells found in the outer layers of the skin (Langerhans cells) to generate an enhanced immune response. Iomai is leveraging TCI to enhance the efficacy of existing vaccines, develop new vaccines that are viable only through transcutaneous administration and expand the global vaccine market. Iomai currently has five product candidates in development: four targeting influenza and pandemic flu and one to prevent E. coli-related travelers' diarrhea. For more information on Iomai, please visit www.iomai.com.
Some matters discussed in this press release constitute "forward-looking statements" that involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements. All statements contained in this report other than statements of historical fact are forward-looking statements. The words "may," "could," "should," "plan," "expect," "continue," "estimate," "intend," "will," "believe," "project," "seek," "anticipate" and similar expressions may identify forward-looking statements, but the absence of these words does not necessarily mean that a statement is not forward-looking. Forward- looking statements include statements regarding potential commercialization of our product candidates; expected government funding; sufficiency of existing cash and government contract revenues to fund operations through the second quarter of 2008; next steps following up on reported data and results; timing for initiating new clinical trials and completing ongoing clinical trials; 2007 milestones; and entering into a partnership for the needle-free flu program. Applicable risks and uncertainties include, among others, that results in future clinical trials may fail to demonstrate improved efficacy and utility from the TCI technology; that Iomai may not be able to enroll sufficient numbers of patients in future clinical trials or enroll them on targeted timelines; that future tests and clinical trials may not replicate data and results described in this press release; that Iomai may be unable to retain or obtain the regulatory approvals necessary to complete or conduct additional clinical trials; that Iomai's operating costs may exceed expectations; that Iomai may fail to adequately protect its intellectual property; that potential collaborators may determine to wait for addition clinical data prior to entering into a collaboration or may be unwilling to collaborate on terms Iomai deems acceptable; and the risks identified under the heading "Factors That May Impact Future Results" in Item 1A - Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2006, and filed with the Securities and Exchange Commission. Iomai cautions investors and others not to place undue reliance on the forward-looking statements contained in this press release. You are encouraged to read the Company's filings for a discussion of these and other risks and uncertainties which are filed with the U.S. Securities and Exchange Commission, available at www.sec.gov. These statements speak only as of the date of this document, and Iomai undertakes no obligation to update or revise the statements.
IOMAI CORPORATION STATEMENTS OF OPERATIONS (in thousands, except share and per share data) Year ended December 31, 2006 2005 Revenues $1,475 $2,371 Cost and expenses: Research and development 28,041 16,529 General and administrative 5,857 3,780 Total costs and expenses 33,898 20,309 Loss from operations (32,423) (17,938) Other income (expense) Interest income 1,006 392 Interest expense (377) (467) Other expense, net (8) (17) Total other income (expense), net 621 (92) Net loss before cumulative effect of a change in accounting principle (31,802) (18,030) Cumulative effect of change in accounting principle 17 - Net loss (31,785) (18,030) Dividends on and accretion of convertible preferred stock (471) (5,562) Net loss available to common stockholders $(32,256) $(23,592) Net loss available to common stockholders per share of common stock-basic and diluted $(2.03) $(30.14) Weighted-average number of shares of common stock-basic and diluted 15,915,797 782,715 IOMAI CORPORATION BALANCE SHEETS (in thousands, except share and per share data) December 31, 2006 2005 ASSETS Current assets: Cash and cash equivalents $13,847 $5,190 Marketable securities 1,489 - Accounts receivable 62 12 Prepaid expenses and other current assets 500 258 Total current assets 15,898 5,460 Property and equipment, net 6,736 4,465 Restricted cash - 49 Restricted marketable securities 268 590 Deferred financing costs - 1,108 Other noncurrent assets 183 189 Total assets $23,085 $11,861 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable 1,598 2,012 Accrued expenses 2,353 1,611 Notes payable, current portion 1,369 1,333 Notes payable to related party, current portion 176 229 Capital lease obligation, current portion 1 5 Total current liabilities 5,497 5,190 Notes payable, long-term portion 1,866 1,397 Notes payable to related party, long-term portion 1,347 1,264 Capital lease obligation, long-term portion - 1 Deferred rent 340 122 Total liabilities 9,050 7,974 Common stock subject to put right - 1,959 Warrant to purchase Series C preferred stock - 23 Series C convertible redeemable preferred stock, $0.01 par value; 0 shares authorized, issued and outstanding as of December 31, 2006; 150,000,000 shares authorized; 129,590,034 shares issued and outstanding at December 31, 2005 - 70,363 Stockholders' equity (deficit): Series B convertible preferred stock; $0.01 par value; 0 shares authorized, issued and outstanding as of December 31, 2006; 15,200,000 shares authorized; 14,734,578 shares issued and outstanding at December 31, 2005 - 147 Common stock, $0.01 par value; 200,000,000 shares authorized and 19,197,387 shares issued and outstanding as of December 31, 2006; 220,000,000 shares authorized and 795,519 shares issued and outstanding at December 31, 2005 192 8 Additional paid-in capital 114,631 - Accumulated other comprehensive income - 1 Accumulated deficit (100,788) (68,614) Total stockholders' equity (deficit) 14,035 (68,458) Total liabilities and stockholders' equity (deficit) $23,085 $11,861 IOMAI CORPORATION STATEMENTS OF CASH FLOWS (in thousands) Year ended December 31, 2006 2005 Cash flows from operating activities Net loss $(31,785) $(18,030) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 1,261 2,670 Stock-based compensation expense 1,065 538 Non-cash interest expense and amortization of premium/discount of marketable securities (255) 28 Deferred rent 194 (54) Provision for doubtful accounts - - Loss on disposal of property and equipment 10 4 Changes in operating assets and liabilities: Accounts receivable (50) 62 Prepaid expenses and other current assets (242) (40) Other noncurrent assets 2 (45) Accounts payable (9) 420 Accrued expenses 943 143 Net cash used in operating activities (28,866) (14,304) Cash flows from investing activities Purchases of property and equipment (3,501) (1,339) Sale of property and equipment 7 - Restricted cash and marketable securities 384 35 Sales/maturities of marketable securities 16,500 22,150 Purchases of marketable securities (17,747) (6,790) Net cash (used in) provided by investing activities (4,357) 14,056 Cash flows from financing activities Proceeds from the exercise of stock options 13 22 Cash issued in lieu of fractional common stock - (1) Proceeds from issuance of Series C convertible redeemable preferred stock, net - - Proceeds from initial public offering, net of underwriting commissions 32,854 - Proceeds from private placement of common stock 10,000 - Stock issuance costs (1,517) - Deferred stock issuance costs - (481) Proceeds from notes payable 2,000 468 Principal payments on notes payable (1,495) (1,166) Proceeds from notes payable to related party 280 - Principal payments on notes payable to related party (250) (333) Payments under capital lease obligations (5) (13) Net cash provided by (used in) financing activities 41,880 (1,504) Net increase (decrease) in cash and cash equivalents 8,657 (1,752) Cash and cash equivalents at beginning of year 5,190 6,942 Cash and cash equivalents at end of year $13,847 $5,190 Supplemental schedule of noncash investing and financing activities Cash paid for interest $902 $497
Iomai CorporationCONTACT: Russell P. Wilson, Senior Vice President, Chief Financial Officerand General Counsel of Iomai Corporation, +1-301-556-4478, orinvestors@iomai.com; or Brian Reid of WeissComm Partners, Inc.,+1-703-402-3626, or breid@weisscommpartners.com
Web site: http://www.iomai.com//
