AVANT Immunotherapeutics Reports First Quarter 2002 Financial Results
NEEDHAM, Mass.--(BW HealthWire)--April 24, 2002--AVANT Immunotherapeutics, Inc. (Nasdaq: AVAN - news) today reported financial results for the first quarter ended March 31, 2002. The company reported a net loss of $4.9 million, or $.08 per share, for the first quarter of 2002 compared to a net loss of $4.0 million, or $.07 per share, for the first quarter of 2001. The increased loss for the first quarter of 2002 primarily reflects an increase in research and development expense compared to the same period in 2001. This increase in expense is related to costs associated with the scale-up and manufacture of clinical materials for human trials of the company's travelers' vaccines, increases in personnel and related expenses and increased consultancy costs. The company ended the quarter with cash and cash equivalents of $37.1 million.
``These financial results are in line with our plans for the company,'' said Avery W. Catlin, Senior Vice President and Chief Financial Officer of AVANT Immunotherapeutics, Inc. ``We are making progress in the advancement of our two lead programs: CETi-1, our novel therapeutic vaccine for cholesterol management; and the first two of our single dose, oral travelers' vaccines - CholeraGarde(TM) cholera vaccine and Ty800 typhoid fever vaccine.''
During the quarter, AVANT announced the signing of a clinical research agreement with the International Vaccine Institute (``IVI'') aimed at conducting clinical trials of AVANT's CholeraGarde(TM) vaccine in Bangladesh. Under the direction of John D. Clemens, M.D., IVI plans to begin conducting clinical trials of our cholera vaccine in Bangladesh during 2002. IVI, through its Diseases of the Most Impoverished (``DOMI'') Program, seeks to accelerate the development and introduction of vaccines against cholera, typhoid fever and shigellosis. IVI is founded on the belief that the health of children in developing countries can be dramatically improved by the development, introduction and use of new and improved vaccines and these vaccines should be developed through a dynamic interaction among science, public health and business. The DOMI Program has been funded by the Bill and Melinda Gates Foundation.
AVANT has furthermore been active in ongoing discussions with the U.S. government regarding development of vaccines to protect against bioterrorism agents. During the past six months, Dr. Ryan has testified twice before subcommittees of the U.S. Congress addressing this issue, and the company has hired a Washington-based lobbying firm to promote AVANT's interests in this area. AVANT signed a license agreement in October 2001 with DynPort Vaccine Company LLC for exclusive rights to use certain components of AVANT's vaccine technology to develop an anthrax vaccine.
``These events reaffirm our company's identity as a vaccines company that develops novel adult-directed vaccines for important medical needs based on multiple, innovative technology platforms,'' said Una Ryan, Ph.D., AVANT's President and Chief Executive Officer.
Dr. Ryan and Mr. Catlin will host a conference call at 11:00 AM EST on Thursday, April 25, 2002 to discuss the First Quarter 2002 financial results. To access the conference call, dial 800-997-8642 (within the United States), or 973-694-2225 (if calling from outside the U.S.). An audio replay will be available immediately following the call for approximately one week and can be accessed by dialing 800-428-6051 (within the U.S.), or 973-709-2089 (if calling from outside the U.S.). The passcode for the audio replay is 238399.
The call will also be broadcast via the company's website: www.avantimmune.com. In order to access the webcast, your PC must have a sound card, speakers and Windows Media Player software. It is recommended that you configure your PC in advance of the webcast as the software download and installation can take several minutes.
AVANT Immunotherapeutics, Inc. is engaged in the discovery, development and commercialization of products that harness the human immune system to prevent and treat disease. The company is developing a broad portfolio of vaccines against viral and bacterial diseases, including single-dose oral vaccines aimed at protecting travelers from cholera, typhoid fever and other illnesses. In addition, the company is conducting clinical studies of a proprietary vaccine candidate for cholesterol management. AVANT further leverages the value of its technology portfolio through corporate partnerships. Current collaborations encompass the development of an oral human rotavirus vaccine, vaccines to combat threats of biological warfare, and vaccines addressed to human food safety and animal health.
Additional information on AVANT Immunotherapeutics, Inc. can be obtained through our site on the World Wide Web: avantimmune.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements which reflect AVANT's current views with respect to future events and financial performance. The words ``believe,'' ``expect,'' ``anticipate,'' and similar expressions identify forward-looking statements. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed in any such forward-looking statements. These factors include, but are not limited to: (1) the ability to successfully complete development and commercialization of products, including the cost, timing, scope and results of preclinical and clinical testing; (2) the ability to successfully complete product research and further development, including animal, pre-clinical and clinical studies, and the adaptation of our attenuated vaccine technology to different infectious diseases; (3) the ability of the company to manage multiple late stage clinical trials for a variety of product candidates; (4) the volume and profitability of product sales of Megan®Vac 1 and other future products; (5) changes in existing and potential relationships with corporate collaborators; (6) the cost, delivery and quality of clinical and commercial grade materials supplied by contract manufacturers (7) the timing, cost and uncertainty of obtaining regulatory approvals; (8) the ability to obtain substantial additional funding; (9) the ability to develop and commercialize products before competitors; (10) the integration of Megan Health's business and programs; (11) the ability to retain certain members of management; and (12) other factors detailed from time to time in filings with the Securities and Exchange Commission.
AVANT IMMUNOTHERAPEUTICS, INC.
CONSOLIDATED STATEMENT Quarter
OF OPERATIONS DATA Ended March 31,
2002 2001
(Unaudited)
OPERATING REVENUE
Product Development and Licensing Agreements $585,300 $737,700
Product Sales 105,600 121,300
Total Operating Revenue 690,900 859,000
OPERATING EXPENSE
Research and Development 4,409,600 3,976,600
Selling, General and Administrative 1,185,900 1,214,300
Cost of Product Sales 13,700 10,100
Legal Settlements -- --
Amortization of Acquired Intangible Assets 198,800 198,800
Amortization of Goodwill -- 145,200
Total Operating Expense 5,808,000 5,545,000
Operating Loss (5,117,100) (4,686,000)
Investment Income, Net 203,500 682,400
Net Loss $(4,913,600) $(4,003,600)
Basic and Diluted Net Loss per
Common Share $(0.08) $(0.07)
Weighted Average Common
Shares Outstanding 60,457,400 57,252,200
CONSOLIDATED BALANCE
SHEET DATA March 31, December 31,
2002 2001
(Unaudited)
Cash and Cash Equivalents $37,054,200 $ 42,665,900
Working Capital 32,735,700 37,820,900
Accumulated Deficit 182,987,000 178,073,400
Total Stockholders' Equity 40,390,300 45,268,800
--------------------------------------------------------------------------------
Contact:
Una S. Ryan, Ph.D.
President and Chief Executive Officer
AVANT Immunotherapeutics, Inc.
(781) 433-0771
or
Avery W. Catlin
Chief Financial Officer
AVANT Immunotherapeutics, Inc.
(781) 433-0771
info@avantimmune.com |
