Vical Reports Second Quarter 2005 Financial Results
Tuesday August 2, 7:00 am ET
SAN DIEGO, Aug. 2 /PRNewswire-FirstCall/ -- Vical Incorporated (Nasdaq: VICL - News) today reported financial results for the quarter ended June 30, 2005. Revenues for the second quarter of 2005 were $4.8 million compared with $5.7 million for the same period of 2004. The 2005 revenues consisted primarily of an option exercise fee from Merck & Co., Inc. and an upfront license fee from AnGes MG, Inc., while the prior-year period included revenues from shipments to the National Institutes of Health (NIH) under contract manufacturing agreements.
The net loss for the second quarter of 2005 was $5.0 million or $0.21 per share, compared with $5.3 million or $0.23 per share for the second quarter of 2004. Financial results were consistent with the company's projected net loss for the full year 2005 of between $23 million and $26 million. Vical had cash and investments of $59 million at the end of the second quarter.
Recent Highlights
* In July, the grant of the first marketing approval for a product
covered by a Vical license agreement, in Canada for APEX-IHN, a DNA
vaccine for farm-raised salmon, for Vical's licensee Aqua Health Ltd.,
an affiliate of the Swiss-based company Novartis Animal Health.
* Initiation by Vical of a Phase 1 human study in July in which
gene-based delivery of interleukin-2 (IL-2) is enhanced with
electroporation for patients with recurrent metastatic melanoma.
* Merck's exercise of three cancer vaccine options in June for which
Vical received initial fees of $3.0 million.
* In June, receipt of production orders for HIV vaccines for the NIH
totaling $12.1 million, with shipments anticipated in 2005 and 2006 in
support of planned Phase 2 studies.
* Orphan drug designation in June for Vical's immunotherapeutic DNA
vaccine against cytomegalovirus (CMV) in certain at-risk transplant
patients. The company expects a Phase 2 study to start by the end of
2005.
* The grant of an exclusive, worldwide license to AnGes in May for
DNA-based products encoding Hepatocyte Growth Factor for
cardiovascular applications, with an up-front payment to Vical of $1.0
million. The initial application for peripheral arterial disease is
in Phase 3 testing in Japan.
* Encouraging progress in discussions with prospective partners for
Allovectin-7®, and ongoing preparations to allow prompt initiation
of a Phase 3 trial if the company successfully reaches an agreement.
Conference Call
Vical will conduct a conference call and webcast to discuss the financial results with invited analysts and institutional investors today, August 2, at noon Eastern Time. The call and webcast are open on a listen-only basis to any interested parties. To listen to the conference call, dial (888) 224-3260, or (913) 905-1086 for international participants. A replay of the call will be available for 48 hours beginning about two hours after the call. To listen to the replay, dial (888) 203-1112, or (719) 457-0820 for international participants, and enter conference identification number 4825268. The call also will be available live and archived through the webcast center at www.vical.com. For further information, contact Vical's Investor Relations department by phone at (858) 646-1127 or by e-mail at info@vical.com.
About Vical
Vical researches and develops biopharmaceutical products based on its patented DNA delivery technologies for the prevention and treatment of serious or life-threatening diseases. Potential applications of the company's DNA delivery technology include DNA vaccines for infectious diseases or cancer, in which the expressed protein is an immunogen; cancer immunotherapeutics, in which the expressed protein is an immune system stimulant; and cardiovascular therapies, in which the expressed protein is an angiogenic growth factor. The company has retained all rights to its internally developed product candidates. In addition, the company collaborates with major pharmaceutical companies and biotechnology companies that give it access to complementary technologies or greater resources. These strategic partnerships provide the company with mutually beneficial opportunities to expand its product pipeline and serve significant unmet medical needs. Additional information on Vical is available at www.vical.com. |
