VIMRx announces fourth quarter and full year 1996 results
WILMINGTON, DEL. (March 31) BUSINESS WIRE -March 31, 1997-- Company
Acquires Controlling Interest in Innovir Laboratories; Forms Alliance
with Columbia University Genome Center
VIMRx Pharmaceuticals Inc. (NASDAQ:VMRX), a development-stage biotech
company that is commercializing innovative technologies directly and
through affiliated companies, announced that it has filed its results
for the year ended December 31,1996, with the Securities and Exchange
Commission on Form 10-K. Full Year 1996 Results
For the 12 months ended December 31, 1996, operating expenses were
$21.7 million versus $5.1 million for full year 1995. The net loss for
fiscal 1996 was $19.9 million, or $0.50 per share, which included a
$14.5 million, or $0.37 per share, non-recurring charge related to the
acquisition of Ribonetics GmbH and the acquisition of a 68% ownership
in Innovir. Excluding this noncash charge, the 1996 net loss was $5.4
million, or $0.13 per share, compared to a net loss of $5.2 million, or
$0.27 per share for 1995. Weighted average shares outstanding for the
year ended December 31, 1996, were 39.4 million versus 19.7 million for
the comparable 1995 period.
Cash and short term investments at December 31, 1996, were $46.9
million versus $2.2 million a year earlier. VIMRx's cash position at
the end of 1996 is equal to more than three years of expenses at the
current expense burn rate of VIMRx's consolidated operations, including
Innovir. Fourth Quarter
For the fourth quarter ending December 31, 1996, operating expenses
were $14.5 million, as compared to $1.4 million for the same period in
1995, due principally to non-recurring, non-cash charges related to the
purchase of a controlling interest in Innovir. The net loss for the
fourth quarter of 1996 was $13.1 million, or $0.25 per share versus a
net loss of $1.6 million, or $0.08 per share, for the same period in
1995. Weighted average shares outstanding for the three months ended
December 31, 1996, were 51.7 million versus 19.8 million for the
comparable 1995 period. Acquiring New Technologies, Optimizing
Existing Ones
"During 1996, the Company advanced existing research and gained the
financial and managerial resources needed to develop additional
products and technologies," said Richard L. Dunning, president and
chief executive officer of VIMRx.
"VIMRx has a broad strategy in place that will enable the Company to
commercialize new technologies directly, as well as in collaboration
with affiliated companies. The strategy begins with a solid financial
position and a strong management team -the backbone of our Company --
and focuses on creating a diverse portfolio of technologies and
products, such as our recent acquisition of a controlling interest in
Innovir Laboratories and our collaboration with the Columbia University
Genome Center. At the same time, we are committed to optimizing the
value of our existing technology platforms - VIMRxynr and research into
Oligozymes - while aggressively investigating additional technologies
and products that have significant commercial potential." Stake in
Innovir Advances Oligozyme Research
By acquiring a controlling interest in Innovir Laboratories Inc. on
December 23, 1996, VIMRx strengthened its research efforts in catalytic
oligonucleotides (Oligozymes). Innovir has complementary therapeutic
technologies that seek to selectively inhibit the expression of genetic
information encoded in disease associated genes, thereby interrupting
the process of disease causation for both treatment and prevention of
diseases. The same technologies can also both be used together with
genomics information to perform gene function analysis and to validate
molecular targets for new drug therapies. Powerful Genetic Research
Alliance Created
On March 10, 1997, VIMRx announced that it formed a collaboration with
Columbia University, one of the world's foremost medical research
centers, to commercialize gene discoveries made by the Columbia Genome
Center (CGC). The collaboration is being pursued through a new
company, VIMRx Genomics, Inc. (VGI), 90 percent of which will
initially be owned by VIMRx and 10 percent by Columbia. VGI will gain
exclusive rights to license recently discovered genes believed to be
causative factors in certain cancers as well as future gene discoveries
resulting from work performed under the research agreement. The
collaboration also offers VIMRx the opportunity to review and license
medically related research performed at Columbia University outside of
the CGC.
To enhance the commercial potential of the collaboration, VIMRx will
seek technology partnerships with pharmaceutical and/or diagnostic
companies and intends to solicit equity investments in VGI from
potential technology partners and other investors.
VIMRx's agreement with Columbia University also represents an important
synergy opportunity for the Oligozyme technology owned by Innovir. As
CGC provides access to proprietary gene sequences implicated in disease
processes, the Oligozyme technology can then be used to better
understand the function of these genes and potentially to develop
important new diagnostic and lead therapeutic compounds. VM201
Cardiovascular Compound
As part of VIMRx's broad relationship with Columbia University, the
Company announced today that it has acquired the exclusive, worldwide
license to a novel cardiovascular therapeutic protein that can be used
to control blood clotting. The protein, known as Factor IXa inhibitor,
has demonstrated in pre- clinical studies its ability to selectively
prevent blood clots that can lead to stroke during surgery, while
reducing the potential for bleeding complications associated with
currently available anticoagulation therapies.
VIMRx will initially develop the compound, which was discovered at
Columbia University, as an intravenous (IV) therapy to prevent blood
clots and limit blood loss in patients undergoing cardiopulmonary
bypass surgery and to provide anticoagulation in hemodialysis
procedures while limiting bleeding risk. VIMRxyn(R) Progress Continues
VIMRx continues to develop VIMRxyn(R), the Company's chemically
synthesized hypericin, as an agent that has shown potential for
treating HIV/AIDS, hepatitis C, certain forms of brain cancer, and for
sterilizing blood used for transfusions. The Company is also
investigating additional potential uses, including the treatment of
other cancers and skin diseases. HIV: A tolerable dose of VIMRxyn was
identified in a Phase I clinical trial in Thailand during the third
quarter of 1996. The Company is now conducting complex and extensive
in vitro interaction studies to determine VIMRxyn's effectiveness with
other anti-HIV drugs, the current standard treatment. Hepatitis C: A
two-month Phase I/II clinical trial to assess the safety and efficacy
of VIMRxyn in reducing viral burden in chronic hepatitis C infection
began in January 1997 under the direction of Jeffrey Jacobson, M.D.,
Chief of Infectious Diseases at the Bronx VA Medical Center and
Associate Professor of Medicine at Mt. Sinai School of Medicine in New
York. If results are satisfactory, this trial will be followed by
Phase II trial lasting six months to a year. Brain Cancer: A
three-month Phase I/II trial to determine the safety and effectiveness
of VIMRxyn in treating recurrent glioblastoma began in October 1996
under the direction of William Couldwell, M.D., Ph.D. Patients are
currently being treated at clinical sites in North Dakota, New York,
Florida and California. If positive responses are obtained during the
initial three month trial, VIMRx will provide additional VIMRxyn for
the continued treatment of the 16 patients participating in the trial
and will pursue a larger Phase II clinical trial by late 1997. Blood
safety: VIMRx is conducting preclinical evaluations of VIMRxyn as an
agent that will permit safe and efficacious inactivation of such
viruses as HIV, hepatitis B, and hepatitis C in human blood prior to
transfusions. If results warrant it, a Phase I clinical trial in
humans will be conducted in 1998. Additional potential indications:
The Company is conducting preclinical safety and efficacy studies and
clinical safety studies to evaluate the potential utility of VIMRxyn
for topical photo activated treatment of certain skin diseases,
including cutaneous T-cell lymphoma, Kaposi's sarcoma, and psoriasis.
VIMRx Pharmaceuticals Inc., (NASDAQ: VMRX), a biotechnology company
based in Wilmington, Delaware, is comprised of a diverse portfolio of
companies, technologies and compounds. Through its majority- owned
affiliate, Innovir Laboratories, VIMRx is developing Oligozymes which
control disease- triggering flaws in individuals' genetic chemistry for
potential use as both therapeutic agents and as pharmaceutical research
tools to aid in gene function analysis and drug target validation. In
March, VIMRx Genomics, Inc., was formed as a collaborative partnership
with Columbia University's Genome Center, to identify, sequence and
commercialize discovered and future genes. VIMRx has extensive
research programs focused on two compounds. VIMRxyn(R) a chemically
synthesized hypericin, studied for the treatment of HIV, brain cancer,
hepatitis C, and blood sterilization; and VM201, a novel cardiovascular
therapeutic protein that selectively inhibits Factor IXa and is being
studied to manage bloodclot formation during bypass surgery and
hemodialysis. The Company intends to continue to identify and acquire
additional technologies and products to diversify its portfolio and
address medical needs. The Private Securities Litigation Reform Act of
1995 provides a "safe harbor" for certain forward-looking statements.
The forward looking statements contained in this release are subject to
certain risks and uncertainties. Actual results could differ
materially from current expectations. Among the factors which could
affect the Company's actual results and could cause results to differ
from those contained in the forward-looking statements contained
herein, are the success of the Company's clinical trials and the
development of competing therapies and/or technologies by other
companies. NOTE TO INVESTORS AND EDITORS: VIMRx's press releases are
available on the Internet through www.vimrx.com and through
BusinessWire's web site at businesswire.com. The releases
also are available at no charge through BusinessWire's fax-on-demand
service at 800-411-8792.
--30--csm/ny*
CONTACT: Laura A. Mastrangelo
VIMRx Pharmaceuticals, Inc.
302-998-1734
or
Mary Ann Dunnell
Robinson Lerer & Montgomery
212-484-7797
KEYWORD: DELAWARE INDUSTRY KEYWORD: PHARMACEUTICAL MEDICINE EARNINGS
REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or
800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com
* * * * * * * * * *VIMRx announces fourth quarter and full year 1996 results
WILMINGTON, DEL. (March 31) BUSINESS WIRE -March 31, 1997-- Company
Acquires Controlling Interest in Innovir Laboratories; Forms Alliance
with Columbia University Genome Center
VIMRx Pharmaceuticals Inc. (NASDAQ:VMRX), a development-stage biotech
company that is commercializing innovative technologies directly and
through affiliated companies, announced that it has filed its results
for the year ended December 31,1996, with the Securities and Exchange
Commission on Form 10-K. Full Year 1996 Results
For the 12 months ended December 31, 1996, operating expenses were
$21.7 million versus $5.1 million for full year 1995. The net loss for
fiscal 1996 was $19.9 million, or $0.50 per share, which included a
$14.5 million, or $0.37 per share, non-recurring charge related to the
acquisition of Ribonetics GmbH and the acquisition of a 68% ownership
in Innovir. Excluding this noncash charge, the 1996 net loss was $5.4
million, or $0.13 per share, compared to a net loss of $5.2 million, or
$0.27 per share for 1995. Weighted average shares outstanding for the
year ended December 31, 1996, were 39.4 million versus 19.7 million for
the comparable 1995 period.
Cash and short term investments at December 31, 1996, were $46.9
million versus $2.2 million a year earlier. VIMRx's cash position at
the end of 1996 is equal to more than three years of expenses at the
current expense burn rate of VIMRx's consolidated operations, including
Innovir. Fourth Quarter
For the fourth quarter ending December 31, 1996, operating expenses
were $14.5 million, as compared to $1.4 million for the same period in
1995, due principally to non-recurring, non-cash charges related to the
purchase of a controlling interest in Innovir. The net loss for the
fourth quarter of 1996 was $13.1 million, or $0.25 per share versus a
net loss of $1.6 million, or $0.08 per share, for the same period in
1995. Weighted average shares outstanding for the three months ended
December 31, 1996, were 51.7 million versus 19.8 million for the
comparable 1995 period. Acquiring New Technologies, Optimizing
Existing Ones
"During 1996, the Company advanced existing research and gained the
financial and managerial resources needed to develop additional
products and technologies," said Richard L. Dunning, president and
chief executive officer of VIMRx.
"VIMRx has a broad strategy in place that will enable the Company to
commercialize new technologies directly, as well as in collaboration
with affiliated companies. The strategy begins with a solid financial
position and a strong management team -the backbone of our Company --
and focuses on creating a diverse portfolio of technologies and
products, such as our recent acquisition of a controlling interest in
Innovir Laboratories and our collaboration with the Columbia University
Genome Center. At the same time, we are committed to optimizing the
value of our existing technology platforms - VIMRxynr and research into
Oligozymes - while aggressively investigating additional technologies
and products that have significant commercial potential." Stake in
Innovir Advances Oligozyme Research
By acquiring a controlling interest in Innovir Laboratories Inc. on
December 23, 1996, VIMRx strengthened its research efforts in catalytic
oligonucleotides (Oligozymes). Innovir has complementary therapeutic
technologies that seek to selectively inhibit the expression of genetic
information encoded in disease associated genes, thereby interrupting
the process of disease causation for both treatment and prevention of
diseases. The same technologies can also both be used together with
genomics information to perform gene function analysis and to validate
molecular targets for new drug therapies. Powerful Genetic Research
Alliance Created
On March 10, 1997, VIMRx announced that it formed a collaboration with
Columbia University, one of the world's foremost medical research
centers, to commercialize gene discoveries made by the Columbia Genome
Center (CGC). The collaboration is being pursued through a new
company, VIMRx Genomics, Inc. (VGI), 90 percent of which will
initially be owned by VIMRx and 10 percent by Columbia. VGI will gain
exclusive rights to license recently discovered genes believed to be
causative factors in certain cancers as well as future gene discoveries
resulting from work performed under the research agreement. The
collaboration also offers VIMRx the opportunity to review and license
medically related research performed at Columbia University outside of
the CGC.
To enhance the commercial potential of the collaboration, VIMRx will
seek technology partnerships with pharmaceutical and/or diagnostic
companies and intends to solicit equity investments in VGI from
potential technology partners and other investors.
VIMRx's agreement with Columbia University also represents an important
synergy opportunity for the Oligozyme technology owned by Innovir. As
CGC provides access to proprietary gene sequences implicated in disease
processes, the Oligozyme technology can then be used to better
understand the function of these genes and potentially to develop
important new diagnostic and lead therapeutic compounds. VM201
Cardiovascular Compound
As part of VIMRx's broad relationship with Columbia University, the
Company announced today that it has acquired the exclusive, worldwide
license to a novel cardiovascular therapeutic protein that can be used
to control blood clotting. The protein, known as Factor IXa inhibitor,
has demonstrated in pre- clinical studies its ability to selectively
prevent blood clots that can lead to stroke during surgery, while
reducing the potential for bleeding complications associated with
currently available anticoagulation therapies.
VIMRx will initially develop the compound, which was discovered at
Columbia University, as an intravenous (IV) therapy to prevent blood
clots and limit blood loss in patients undergoing cardiopulmonary
bypass surgery and to provide anticoagulation in hemodialysis
procedures while limiting bleeding risk. VIMRxyn(R) Progress Continues
VIMRx continues to develop VIMRxyn(R), the Company's chemically
synthesized hypericin, as an agent that has shown potential for
treating HIV/AIDS, hepatitis C, certain forms of brain cancer, and for
sterilizing blood used for transfusions. The Company is also
investigating additional potential uses, including the treatment of
other cancers and skin diseases. HIV: A tolerable dose of VIMRxyn was
identified in a Phase I clinical trial in Thailand during the third
quarter of 1996. The Company is now conducting complex and extensive
in vitro interaction studies to determine VIMRxyn's effectiveness with
other anti-HIV drugs, the current standard treatment. Hepatitis C: A
two-month Phase I/II clinical trial to assess the safety and efficacy
of VIMRxyn in reducing viral burden in chronic hepatitis C infection
began in January 1997 under the direction of Jeffrey Jacobson, M.D.,
Chief of Infectious Diseases at the Bronx VA Medical Center and
Associate Professor of Medicine at Mt. Sinai School of Medicine in New
York. If results are satisfactory, this trial will be followed by
Phase II trial lasting six months to a year. Brain Cancer: A
three-month Phase I/II trial to determine the safety and effectiveness
of VIMRxyn in treating recurrent glioblastoma began in October 1996
under the direction of William Couldwell, M.D., Ph.D. Patients are
currently being treated at clinical sites in North Dakota, New York,
Florida and California. If positive responses are obtained during the
initial three month trial, VIMRx will provide additional VIMRxyn for
the continued treatment of the 16 patients participating in the trial
and will pursue a larger Phase II clinical trial by late 1997. Blood
safety: VIMRx is conducting preclinical evaluations of VIMRxyn as an
agent that will permit safe and efficacious inactivation of such
viruses as HIV, hepatitis B, and hepatitis C in human blood prior to
transfusions. If results warrant it, a Phase I clinical trial in
humans will be conducted in 1998. Additional potential indications:
The Company is conducting preclinical safety and efficacy studies and
clinical safety studies to evaluate the potential utility of VIMRxyn
for topical photo activated treatment of certain skin diseases,
including cutaneous T-cell lymphoma, Kaposi's sarcoma, and psoriasis.
VIMRx Pharmaceuticals Inc., (NASDAQ: VMRX), a biotechnology company
based in Wilmington, Delaware, is comprised of a diverse portfolio of
companies, technologies and compounds. Through its majority- owned
affiliate, Innovir Laboratories, VIMRx is developing Oligozymes which
control disease- triggering flaws in individuals' genetic chemistry for
potential use as both therapeutic agents and as pharmaceutical research
tools to aid in gene function analysis and drug target validation. In
March, VIMRx Genomics, Inc., was formed as a collaborative partnership
with Columbia University's Genome Center, to identify, sequence and
commercialize discovered and future genes. VIMRx has extensive
research programs focused on two compounds. VIMRxyn(R) a chemically
synthesized hypericin, studied for the treatment of HIV, brain cancer,
hepatitis C, and blood sterilization; and VM201, a novel cardiovascular
therapeutic protein that selectively inhibits Factor IXa and is being
studied to manage bloodclot formation during bypass surgery and
hemodialysis. The Company intends to continue to identify and acquire
additional technologies and products to diversify its portfolio and
address medical needs. The Private Securities Litigation Reform Act of
1995 provides a "safe harbor" for certain forward-looking statements.
The forward looking statements contained in this release are subject to
certain risks and uncertainties. Actual results could differ
materially from current expectations. Among the factors which could
affect the Company's actual results and could cause results to differ
from those contained in the forward-looking statements contained
herein, are the success of the Company's clinical trials and the
development of competing therapies and/or technologies by other
companies. NOTE TO INVESTORS AND EDITORS: VIMRx's press releases are
available on the Internet through www.vimrx.com and through
BusinessWire's web site at businesswire.com. The releases
also are available at no charge through BusinessWire's fax-on-demand
service at 800-411-8792.
--30--csm/ny*
CONTACT: Laura A. Mastrangelo
VIMRx Pharmaceuticals, Inc.
302-998-1734
or
Mary Ann Dunnell
Robinson Lerer & Montgomery
212-484-7797
KEYWORD: DELAWARE INDUSTRY KEYWORD: PHARMACEUTICAL MEDICINE EARNINGS
REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or
800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com
* * * * * * * * * * |
