March 7, 2000; AVANT Reports Fourth Quarter And Fiscal Year 1999 Financial Results
NEEDHAM, Mass., March 7 /PRNewswire/ -- AVANT Immunotherapeutics, Inc. (Nasdaq: AVAN - news) today reported financial results for the fourth quarter and year ended December 31, 1999. The Company reported a net loss of $3.7 million, or $0.08 per share, for the fourth quarter of 1999 compared to a net loss of $2.3 million, or $0.05 per share, for the fourth quarter of 1998. Net loss for the fourth quarter of 1999 increased $1.3 million, or 58.0%, over the net loss for the fourth quarter of 1998. The increase in net loss is primarily due to the lack of revenues in the 1999 period combined with the significant increase in clinical trials cost and expense associated with the manufacture of clinical materials for Company-funded clinical studies.
For the twelve months ended December 31, 1999, the Company reported a net loss of $11.3 million, or $0.26 per share, compared to a net loss of $51.8 million, or $1.56 per share, for the same period in 1998. The net loss for the year ended December 31, 1998 includes a charge of $44,630,000 for purchased in-process research and development related to the acquisition of Virus Research Institute, Inc. (VRI) in August 1998. Excluding the charge for purchased in-process research and development in 1998, the net loss for 1999 increased 57.7% to $11.3 million, or $0.26 per share, compared to $7.2 million, or $0.22 per share, for 1998. The increase in operating expense for 1999 compared to 1998 is primarily due to: (i) a full year of operations of VRI in 1999 versus four months in 1998, combined with an increase of goodwill amortization expense of $0.7 million; (ii) increased costs associated with conducting the Phase I clinical trial of CETi-1 and the Phase I/II clinical trial of TP10, both of which commenced in 1999; and (iii) an increase in expense associated with the manufacture of clinical materials. At December 31, 1999, the Company reported cash and cash equivalents, including restricted cash, of $13.8 million.
``Over the past year, we achieved several notable clinical and scientific milestones,' said Una S. Ryan, president and chief executive officer of AVANT Immunotherapeutics, Inc. ``In particular, we are extremely pleased to be advancing both TP10, our lead complement inhibitor, and CETi-1, our novel investigational vaccine to prevent or treat atherosclerosis, through clinical development. By demonstrating the clinical potential of our products, developing some of our most promising products on our own and creating partnerships for the continued development and commercialization of other products, we believe we can both minimize risk and maximize the potential value of AVANT to our investors. Also, we have substantially improved our cash position with the receipt of $6 million from Novartis in January.'
AVANT Immunotherapeutics, Inc. is engaged in the discovery, development and commercialization of products that harness the human immune response to prevent and treat disease. The company's lead therapeutic program, now entering late stage clinical trials, focuses on compounds that inhibit inappropriate activation of the complement cascade, a vital part of the body's immune defense system. AVANT is also developing on its own a proprietary therapeutic vaccine for the management of atherosclerosis and Therapore(TM), a novel system for the delivery of immunotherapeutics for chronic viral infections and certain cancers. The company and its collaborators are developing vaccines using the proprietary adjuvants, Adjumer© and Micromer©, for the prevention of influenza, Lyme Disease and respiratory syncytial virus (RSV). Through additional collaborations, AVANT is also developing an oral human rotavirus vaccine and a cholera vaccine.
Additional information on AVANT Immunotherapeutics, Inc. can be obtained through the Company's site on the World Wide Web: avantimmune.com. |
