SAN DIEGO--(BUSINESS WIRE)--May 5, 1997--Vical Inc.
(NASDAQ:VICL) announced today its results of operations for the first
quarter ended March 31, 1997.
The company reported first quarter 1997 revenues of $1,127,000
compared with first quarter 1996 revenues of $520,000. First quarter
1997 revenues included a payment of $475,000 for prior and ongoing
work performed by Vical in connection with the Pasteur Merieux
Connaught collaboration to develop a naked DNA malaria vaccine. The
net loss for the first quarter of 1997 was $2,002,000 or $.13 per
share, compared with a net loss of $1,905,000 or $.12 per share for
the same period in 1996. Expenses increased to $3,691,000 in the
first quarter of 1997 from $3,110,000 in the first quarter of 1996,
due to expanding research and development activities.
At March 31, 1997, the company had cash, cash equivalents and
marketable securities of $44.0 million, compared with $46.8 million
at Dec. 31, 1996, reflecting the ongoing cash needs required to
fund operations including preclinical and clinical studies.
"Financial results for the first quarter were in line with
expectations and consistent with the development of our expanding
product pipeline," said Alain B. Schreiber, M.D., Vical's president
and CEO.
Initial Phase II data for Allovectin-7, the company's most
advanced cancer product candidate, are being compiled and analyzed.
Additional Allovectin-7 trials are being conducted in patients with
melanoma and head and neck cancer, while trials with Leuvectin, a
second cancer product candidate, continue in patients with melanoma,
renal cell carcinoma and sarcoma. Later this year, in collaboration
with Dr. Ronald Levy at the Stanford University Medical Center, the
company intends to begin a Phase I/II trial with Vaxid, a patient-
specific gene-based vaccine candidate designed to prevent recurrence
of B-cell lymphoma.
The company's naked DNA technology is being applied in a total
of fifteen preventive vaccine candidates under development by
licensees Merck & Co. and Pasteur Merieux Connaught, and
independently by Vical. In the Merck collaboration, a naked DNA
vaccine candidate for influenza is in Phase I clinical testing. In
the Pastuer Merieux Connaught collaboration, a naked DNA vaccine
candidate for malaria is expected to enter the clinic in 1997. "We
also are evaluating new business opportunities presented by the
issuance of key patents covering Vical's proprietary naked DNA
technology," Schreiber added.
Vical Inc. is focused on the development of gene-based
pharmaceutical product candidates for human therapy. Vical's
gene-based therapeutic approach may offer safer and more
cost-effective alternatives for many diseases, including cancer,
infectious diseases and metabolic disorders.
This press release contains forward-looking statements that are
subject to risks and uncertainties that could cause actual results
to differ materially from those set forth in the forward-looking
statements, including whether any product candidates will be shown
to be safe and efficacious in clinical trials, the timing of
clinical trials and additional risks set forth in the company's
filings with the Securities and Exchange Commission. Actual results
may differ materially from those projected. These forward-looking
statements represent the company's judgement as of the date of this
release. The company disclaims, however, any intent or obligation
to update these forward-looking statements.
*T
Vical Inc.
Statements of Operations
(in thousands, except share and per share amounts)
Three months ended March 31,
1997 1996
(Unaudited) (Unaudited)
Revenues:
Contract revenue $802 $283
License/ royalty revenue 325 237
1,127 520
Expenses:
Research and development 2,794 2,380
General and administrative 897 730
3,691 3,110
Loss from operations (2,564) (2,590)
Net interest income 562 685
Net loss $(2,002) $(1,905)
Net loss per share $(0.13) $(0.12)
Shares used in per
share calculation 15,422,895 15,373,021
Condensed Balance Sheets
March 31, Dec. 31,
1997 1996
(Unaudited)
Assets
Cash and cash equivalents $9,651 $12,609
Marketable securities 34,367 34,237
Other current assets 2,158 1,926
Total current assets 46,176 48,772
Property and equipment, net 2,481 2,263
Other assets 1,234 1,405
$49,891 $52,440
Liabilities and stockholders' equity
Current liabilities $1,926 $2,457
Long-term obligations 1,605 1,618
Stockholders' equity 46,360 48,365
$49,891 $52,440
*T
CONTACT: Vical Inc.
Alan R. Engbring or Martha J. Demski, 619-453-9900
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: PHARMACEUTICAL MEDICINE BIOTECHNOLOGY
EARNINGS |
