I don't know how this will be perceived....
NEW YORK--(BUSINESS WIRE)--Aug. 14, 1997--Innovir Laboratories,
Inc. (Nasdaq SmallCap: INVR.O), a company that has been developing
technologies based on catalytically active oligozymes both for the
treatment and prevention of diseases and also for genomic and
pharmaceutical research, announced its results for the second quarter
ended June 30, 1997.
For the second quarter ending June 30, 1997, operating expenses were
$2.6 million, as compared to $3.3 million for the same period in
1996. Expenses for the three months ended June 30, 1996 included a
one time charge of $2.7 million related to the acquisition of
Ribonetics GmbH in May 1996. The net loss for the second quarter of
1997 was $2.5 million, or $0.14 per share versus a net loss of $3.3
million, or $0.35 per share, for the same period in 1996.
Operating expenses for the six months ending June 30, 1997 were $5.2
million, as compared to $3.9 million for the same six month period
in 1996. The net loss for the six months ended June 30, 1997 was
$5.0 million or $0.28 per share compared to a net loss of $3.9
million for the same six month period in 1996.
Cash and short term investments at June 30, 1997, were $1.8 million
versus $6.4 million at December 31, 1996. Innovir's cash position at
the end of the second quarter is equal to less than one year of
expenses at the current expense burn rate. The exercise of warrants
by VIMRX Pharmaceuticals and The Aries Funds will provide the company
with an additional $2 million. Other means of financing are being
considered. Weighted average shares outstanding for the three months
ended June 30, 1997 were 18.1 million versus 9.5 million for the
comparable 1996 period.
"We are very pleased with the progress made by the company in the
first half of the year to further prove the value of the oligozyme
technology to combat drug resistance and as a tool to aid target
validation in drug discovery," said Allan R. Goldberg, Ph.D.,
President and Chief Executive Officer of Innovir.
Use of Innovir's EGS Oligozymes in Overcoming Antibiotic Resistance
Receives International Attention
Dr. Sidney Altman, Sterling Professor of Biology at Yale, and his
colleagues have discovered a way to use Innovir's EGS oliogozymes to
convert drug-resistant bacteria to drug-sensitive by successfully
eliminating the material in bacteria that prevents antibiotic drugs
from exerting their toxic action on bacterial cells. Results of this
study, published in the August 5th edition of Proceedings of the
National Academy of Sciences, were reported by print and broadcast
media in the United States and internationally.
Antibiotic resistance has emerged as a major public health issue in
the United States and throughout the world. The incidence of
diseases once thought to be under control - such as meningitis and
tuberculosis - is increasing. The reason is that over time, bacteria
acquire traits that make them resistant to antibiotics. The
resistant genes are passed along to other bacteria and antibiotics
used to treat them become less effective.
"Drug companies are investing millions of dollars to research and
develop new, more powerful antibiotics to overcome drug-resistant
bacteria," said Dr. Goldberg. "EGS technology represents a
potential alternative approach to the problem of antibiotic
resistance, one that may prove to be less expensive and
time-consuming than the standard strategy of developing new drugs.
Another application for this exciting technology might be the use of
EGSs to treat cancer patients to overcome their resistance to certain
chemotherapeutic drugs."
Dr. Goldberg continued, "The technology also has the potential for
broad research application by helping pharmaceutical companies to
identify more effectively new genetic targets for drug development."
Innovir is currently working with the pharmaceutical industry to
pursue the use of oligozymes in drug discovery target validation.
Patents Issues and Allowed
During the second quarter, Innovir, in conjunction with Yale
University, announced that they have been granted additional broad
patent rights for a promising technology based on External Guide
Sequence (EGS) oligozymes. The technology is a direct outgrowth of
the work for which Dr. Altman was awarded the 1989 Nobel Prize in
Chemistry. Specifically, Dr. Altman has been issued U.S. Patent
No. 5,624,824, and Innovir has been allowed two additional U.S.
Patent Applications - which provide comprehensive patent protection
for the EGS oligozyme technology.
"These patents further establish our commanding and unique
competitive position in EGS oligozyme-based research and
development," said Dr. Goldberg. "No intellectual property
possessed by any other competitor compromises Innovir's dominant
patent position in being able to fulfill this technology's
extraordinary promise in therapy and research."
Innovir Laboratories, Inc. (Nasdaq: INVR.O), a subsidiary of VIMRX
Pharmaceuticals Inc. (Nasdaq: VMRX.O), is a biotechnology company that
has been developing technologies based on catalytically interactive
oligomers (oligozymes) both for the treatment and prevention of
diseases and also for pharmaceutical and genomic research. As a
research aid, oligozymes hold potential both to identify how
different genes function and to identify and validate molecular
targets for new drug therapies. The Company's technologies utilize
either External Guide Sequences (EGS) oligozymes or RILON(TM)
oligozymes, which inactivate targeted mRNA directly. To complement
its therapeutic and drug target validation programs, Innovir has
developed a unique drug delivery tool called InnoPhor(TM) that makes
it possible to target oligozymes to specific tissues.
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.
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NOTE TO INVESTORS AND EDITORS: Innovir's press releases are
available on the Internet through VIMRX Pharmaceutical Inc.'s web
site at www.vimrx.com and through BusinessWire's web site, under the
VIMRX heading, at businesswire.com. The releases also are
available at no charge through Business Wire's fax-on-demand service
at 800-411-8792.
--30--sdg/ny*
CONTACT: Laura Mastrangelo
(302) 998-1734
KEYWORD: NEW YORK
INDUSTRY KEYWORD: MEDICINE BIOTECHNOLOGY EARNINGS |
