Vical Reports 2005 Financial Results
Tuesday February 14, 7:30 am ET
SAN DIEGO, Feb. 14 /PRNewswire-FirstCall/ -- Vical Incorporated (Nasdaq: VICL - News) today reported financial results for the year ended December 31, 2005. Revenues for 2005 were $12.0 million compared with $14.5 million for 2004. The decrease in revenues was driven primarily by the timing of contract manufacturing shipments, partially offset by increased licensing revenues from Merck & Co., Inc., in 2005. The company expects to recognize revenues of approximately $12.1 million in 2006 related to the manufacture of bulk DNA for the National Institutes of Health (NIH) in support of planned Phase 2 HIV vaccine studies.
Financial results were consistent with the company's projected net loss for 2005 of between $23 million and $26 million. The actual net loss for 2005 was $24.4 million or $0.99 per share, compared with $23.7 million or $1.05 per share for 2004. Vical had cash and investments of $66 million at the end of 2005. The company has projected an adjusted net loss for 2006 of between $22 million and $26 million. This projection excludes non-cash, stock-based compensation expense and, as a result, is not calculated in accordance with U.S. generally accepted accounting principles (GAAP). See "Use of Non-GAAP Financial Measure" below.
Fourth Quarter Highlights
* The NIH initiated a Phase 2 clinical trial of a "prime-boost" vaccine
approach against HIV. The trial involves priming an immune response
with multiple doses of a plasmid DNA (pDNA) vaccine, based on Vical's
proprietary DNA delivery technology, and boosting the response with a
single dose of adenoviral vector vaccine given at a later date.
* Vical achieved the first milestone in its $2.9 million NIH challenge
grant pandemic flu program with successful design, manufacturing, and
initial immunogenicity testing of an avian flu vaccine.
* Vical received a $1.0 million milestone payment from Merck based on
Merck's initiation of a Phase 1 clinical trial of a DNA cancer vaccine.
The vaccine is based on Vical's DNA gene delivery technology and uses
pDNA encoding human epidermal growth factor receptor 2 (HER-2) and
carcinoembryonic antigen (CEA). The Phase 1 trial will evaluate the
safety, tolerability and immunogenicity of the vaccine.
* Vical sold approximately 4.7 million shares of its common stock at
$4.80 per share in a registered direct offering to a select group of
institutional investors for net proceeds of approximately $21.0 million.
BIO CEO & Investor Conference Webcast
Vijay Samant, Vical's President and Chief Executive Officer, will participate in the focus session, "Vaccines: What Is on the Horizon?" at the BIO CEO & Investor Conference at 3:30 p.m. EST on Wednesday, February 15. A webcast will be available through the webcast center at www.vical.com.
Conference Call
Vical will conduct a conference call and webcast to discuss the financial results with invited analysts and institutional investors today, February 14, 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 6450963. 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. |
