EntreMed, Inc. Reports Fiscal 1999 Second Quarter Results; Executives Increase
Share Ownership in Recent Private Placement
Business Editors/Health & Medical Writers
ROCKVILLE, Md.--(BW HealthWire)--Aug. 11, 1999--EntreMed, Inc.
(NASDAQ:ENMD) today reported results for its fiscal 1999 second
quarter and six months ended June 30, 1999.
The Company's revenues for the second quarter ended June 30, 1999
were $1,329,031, versus $1,165,485 for the comparable period one year
ago. The Company reported a net loss of ($8,008,305), or ($0.61) per
share, for the three months ended June 30, 1999, as compared with a
net loss of ($1,812,631), or ($0.15) per share, for the same period
last year.
For the six months ended June 30, 1999, the Company reported
revenues of $2,773,070, versus $2,320,456 for the six months ended
June 30, 1998. Net loss for the first half of 1999 was ($15,157,145)
or ($1.15) per share, versus ($4,924,757), or ($0.40) per share, for
the first half of fiscal 1998. At June 30, 1999, the Company had cash,
cash equivalents and short-term investments of $19,016,078.
On July 27, 1999, the Company completed a private placement of
equity securities that resulted in gross proceeds in excess of $30
million in funding for EntreMed. The callable warrants that were
granted to purchasers of shares in this transaction (at a significant
premium to the present share price) have the potential to further add
to the Company's resources in the future.
As required by the terms of the private placement, the Company
has now filed a shelf registration statement with the SEC covering the
resale of the common stock issued, or to be issued, in connection with
the transaction.
Dr. John W. Holaday, EntreMed Chairman, President and Chief
Executive Officer, Dr. Joanna C. Horobin, Senior Vice President of
Commercial Development, and Wendell M. Starke, Vice Chairman of the
Board, elected to increase their share ownership and purchased stock
worth over $1 million as part of the recent transaction.
These individuals are listed in the Company's shelf registration
statement as selling stockholders. Each of these executives have
advised the Company that they have no present intention of selling any
shares of EntreMed stock.
Dr. John W. Holaday commented: "We continue to allocate the
majority of our R & D spending on the development of Endostatin(TM)
protein, Angiostatin(R) protein and 2-methoxyestradiol. Through our
resourceful use of funds, in less than three years we have been able
to take Endostatin(TM) protein from its discovery in 1996 to
commencement of human clinical trials this Fall. Additionally, we
anticipate IND filings for Phase I clinical studies of Angiostatin(R)
protein and 2-methoxyestradiol in the fourth quarter of this year."
Dr. Holaday continued, "The rapid development of our lead product
candidates and the significant progress of our Internal Discovery
Program reflect the exceptional efforts of our research and
development team. With efforts that began over six years ago, EntreMed
scientists continue to lead critical research in the field of
angiogenesis inhibition as we expand knowledge of the fundamental
biological mechanisms of angiogenesis and discover new molecules. I
look forward to the peer-reviewed publication of our most recent
findings in the near future."
R. Nelson Campbell, EntreMed's Chief Financial Officer, commented
on the Company's second quarter losses: "The increased expenditures
during the second quarter primarily reflect the cost of production
and vialing of clinical grade Endostatin(TM) protein and production of
Angiostatin(R) protein through our contract facility at Covance
Biotechnology Services, Inc.. Completion of our private placement will
significantly increase our resources as we initiate the clinical
development of our lead antiangiogenic molecules."
Rockville, MD-based EntreMed, Inc. The Angiogenesis Company (TM),
is a leader in the field of antiangiogenesis research, which studies
the inhibition of abnormal blood vessel growth recently associated
with a broad range of diseases.
The Company's strategy is to accelerate development of its core
technologies through collaborations and sponsored research programs
with university medical departments, research companies and government
laboratories. For further information, please visit the EntreMed web
site at www.entremed.com.
Statements herein that are not descriptions of historical facts
are forward-looking and subject to risk and uncertainties.
Actual results could differ materially from those currently
anticipated due to a number of factors, including those set forth in
the Company's Securities and Exchange Commission filings under "Risk
Factors," including risks relating to the early stage of products
under development; uncertainties relating to clinical trials;
dependence on third parties; future capital needs; and risks relating
to the commercialization, if any, of the Company's proposed products
(such as marketing, safety, regulatory, patent, product liability,
supply, competition and other risks).
The securities subject to the registration statement may not be
sold by the selling stockholders, nor may offers to buy be accepted,
prior to the time that the registration statement is declared
effective by the SEC.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these
securities in any state in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state.
-0-
*T
ENTREMED, INC.
SUMMARY OF OPERATING RESULTS
Three Months Ended
June 30,
1999 1998
-------- --------
Total revenues $ 1,329,031 $ 1,165,485
Research & development 7,619,140 2,345,299
General & administrative 2,003,069 1,221,010
Net loss $(8,008,305) $(1,812,631)
Net loss per share $ (0.61) $ (0.15)
(basic and diluted)
Weighted average number
of shares outstanding
(basic and diluted) 13,165,522 12,437,363
Six Months Ended
June 30,
1999 1998
--------- --------
Total revenues $ 2,773,070 $ 2,320,456
Research & development 14,726,595 5,844,730
General & administrative 3,898,907 2,526,900
Net loss $(15,157,145) $(4,924,757)
Net loss per share $ (1.15) $ (0.40)
(basic and diluted)
Weighted average number
of shares outstanding
(basic and diluted) 13,144,832 12,369,153
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