Tuesday February 22, 11:46 am Eastern Time
Company Press Release
SOURCE: Vion Pharmaceuticals, Inc.
Vion Reports 1999 Fourth Quarter and Year-End Financial Results
NEW HAVEN, Conn., Feb. 22 /PRNewswire/ -- VION PHARMACEUTICALS, INC. (Nasdaq: VION - news) today announced fourth quarter and year-end results for the period
ended December 31, 1999.
Revenues for the 1999 fourth quarter were $1,538,044, compared with revenues of $1,116,984 reported in the same period last year. In the 1999 fourth quarter, the
company reported a loss applicable to common stockholders of $2,622,320, or $0.15 per share, versus a loss of $3,827,036, or $0.27 per share for the same period last
year.
Revenues for the year ended December 31, 1999 increased 61% to $3,154,194, from revenues of $1,955,989 for the same period in 1998, as a result of the company's
collaboration with Boehringer Ingelheim International GmbH (BI) and increased reimbursements of expenses from Small Business Innovation Research (SBIR) grants on
Triapine© and TAPET©. The company reported a loss applicable to common stockholders of $11,478,705, which includes preferred dividends and accretion, or $0.74 per
share, for the year ended December 31, 1999, compared with a loss of $14,891,719, or $1.24 per share, for the same period in 1998.
Research and development expenses for the 1999 fourth quarter were $2,979,614, versus $4,179,041 reported in the 1998 fourth quarter, which reflect a favorable
adjustment for renegotiated clinical development agreements with BI and Covance Clinical Research Unit Ltd. covering the Phase III clinical trial of Promycin©. Research and
development expenses for 1999 increased to $11,496,649 from $10,709,401 reported in the same period last year.
General and administrative expenses for the 1999 fourth quarter increased from $668,241 to $1,027,050, reflecting management changes and increased legal and patent
fees. General and administrative expenses for 1999 were $2,693,248, versus expenses of $2,202,944 for the same period in 1998. Cash, cash equivalents and short-term
investments were $11,105,262 at the end of 1999, compared with $6,415,731 recorded at the end of 1998.
On February 11, 2000 the company announced its intention to redeem all of its outstanding Class A Warrants (Nasdaq: VIONW - news) on March 13, 2000. Vion's Class A
Warrants entitle the holder to purchase one share of Common Stock and one Class B Warrant (Nasdaq: VIONZ - news) for an exercise price of $4.63. The right of Class A
Warrant holders to exercise their warrants to purchase shares of Vion common stock and Class B Warrants will terminate at 5:00 p.m. New York time on March 10, 2000
(one business day prior to the Redemption Date). After such time, holders of Class A Warrants will have no rights except to receive, upon surrender of their warrants, the
redemption price of $0.05 for each Class A Warrant.
In addition, the company is pleased to announce the mandatory conversion of its 5% Redeemable Convertible Preferred Stock Series 1998 into 1,507,024 shares of common
stock. The preferred stock is held by Elliott Associates, L.P./Westgate International, L.P., who would beneficially own approximately 14% of the company assuming full
conversion of the Class A Warrants and the mandatory conversion of the Redeemable Convertible Preferred Stock.
Commenting on the company's 1999 fourth quarter and year-end results, Alan Kessman, president and chief executive officer of Vion, stated, ``We accomplished several
notable achievements during the 1999 year:
-- We completed two key financial transactions to fund ongoing and future
preclinical and clinical activities: a $4.0 million private placement
of common stock in April, and a $12.65 million public offering of
common stock in November.
-- We entered into a strategic collaboration with EPTTCO Ltd. to research
and develop new cancer treatments based on Vion's TAPET© bacterial
vector technology combined with EPTTCO's prodrug activation technology,
which uses enzymes to convert inactive prodrugs into cytotoxic
anticancer agents. As a result of this collaboration, we also
negotiated an option agreement with AstraZeneca to evaluate the
anticancer therapies jointly under current development by Vion and
EPTTCO.
-- We presented preclinical results of our 'armed' TAPET technology
('bioengineered' to express certain anticancer agents) at several
important industry conferences, highlighting TAPET's antitumor effects
and safety profile.
-- We advanced TAPET into the clinic, initiating a Phase I human safety
trial of TAPET at The Cleveland Clinic Foundation.
-- We enhanced our senior management team with the addition of
Mario Sznol, M.D. formerly of the National Cancer Institute, to the
newly created position of vice president, clinical affairs.
-- In December, we restructured our agreement with our strategic partner,
Boehringer Ingelheim, under which BI will assume full managerial and
financial responsibility for the development of Promycin©, Vion's
hypoxic cancer cell therapy. This restructuring allows BI to advance
multicenter Phase III trials of Promycin, and allows Vion to
immediately reallocate its Promycin development costs, as well as all
of Vion's manpower and capital resources, to fund the development of
the company's other cancer therapies, TAPET and Triapine©."
Mr. Kessman went on to state that, ``With the redemption of the Class A Warrants and the mandatory conversion of the 5% Redeemable Preferred Stock, we have made
additional strides in simplifying the capital structure of the company and attaining additional cash, which will allow us to accelerate our anticancer efforts. 1999 and the first
quarter of 2000 have been exciting and rewarding for all of the employees and shareholders of Vion.'
Vion Pharmaceuticals, Inc. is a biopharmaceutical company engaged in the research, development and commercialization of cancer treatment technologies. Vion's product
portfolio consists of TAPET©, a drug delivery platform, and three cancer therapeutics (Promycin©, Triapine© and Sulfonyl Hydrazine Prodrugs). TAPET has been shown in
preclinical models to effectively deliver anticancer agents while having a minimal effect on healthy normal tissues. TAPET uses genetically altered strains of Salmonella as a
bacterial vector, or vehicle, for delivering cancer fighting drugs preferentially to solid tumors. Promycin, which attacks oxygen depleted cancer cells, is currently being
evaluated with radiation in a multicenter Phase III clinical trial for the treatment of head and neck cancer. Triapine, which is designed to prevent the replication of tumor
cells by blocking a critical step in the synthesis of DNA, is currently being evaluated for its safety in a Phase I clinical trial. Sulfonyl Hydrazine Prodrugs, compounds that are
designed to be converted to unique potent, alkylating agents, are currently being evaluated in preclinical studies.
Statements included in this press release which are not historical in nature are forward-looking statements made pursuant to the safe-harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements regarding the company's future business prospects, plans, objectives, expectations and intentions are
subject to certain risks, uncertainties and other factors that could cause actual results to differ materially from those projected or suggested in the forward-looking
statements, including, but not limited to those contained in the company's Registration Statement filed on Form S-3/A (file no. 333-95671). The shares of Common Stock,
described above, have not been registered under the Securities Act of 1933, as amended, and may not be offered and sold in the United States absent registration under
such Act or an applicable exemption from registration. This press release shall not constitute an offer to sell or the solicitation of an offer to buy its securities 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.
VION PHARMACEUTICALS, INC.
(A Development Stage Company)
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1999 1998 1999 1998
Revenues:
Contract research
grants $74,887 $110,159 $335,767 $308,787
Research support 1,329,188 1,006,825 2,628,039 1,647,202
Technology license
revenues 98,969 -- 155,388 --
Laboratory support
svc. Revenue 35,000 -- 35,000 --
Total revenues 1,538,044 1,116,984 3,154,194 1,955,989
Operating expenses:
Research and
development 2,979,614 4,179,041 11,496,649 10,709,401
General and
administrative 1,027,050 668,241 2,693,248 2,202,944
Interest income (128,307) (118,405) (301,382) (540,240)
Interest expense 6,926 14,049 34,603 61,553
Net loss $(2,347,239)$(3,625,942) $(10,768,924)$(10,477,669)
Preferred stock
dividends
and accretion $(275,081) $(201,094) $(709,781) $(4,414,050)
Loss applicable
to common
Shareholders $(2,622,320)$(3,827,036) $(11,478,705)$(14,891,719)
Basic and
diluted loss
applicable
to common
shareholders
per share $(0.15) $(0.27) $(0.74) $(1.24)
Weighted
average
common stock
and common
stock
equivalents
Outstanding 17,417,912 13,946,631 15,543,701 11,977,121
(tables follow)
CONDENSED BALANCE SHEET DATA
December 31, 1999 December 31, 1998
Cash, cash equivalents
and marketable securities $11,105,262 $6,415,731
Total assets 13,933,805 9,269,023
Total liabilities 2,901,254 2,910,310
Redeemable preferred stock 5,179,287 4,854,505
Shareholders' equity $5,853,264 $1,504,208
CONTACT: Alan Kessman, President & CEO, or Thomas E. Klein, VP Finance &
CFO, both of Vion Pharmaceuticals, 203-498-4210; or investor
relations, Sue L. Yeoh, 201-641-2408, or Lisa Bradlow, or
212-579-7428, both of CPR Financial Communications, for Vion
Pharmaceuticals.
SOURCE: Vion Pharmaceuticals, Inc.
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