AVANT Immunotherapeutics Reports Second Quarter 2002 Financial Results
NEEDHAM, Mass.--(BW HealthWire)--July 24, 2002--AVANT Immunotherapeutics, Inc. (Nasdaq: AVAN - News) today reported financial results for the second quarter ended June 30, 2002. The company reported a net loss of $5.2 million, or $.09 per share, for the second quarter of 2002 compared to a net loss of $5.7 million, or $.10 per share, for the second quarter of 2001. The decreased loss for the second quarter of 2002 primarily reflects a decrease in operating expense compared to the same period in 2001 offset in part by a decrease in revenue and investment income. The operating expense decrease primarily results from a reduction in research and development expenses in the second quarter of 2002 related to the company's terminated TP10 programs. The decrease in operating expense was offset in part by increased costs incurred in the manufacture of clinical materials for the travelers' vaccines programs and an increase in other manufacturing and marketing consultancy costs. The company ended the quarter with cash and cash equivalents of $31.7 million.
For the six months ended June 30, 2002, the company reported a net loss of $10.1 million, or $.17 per share, compared to a net loss of $9.7 million, or $.17 per share, for the six months ended June 30, 2001. The six-month results for 2002 reflect an increase in net loss of $0.4 million compared to the same period in 2001. This increase in net loss primarily reflects a decrease in revenue and investment income, offset in part by a decrease in operating expense. The decrease in revenue primarily reflects lower grant revenue in 2002 than recorded in 2001. The decrease in investment income reflects lower average cash balances between periods and significantly lower interest rates. The decrease in operating expense is primarily due to decreased clinical trials costs and clinical materials costs incurred in connection with the company's clinical programs. It also reflects the elimination of goodwill amortization, offset in part by an increase in consultancy, legal and facility related expenses.
"These financial results are in line with our plans for the company," said Avery W. Catlin, Senior Vice President and Chief Financial Officer of AVANT Immunotherapeutics, Inc. "We are making progress in the advancement of our two lead programs: CETi-1, our novel therapeutic vaccine for cholesterol management; and the first two of our single dose, oral travelers' vaccines - CholeraGarde(TM) cholera vaccine and Ty800 typhoid fever vaccine."
During the quarter, AVANT received a key patent issued by the United States Patent and Trademark Office which underlies the CETi-1 product candidate presently under study in a Phase II clinical trial. This patent underpins AVANT's broad intellectual property coverage of vaccine approaches to inhibiting cholesteryl ester transfer protein (CETP). In addition, AVANT started a placebo-controlled, dose-ranging Phase II study of its cholera vaccine in approximately 120 adult volunteers. The objectives of this Phase II study are to evaluate the safety, immunogenicity and dose-response relationship of the vaccine with the aim of evaluating a new buffer system and optimizing vaccine dosage.
In early July, AVANT was awarded a Phase I Small Business Innovation Research (SBIR) grant by the National Institute of Allergy and Infectious Disease (NIAID) of the National Institutes of Health (NIH) to support the development of the company's single oral-dose bacterial vectors to immunize people against anthrax. The proposed bacterial vectors are derived from AVANT's cholera and typhoid fever vaccines currently in clinical development. During the quarter, AVANT has been active in ongoing discussions with the U.S. government regarding development of vaccines to protect against bioterrorism agents.
"These events further underscore the broad capabilities offered by AVANT's multiple technology platforms for the development of innovative vaccines for underserved medical needs," said Una Ryan, Ph.D., AVANT's President and Chief Executive Officer.
Dr. Ryan and Mr. Catlin will host a conference call at 11:00 AM EST on Thursday, July 25, 2002 to discuss the Second Quarter 2002 financial results. To access the conference call, dial 800-388-8975 (within the United States), or 973-694-2225 (if calling from outside the U.S.). An audio replay will be available immediately following the call for approximately one week and can be accessed by dialing 800-428-6051 (within the U.S.), or 973-709-2089 (if calling from outside the U.S.). The passcode for the audio replay is 251966.
The call will also be broadcast via the company's website: www.avantimmune.com. In order to access the webcast, your PC must have a sound card, speakers and Windows Media Player software. It is recommended that you configure your PC in advance of the webcast as the software download and installation can take several minutes.
AVANT Immunotherapeutics, Inc. is engaged in the discovery, development and commercialization of products that harness the human immune system to prevent and treat disease. The company is developing a broad portfolio of vaccines against viral and bacterial diseases, including single-dose oral vaccines. In addition, the company is conducting clinical studies of a proprietary vaccine candidate for cholesterol management. AVANT further leverages the value of its technology portfolio through corporate partnerships. Current collaborations encompass the development of an oral human rotavirus vaccine, vaccines to combat threats of biological warfare, and vaccines addressed to human food safety and animal health.
Additional information on AVANT Immunotherapeutics, Inc. can be obtained through our site on the World Wide Web: avantimmune.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements which reflect AVANT's current views with respect to future events and financial performance. The words "believe," "expect," "anticipate," and similar expressions identify forward-looking statements. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed in any such forward-looking statements. These factors include, but are not limited to: (1) the ability to successfully complete development and commercialization of products, including the cost, timing, scope and results of preclinical and clinical testing; (2) the ability to successfully complete product research and further development, including animal, pre-clinical and clinical studies, and the adaptation of our attenuated vaccine technology to different infectious diseases; (3) the ability of the company to manage multiple late stage clinical trials for a variety of product candidates; (4) the volume and profitability of product sales of Megan®Vac 1 and other future products; (5) changes in existing and potential relationships with corporate collaborators; (6) the cost, delivery and quality of clinical and commercial grade materials supplied by contract manufacturers (7) the timing, cost and uncertainty of obtaining regulatory approvals; (8) the ability to obtain substantial additional funding; (9) the ability to develop and commercialize products before competitors; (10) the integration of Megan Health's business and programs; (11) the ability to retain certain members of management; and (12) other factors detailed from time to time in filings with the Securities and Exchange Commission.
table follows-
AVANT IMMUNOTHERAPEUTICS, INC.
CONSOLIDATED STATEMENTS
OF OPERATIONS DATA
Quarter Year to Date
Ended June 30, Ended June 30,
2002 2001 2002 2001
(Unaudited) (Unaudited)
REVENUE
Product
Development
and Licensing
Agreements $ 522,400 $ 731,600 $ 1,107,700 $ 1,469,300
Product Sales 120,400 94,200 225,900 215,500
Total Revenue 642,800 825,800 1,333,600 1,684,800
OPERATING
EXPENSE
Research and
Development 4,066,400 5,440,500 8,476,000 9,502,400
Selling,
General and
Administrative 1,687,500 1,188,200 2,873,400 2,327,000
Cost of Product
Sales 17,000 8,200 30,700 18,300
Amortization of
Acquired
Intangible
Assets 198,800 198,800 397,600 397,600
Amortization of
Goodwill -- 145,200 -- 290,400
Total Operating
Expense 5,969,700 6,980,900 11,777,700 12,535,700
Operating Loss (5,326,900) (6,155,100) (10,444,100) (10,850,900)
Investment
Income, Net 162,600 494,800 366,200 1,177,300
Net Loss $(5,164,300) $(5,660,300) $(10,077,900) $(9,673,600)
Basic and
Diluted Net
Loss per
Common Share $ (0.09) $ (0.10) $ (0.17) $ (0.17)
Weighted
Average Common
Shares
Outstanding 60,458,400 57,355,400 60,457,900 57,303,800
CONSOLIDATED BALANCE
SHEET DATA June 30, December 31,
2002 2001
(Unaudited)
Cash and Cash Equivalents $ 31,668,000 $ 42,665,900
Working Capital 27,364,100 37,820,900
Accumulated Deficit 188,151,300 178,073,400
Total Stockholders' Equity 35,226,000 45,268,800
--------------------------------------------------------------------------------
Contact:
AVANT Immunotherapeutics, Inc.
Una S. Ryan, Ph.D., 781/433-0771
or
AVANT Immunotherapeutics, Inc.
Avery W. Catlin, 781/433-0771
info@avantimmune.com |
