SAN DIEGO--(BW HealthWire)--Nov. 3, 1997--Vical Incorporated
(NASDAQ:VICL) today reported revenues of $3,480,000 and a net loss of
$225,000 or $.01 per share for the third quarter of 1997. For the
same period in 1996, the company reported revenues of $541,000 and a
net loss of $2,190,000 or $.14 per share.
Revenues in the third quarter of 1997 included a $2.0 million
license and option payment from Merck & Co., Inc. (NYSE:MRK) for a
new agreement covering delivery of certain growth factors. Third-
quarter 1997 revenues also included a $1.0 million milestone payment
from Pasteur Merieux Connaught for the initiation of a Phase I
clinical trial with an experimental DNA vaccine for malaria. The
Company's patented naked DNA technology has been licensed previously
by Merck & Co. and Pasteur Merieux Connaught for the development of
vaccines for infectious diseases.
In September 1997, Merck licensed Vical's naked DNA technology for
delivery of certain angiogenic growth factors as potential treatments
for a range of applications including revascularization. In October
1997, Rhone-Poulenc Rorer licensed Vical's naked DNA technology for
delivery of certain neurologically active proteins for potential
application in treating neurodegenerative diseases, resulting in a
$1.0 million license and option payment, to be recorded in the fourth
quarter.
"The recent transactions with Merck and Rhone-Poulenc Rorer for
gene delivery extend our licensed applications beyond vaccines into
the therapeutic protein field," said Alain B. Schreiber, M.D.,
President and CEO of Vical, "indicating the broad scope of our
patented naked DNA technology. We expect to continue building our
business by licensing naked DNA as a gene delivery system."
For the nine months ended September 30, 1997, Vical's net loss
was $4,494,000 or $.29 per share, compared with a net loss of
$3,745,000 or $.24 per share for the first nine months of 1996. At
September 30, 1997, the Company had cash, cash equivalents and
marketable securities of $42.3 million, compared with $46.8 million
at December 31, 1996.
During the third quarter, the Company initiated a Phase II trial
with Allovectin-7, a gene-based immunotherapy, in patients with
advanced, inoperable head and neck cancer.
Also in October, Vical initiated two clinical trials. A Phase
I/II trial evaluating the combination of Allovectin-7 and Leuvectin
in advanced metastatic melanoma is being conducted at the University
of Arizona Cancer Center under the direction of Dr. Evan Hersh. A
Phase I/II trial testing Vaxid, an anti-idiotype, naked DNA vaccine
intended to prevent recurrence of low-grade, non-Hodgkin's B-cell
lymphoma, is being conducted at the Stanford University Medical
Center under the direction of Dr. Ronald Levy.
Vical Incorporated is focused on the development of gene-based
pharmaceutical product candidates for human therapy. Vical's
gene-based therapeutic approach may offer safer and more
cost-effective alternatives for many diseases, including cancer,
infectious diseases and metabolic disorders.
This press release contains forward-looking statements that are
subject to risks and uncertainties that could cause actual results
to differ materially from those set forth in the forward-looking
statements, including whether any new business arrangements will be
realized, whether any product candidates will be shown to be safe
and efficacious in clinical trials, the timing of clinical trials,
and additional risks set forth in the Company's filings with the
Securities and Exchange Commission. Actual results may differ
materially from those projected. These forward-looking statements
represent the Company's judgment as of the date of this release.
The Company disclaims, however, any intent or obligation to update
these forward-looking statements.
*T
Vical Incorporated
Statements of Operations
(in thousands, except share and per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues:
Contract
revenue $ 131 $ 255 $ 1,326 $ 764
License/
royalty
revenue 3,349 286 4,147 3,853
3,480 541 5,473 4,617
Expenses:
Research and
development 3,319 2,628 8,910 8,142
General and
administrative 928 750 2,705 2,219
4,247 3,378 11,615 10,361
Loss from
operations (767) (2,837) (6,142) (5,744)
Net interest
income 542 647 1,648 1,999
Net loss (225) (2,190) (4,494) (3,745)
Net loss
per share $ (0.01) $ (0.14) $ (0.29) $ (0.24)
Shares used in
per share
calculation 15,458,404 15,385,428 15,443,212 15,379,940
Condensed Balance Sheets
(in thousands)
September 30, December 31,
1997 1996
(Unaudited)
Assets
Cash and cash equivalents $ 6,704 $ 12,609
Marketable securities 35,588 34,237
Other current assets 1,350 1,926
Total current assets 43,642 48,772
Property and equipment, net 2,430 2,263
Other assets 1,320 1,405
$ 47,392 $ 52,440
Liabilities and Stockholders' Equity
Current labilities $ 1,879 $ 2,457
Long-term obligations 1,259 1,618
Stockholders' equity 44,254 48,365
$ 47,392 $ 52,440
*T
CONTACT: Vical Incorporated
Alan R. Engbring, Director, 619/453-9900
or
Martha J. Demski,
Vice President and Chief Financial Officer,
619/453-9900
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: BIOTECHNOLOGY PHARMACEUTICAL
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