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Biotech / Medical : NEXL -- Ignore unavailable to you. Want to Upgrade?

To: R Hamilton who wrote (1326)	3/31/1998 9:11:00 AM
From: GREATMOOD	Read Replies (1) \| Respond to of 1704

Innovir Announces Fourth Quarter and Full Year 1997 Results NEW YORK--(BUSINESS WIRE)--March 31, 1998--Innovir Laboratories, Inc. (Nasdaq SmallCap: INVR), a subsidiary of VIMRX Pharmaceuticals Inc. (Nasdaq: VMRX), announced today that it has filed its results for the year ended December 31, 1997, with the Securities and Exchange Commission on Form 10-K. Innovir is a biotechnology company engaged in the research and development of catalytically interactive oligomers (oligozymes) for pharmaceutical and genomic research and also for the treatment and prevention of diseases. Full Year 1997 Results. For the 12 months ended December 31, 1997, operating expenses were $10.2 million versus $19.8 million for full year 1996. The 1996 operating expenses included a one time charge of $17.3 million, or $1.78 per share, for purchased in-process research and development related to the acquisition of Ribonetics GmbH, and the transaction that resulted in VIMRX acquiring 68% of Innovir. The net loss for fiscal 1997 was $10.0 million, or $0.43 per share, compared to a net loss of $19.7 million, or $2.03 per share for 1996. Weighted average shares outstanding for the year ended December 31, 1997, were 23.5 million versus 9.7 million for the comparable 1996 period. Cash and short term investments at December 31, 1997, were $2.2 million versus $6.4 million a year earlier. Innovir's cash position at the end of 1997 is equal to less than one year of expenses at the current expense burn rate. To further support Innovir, VIMRX has agreed to purchase up to $5 million in additional stock, if needed and requested by Innovir. The additional stock will be priced at the current market value when Innovir calls for the money or $1.30 per share, whichever is lower. "The substantial scientific progress made over the past year in advancing our oligozyme technologies will position Innovir as a much more attractive partner to pharmaceutical companies for drug discovery target validation," said Thomas R. Sharpe, Ph.D., Innovir president and CEO. Last week, Innovir announced that it has developed a novel technology termed FRS (Functional Ribozyme Selection) which will significantly enhance the company's lead oligozyme technology development programs. FRS rapidly and more accurately identifies the optimal cleavage or cutting site for a ribozyme or External Guide Sequence (EGS) oligonucleotide (oligozymes) in any messenger RNA molecule. Importantly, FRS is used inside intact, living bacterial cells, insuring that the sites identified are truly accessible to the oligozymes under normal physiological conditions. A patent application covering this technology has been filed. "Utilization of the FRS technology developed in the past year will be the key focus of our efforts in 1998," continued Sharpe. Fourth Quarter. For the fourth quarter ending December 31, 1997, operating expenses were $2.9 million, as compared to $15.4 million for the same period in 1996. The net loss for the fourth quarter of 1997 was $2.8 million, or $0.09 per share versus a net loss of $15.2 million, or $1.57 per share, for the same period in 1996. The net loss for the fourth quarter ended December 31, 1996 includes a $13.8 million charge for purchased in-process research and development related to the acquisition by VIMRX of 68% of Innovir. Weighted average shares outstanding for the three months ended December 31, 1997, were 29.8 million versus 9.7 million for the comparable 1996 period. Innovir Laboratories Inc. Innovir Laboratories, Inc. is a biotechnology company that has been developing technologies based on catalytically interactive oligomers (oligozymes) for pharmaceutical and genomic research and also for the treatment and prevention of diseases. As a research aid, oligozymes have the potential to identify how different genes function and to identify and validate molecular targets for new drug therapies. The Company's technologies utilize either External Guide Sequences (EGS) oligozymes - which inactivate targeted messenger RNA (mRNA) through activity of the cellular enzyme RNase P - or RILON(TM) oligozymes, which inactivate targeted mRNA directly. To complement its therapeutic and drug target validation programs, Innovir has developed FRS (Functional Ribozyme Selection) for identifying the optimal cleavage sites in bacterial cells. Further, the company develops InnoPhor(TM), a unique drug delivery tool which enhances the delivery of several classes of oligonucleotide-based compounds into cells. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. The forward- looking statements contained in this release are subject to certain risks and uncertainties. Actual results could differ materially from current expectations. Among the factors which could affect the Company's actual results and could cause results to differ from those contained in the forward-looking statements contained herein are the success of the Company's clinical trials, delays in receiving FDA or other regulatory approvals and the development of competing therapies and/or technologies by other companies. -0- NOTE TO INVESTORS AND EDITORS: Innovir's press releases are available on the Internet through www.vimrx.com and through BusinessWire's web site at businesswire.com. The releases also are available at no charge through BusinessWire's fax-on-demand service at 800-411-8792. --30--emb/ny* CONTACT: Media Contact: Laura A. Mastrangelo VIMRX Pharmaceuticals 302-998-1734/Pager 800-916-8038 or Contact: Dian Griesel, Ph.D. The Investor Relations Group 212-664-8489