SAN DIEGO--(BW HealthWire)--Aug. 3, 1998--Vical Inc.
(NASDAQ:VICL) today reported revenues of $560,000 and a net loss of
$2,935,000 or $.19 per share for the second quarter of 1998.
For the same period in 1997, the company reported revenues of
$866,000 and a net loss of $2,267,000 or $.15 per share. Revenues in
the second quarter of 1998 reflected $250,000 of a $1.0 million
payment received from Merial under its agreement with Vical to use the
company's proprietary naked DNA gene delivery technology for certain
veterinary vaccines.
For the six months ended June 30, 1998, Vical's net loss was
$3,656,000 or $.23 per share, compared with a net loss of $4,269,000
or $.28 per share for the first six months of 1997. At June 30, 1998,
the company had cash, cash equivalents and marketable securities of
$43.7 million, compared with $45.6 million at Dec. 31, 1997.
"Financial results for the second quarter were consistent with
expectations," said Alain B. Schreiber, M.D., president and chief
executive officer of Vical.
During the second quarter of 1998, Vical initiated
registration-supportive Phase II and Phase III clinical trials with
Allovectin-7, the company's most advanced cancer product candidate,
for patients with metastatic melanoma. Also during the quarter, Vical
began Phase II clinical trials with Leuvectin, another cancer product
candidate, for patients with kidney cancer, and reported encouraging
initial results from a Phase I/II clinical trial with Leuvectin in
patients with prostate cancer.
In July 1998, Vical announced the initiation of a clinical trial
for a novel melanoma vaccine being developed in collaboration with the
National Cancer Institute. "While our research and development
spending grew as expected with increasing clinical trial activity, we
were pleased that our licensing revenues continued to offset a portion
of our expenditures," said Dr. Schreiber.
Vical Inc. is focused on the development of gene-based
pharmaceutical product candidates for the prevention or treatment of
cancer, infectious diseases and metabolic disorders. A number of
therapeutic and vaccine product candidates are currently under
development by Vical and its collaborative partners, including Merck,
Pasteur Merieux Connaught, Rhone-Poulenc Rorer, Centocor and Genzyme.
Allovectin-7, which uses a lipid-DNA complex to help the immune
system recognize and attack cancer cells, is in Phase II and Phase III
testing in certain patients with metastatic melanoma and in Phase II
testing in patients with unresectable head and neck cancer. Leuvectin,
which uses a lipid-DNA complex to stimulate an immune response against
cancer cells, is in Phase II testing in certain patients with kidney
cancer, and in Phase I/II testing in patients with prostate cancer.
Vaxid, a naked DNA vaccine to prevent relapse of B-cell lymphoma, is
in Phase I/II testing.
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 product candidates will be shown to
be safe and efficacious in clinical trials, the timing of clinical
trials, whether Vical will seek or gain approval to market any product
candidates, 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)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
---- ---- ---- ----
Revenues:
Contract
revenue $ 12 $ 393 $ 212 $ 1,195
License/royalty
revenue 548 473 3,080 798
560 866 3,292 1,993
Expenses:
Research and
development 3,058 2,797 6,153 5,591
General and
administrative 1,015 880 1,982 1,777
4,073 3,677 8,135 7,368
Loss from
operations (3,513) (2,811) (4,843) (5,375)
Net interest
income 578 544 1,187 1,106
Net loss (2,935) (2,267) (3,656) (4,269)
Net loss
per share
(Basic and
diluted) $ (0.19) $ (0.15) $ (0.23) $ (0.28)
Shares used in
per share
calculation 15,789,206 15,447,949 15,771,298 15,435,491
CONDENSED BALANCE SHEETS
(in thousands)
June 30, Dec. 31,
1998 1997
---- ----
(Unaudited)
Assets
Cash and cash equivalents $10,146 $12,157
Marketable securities 33,524 33,397
Other current assets 1,189 1,567
Total current assets 44,859 47,121
Property and equipment, net 1,945 2,220
Other assets 1,383 1,350
$48,187 $50,691
Liabilities and Stockholders' Equity
Current liabilities $ 2,806 $ 2,265
Long-term obligations 1,000 1,232
Stockholders' equity 44,381 47,194
$48,187 $50,691
*T
CONTACT: Vical Incorporated
Alan R. Engbring, Martha J. Demski, 619/646-1100
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: MEDICINE PHARMACEUTICAL BIOTECHNOLOGY EARNINGS
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