Vical Announces Third Quarter 1998 Financial Results
SAN DIEGO--(BW HealthWire)--Nov. 2, 1998--Vical Inc.
(Nasdaq:VICL) today reported revenues of $1,696,000 and a net loss of
$1,750,000 or $.11 per share for the third quarter of 1998, compared
with revenues of $3,480,000 and a net loss of $225,000 or $.01 per
share for the third quarter of 1997.
Revenues in the third quarter of 1998 included $1.1 million from
Boston Scientific Corp. (NYSE:BSX) under a license and option
agreement for the development of vascular gene therapy. Third quarter
1998 revenues also included recognition of $250,000 under an agreement
with Merial to use the company's proprietary naked DNA technology for
certain veterinary vaccines, and contract revenue of $159,000 under a
multi-year grant of up to $2.7 million from the Office of Naval
Research for development work on a naked DNA vaccine to prevent
malaria.
Third quarter 1997 results reflected one-time revenues of $2.0
million from Merck & Co. Inc. (NYSE:MRK) for a license agreement
related to the gene-based delivery of certain angiogenic growth
factors, and $1.0 million from Pasteur Merieux Connaught for initial
clinical testing of a naked DNA vaccine for malaria.
For the nine months ended Sept. 30, 1998, Vical's net loss was
$5,406,000 or $.34 per share, compared with a net loss of $4,494,000
or $.29 per share for the first nine months of 1997. At Sept. 30,
1998, the company had cash, cash equivalents and marketable securities
of $40.9 million, compared with $45.6 million at Dec. 31, 1997.
"Our loss for the quarter was lower than expected, due to
unanticipated revenues from our licensing and contract research
activities," said Alain B. Schreiber, M.D., president and chief
executive officer of Vical. "We continued to manage our expenses while
advancing our expanding pipeline of clinical-stage projects."
In July, Vical announced the initiation of a Phase I/II clinical
trial to study the safety and potential efficacy of an experimental
DNA vaccine for patients with metastatic melanoma. The trial is being
sponsored by the National Cancer Institute under the direction of
leading cancer researcher Steven A. Rosenberg, M.D., Ph.D., chief of
surgery.
Dr. Rosenberg previously had worked on a prototype peptide-based
melanoma vaccine which demonstrated significant clinical benefit. In
collaboration with Dr. Rosenberg, Vical is developing a potentially
more practical naked DNA-based vaccine. DNA vaccines use a novel
approach that may overcome technical limitations of conventional
vaccines, and may offer advantages in safety and efficacy.
In the Oct. 16, 1998, issue of "Science," Vical and its
collaborators at the Naval Medical Research Center and Pasteur Merieux
Connaught reported that subjects immunized with a potential malaria
DNA vaccine developed dose-related "killer" T-cell immune responses.
These T-cells are believed to be essential for vaccines against
malaria and other infectious diseases. This was the first
demonstration of safety and immune responses in healthy human
volunteers with a vaccine using the company's patented naked DNA
technology. To date, no effective vaccine has been developed against
malaria, which is among the most prevalent and fatal infectious
diseases worldwide.
"With our new melanoma vaccine project, we now have four cancer
product candidates in clinical trials," said Dr. Schreiber, "with two
being developed for multiple indications and the most advanced in
Phase III registration trials. We are particularly pleased to count
Boston Scientific among the industry-leading corporate partners who
have licensed our naked DNA technology. Potential applications are
under development by Merck & Co. and Pasteur Merieux Connaught for
vaccines against infectious diseases, by Merck & Co. and Rhone-Poulenc
Rorer for the delivery of therapeutic proteins, by Centocor for cancer
vaccines, and by Merial for veterinary vaccines."
Vical Inc. is focused on the development of pharmaceutical
product candidates based on its patented naked DNA technology. A
number of therapeutic and vaccine product candidates are currently
under development by Vical and its collaborative partners for the
prevention or treatment of cancer, infectious diseases and metabolic
disorders.
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.
For news releases and other information, visit the Vical web site
at vical.com.
VICAL INCORPORATED
STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
1998 1997 1998 1997
---- ---- ---- ----
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues:
Contract
revenue $ 159 $ 131 $ 371 $ 1,326
License/royalty
revenue 1,537 3,349 4,617 4,147
1,696 3,480 4,988 5,473
Expenses:
Research and
development 3,158 3,319 9,311 8,912
General and
administrative 855 928 2,836 2,704
4,013 4,247 12,147 11,616
Loss from
operations (2,317) (767) (7,159) (6,143)
Net interest
income 567 542 1,753 1,649
Net loss (1,750) (225) (5,406) (4,494)
Net loss
per share
(Basic and
diluted) $ (0.11) $ (0.01) $ (0.34) $ (0.29)
Shares
used in
per share
calculation 15,817,412 15,458,404 15,786,838 15,443,212
CONDENSED BALANCE SHEETS
(in thousands)
Sept. 30, Dec. 31,
1998 1997
---- ----
(Unaudited)
Assets
Cash and cash equivalents $12,412 $12,157
Marketable securities 28,481 33,397
Other current assets 2,336 1,567
Total current assets 43,229 47,121
Property and equipment, net 1,835 2,220
Other assets 1,403 1,350
$46,467 $50,691
Liabilities and Stockholders' Equity
Current liabilities $ 2,751 $ 2,265
Long-term obligations 911 1,232
Stockholders' equity 42,805 47,194
$46,467 $50,691
CONTACT:
Vical Incorporated
Alan R. Engbring, Martha J. Demski, 619/646-1100
KEYWORD: CALIFORNIA
BW0397 NOV 02,1998
13:34 PACIFIC
16:34 EASTERN |
