CHICAGO, Feb. 11 /PRNewswire/ -- Endorex Corporation (Amex: DOR) reported
a 1998 net loss of $21.8 million, or $2.26 per share, compared with a loss of
$3.2 million, or $1.03 per share, for 1997. The current year loss includes
one-time payments by Endorex totaling $16 million as its share of initial
license fees paid by its two drug delivery joint ventures with Elan
Corporation. Elan also invested $16 million in Endorex convertible preferred
stock, effectively offsetting the impact of the license fees on the balance
sheet, as well as $2 million in common stock.
Research and development expenses for the year increased 67% to
$3.1 million. During 1998, Endorex recruited additional scientific personnel
and consolidated into a new R&D center dedicated to developing oral delivery
technology for vaccines and drugs. General and administrative expenses
increased 140% to $3.5 million primarily because of amortization of the fair
value of warrants. Excluding the amortization, G&A increased 71% to
$1.9 million primarily due to expanded business development and investor
relations activities.
As of December 31, 1998, the Company had $13.2 million in cash and
securities in addition to $5.7 million of unused lines of credit and
restricted cash. The Company's cash burn rate for 1998 was $4.4 million and
is expected to increase to $6 million for 1999 due to additional clinical
trials.
Second Joint Venture with Elan
In October, the Company announced its second joint venture with Elan.
"This second joint venture represents further confidence with our company by
Elan," noted Michael Rosen, President and Chief Executive Officer. "We will
be developing and commercializing two key drugs with the Medipad(TM) delivery
system. This lightweight, painless, disposable device, which combines the
simplicity of a patch with the extensive delivery capabilities of an infusion
pump, diversifies the drug delivery alternatives currently available. We hope
to eventually offer Medipad as a more efficient and patient-friendly delivery
system for life-threatening disease management. The first drug from this
joint venture is expected to enter into clinical trials during 1999, which
will expand our human clinical trial portfolio to three drugs."
Goals for 1999
Looking ahead to fiscal 1999, management has established a number of
near-term strategic goals as Endorex Corporation continues to grow toward
eventual profitability.
According to Rosen, a prime focus for Endorex in 1999 will be to complete
in the first part of the year its overall data package for oral delivery
technology with "in vivo" data for vaccines as well as selected proteins such
as insulin and human growth hormone, believing this will help attract
significant partners for its Orasome(TM) delivery system. "For a number of
reasons, there are large segments of the population that would prefer oral
delivery versus injection of vaccines and a wide range of drugs," said Rosen.
"Under an exclusive licensing agreement with the Massachusetts Institute of
Technology (MIT), we are working with proprietary advanced-stage liposome
technology to encapsulate drugs for future commercialization. This technology
would allow these drugs or vaccines to pass through the stomach intact and
permit more efficient absorption in the gastrointestinal tract. The long-term
benefits of our Orasome delivery system include elimination of the risks
associated with needles, offer ease and efficiency of administration and no
medical waste disposal is necessary."
Endorex also has a goal of expanding the evaluation of its cancer drugs,
Perillyl alcohol and ImmTher(R), for other types of cancer. "Additional
trials in various types of cancer may result in further proof of the efficacy
of these drugs which ideally will lead to development alliances with major
pharmaceutical companies for their eventual commercialization," stated Rosen.
Licensing revenues for Endorex's cancer drugs and/or oral delivery technology
are anticipated in 1999.
Endorex Corporation is a drug delivery and cancer products company. The
Company licensed its Orasome(TM) technology from the Massachusetts Institute
of Technology that is being developed to orally deliver vaccines, proteins and
peptides. In 1998, Endorex formed two drug delivery joint ventures with Elan
Corporation, plc. Endorex is also focusing on two innovative directions in
cancer therapy: immunotherapy and natural chemotherapy. Two Endorex drugs
have entered into multiple Phase II clinical trials: ImmTher(R), an
immunomodulator, and Perillyl alcohol, a new monoterpene.
The statements made in this press release contain certain forward-looking
statements, within the meaning of Section 21E of the Securities Exchange Act
of 1934, as amended, that involve a number of known and unknown risks and
uncertainties. Such statements are only predictions and actual events or
results in future periods may differ materially from what is currently
anticipated. In particular, no assurance can be given that the company will
become profitable, that wither of the joint ventures with Elan will
successfully develop products or become profitable, that the Orasome delivery
system will lead to successful products or become profitable, or that any of
the company's cancer drug candidates will receive regulatory approval or
become commercially successful. In addition to the matters described in this
press release, risk factors as described from time to time in Endorex's filing
with the Securities and Exchange Commission, including, but not limited to,
its most recent reports on Form 10-QSB and Form 10-KSB, may affect the results
achieved by Endorex. The Company assumes no obligation to update the
information in this release.
Endorex Corporation 1998 Fourth Quarter Results
Year ended December 31,
Results of Operations 1998 1997
Revenues $ -- $ --
Research & development expenses 3,055,969 1,826,066
General & administrative expenses 3,500,682 1,450,828
Net loss (21,793,170) (3,244,326)
Basic and diluted net loss per share
available to common shareholders (2.26) (1.03)
Average shares outstanding 9,941,639 3,141,827
Three months ended December 31,
1998 1997
Revenues $ -- $ --
Research & development expenses 772,187 738,536
General & administrative expenses 911,068 716,952
Net loss (9,526,519) (1,396,270)
Basic and diluted net loss per share
available to common shareholders (0.99) (0.16)
Average shares outstanding 9,936,000 8,522,877
Financial Position December 31, 1998
Cash and securities $13,152,415
Working capital 12,590,254
Total assets 16,198,873
Long term debt 314,130
Stockholders' equity 14,756,821
Stock Information February 11, 1999
Symbol (Amex) DOR
Recent price $2.50
Shares outstanding 9,936,000
SOURCE Endorex Corporation
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Related links:
http://www.endorex.com
CONTACT:
Dave Franckowiak, V.P. Finance of Endorex
Corporation, 847-573-8990, or e-mail, dfrancko@endorex.com; or
Investor Information, Kathy Brunson, 312-640-6696, General
Information, Bill Murphy, 312-640-6764, Media Information, Darcy
Bretz, 312-640-6756, all of The Financial Relations Board
NOTE TO EDITORS: To receive the latest information about Endorex
Corporation via fax, at no cost, dial 1-800-PRO-INFO, code DOR
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