MOUNTAIN VIEW, Calif., Feb. 17 /PRNewswire/ -- Aviron (Nasdaq: AVIR) today
announced that it has reached an amended agreement with the University of
Michigan to accelerate the issuance of a warrant to the university which
allows it to purchase 340,000 shares of Aviron common stock. As a result of
this amendment, Aviron will record a one-time charge of $10.9 million in the
first quarter of 2000.
In February 1995, Aviron entered into a materials transfer and
intellectual property agreement with the University of Michigan. Pursuant to
the agreement, the University of Michigan granted Aviron exclusive worldwide
rights to certain intellectual property and technology relating to the cold
adapted influenza vaccine and proprietary master donor strains of influenza
viruses useful in the production of products for vaccination against
influenza, such as FluMist(TM).
As part of the consideration for these rights, Aviron agreed in 1995 to
issue a warrant to the University of Michigan, at the time of the first
commercial sale of FluMist(TM), to purchase shares of Aviron common stock at
an exercise price of $10.00 per share for a number of shares to be based on
1.25 percent of the common stock outstanding on the date of the first
commercial sale of FluMist(TM).
The amended agreement provides for a warrant to purchase 340,000 shares of
Aviron common stock at an exercise price of $10.00 per share to be issued
immediately. Upon the date of the first commercial sale of FluMist(TM), if
1.25 percent of the common stock outstanding exceeds 340,000 shares, Aviron
will issue a separate warrant allowing the university to purchase the excess
shares in accordance with the original agreement.
"The successful renegotiation of this agreement allows Aviron to fix the
value of the warrant today and to substantially reduce the uncertainty of the
impact the agreement will have on our financial statements," said C. Boyd
Clarke, president and chief executive officer of Aviron.
Aviron is a biopharmaceutical company based in Mountain View, CA focused
on prevention of disease. Aviron's goal is to develop products which offer
cost-effective prevention of a wide range of infections that affect the
general population. The majority of Aviron's products under development are
live vaccines against viral infections. These include intranasal vaccines
under development for respiratory infections and their complications
-- influenza, parainfluenza (PIV-3), and respiratory syncytial virus (RSV),
and injectable vaccines to prevent cytomegalovirus (CMV) and genital herpes
(HSV-2). Aviron is also developing, in collaboration with SmithKline Beecham
Biologicals, a subunit vaccine against Epstein-Barr Virus (EBV) infection, a
major cause of infectious mononucleosis. Aviron and Wyeth Lederle Vaccines, a
business unit of American Home Products, are collaborating on the development
and marketing of FluMist(TM) worldwide except for Australia, New Zealand,
Korea and certain other South Pacific region countries.
This press release contains forward-looking statements. Actual results
may differ materially from the forward-looking statements contained in this
release. Factors that could cause actual results to differ include, but are
not limited to, failure in a clinical trial, failure to demonstrate stability
or failure to validate the manufacturing process. Risk factors also include
the assessment by the regulatory agencies that Aviron's future license
applications for its intranasal influenza vaccine are incomplete or inadequate
to approve the product for marketing to one or more target populations.
Additional information concerning factors that could cause such a difference
is contained in Aviron's Annual Report on Form 10-K for the year ended
December 31, 1998.
To receive an index and copies of recent press releases, call Aviron's
News-On-Call toll-free fax service, 800-758-5804, extension 114000.
Additional information about Aviron can be located at http://www.aviron.com .
SOURCE Aviron
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http://www.aviron.com
Company News On-Call:
http://www.prnewswire.com/comp/114000.html or fax,
800-758-5804, ext. 114000
CONTACT:
media, Karen Gilbert of Aviron, 650-919-6578,
or Camela Stuby of Fleishman-Hillard, 212-453-2000, for Aviron;
or investors, John Bluth, 650- 919-3716, or Fred Kurland,
650-919-6666, both of Aviron
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