MOUNTAIN VIEW, Calif., May 3 /PRNewswire/ -- Aviron (Nasdaq: AVIR) today
announced results for the 1999 first quarter ended March 31, 1999.
For the first quarter, the company reported a net loss of $ 1.5 million
(basic net loss of $0.10 per share) compared to a loss of $10.7 million (basic
net loss per share of $0.67 per share) for the first quarter of 1998. The
decrease in net loss was primarily due to the $15.0 million initial payment
received from Wyeth Lederle Vaccines. In January, Aviron announced a
worldwide collaboration for the marketing of FluMist(TM) with Wyeth, a
business unit of American Home Products Corporation.
Revenues in the 1999 first quarter totaled $15.5 million, compared to $0.3
million for the first quarter of 1998. First quarter 1999 revenues were
comprised principally of the $15.0 million payment from Wyeth, combined with
revenues from other contracts and research grants. Revenues during the first
quarter of 1998 were comprised of contract revenues and research grants.
Operating expenses in the 1999 first quarter totaled $16.7 million,
compared to $11.8 million for the first quarter of 1998. Research and
development costs rose to $14.0 million in the 1999 quarter from $9.8 million
in the first quarter of 1998. The increases in research and development costs
were due primarily to increases in development activities associated with
FluMist(TM). General, administrative and marketing costs rose to $2.7 million
in the 1999 first quarter from $2.1 million in the 1998 first quarter. This
increase was due to additional staffing, legal and other infrastructure costs
necessary to support the development of FluMist(TM) and other products.
Cash, cash equivalents, short-term investments, and long-term investments
totaled $93.2 million at March 31, 1999, compared to $94.9 million at December
31, 1998.
Other company events during the first quarter included:
* On January 12, Aviron and Wyeth Lederle Vaccines, announced a global
agreement for the marketing of FluMist(TM). Wyeth Lederle Vaccines is a
business unit of Wyeth-Ayerst Laboratories, the pharmaceutical division
of American Home Products Corporation. On March 18, the U.S. Federal
Trade Commission granted early termination of the waiting period for
this collaboration under the Hart-Scott-Rodino Antitrust Improvement Act
of 1976. As a result of the FTC clearance, Aviron received a $15
million payment.
* Louis F. Mocca was named Vice President, Regulatory Affairs. Mr. Mocca
joined Aviron from North American Vaccine, Inc., where he was Senior
Director, Regulatory Affairs. He has also served as Director, Worldwide
Regulatory Affairs for Bristol-Myers Squibb. Prior to joining industry,
he served for 20 years as a reviewer and researcher at the FDA Center
for Biologics Evaluation and Research (CBER), where his responsibilities
included review of license applications for several investigational
vaccines.
Aviron is a biopharmaceutical company based in Mountain View, CA focused
on prevention of disease. The company'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.
This press release contains forward-looking statements. Actual results
may differ materially from those suggested here. 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 in the
manufacturing process. Risk factors also include the assessment by the
regulatory agencies that the company'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 the company can be located at
http://www.aviron.com.
(Tables follow)
AVIRON
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
Three Months Ended
March 31,
1999 1998
Revenues:
Contract revenues and grants $15,531 $253
Operating Expenses:
Research and development 14,005 9,783
General, administrative and marketing 2,682 2,061
Total Operating Expenses 16,687 11,844
Loss From Operations (1,156) (11,591)
Other Income/(Expense):
Interest income 1,211 953
Interest expense (1,574) (43)
Total Other Income/(Expense), Net (363) 910
Net Loss $(1,519) $(10,681)
Basic net loss per share $(0.10) $(0.67)
Shares used in calculation of basic net loss per share 15,703 16,004
AVIRON
CONDENSED BALANCE SHEETS
(In thousands)
March 31, December 31,
1999 1998
(Unaudited) (Note)
ASSETS
Cash and cash equivalents and short-term
investments $89,254 $88,856
Other current assets 1,387 1,303
Total Current Assets 90,641 90,159
Long-term investments 3,911 6,002
Property and equipment, net 19,172 18,521
Debt issuance costs, deposits and other assets 7,020 6,303
Total Assets $120,744 $120,985
LIABILITIES and STOCKHOLDERS' EQUITY
Current Liabilities 11,747 10,790
Long-term debt 100,000 100,000
Other Long-Term Liabilities 1,444 1,229
Total Liabilities 113,191 112,019
Stockholders' Equity 7,553 8,966
Total Liabilities and Stockholders' Equity $120,744 $120,985
Note: These amounts have been derived from audited financial statements.
SOURCE Aviron
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CONTACT:
media, Karen Gilbert of Aviron, 650-919-6578,
or John Bluth, 415-356-1000, or Louise Leavitt, 212-453-2000,
both of Fleishman-Hillard; or investors, Fred Kurland,
650-919-6666, or Lyn Christenson, 650-919-3716, both of Aviron
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