MOUNTAIN VIEW, Calif., May 11 /PRNewswire/ -- Aviron (Nasdaq: AVIR) today
announced results for the 1998 first quarter ended March 31, 1998.
For the quarter, the Company reported a loss of $10.7 million, or basic
net loss of $0.67 per share, compared with a loss of $ 5.0 million (basic net
loss per share of $0.44) for the first quarter of 1997. The increase in net
loss is primarily due to significant increases in operating expenses
associated with the continued development of FluMist(TM), the Company's
intranasal influenza virus vaccine.
Operating expenses in the 1998 first quarter totaled $11.8 million, as
compared to $5.5 million for the first quarter of 1997. Research and
development costs rose from $4.3 million in 1997 to $9.8 million in 1998, due
principally to increased clinical trial activities and development of
FluMist(TM) and other product candidates. General and administrative costs
rose from $1.2 million in the 1997 first quarter to $2.1 million in 1998 due
to increases in staffing and market research activities.
Cash and cash equivalents, short-term investments, and long-term
investments totaled $139.0 million on March 31, 1998 due in large part to the
completion on March 30, 1998, of a $100 million convertible debt offering.
The Company used $13.3 million of the proceeds of the debt offering for the
repurchase of 530,831 shares of its Common Stock from Sang-A Pharm. Co. Ltd.,
one of the Company's corporate partners. Sang-A is a subsidiary of the Hanbo
Group, which is in bankruptcy proceedings in Korea. Cash and cash equivalents
and short-term and long-term investments totaled $ 75.1 million on December
31, 1997.
During the 1998 first quarter the Company announced positive results from
a clinical trial demonstrating consistency of manufacture of FluMist(TM).
Evidence that different lots of vaccine can be manufactured at a consistent
quality level is required by the U.S. Food and Drug Administration (FDA) prior
to approval of biological products for commercial sale. Aviron intends to
file its application for U.S. marketing approval of FluMist(TM) in mid-1998.
The Company also announced that it is working with the National Institutes
of Health to collaborate with the Centers for Disease Control and Prevention
to prepare two vaccine candidates, or source material, for potential use in
the event of a pandemic of the "Hong Kong flu" resulting from the avian A/Hong
Kong/97 (H5N1) influenza virus.
Aviron is an emerging biopharmaceutical company based in Mountain View,
California whose strategy is to focus on the prevention of disease. The
Company's goal is to develop vaccines to prevent a wide range of viral
infections that affect the general population, providing a cost-effective
means of addressing a number of major diseases.
The majority of the Company's products under development are live vaccines
against viral infections, including influenza, parainfluenza (PIV-3),
cytomegalovirus (CMV), genital herpes (HSV-2) and respiratory syncytial virus
(RSV). 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. 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, 1997.
Statement of Operations
(unaudited; in thousands, except per share amounts)
Three Months Ended March 31,
1998 1997
Revenue $253 $305
Operating expenses
Research and development 9,783 4,291
General and administrative 2,061 1,160
Total operating expenses 11,844 5,451
Loss from operations (11,591) (5,146)
Other income/(expense)
Interest income 953 222
Interest expense (43) (53)
910 169
Net loss $(10,681) $(4,977)
Basic net loss per share $(0.67) $(0.44)
Weighted average shares of
common stock outstanding 16,004 11,389
Aviron Balance Sheets
($ in thousands)
March 31, 1998 December 31,
(unaudited) 1997
ASSETS
Cash, cash equivalents
and short-term investments $ 130,478 $ 62,524
Other current assets 1,245 1,030
Total current assets 131,723 63,554
Long-term investments 8,506 12,587
Property and equipment, net 12,863 7,582
Other assets 5,457 1,602
Total Assets $158,549 $85,325
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $5,883 $8,974
Long-term debt 100,000 --
Other long-term liabilities 644 609
Total liabilities 106,527 9,583
Stockholders' equity 52,022 75,742
Total liabilities and
stockholders' equity $158,549 $85,325
SOURCE Aviron
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CONTACT:
media, John Bluth of Fleishman-Hillard,
212-453-2429, for Aviron; or investors, J. Leighton Read, M.D. or
Fred Kurland, 650-919-6500, both of Aviron
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