WALTHAM, Mass., May 12 /PRNewswire/ -- ImmuLogic Pharmaceutical
Corporation (Nasdaq: IMUL) reported today financial results for the first
quarter ended March 31, 1999. Revenues for the first quarter were
$740,000 compared to $530,000 for the first quarter of 1998. Expenses for the
first quarter of 1999 were $2,286,000 compared to $2,354,000 in the first
quarter of 1998. The net loss for the quarter ended March 31, 1999 was
$987,000 [($0.05) per share] compared to a net loss in the same quarter last
year of $1,121,000 [($0.06) per share]. The Company's cash and investment
balance at March 31, 1999 was $42,383,000. In addition, the Company had an
investment of $8,828,000 representing 855,615 American Depository Receipts of
Cantab Pharmaceuticals plc ("Cantab") stock as of March 31, 1999.
During the first quarter of 1999, revenues were entirely generated from
research and development services performed at the request of Cantab. During
the first quarter of 1998, revenues consisted of research funding from
Schering AG, Germany ("Schering") related to a joint development and
collaboration agreement for the Company's multiple sclerosis program and
sponsored research revenues from the National Institute of Health ("NIH") for
a grant related to the research and development of the Company's cocaine
vaccine program which was sold to Cantab.
For the quarter ended March 31, 1999, the Company's research and
development expenses decreased $747,000 or 50.2% to $740,000 from $1,487,000
for the same period in 1998. The decrease in research and development
expenses is due primarily to the Company's downsizing which occurred during
1998. Specifically, reduced headcount and facility related expenses
contributed to the savings. Currently, the Company's business activities
consist primarily of certain research and development activities on behalf of
Cantab. The Company is reimbursed in full by Cantab for these research and
development activities.
General and administrative expenses were $1,546,000 and $867,000 for the
quarters ended March 31, 1999 and 1998, respectively, representing an increase
of $679,000 or 78.3%. The increase was primarily due to severance totaling
$1,006,000 which was incurred in the first quarter of 1999 relating to the
termination or resignation of 15 employees, including the President and Chief
Executive Officer of the Company. Offsetting these increases in expenses
were reduced headcount and facility related expenses as a result of the
downsizing which occurred during 1998 and a reduction in the amount due to MIT
of $275,000 resulting from the termination of the Company's license with MIT.
Interest income for the first quarter of 1999 was $559,000 compared to
$703,000 for the first quarter of 1998, a decrease of $144,000 or 20.5%. The
decrease in interest income for the quarter resulted primarily from a lower
available investment balance as compared to the prior year and a slightly
decreased rate of return on funds invested.
On February 5, 1999, the Company announced that its Board of Directors had
decided to conclude the business activities of the Company as soon as
practicable. On March 23, 1999, the Board of Directors approved a plan to
liquidate and dissolve the Company. Implementation of this plan will require
the approval of the stockholders of the Company, which approval the Company
intends to seek at its 1999 Annual Meeting of Stockholders. Currently, the
Company's business activities consist primarily of certain research and
development activities on behalf of Cantab. The Company is reimbursed in full
by Cantab for these research and development activities.
ImmuLogic Pharmaceutical Corporation is a biopharmaceutical company,
located in Waltham, Massachusetts. The Company's press releases are available
through Company News on Call by fax at 800-758-5804, ext. 114501, and on the
Internet at http://www.prnewswire.com.
This press release contains forward-looking statements that involve a
number of risks and uncertainties, including risks and uncertainties that
relate to the conclusion of the Company's business and the assessment of the
assets or liabilities of the Company, and the other risk factors detailed in
the Company's Annual Report on From 10-K for the year ended December 31, 1998.
IMMULOGIC PHARMACEUTICAL CORPORATION
SELECTED FINANCIAL INFORMATION
Statement of Operations (Unaudited)
(in thousands, except per share data) Three Months Ended
March 31,
1999 1998
Research revenues $ 740 $530
Operating expenses:
Research & development 740 1,487
General & administration 1,546 867
Total operating expenses 2,286 2,354
Operating loss (1,546) (1,824)
Interest income 559 703
Net loss $(987) $ (1,121)
Basic and diluted loss per share $(0.05) $(0.06)
Weighted average shares outstanding 20,375 20,356
Balance Sheet
(in thousands)
(Unaudited)
March 31, 1999 December 31, 1998
Cash and cash equivalents and
Investments $42,383 $48,628
Cantab stock 8,828 -
Other current assets 541 3,351
Property and equipment, net 3,889 4,167
Other assets 49 49
Total assets 55,690 56,195
Current liabilities 3,081 2,162
Non-current liabilities - 275
Stockholders' equity 52,609 53,758
Total liabilities and stockholders' equity $55,690 $56,195
SOURCE ImmuLogic Pharmaceutical Corporation
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800-758-5804, ext. 114501
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CONTACT:
Investor Relations of ImmuLogic
Pharmaceutical Corporation, 781-466-6000
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