CARLSBAD, Calif., May 21 /PRNewswire-FirstCall/ --
The Immune Response Corporation (Nasdaq: IMNR) today announced its financial
results for the quarter ended March 31, 2002. The net loss for the first
quarter of 2002 was $5.2 million or $.15 per share, compared to a net loss of
$5.1 million or a loss of $.17 per share, reported in the first quarter of
2001.
Research related revenue for the quarter ended March 31, 2002 was
$9,000 compared to $1.0 million for the same quarter in 2001. The decrease in
research revenue in 2002 was due to the termination of the development
agreement with Agouron Pharmaceuticals, Inc., a Pfizer Inc. company, in July
2001. Revenue for 2001 was primarily attributed to deferred revenue
recognized under the agreement with Pfizer.
In addition to research related revenue, the Company received non-research
revenue from investment income of $14,000 for the first quarter of 2002 versus
$734,000 for the same period in 2001. The decrease in investment income in
2002 was primarily due to lower overall cash balances in interest bearing
investments. Interest expense increased by $158,000 for the first quarter of
2002 as compared to the same period in 2001 because of the convertible notes
issued in November 2001 and February 2002 and the short-term secured
promissory note issued in March 2002.
Operating expenses decreased to $5.0 million for the quarter ended
March 31, 2002, from $6.6 million in the first quarter of 2001. The decrease
in operating expenses was due primarily to decreased spending in research and
development.
Cash, cash equivalents and short-term investments were $2.3 million at
March 31, 2002, compared with $2.7 million at the end of 2001. In May 2002,
the Company raised $4.0 million in a third private placement of a secured
convertible note and warrant to an affiliate of a director and major
stockholder of the Company. Approximately $2.0 million of the proceeds in May
were used to repay the short-term secured promissory note with interest issued
in March 2002 to the same affiliate. The Company estimates that its available
cash resources will be sufficient to fund its planned operations into
June 2002. Additional funds will be required to fund the Company's operations
beyond such time. The Company is actively pursuing other potential funding
options. As a result of the Company's current financial condition, the
Company's independent auditors have reported that there is question as to the
Company's ability to continue as a going concern.
The Company also announced today that Howard Sampson has stepped down as
Vice President, Finance, Chief Financial Officer, Secretary and Treasurer of
the Company, but will continue to provide services to the Company as an
employee. "Mr. Sampson made major contributions as an officer of the Company,
and we are grateful for his efforts," said Dennis J. Carlo, Ph.D., President
and Chief Executive Officer.
The Immune Response Corporation is a biopharmaceutical company based in
Carlsbad, California, developing immune-based therapies to induce specific
T-cell responses for the treatment of HIV, autoimmune diseases and cancer. In
addition, the Company has developed and patented a novel technology to be
applied to any gene in order to increase expression of that gene.
NOTE: Company information can also be located on the Internet Web Site:
http://www.imnr.com .
This news release contains forward-looking statements. Actual results
could vary materially from those expected due to a variety of risk factors,
including the uncertainty of successful completion of clinical trials, and
those risks set forth from time to time in The Immune Response Corporation's
SEC filings, including but not limited to its report on Form 10-K for the year
ended December 31, 2001. The Company undertakes no obligation to publicly
release the result of any revisions to these forward-looking statements, which
may be made to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.
The Immune Response Corporation
Condensed Consolidated Statements of Operations
(Amounts in thousands, except share data)
(unaudited)
Three Months Ended
March 31,
2002 2001
Research revenue $9 $1,032
Expenses:
Research and development 3,808 5,333
General and administrative 1,147 1,227
4,955 6,560
Other revenue:
Investment income 14 734
Interest expense (248) (90)
Net loss (5,180) (4,884)
Preferred stock items - (255)
Net loss applicable to common stockholders $(5,180) $(5,139)
Loss per common share - basic and diluted:
Net loss $(0.15) $(0.16)
Net loss applicable to common stockholders $(0.15) $(0.17)
Weighted average common shares outstanding 35,572,106 30,809,984
The Immune Response Corporation
Condensed Consolidated Balance Sheets
(Amounts in thousands)
March 31, December 31,
2002 2001
(unaudited)
Assets
Cash, cash equivalents and
short-term investments $2,260 $2,701
Other current assets 552 861
2,812 3,562
Property and equipment, net 8,645 9,026
Licensed technology 3,355 3,532
Investment in MicroGenomics, Inc. 562 562
Other assets 854 816
Total assets $16,228 $17,498
Liabilities and stockholders' equity
Current liabilities $4,807 $3,061
Long-term liabilities 1,219 1,230
Convertible notes payable, net,
related party 2,281 999
Stockholders' equity 7,921 12,208
Total liabilities and
stockholders' equity $16,228 $17,498
SOURCE The Immune Response Corporation
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