CARLSBAD, Calif., Aug. 14 /PRNewswire/ -- The Immune Response Corporation
(Nasdaq: IMNR) today announced its financial results for the quarter ended
June 30, 2001. The net loss for the second quarter of 2001 was $5.3 million
or $.16 per share, compared to a net loss of $4.6 million or a loss of
$.18 per share, reported in the second quarter of 2000. For the six months
ended June 30, 2001, the Company reported a net loss of $10.2 million, or
$.32 per share, compared to a net loss of $16.8 million, or $.64 per share
reported for the six months ended June 30, 2000. The results for the six
months ended June 30, 2000 reflect the implementation of the Staff Accounting
Bulletin No. 101, "Revenue Recognition in Financial Statements," (SAB 101),
which the SEC issued in December 1999.
Research related revenue for the quarter ended June 30, 2001 was
$1.0 million compared to $1.3 million for the same quarter in 2000. For the
six months ended June 30, 2001 and for the same period of 2000, revenues were
$2.1 million and $5.2 million, respectively. The decrease in research revenue
in 2001 was primarily related to the timing of revenues received under our
agreement with Agouron Pharmaceuticals, Inc., a Pfizer Inc. company, entered
into in June 1998 and terminated in July 2001, along with the effects of
implementing SAB 101.
The Company implemented SAB 101 in the fourth quarter of 2000 by restating
the first, second and third quarters of its 2000 financial statements. The
statement of operations reflects a one-time charge to earnings of
$13.2 million for the cumulative effect of the change in accounting principle
as of January 1, 2000. Deferred revenue recognized, to reflect the
application of the SAB No. 101 restatement adjustments, was $960,000 and
$968,000 for the first and second quarters of 2000, respectively. Deferred
revenue of $968,000 per quarter was recognized in the first and second
quarters of 2001 based on the expected development period, which was estimated
to be through June 2003. Due to the termination of the development agreement
with Pfizer, the remaining deferred revenue of approximately $7.7 million will
be recognized as revenue during the third quarter of 2001.
In addition to research related revenue, the Company received non-research
revenue from investment and other income of $797,000 for the six months ended
June 30, 2001 versus $3.5 million for the same period in 2000. This decrease
in investment and other income in 2001 was due primarily to fewer sales in
2001 of equity securities acquired by the Company through the licensing of
technology and from the sale of undeveloped property in 2000.
Operating expenses increased to $13.0 million for the six months ended
June 30, 2001 from $12.3 million in the first six months of 2000. The
increase in operating expenses was due primarily to spending on the scale-up
of the manufacturing process of REMUNE and higher professional fees for
general and administrative expenses in the six months ended June 30, 2001.
Cash, cash equivalents and short-term investments were $12.6 million at
June 30, 2001 compared with $28.4 million at the end of 2000.
The Immune Response Corporation is a biopharmaceutical company based in
Carlsbad, California, developing immune-based therapies to induce specific
immune responses for the treatment of HIV, autoimmune diseases and cancer. In
addition, the Company is developing a targeted, non-viral delivery technology
for gene therapy, which is designed to enable the delivery of genes directly
to the liver via intravenous injection.
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, 2000. 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 Six months ended
June 30, June 30,
2001 2000 2001 2000
(Restated) (Restated)
Research revenue $1,036 $1,280 $2,068 $5,240
Expenses:
Research and development 4,932 5,131 10,265 10,192
General and administrative 1,548 1,048 2,775 2,154
6,480 6,179 13,040 12,346
Other revenue and expense:
Equity in loss of investee (59) -- (59) --
Investment income, net 206 266 850 2,789
Other income, net 6 4 6 736
Income (loss) before
cumulative effect of
accounting change (5,291) (4,629) (10,175) (3,581)
Cumulative effect of
accounting change -- -- -- (13,212)
Net loss (5,291) (4,629) (10,175) (16,793)
Preferred stock items (79) (257) (334) (513)
Net loss applicable to
common stockholders $(5,370) $(4,886) $(10,509) $(17,306)
Net loss per share - basic
and diluted $(0.16) $(0.18) $(0.32) $(0.64)
Weighted average number
of shares outstanding 33,847,158 27,369,429 32,336,961 27,162,258
The Immune Response Corporation
Condensed Consolidated Balance Sheets
(Amounts in thousands)
June 30, December 31,
2001 2000
(unaudited)
Assets
Cash, cash equivalents and short-term investments $12,616 $28,356
Other current assets 1,076 607
13,692 28,963
Property and equipment, net 8,662 8,554
Licensed technology 3,885 4,238
Investment in MicroGenomics, Inc. 2,941 3,000
Other assets 902 848
Total assets $30,082 $45,603
Liabilities and stockholders' equity
Current liabilities $8,253 $8,409
Long-term liabilities 5,476 7,765
Redeemable, convertible preferred stock -- 9,907
Stockholders' equity 16,353 19,522
Total liabilities and stockholders' equity $30,082 $45,603
SOURCE The Immune Response Corporation
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Related links:
http://www.imnr.com
Company News On-Call:
http://www.prnewswire.com/comp/434675.html
CONTACT:
Howard Sampson, Vice President, Finance,
Chief Financial Officer and Treasurer of The Immune Response
Corporation, +1-760-431-7080
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