CAMBRIDGE, Mass., Nov. 16 /PRNewswire/ -- OraVax, Inc. (Nasdaq: ORVX)
reported financial results today for the third quarter.
OraVax's net loss to common shareholders for the third quarter of 1998 was
$3,908,000, or $0.26 per share, compared to $3,944,000, or $0.39 per share, in
the third quarter of 1997. Revenues for the third quarter of 1998 were
$1,907,000 derived from collaborative research and development and interest
income, as compared to $2,150,000 for the third quarter of 1997. Expenditures
on research and development for the third quarter of 1998 were $3,233,000
versus $3,787,000 for the third quarter of 1997.
For the nine months ended September 30, 1998, the Company reported a net
loss to common shareholders of $12,017,000, or $0.97 per share, versus a net
loss of $12,019,000, or $1.20 per share for the same period in 1997.
The Company is out of compliance with The Nasdaq National Market's listing
requirements for minimum net tangible assets and minimum bid price of its
stock. Although the Company has presented its plans to NASD and requested a
postponement of a final decision on delisting until completion of the merger,
no assurance can be given that the Company's Common Stock will not be delisted
prior to that time.
Last week OraVax entered into a merger agreement with Peptide Therapeutics
Group PLC, a merger which would create a combined business with greater
resources and market presence, and complementary technology and expertise. In
addition to an agreement with Peptide for additional bridge financing, the
Company received $3 million in short-term financing from Pasteur Merieux
Connaught, the Company's partner in a joint venture to develop Helicobacter
pylori (H. pylori) vaccines.
"Initiatives during the quarter by our management team have focused on two
areas. The first to determine the best course of action for the Company, and
for our shareholders, to secure funding -- including corporate partnerships,
financing and business combinations -- to support programmatic activities into
1999 and the future. Secondly, our focus has been to achieve progress on our
proprietary programs, including continuing clinical studies in the H. pylori
vaccine program, finalizing an IND filing for our Clostridium difficile
vaccine, completing pre-clinical development of the ChimeriVax(TM) Japanese
encephalitis vaccine, and advancing research on ChimeriVax(TM) dengue and
Hepatitis C vaccines," said Dr. Lance Gordon, President and Chief Executive
Officer of OraVax. "I believe the announced merger will provide the necessary
critical mass of technology, expertise, product pipeline and corporate
partnerships to bring important new products to the pharmaceutical market
place."
OraVax, Inc. is a biopharmaceutical company engaged in the discovery,
development and commercialization of therapeutic and preventive vaccines and
antibody products that control human infectious diseases. The Company's
pipeline includes vaccines or antibody products against H. pylori, respiratory
syncytial virus, Clostridium difficile, and the ChimeriVax(TM) family of
single-dose, live-attenuated virus vaccines. OraVax is the exclusive marketer
and distributor of Evans Medical Limited's yellow fever vaccine Arilvax(R)
soon to be licensed in the United States.
This news release contains forward looking statements that involve risks
and uncertainties, including the timing and results of clinical trials and
other product development and commercialization risks, the risks of satisfying
the regulatory approval process in a timely manner, the need for and
availability of additional capital, and other risks detailed in the Company's
filings with the Securities and Exchange Commission.
Tables Follow
OraVax, Inc.
Condensed Consolidated Statements of Operation
(unaudited)
in thousands, except share and per share amounts
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
Research revenue $1,877 $2,010 $6,271 $5,924
Interest income 30 140 234 574
Total revenue 1,907 2,150 6,505 6,498
Research and development 3,233 3,787 10,391 10,963
General and
administrative 960 776 2,807 2,615
Interest 58 94 200 331
Total expenses 4,251 4,657 13,398 13,909
Loss from operations (2,344) (2,507) (6,893) (7,411)
Equity in Joint Venture(1,313) (1,437) (4,292) (4,608)
Net loss from
operations ($3,657) ($3,944) ($11,185) ($12,019)
Preferred Stock dividend 39 --- 197 ---
Preferred Stock accretion 212 --- 635 ---
Net loss to common
shareholders ($3,908) ($3,944) ($12,017) ($12,019)
Net loss per
common share ($0.26) ($0.39) ($0.97) ($1.20)
Weighted average
shares outstanding 14,995,649 10,052,414 12,401,826 10,007,475
OraVax, Inc.
Condensed Consolidated Balance Sheets
in thousands
September 30, December 31,
1998 1997
(unaudited)
Cash and investments $974 $11,328
Fixed assets, net 2,158 3,524
Other assets 743 2,492
Total assets $3,875 $17,344
Accounts payable and accruals $3,638 $4,594
Other liabilities 2,161 2,965
Stockholders equity (1,924) 9,785
Total liabilities and
stockholders equity $3,875 $17,344
NOTE: This release is available on the Internet at http://www.oravax.com
http://www.oravax.com and http://www.prnewswire.com http://www.prnewswire.com
For instant access to OraVax's new file via fax dial 1-800-758-5804
ext. 107177
SOURCE OraVax, Inc.
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Company News On-Call:
http://www.prnewswire.com/comp/107177.html or fax,
800-758-5804, ext. 107177
CONTACT:
Brigid Makes, Investor Relations of OraVax,
Inc., 617-494-1339, ext. 210, or Liza Ross Dousson or Stacy
Haymes of KCSA Worldwide, 617-723-8787
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