Cytel Corporation announces 1995 financial results.

SAN DIEGO, CA--(BUSINESS WIRE)--February 6, 1996--Cytel Corporation (NASDAQ: CYTL) announced today financial results for the fourth quarter and year ended December 31, 1995. The Company reported revenues for the year ended December 31, 1995, of $16.8 million and a net loss of $8.0 million, or $0.36 per share. These results compare with revenues of $6.3 million and a net loss of $17 million, or $0.98 per share, for the same period in 1994. For the three month periods ended December 31, 1995 and 1994, the Company reported revenues of $4.7 million and $2.8 million, respectively. Net loss for the fourth quarter of 1995 was $5.1 million, or $0.21 per share, compared to $3.6 million, or $0.18 per share, for the same period in 1994.

Cytel's increased revenues in 1995, compared to 1994, resulted from several new collaborations and licensing agreements. Such agreements include a collaboration with Schwarz Pharma AG to develop and market carbohydrate selectin blockers, including Cylexin (TM), a collaboration with Abbott Laboratories to develop manufacturing processes for the production of certain carbohydrates, and a licensing agreement with The Upjohn Company (now Pharmacia and Upjohn, Inc.) for the Company's P-selectin monoclonal antibody, CY 1748. Additionally, the Company received contract research revenues and an option payment from Sumitomo Pharmaceuticals Co., Ltd., and contract research payments from Takara Shuzo Co., Ltd., Biomedical Group under existing collaborations.

Expenses for the year ended December 31, 1995, increased $2.5 million over the same period in 1994. This increase is due to non-recurring, non-cash charges totaling $5.9 million for acquired in-process research and development relating to the acquisition of Receptor Laboratories, Inc., in July 1995, and The Scripps Research Institute's minority interest in Sequel Therapeutics, Inc., a majority owned subsidiary of Cytel, in October 1995. Both acquisitions were completed in exchange for Cytel stock.

``In 1995, we successfully entered into several key collaborations and licensing agreements which have positioned us well financially for aggressive pursuit of our clinical objectives,'' said Karin Eastham, Vice President and Chief Financial Officer. Cytel is currently engaged in Phase II clinical trials with Theradigm (TM)-HBV and Cylexin. Theradigm-HBV is designed to activate an immune response against the hepatitis B virus. One trial is being conducted in chronic active hepatitis, with a second trial targeting chronic carriers of the virus. Cylexin is also being evaluated in two Phase II clinical trials. A study is underway to evaluate the ability of Cylexin to reduce cardiac reperfusion injury, and therefore reduce infarct size, associated with treatment of acute myocardial infarction in patients undergoing primary angioplasty. A second trial will evaluate Cylexin's ability to reduce lung reperfusion injury following treatment of pulmonary hypertension through surgical removal of blood clots from the lungs. Phase II results are expected from each of these trials during 1996.

As of December 31, 1995, Cytel had cash, cash equivalents, short-term investments and a receivable under collaborative agreement aggregating $40.4 million.

Cytel Corporation, founded in 1987, is a leader in the discovery, design and development of immunotherapeutics, a new class of drugs which the Company believes will be more selective and have fewer side effects than drugs currently on the market. Utilizing Cytel's advanced understanding of the immune system's operation both in disease and in health, the Company is developing drug candidates under two distinct approaches: the immune suppression program targets inflammatory diseases and reperfusion injury through use of cell adhesion blockers that prevent the excessive migration of white blood cells into surrounding tissue, and the immune stimulation program is directed to the development of therapeutic vaccines to treat infectious diseases and cancers by stimulating production of antigen-specific cytotoxic T-lymphocytes by the immune system. -0-

                           Cytel Corporation
             Condensed Consolidated Statements of Operations
                (in thousands, except for per share data)

                             Three months ended     Twelve months ended
                                 December 31,            December 31,
                              1995        1994        1995        1994

Revenues:
   Research and development $ 4,154     $ 2,500     $15,287    $  5,500
   Research grants              567         281       1,484         793
Total revenues                4,721       2,781      16,771       6,293

Operating expenses:
   Research and development   4,713       5,468      16,507      19,776
   General and
    administrative            1,336       1,256       4,204       4,334
   Acquired in-process
    research and
    development               4,201        --         5,934        --
Total expenses               10,250       6,724      26,645      24,110

Interest income, net            478         338       1,881         813

Net loss                    $(5,051)    $(3,605)    $(7,993)   $(17,004)

Net loss per share          $ (0.21)    $ (0.18)    $ (0.36)   $  (0.98)

Shares used in computing
 net loss per share      23,794,868  19,907,753  22,469,949  17,362,315

Shares rounded               23,795      19,908      22,470      17,362

                     Condensed Consolidated Balance Sheets
                                 (in thousands)

                                               December 31, December 31,
                                                   1995         1994

Assets
Current assets:
   Cash, cash equivalents,
    and short-term investments                    $ 38,439    $ 37,696
   Receivable under collaborative agreement          2,000        --
   Other current assets                              1,557         822
Total current assets                                41,996      38,518

Property and equipment, net                          2,488       3,500
Other assets                                         3,628       2,933
Total assets                                      $ 48,112    $ 44,951

Liabilities and stockholders' equity
Current liabilities                               $  7,376    $  6,278
Other liabilities                                    2,212       3,197
Stockholders' equity                                38,524      35,476
Total liabilities and stockholders' equity        $ 48,112    $ 44,951

CONTACT: Cytel Corporation, San Diego

Karin Eastham, Vice President and Chief Financial

Officer, 619/552-3000