Cytel Corporation announces third quarter 1995 financial results.

SAN DIEGO--(BUSINESS WIRE)--Oct. 24, 1995--Cytel Corporation (NASDAQ:CYTL) announced today its financial results for the third quarter of 1995. For the three month periods ended September 30, 1995 and 1994, the Company reported revenues of $2.1 million and $1.7 million, respectively. Net loss for the third quarter of 1995 was $4.2 million, or $0.19 per share, compared to a net loss of $3.8 million, or $0.23 per share, for the same period in 1994.

The Company also reported revenues for the nine month period ended September 30, 1995 of $12.0 million and net loss of $2.9 million, or $0.13 per share. These results compare with revenues of $3.5 million and a net loss of $13.4 million, or $0.81 per share, for the same period in 1994.

Cytel's increased revenues in the first three quarters of 1995, compared to the same period in 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, and a licensing agreement with The Upjohn Company reported during the first quarter of 1995.

Additionally, the Company received 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 three month period ended September 30, 1995 increased $1.2 million over the same period in 1994. This increase is due to a non-recurring, non-cash charge of $1.7 million for acquired in-process research and development that relates to the acquisition of Receptor Laboratories, Inc. in exchange for Cytel stock in July 1995. Cytel's 1995 year-to-date operating expenses are lower than 1994 due to continuing Company-wide efforts to decrease costs.

The Company is currently engaged in Phase II clinical trials with Theradigm-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.

As of September 30, 1995, Cytel had cash, cash equivalents and short-term investments of $35.7 million and 22,844,895 shares of common stock outstanding.

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 cell adhesion program is directed to the suppression of an inappropriate immune response to treat inflammatory diseases, and the immune stimulation program is directed to the development of therapeutic vaccines to treat infectious diseases and cancers. -0-

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

                               Three Months         Nine Months
                            ended September 30,  ended September 30,
                              1995      1994       1995      1994
                               (unaudited)          (unaudited)

Revenues:
  Research and development    $1,645    $1,500    $11,133    $3,000
  Research grants                416       223        917       512
Total revenues                 2,061     1,723     12,050     3,512

Operating expenses:
  Research and development     4,006     4,660     11,794    14,309
  General and administrative   1,108     1,006      2,868     3,077
  Acquired in-process
    research and development   1,732       ---      1,732       ---
Total expenses                 6,846     5,666     16,394    17,386

Interest income, net             537       125      1,402       475

Net loss                     $(4,248)  $(3,818)   $(2,942) $(13,399)

Net loss per share            $(0.19)   $(0.23)    $(0.13)   $(0.81)

Shares used in computing
  net loss per share   22,593,406  16,633,322  21,934,812  16,513,835

-0-

Condensed Consolidated Balance Sheets
(in thousands)

                                      September 30,     December 31,
                                          1995              1994
                                       (unaudited)
Assets
Current assets:
  Cash, cash equivalents, and short-
    term investments                    $35,746           $37,696
  Other current assets                    1,799               822
Total current assets                     37,545            38,518

Property and equipment, net               2,668             3,500
Other assets                              3,293             2,933
Total assets                            $43,506           $44,951

Liabilities and stockholders' equity
Current liabilities                     $ 2,864           $ 6,278
Other liabilities                         2,438             3,197
Stockholders' equity                     38,204            35,476
Total liabilities and stockholders'
  equity                                $43,506           $44,951

CONTACT: Cytel Corporation, San Diego

Karin Eastham

Vice President and Chief Financial Officer

619/552-3000