Cytel and Epimmune Report First Quarter 1999 Financial Results.SAN DIEGO--(BW HealthWire)--May 18, 1999-- Cytel Corporation (Nasdaq:CYTL), and its operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. Epimmune, today announced financial results for the first quarter ended March 31, 1999. For the three month period ended March 31, 1999, Cytel reported on a consolidated basis a net loss of $4.7 million, or $0.95 per share, on revenues of $0.9 million. This compares with a net loss of $4.1 million, or $0.88 per share, on revenues of $0.5 million in the first quarter of 1998. During the first quarter of 1999, Cytel licensed its carbohydrate synthesis technology to Baxter Healthcare Corp.'s Nextran unit for exclusive use in the field of xenotransplantation xen·o·trans·plan·ta·tion n. The surgical transfer of cells, tissues, or especially whole organs from one species to another. xenotransplantation . Also in the first quarter, Cytel sold its Glytec carbohydrate synthesis and manufacturing technology to Neose Technologies, Inc. Total net cash received by Cytel from the two transactions was $6.2 million and, associated with the transactions, Cytel recognized a gain of $3.3 million. During the first quarter, Cytel discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: the remainder of its non-Epimmune operations and, accordingly, recognized a one-time restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $3.7 million. As of March 31, 1999, Cytel had on a consolidated basis cash, cash equivalents, short-term investments and restricted cash of $15.3 million. Epimmune For the quarter ended March 31, 1999, Epimmune reported a net loss of $0.9 million (net of minority interest of $0.1 million) on revenues of $ 0.4 million. This compares with a net loss of $0.6 million on revenues of $0.4 million in the first quarter of 1998. The increased net loss was in the range anticipated by management and can be attributed primarily to increases in personnel over the first quarter 1998. As of March 31, 1999, Epimmune had cash, cash equivalents, short-term investments and restricted cash of $10.2 million. Epimmune anticipates that its cash position is sufficient to fund operations through at least the end of 2000. Established in October 1997 as a majority-owned subsidiary majority-owned subsidiary A firm in which more than 50% of outstanding voting stock is owned by the parent company. of Cytel Corporation, Epimmune is applying its substantial immunology immunology, branch of medicine that studies the response of organisms to foreign substances, e.g., viruses, bacteria, and bacterial toxins (see immunity). Immunologists study the tissues and organs of the immune system (bone marrow, spleen, tonsils, thymus, lymphatic expertise and scientific leadership in the field of T-cell recognition and activation to the development of novel vaccines that stimulate the body's immune system immune system Cells, cell products, organs, and structures of the body involved in the detection and destruction of foreign invaders, such as bacteria, viruses, and cancer cells. Immunity is based on the system's ability to launch a defense against such invaders. to fight or prevent infectious diseases infectious diseases: see communicable diseases. and cancer. Epimmune is collaborating with G.D. Searle & Co., a wholly-owned subsidiary of Monsanto Co., to develop immune stimulating products for the treatment of cancer. Additional product targets include therapeutic vaccines therapeutic vaccine Immunology A vaccine–eg, Salk's Remune™ intended to treat a viral infection by stimulating the immune system. See Vaccine therapy. for hepatitis B Hepatitis B Definition Hepatitis B is a potentially serious form of liver inflammation due to infection by the hepatitis B virus (HBV). It occurs in both rapidly developing (acute) and long-lasting (chronic) forms, and is one of the most common chronic , hepatitis C Hepatitis C Definition Hepatitis C is a form of liver inflammation that causes primarily a long-lasting (chronic) disease. Acute (newly developed) hepatitis C is rarely observed as the early disease is generally quite mild. and HIV HIV (Human Immunodeficiency Virus), either of two closely related retroviruses that invade T-helper lymphocytes and are responsible for AIDS. There are two types of HIV: HIV-1 and HIV-2. HIV-1 is responsible for the vast majority of AIDS in the United States. , and prophylactic prophylactic /pro·phy·lac·tic/ (pro?-fi-lak´tik) 1. tending to ward off disease; pertaining to prophylaxis. 2. an agent that tends to ward off disease. pro·phy·lac·tic n. vaccines for hepatitis C, HIV and malaria. This press release includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that reflect management's current views of future events. Actual results may differ materially from the above forward-looking statements due to a number of important factors, including but not limited to the risks associated with achievement of research and development objectives by the Company and any collaborator, the timing and cost of conducting human clinical trials, the regulatory approval process, and the possibility that testing may reveal undesirable and unintended side effects Side effects Effects of a proposed project on other parts of the firm. or other characteristics that may prevent or limit the commercial use of proposed products. These factors are more fully discussed in Cytel's most recent Forms 10-K and 10-Q. -0-
Cytel Corporation (Epimmune)
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands)
Three months ended
March 31,
1999 1998
Revenues:
Research and development revenues $ 929 $ 470
Total revenues
Costs and expenses:
Research and development 4,279 3,786
General and administrative 1,238 1,106
Restructuring costs 3,700 --
Total costs and expenses 9,217 4,892
Loss from operations (8,288) (4,422)
Minority interest in net loss of consolidated
subsidiary 141 25
Interest income, net 103 278
Gain on disposal of assets 3,296 --
Net loss $ (4,748) $ (4,119)
Net loss per share (basic and diluted) $ (.95) $ (.88)
Average common shares outstanding
(basic and diluted) 4,992 4,656
Condensed Consolidated Balance Sheets
(in thousands)
March 31, Dec. 31,
1999 1998
(unaudited)
Assets
Current assets:
Cash, cash equivalents and
short-term investments $ 14,860 $ 11,811
Other current assets 824 1,657
Total current assets 15,684 13,468
Restricted cash 472 472
Property and equipment, net 610 2,879
Other assets 2,206 4,211
Total assets 18,972 21,030
Liabilities and stockholders' equity
Current liabilities: 7,378 3,713
Other liabilities 610 1,606
Minority interest in consolidated
subsidiary (1) 1,594 1,735
Stockholders' equity 9,390 13,976
Total liabilities and stockholders'
equity $ 18,972 $ 21,030
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