Cytoclonal Cites Strong Cash Position, Technological Advances In Reporting Year End Results.Business Editors DALLAS--(BUSINESS WIRE)--April 3, 2001 Cytoclonal Pharmaceutics Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CYPH CYPH Cyclophilin , CYPHW, CYPHZ) today reported its financial results for the year ended Dec. 31, 2000, highlighted by its strong cash position, a successful restructuring, advances in its drug design technologies and ambitious new growth strategies. "The company's cash position, which, at its current rate of expenditures would fund its operations for another five years, is one of the keys to realizing Cytoclonal's potential," said Cytoclonal President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Ronald L. Goode, Ph.D. Cytoclonal incurred a net loss for the year of $7.2 million, or $0.51 per share for the year, including non-cash charges of $2.4 million related to warrants and options issued during the year, compared to a net loss of $4.4 million, or $0.44 per share for the year ended December 31, 1999. In addition to the non-cash charges, the increase in net losses in 2000 from 1999 was attributable to increases in both research and development expenses as well as general and administrative expenses, partially offset by an increase in interest income. Total revenues for the year were $0.8 million, primarily consisting of payments under licensing and research collaborative agreements, compared to $1.4 million in revenues for the same period in 1999. Expenditures totaled $9.5 million, compared with $5.5 million for 1999. The increase in expenditures for 2000 were principally attributable to the non-cash warrant and option expenses, expenses related to warrant conversions and expenses for the expanded growth of the company's research and development programs. "In the year 2000 Cytoclonal took aggressive steps to prepare for the "New Millennium" said Dr. Goode, who was recently appointed president and chief executive officer. "Supporting this effort was approximately $40 million generated by redemption of Class C and Class D warrants. At the same time, we enhanced our shareholders' ability to realize the underlying value in the company by commencing trading on the NASDAQ National Market and adding depth and expertise to our board by electing members with substantial and significant pharmaceutical industry experience." Regarding product development, the company achieved excellent progress for its two drug design platform technologies, QCT QCT Quantitative Computed Tomography (bone scanning method) QCT Quasi-Classical Trajectory QCT Qualcomm CDMA Technology QCT Quality Control Team QCT Qualcomm Cdma Technologies (TM) and OASIS(TM). QCT(TM) is a computer-assisted drug design Computer-assisted drug design uses computational chemistry to discover, enhance, or study drugs and related biologically active molecules. Methods used can include simple molecular modeling, using molecular mechanics, molecular dynamics, semi-empirical quantum chemistry methods, ab technology platform, primarily targeted to inhibition of proteins involved in disease, while OASIS(TM) is a design methodology for compiling a library of reagents for regulating genes involved in disease. The company has made important gains in its proprietary program to complete an antisense antisense, DNA or RNA manipulated in a laboratory so that its components (nucleotides) form a complementary copy of normal, or "sense," messenger RNA (mRNA; see nucleic acid). library for more than 30,000 potential genes identified by the Human Genome The human genome is the genome of Homo sapiens, which is composed of 24 distinct pairs of chromosomes (22 autosomal + X + Y) with a total of approximately 3 billion DNA base pairs containing an estimated 20,000–25,000 genes. Project, and has successfully initiated structural determination on several drug targets for the potential treatment of neuro-degenerative diseases such as Alzheimer's Disease Alzheimer's disease (ăls`hī'mərz, ôls–), degenerative disease of nerve cells in the cerebral cortex that leads to atrophy of the brain and senile dementia. , Parkinson's Disease Parkinson's disease or Parkinsonism, degenerative brain disorder first described by the English surgeon James Parkinson in 1817. When there is no known cause, the disease usually appears after age 40 and is referred to as Parkinson's disease. , Huntington's Disease Huntington's disease, hereditary, acute disturbance of the central nervous system usually beginning in middle age and characterized by involuntary muscular movements and progressive intellectual deterioration; formerly called Huntington's chorea. and stroke. Efforts continued on other products including Taxol(R), the anti-cancer agent marketed by Bristol-Myers Squibb Bristol-Myers Squibb (NYSE: BMY), colloquially referred to as BMS, is a pharmaceutical corporation, formed by a 1989 merger between pharmaceutical companies Bristol-Myers Company, founded in 1887 by William McLaren Bristol and John Ripley Myers in Clinton, NY (both were , for which the company has exclusive rights to patents on a process under development for cost-efficient production. The company continued to conduct its active pre-clinical vaccine vector program involving Mycobacterium tuberculosis Mycobacterium tuberculosis n. Tubercic bacillus. Mycobacterium tuberculosis , and an exciting program to identify a new expression system for glucocerebrosidase, the enzyme defect enzyme defect A structural or functional defect in an enzyme needed to catalyze a normal biochemical reaction in the body. See Enzyme, Inborn error of metabolism. in Gaucher's disease Gaucher's disease (gōshāz`), rare genetic disease involving a deficiency of an enzyme, glucocerebrosidase, which normally breaks down certain body glycolipids (i.e., lipids (fats) that have a sugar molecule attached). . The company has continued its active pre-clinical vaccine vector program involving Mycobacterium tuberculosis in addition to its development efforts for drugs to treat Polycystic Kidney Disease Polycystic Kidney Disease Definition Polycystic kidney disease (PKD) is one of the most common of all life-threatening human genetic disorders. , lung cancer lung cancer, cancer that originates in the tissues of the lungs. Lung cancer is the leading cause of cancer death in the United States in both men and women. Like other cancers, lung cancer occurs after repeated insults to the genetic material of the cell. , breast cancer and Gaucher's disease. "We will continue to build on the momentum of the past year by utilizing our existing resources: advanced technology, remarkable scientific talent and a strong financial position, as the basis to further our goal of developing proprietary vaccines for cancer treatment, and proprietary pharmaceuticals to treat genetic diseases and drug-resistant infectious diseases infectious diseases: see communicable diseases. . In addition, we will be increasingly identifying and pursuing opportunities for collaborations, strategic alliances and joint ventures with pharmaceutical and biotechnology companies Top 100 Biotechnology Companies The following is a list of the top 100 biotechnology companies ranked by revenue. The first nine companies qualify for the list of the top 50 pharmaceutical companies. . We feel strongly that Cytoclonal Pharmaceutics has the necessary resources to take the company to the next level, and that its technology platforms and products in development constitute significant assets to the creation of substantially increased shareholder value," concluded Dr. Goode. Cytoclonal Pharmaceutics is a biopharmaceutical company specializing in the development of therapeutic and diagnostic products for cancer, infectious diseases and genetic diseases. Additional information on Cytoclonal can be found on the company's web site at www.cytoclonal.com.
CYTOCLONAL PHARMACEUTICS INC.
Financial Highlights
(Audited)
For the Year Ended
12/31/00 12/31/99
-------- --------
Revenue $ 865,000 $1,375,000
Research and development 3,681,000 2,332,000
General and administrative expenses 5,788,000 3,194,000
Operating loss (8,604,000) (4,151,000)
Interest expense (9,000) (6,000)
Interest income 1,543,000 222,000
Net loss before cumulative effect of
a change in accounting principle (7,165,000) (3,935,000)
Cumulative effect on prior years (422,000)
Net loss (7,165,000) (4,357,000)
Basic and diluted loss per common
share $ (0.51) $ (0.44)
Consolidated Balance Sheet 12/31/00 12/31/99 12/31/98
-------- -------- --------
Total assets $37,378,000 $ 4,491,000 $ 7,746,000
Working capital 35,050,000 2,324,000 6,227,000
Royalties payable-less
current portion 750,000 875,000 1,000,000
Shareholders' equity 35,775,000 2,592,000 6,062,000
Consolidated Balance Sheet 12/31/97 12/31/96
-------- --------
Total assets $ 2,802,000 $ 3,881,000
Working capital 1,330,000 2,543,000
Royalties payable-less
current portion 1,125,000 1,219,000
Shareholders' equity 1,123,000 2,312,000
Except for historical information, the matters discussed in this news release may be considered "forward looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Such statements include declarations regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results. |
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