Endorex Announces Accomplishments and Results for Fourth Quarter 2000.Business Editors/Health & Medical Writers CHICAGO--(BW HealthWire)--March 9, 2001 Endorex Corporation (AMEX AMEX See: American Stock Exchange :DOR Dor or Dora, Canaanite seaport, ancient Palestine (modern Israel), N of Caesarea Palestinae. It was never a Jewish city but rather a Phoenician outpost. It was rebuilt by the Romans; still visible are the ruins of a temple and a theater. ) announced today financial results for the fourth quarter of 2000. Endorex is a drug delivery company developing technologies for oral and nasal nasal /na·sal/ (na´zil) pertaining to the nose. na·sal adj. Of, in, or relating to the nose. nasal pertaining to the nose. delivery of drugs and vaccines to improve patient compliance, convenience and quality of life for therapies that currently are being administered by injection only. Business Accomplishments During 2000, Endorex achieved the following: -- Initiated two new corporate partnerships, the first with Novo Nordisk A/S to evaluate the oral delivery of Novo's human growth hormone product, Norditropin(R), under a research and option agreement; and the second with Schein Pharmaceutical to develop and commercialize an iron chelating agent with the MEDIPAD(R) microinfusion pump for the treatment of the genetic blood disorders known as iron overload disorders (Schein was subsequently acquired by Watson Pharmaceuticals during 2000). -- Raised approximately $8.6 million in a private placement to institutional investors. -- Issuance of four new drug and vaccine delivery patents by the U.S Patent Office for technology being developed by the Company, extending the overall drug delivery intellectual portfolio around the world to over 50 patents. -- Announced its plans to exit its oncology business and concentrate on drug delivery. Additionally, Endorex made progress with product development activities with its two joint ventures with Elan (Emulated LAN) A virtual LAN in the ATM world. See LANE and virtual LAN. Elan - ["Top-down Programming with Elan", C.H.A. Koster, Ellis Horwood 1987]. Corporation, the first focusing on oral/mucosal vaccine vaccine Preparation containing either killed or weakened live microorganisms or their toxins, introduced by mouth, by injection, or by nasal spray to stimulate production of antibodies against an infectious agent. delivery, and the second focusing on improved delivery of iron chelation therapy Chelation Therapy Definition Chelation therapy is an intravenous treatment designed to bind heavy metals in the body in order to treat heavy metal toxicity. for iron overload disorders In medicine, iron overload disorders are diseases caused by the accumulation of iron in the body. Organs commonly affected are the liver, heart and endocrine glands.[1] Causes via Elan's MEDIPAD(R) disposable disposable Nursing adjective Referring to that which is discarded or disposed of noun An item used in health care-related Pt contact which is discarded after use–eg masks, gloves, gowns, needles, paper products, syringes, wipes. See Biohazardous waste. microinfusion pump. 2001 Business Accomplishments During the first two months of 2001, Endorex announced the issuance of the fourth U.S. patent for its Orasome(TM) oral delivery system for protein and peptide peptide, organic compound composed of amino acids linked together chemically by peptide bonds. The peptide bond always involves a single covalent link between the α-carboxyl (oxygen-bearing carbon) of one amino acid and the amino nitrogen of a second amino acid. drugs, as well as the recruiting of two experienced pharmaceutical executives to its management team: Panayiotis Constantinides, Ph.D., V.P. of Research and Development, and John McCracken John McCracken (b. 1934, Berkeley, California) is an American artist. He started his career creating bold, tight geometric compositions on Masonite or treated canvas. While still in school, his first exhibition at Nicholas Wilder's gallery in Los Angeles, California in 1965 was a , V.P. of Business Development. Fourth Quarter and 2000 Financial Results The Company reported a net loss available to common shareholders of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.3 million for the fourth quarter or approximately $0.10 per share, versus a net loss of approximately $2.3 million or approximately $0.21 per share reported in the same period in 1999. The net loss for 2000 of approximately $6.2 million decreased approximately $2.6 million from the approximately $8.8 million loss recorded for the twelve months ending December December: see month. 31, 1999. Net loss included the impact of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividends, which totaled $1.4 million in 2000, versus $1.3 million in 1999. Reductions in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. of $2.0 million contributed a significant portion of these results. In 2000, equity losses from Endorex's two joint ventures with Elan were approximately $2.7 million as compared with $2.9 million for 1999. This reduction in JV expenses was due to a delay in timing of activities in the development of the MEDIPAD(R) iron chelator chelator A chemical–eg, EDTA that binds metal ions from solutions. See Chelation therapy. product with Schein Schein is the surname of:
on·col·o·gy n. product assets and rights for approximately $0.3 million. Research and development expenditures for 2000 were approximately $1.0 million, a $1.0 million decrease (53 percent) from approximately $2.0 million for 1999. This decline was due mostly to reduced research and development expenditures from Endorex's decision to exit from its oncology business, including reductions in related personnel expenditures. General and administrative expenses for 2000 decreased approximately $.9 million (32 percent), to $2.1 million as compared to approximately $3.0 million for the year ended December 31, 1999. The decrease was primarily due to completion of amortization of fair value of warrants issued in connection with financial advisory agreements of approximately $1.3 million. The warrants, which were amortized over a two-year period, were fully amortized by the end of the third quarter of 1999. This was partially offset by increased legal fees of approximately $0.1 million and accounting fees of approximately $0.2 million. As of December 31, 2000, Endorex had cash, cash equivalents, and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has of approximately $12.8 million versus approximately $8.5 million as of December 31, 1999, and working capital of approximately $10.1 million versus approximately $6.9 million as of December 31,1999. During the 2000, Endorex's cash expenditures, including costs associated with the joint ventures, was below its projected $4.5 million net cash burn rate for 2000. However, for 2001, Endorex is planning to expand its drug delivery research and development activities and will hire additional R&D staff as it prepares to take products into clinical development. Consequently, Endorex's level of expenditure activity for 2001 is expected to increase to approximately $5 million. However, Endorex believes that its cash and other financial resources will be sufficient to support its currently planned operations for the next two years. Endorex is a drug delivery company focused on oral/mucosal delivery of drugs and vaccines to improve the patient quality of life by replacing needle-based therapy. Additional information is available on the Endorex web site at www.endorex.com. This press release contains 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. , within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , that involve a number of known and unknown risks and uncertainties. These statements are only predictions and actual events or results in future periods may differ materially from what is currently anticipated. In particular, we cannot assure you that we will be able to successfully develop or commercialize products based on our technology, particularly in light of the significant uncertainty inherent in developing drug delivery products, conducting clinical trials and obtaining regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals, that our technologies will prove to be safe and effective, that our cash expenditures will be at projected levels, that we will be able to obtain future financing or funds, that we or our joint ventures or our collaborations with other companies in the U.S. and abroad will successfully develop products or become profitable, that our business strategy will be successful or that we will be able to carry out our plans for 2000 and beyond. In addition to the matters described in this press release, risk factors as described from time to time in Endorex's filings with the Securities and Exchange Commission, including, but not limited to, our most recent reports on Form 10-QSB, Form 10-KSB, and our Registration Statement on Form S-3, may affect our financial results. We assume no obligation to update the information in this release.
Endorex Corporation
Condensed Consolidated Statement of Operations
Three Months Twelve Months
Ended Dec. 31 Ended Dec. 31
2000 1999 2000 1999
---- ---- ---- ----
Revenues $ - $ - $ - $ -
Research &
development
expenses 283,698 312,400 956,742 2,028,945
General &
administrative
expenses 628,507 470,118 2,101,767 3,046,684
Total Operating
Expenses 912,205 782,518 3,058,509 5,075,629
Operating Loss (912,205) (782,518) (3,058,509) (5,075,629)
Equity Losses
in Joint
Ventures (480,662) (1,239,082) (2,682,368) (2,865,908)
Other Income 250,000 3,790 250,000 3,790
Net Interest
Income 184,294 104,579 695,184 436,729
------- ------- ------- -------
Net Loss (958,573) (1,913,231) (4,795,693) (7,501,018)
Preferred stock
dividends (347,356) (357,153) (1,382,200) (1,285,413)
Net Loss available
to common
shareholders (1,305,929) (2,270,384) (6,177,893) (8,786,431)
Basic & diluted
net loss per
share available
to common
shareholders $ (0.10) $ (0.21) $ (0.51) $ (0.82)
Weighted Average
shares
outstanding 12,741,858 10,755,355 12,194,260 10,755,328
Balance Sheet Data as of December 31, 2000
Cash and securities $ 12,846,251
Working capital 10,112,440
Total assets 13,669,458
Long-term debt 204,162
Stockholders' equity & preferred stock 10,546,145
Stock Information as of March 8, 2001
Symbol (Amex) DOR
Recent price $1.30
Shares outstanding 12,742,000
Market capitalization $ 16,564,600
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