Endorex Announces Second Quarter Results.CHICAGO--(BW HealthWire)--Aug. 10, 1999-- 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. ) reported a net loss of $2.2 million, or $.24 per share, for the quarter ended June 30, 1999, compared to $1.5 million, or $0.16 per share, for the second quarter of 1998. The second quarter of 1999 included $0.9 million representing Endorex's share of equity losses for its Innovax joint venture with Elan Corporation, plc. Research and development expenses for the current quarter were down $0.4 million or 47% due to expenses being allocated to Innovax. In the prior year, Endorex and Elan were sharing Innovax expenses equally and Endorex's expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Innovax were included in research and development. For the six months ended June 30, 1999, Endorex reported a net loss of $4.0 million, or $.45 per share, compared with a loss of $10.7 million, or $1.06 per share, for 1998. The prior year loss include a one-time charge of $8 million as Endorex's share of initial license fees paid by Innovax to Elan. Elan also invested $8 million in Endorex convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". , effectively offsetting the impact of the license fees on the balance sheet, as well as $2 million investment in common stock. As of June 30, 1999 the Company had $10 million in cash and securities in addition to $5.6 million of unused lines of credit and restricted cash. Research and development expenses year-to-date were down slightly. The expenses allocable to Innovax decreased research expenses by $0.4 million, however this was offset by increased expenses in cancer programs and drug delivery. During 1999, Endorex developed a new improved formulation of its lead cancer drug candidate Perillyl alcohol ("POH interj. 1. An exclamation expressing contempt or disgust; bah ! ") and in late June filed its own Investigational New Drug application for POH so as to initiate planned clinical trials with this new formulation during the second half of 1999. It is expected that the new POH formulation will offer significant enhanced patient convenience and compliance when substituted for the existing formulation which is being utilized in the conduct of several National Cancer Institute sponsored trials. During the second quarter, two additional NCI See Liberate. - sponsored Phase II trials to evaluate POH efficacy in colorectal cancer colorectal cancer Malignant tumour of the large intestine (colon) or rectum. Risk factors include age (after age 50), family history of colorectal cancer, chronic inflammatory bowel diseases, benign polyps, physical inactivity, and a diet high in fat. , one of the leading cancers in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , and pancreatic cancer pancreatic cancer Malignant tumour of the pancreas. Risk factors include smoking, a diet high in fat, exposure to certain industrial products, and diseases such as diabetes and chronic pancreatitis. Pancreatic cancer is more common in men. , were started at the University of Wisconsin and Indiana University Indiana University, main campus at Bloomington; state supported; coeducational; chartered 1820 as a seminary, opened 1824. It became a college in 1828 and a university in 1838. The medical center (run jointly with Purdue Univ. , respectively. The Company continues to monitor the progress of the three other NCI-sponsored Phase II clinical trials evaluating POH in breast cancer, prostate cancer prostate cancer, cancer originating in the prostate gland. Prostate cancer is the leading malignancy in men in the United States and is second only to lung cancer as a cause of cancer death in men. and ovarian cancer ovarian cancer Malignant tumour of the ovaries. Risk factors include early age of first menstruation (before age 12), late onset of menopause (after age 52), absence of pregnancy, presence of specific genetic mutations, use of fertility drugs, and personal history of breast . During the second quarter, key scientific information on POH's mechanism of action in various types of cancer was published in the April, 1999 edition of Cancer Research, the official journal of the American Association of Cancer Research. Endorex continues to develop its Orasome(TM) delivery technology for proteins and peptides. In June, Endorex announced progress in its oral delivery programs at a presentation during the 26th International Symposium on the Controlled Release of Bioactive bi·o·ac·tive adj. Of or relating to a substance that has an effect on living tissue. bioactive having an effect on or eliciting a response from living tissue. Materials in Boston. Recent studies demonstrate that Endorex's Orasome(TM) delivery system, a proprietary stable liposome liposome (lī`pəsōm', lĭp`ə–), microscopic, fluid-filled pouch whose walls are made of layers of phospholipids identical to the phospholipids that make up cell membranes. technology, promotes the oral bioavailability bioavailability /bio·avail·a·bil·i·ty/ (bi?o-ah-val?ah-bil´i-te) the degree to which a drug or other substance becomes available to the target tissue after administration. bi·o·a·vail·a·bil·i·ty n. of several hormone polypeptide polypeptide: see peptide. therapeutics, insulin and human growth hormone human growth hormone (HGH): see growth hormone. . Endorex Corporation is a drug delivery and cancer products company. The Company licensed its Orasome(TM) technology from the Massachusetts Institute of Technology Massachusetts Institute of Technology, at Cambridge; coeducational; chartered 1861, opened 1865 in Boston, moved 1916. It has long been recognized as an outstanding technological institute and its Sloan School of Management has notable programs in business, that is being developed to orally deliver vaccines, proteins and peptides. In 1998, Endorex formed two drug delivery joint ventures with Elan Corporation, plc. Endorex is also focusing on two innovative directions in cancer therapy: immunotherapy and natural chemotherapy. Two Endorex drugs have entered into multiple Phase II clinical trials: ImmTher(R), an immunomodulator, and Perillyl alcohol, a new monoterpene. The statements made in this press release contain certain forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that involve a number of known and unknown risks and uncertainties. Such statements are only predictions and actual events or results in future periods may differ materially from what is currently anticipated. In particular, no assurance can be given that the company will become profitable, that the Orasome delivery system or POH drug candidate will lead to successful products or become profitable, that any of the company's cancer drug candidates will receive regulatory approval or become commercially successful. In addition to the matters described in this press release, risk factors as described from time to time in Endorex's filing with the Securities and Exchange Commission, including, but not limited to, its most recent reports on Form 10-QSB and Form 10-KSB, may affect the results achieved by Endorex. The Company assumes no obligation to update the information in this release. Copies of Endorex's press releases can be obtained from the Company's web site at www.endorex.com. -0-
Endorex Corporation 1999 Second Quarter Results
Results of Operations Three months ended June 30,
1999 1998
------------------------------
Revenues $ - $ -
Research & development expenses 436,386 817,714
General & administrative 950,542 908,350
Equity losses from joint ventures 914,246
Net loss (2,204,374) (1,513,119)
Basic and diluted net loss per
share available to common shareholders $ (0.24) $ (0.16)
Average shares outstanding 10,352,632 10,352,632
Six months ended June 30,
1999 1998
------------------------------
Revenues $ - $ -
Research & development expenses 1,374,679 1,429,465
General & administrative 1,747,166 1,742,920
Equity losses from joint ventures 1,134,246 8,010,000
Net loss (4,027,245) (10,745,529)
Basic and diluted net loss per share
available to common shareholders (0.45) (1.06)
Average shares outstanding 10,352,632 10,363,970
Financial Position June 30, 1999
.................
Cash and securities $ 10,036,755
Working capital 9,568,386
Total assets 12,458,137
Long term debt 649,043
Stockholders' equity 10,729,576
and preferred stock
Stock Information August 9, 1999
.................
Symbol (Amex) DOR
Recent price $ 1.75
Shares outstanding 10,352,632
Market capitalization $ 18,100,000
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