Endorex Corp. Announces Fourth Quarter and 1997 Results.CHICAGO--(BUSINESS WIRE)--Feb. 24, 1998--Endorex Corp. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). : ENDR ENDR Endurance ) today reported results for the fourth quarter and fiscal year ending December 31, 1997. Full Year Results Endorex Corp. reported a net loss of approximately $2.8 million, or $0.88 per share for the year ended December 31, 1997 as compared to a net loss of approximately $2.0 million, or $2.49 per share for the eleven months ended December 31, 1996. Weighted average shares outstanding for the 1997 year were 3,141,827 versus 787,451 for 1996. The weighted average shares increased as a result of the Company's successful $20 million private placement in October 1997. The increase in net loss was principally due to increased research and development expenses including new personnel and the contracting out of pre-clinical research studies and in-licensing of new products from the Wisconsin Alumni Research Foundation The Wisconsin Alumni Research Foundation is the nonprofit technology transfer office of the University of Wisconsin-Madison. It is a significant source of research support, independent of federal grants. . Fourth Quarter Results Net loss for the quarter ended December 31, 1997 was approximately $0.9 million, or $0.11 per share as compared to a net loss of $0.9 million, or $0.86 per share, for the same period in 1996. Weighted average shares outstanding were 8,522,877 for the 1997 quarter versus 1,080,092 for the 1996 quarter. Endorex Meets or Exceeds 1997 Goals "At the outset of 1997 we set a goal of initiating clinical trials for one drug - we brought two drugs to trial in 1997 and plan to have five active Phase II trials in progress for these drugs in 1998," said Michael Rosen For other persons named Michael Rosen, see Michael Rosen (disambiguation). Michael Wayne Rosen (born May 7, 1946 in Harrow, and brought up in Pinner, Middlesex, in England) is a children's novelist and poet and the author of 140 books. , 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. of Endorex. "The increase in our net loss, or 'burn rate,' is indicative of the Company's efforts to expand and accelerate our R&D programs, and the in-license of new products and technology. "Additional accomplishments include our recent joint venture with Elan Corporation, plc (NYSE NYSE See: New York Stock Exchange :ELN Noun 1. ELN - a Marxist terrorist group formed in 1963 by Colombian intellectuals who were inspired by the Cuban Revolution; responsible for a campaign of mass kidnappings and resistance to the government's efforts to stop the drug trade; "ELN kidnappers target ), an exclusive option agreement with BTG BTG BIT (Built-In Test) Target Generator BTG Bridging the Gap BTG British Technology Group BtG Betreuungsgesetz (Germany) BTG Biomass Technology Group BV BTG Begbies Traynor Group for a hepatitis B vaccine hepatitis B vaccine n. Abbr. HB A vaccine prepared from the inactivated surface antigen of the hepatitis B virus and used to immunize against hepatitis B. , ongoing developments in advancing our oral drug delivery and novel cancer therapy programs, and our highly successful private placement. Through these initiatives, we met or exceeded all our partnering, scientific and financial goals for the year." Endorex Corp. is a development stage biotechnology company involved in oral drug delivery and cancer therapy. Orasomal Technologies, Inc., Endorex's oral delivery subsidiary, licensed 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, (MIT MIT - Massachusetts Institute of Technology ) that is being developed to deliver vaccines, proteins and peptides. In 1998, Endorex formed a joint venture with Elan Corporation, plc to develop oral delivery of human and animal vaccines. Wisconsin Genetics, Inc. (WGI WGI World Games Inc WGI Winter Guard International WGI Within Grade Increase WGI Washington Group International, Inc. WGI Working Group on Informatics (United Nations) ), Endorex's second subsidiary, is starting Phase II clinical trials Noun 1. phase II clinical trial - a clinical trial on more persons than in phase I; intended to evaluate the efficacy of a treatment for the condition it is intended to treat; possible side effects are monitored phase II for novel cancer therapy based on monoterpenes. Endorex is also developing two drugs for cancer and infectious disease Infectious disease A pathological condition spread among biological species. Infectious diseases, although varied in their effects, are always associated with viruses, bacteria, fungi, protozoa, multicellular parasites and aberrant proteins known as prions. : an immunomodulator and an immuno-adjuvant for vaccines. 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 including but not limited to the Company's ability to conduct five Phase II clinical trials in 1998. Such statements are only predictions and actual events or results in future periods may differ materially from what is currently anticipated. 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, 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. -0-
Results of Operations
Year ended December 31
1997 1996(a)
Revenues $ - $ -
Operating expenses 2,948,793 2,007,757
Net loss (2,768,280) (1,962,877)
Net loss per share (0.88) (2.49)
Average shares
outstanding(b) 3,141,827 787,451
Three months ended December 31,
1997 1996
Revenues $ - $ -
Operating expenses 1,085,669 939,527
Net loss (920,224) (931,949)
Net loss per share (0.11) (0.86)
Average shares
outstanding(b) 8,522,877 1,080,092
Financial Position December 31, 1997
Cash and cash equivalents $15,706,374
Working capital 15,212,680
Total assets 16,218,667
Long term debt -
Stockholders' equity 15,589,184
Stock Information February 15, 1998
Symbol (OTC:BB) ENDR
Recent price $7.38
Shares outstanding 10,044,333
Market capitalization $74,000,000
(a) Transition period Feb. 1, 1996 to Dec. 31, 1996.
(b) Reflects 1-for-15 reverse stock spilt in June 1997.
Note to Investors and Editors: Endorex's press releases are
available on the Internet at: http://www.endorex.com
CONTACT: Media Contacts: Robinson Lerer & Montgomery Mary Ann Dunnell, 212-484-7797 or Endorex Corp. Michael Rosen, President and CEO, 847-604-7555 or Investor Contact: The Investor Relations Investor relations The process by which the corporation communicates with its investors. Group Dian Griesel, Ph.D., 212-664-8489 |
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