Endorex Reports First Quarter 2001 Results.Business Editors & Health/Medical Writers CHICAGO--(BW HealthWire)--May 8, 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 the Company's first quarter financial results for 2001. 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. For the three-month period ended March 31, 2001, net loss decreased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.2 million, or 16 percent, to $1.2 million as compared to a loss of approximately $1.4 million for the three months ended March 31, 2000. After giving effect to dividends on 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. , which are paid-in-kind shares of preferred stock, net loss to common stockholders decreased approximately $0.2 million, or 11 percent, to approximately $1.6 million, or $0.12 per share, compared with $1.8 million, or $0.16 per share, for the prior year period. Research and development expenditures for the three months ended March 31, 2001, increased approximately $0.3 million, or 133 percent to $0.6 million, compared with $0.3 million for the corresponding period ended March 31, 2000. This increase was due to the recruitment recruitment /re·cruit·ment/ (re-krldbomact´ment) 1. the gradual increase to a maximum in a reflex when a stimulus of unaltered intensity is prolonged. 2. of new R&D management and an expansion of the number of drugs currently being evaluated for oral delivery. General and administrative expenses for the three months ended March 31, 2001, increased approximately $0.1 million, or 28 percent, to $0.5 million as compared to the three months ended March 31, 2000, due to increased legal and accounting expenses; such increase was due in part to the Company's transition to a new independent auditing firm. During the first quarter of 2001, equity in losses from joint venture activities decreased by approximately $0.6 million, or 66 percent, to $0.3 million compared to the same period of 2000. This decrease in joint venture expenses reflects a shift in joint venture activities as Endorex and 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]. are evaluating the progress of one of their joint ventures and its future direction. Interest income for the first quarter of 2001 increased by approximately $0.1 million to $0.2 million due to the effect of increased investment funds Noun 1. investment funds - money that is invested with an expectation of profit investment assets - anything of material value or usefulness that is owned by a person or company from the April 2000 equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. . On March 31, 2001 and December December: see month. 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 $11.4 million and $12.8 million, respectively, and working capital of approximately $8.8 million and $10.1 million, respectively. During the first quarter of 2001, the Company's key business results included: - Issuance by the United States Patent and Trademark Office of Endorex's fourth U.S. patent in a series of patents for the Company's Orasome(TM) drug delivery system that utilizes polymerizable liposomes for oral and mucosal delivery of vaccines, protein/peptide therapeutics and other macromolecules. - Presentation of the Company at Salomon Smith Barney's First Annual Specialty Pharmaceutical Conference held in New York City which included speakers from leading pharmaceutical, drug delivery and biotech companies. - Strengthening of the Company's management team by the appointment of new R&D and Business Development senior management. 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 joint ventures or our collaborations with other companies will continue, that our business strategy will be successful or that we will be able to carry out our plans for 2001 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, as amended, and our Registration Statement on Form S-3, as amended, 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 Ended Mar 31
2001 2000
---- ----
(unaudited)...
Revenues $ - $ -
Research & development expenses 585,852 251,080
General & administrative expenses 468,754 365,963
Total Operating Expenses 1,054,606 617,043
Operating Loss (1,054,606) (617,043)
Equity Losses in Joint Ventures (317,058) (930,078)
Other Income (1,575) 25,635
Net Interest Income 163,777 85,367
Net Loss (1,209,462) (1,436,119)
Preferred stock dividends (366,534) (344,631)
Net Loss available to
common shareholders (1,575,996) (1,780,750)
Basic & diluted net loss per share
available to common shareholders $ (0.12) $ (0.16)
Weighted Average shares outstanding 12,741,858 10,804,483
Balance Sheet Data as of March 31, 2001
Cash and securities $11,356,897
Working capital 8,849,015
Total assets 12,477,409
Long-term debt 185,172
Stockholders' equity & preferred stock 9,334,613
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