INNOVIR LABORATORIES ANNOUNCES FISCAL 1996 RESULTS; Company Also Announces Board of Directors Changes.NEW YORK--(BUSINESS WIRE)--Jan 9, 1997--Innovir Laboratories, Inc. (Nasdaq SmallCap: INVR) today announced results for fiscal 1996 ending September 30, 1996. The Company announced a net loss of $9.39 million, or a loss of $1.66 per share, compared to a net loss of $4.99 million, or a loss of $1.42 per share for fiscal 1995. The Company's weighted average common shares outstanding rose to 5.67 million in fiscal 1996 from 3.51 million in fiscal 1995. The net loss includes a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of approximately $3.1 million which was incurred in connection with the issuance of certain warrants and stock options in 1996. In addition, the Company increased its research and development commitment by approximately $1 million to $3.93 million compared with $2.89 million in fiscal 1995. "1996 was an exciting and productive year for Innovir," said Dr. Allan R. Goldberg, Chairman and Chief Executive Officer of Innovir. "We advanced to animal trials for hepatitis B Hepatitis B Definition Hepatitis B is a potentially serious form of liver inflammation due to infection by the hepatitis B virus (HBV). It occurs in both rapidly developing (acute) and long-lasting (chronic) forms, and is one of the most common chronic , demonstrated antiviral antiviral /an·ti·vi·ral/ (-vi´ral) destroying viruses or suppressing their replication, or an agent that so acts. an·ti·vi·ral adj. activity of our lead EGS EGS European Geophysical Society EGS European Graduate School EGS El Goonish Shive (webcomic) EGS Environmental Goods and Services EGS Employment Guarantee Scheme (UK) EGS EOS Ground System compound, and expanded the scope of our research program to include psoriasis psoriasis (sôrī`əsĭs), occasionally acute but usually chronic and recurrent inflammation of the skin. The exact cause is unknown, but the disease appears to be an inherited, possibly autoimmune disorder that causes the and antibiotic resistant bacteria." Alliance with VIMRx Pharmaceuticals On January 2, 1997, VIMRx Pharmaceuticals (Nasdaq: VMRX) and Innovir announced the finalization Writing the table of contents (TOC) on a recordable CD or DVD disc. The finalization process ensures that the disc can be played back on most CD and DVD players. See disc-at-once. of a transaction under which VIMRx Pharmaceuticals acquired a controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail in Innovir Laboratories and through which Innovir acquired VIMRx's subsidiary, VIMRx Holdings Ltd. (VHL VHL Von Hippel-Lindau (disease) VHL von Hippel-Lindau gene VHL Van Hasseltlaan (Delft University of Technology, Netherlands) VHL Very High Level Language ) and $7 million. VHL and Innovir Laboratories have complementary therapeutic technologies that seek to inhibit the expression of genetic information encoded in disease-associated genes, interrupting the process of disease causation. The technologies involve classes of oligomers (Oligozymes) that are either catalytically active themselves or have the ability to form catalytically active complexes with cellular components that can inactivate in·ac·ti·vate v. 1. To render nonfunctional. 2. To make quiescent. in·ac  ti·va specific RNA RNA: see nucleic acid. RNA in full ribonucleic acid One of the two main types of nucleic acid (the other being DNA), which functions in cellular protein synthesis in all living cells and replaces DNA as the carrier of genetic "messenger" molecules that direct cells to produce illness-causing proteins. "The affiliation with VIMRx is important from both financial and strategic perspectives," Dr. Goldberg continued. "In addition to providing cash to fund Innovir's continuing research efforts, our combined forces A military force composed of elements of two or more allied nations. See also force(s). make us a leading player in the important Oligozyme field. "In 1997 we will place a significant emphasis on integrating VHL as seamlessly as possible into our overall base of operations Noun 1. base of operations - installation from which a military force initiates operations; "the attack wiped out our forward bases" base air base, air station - a base for military aircraft army base - a large base of operations for an army . In addition, we hope to make the necessary progress in both our animal trial and drug target validation efforts to attract potential partners. We believe that partnering with a major pharmaceutical company will better position us to exploit these opportunities commercially," said Dr. Goldberg. Board of Directors Changes Separately, the Company also announced recent changes in the composition of its Board of Directors. Mr. Richard L. Dunning, President and Chief Executive Officer of VIMRx Pharmaceuticals; Dr. David A. Jackson, VIMRx's Chief Scientific Officer; Mr. Francis O'Connell, VIMRx's Chief Financial Officer; and Laurence D. Fink Laurence D. Fink is the Chairman & Chief Executive Officer of BlackRock, Inc. Popularly known as Larry, he started his career at First Boston upon graduating from the University of California Los Angeles. , Chairman 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 Black Rock Financial Management -- who is also a VIMRx director -- were each added to Innovir's Board of Directors. They replace Mr. Michael S. Weiss, Mr. Joseph E. Edelman and Dr. Maurice R. Hilleman. Mr. Weiss and Mr. Edelman recently resigned their respective positions on the Company's Board of Directors in connection with the transaction with VIMRx Pharmaceuticals. Said Dr. Goldberg, "We regret the loss of Mr. Weiss and Mr. Edelman from our Board. However, as both Mssrs. Weiss and Edelman are key members of The Aries Funds, which remains our second largest shareholder, we expect to continue to benefit from their significant expertise in the biotechnology industry." In addition, Dr. Maurice R. Hilleman, a former Senior Vice President with Merck Research Laboratories, resigned from the Company's Board of Directors and simultaneously joined the Company's Science Advisory Board. Dr. Jackson also will join the Innovir Science Advisory Board. "We have been fortunate to attract a wealth of high-caliber managerial and scientific talent for our Board of Directors and Science Advisory Board," Dr. Goldberg said. "We will utilize their expertise to further our current research and to help determine promising new avenues for exploration." The Company notes that there remains one vacancy, which is expected to be filled shortly, on the seven member Board of Directors. Innovir Laboratories, Inc. is a biotechnology company that has been developing External Guide Sequences (EGS), which the Company believes will be a broad enabling technology. EGS technology is based upon the Nobel Prize-winning research by Sidney Altman Sidney Altman (born May 7, 1939 in Montreal, Quebec) is a molecular biologist, who is currently the Sterling Professor of Molecular, Cellular, and Developmental Biology and Chemistry at Yale University. In 1989 he shared the Nobel Prize in Chemistry with Thomas R. , Ph.D., Sterling Professor of Biology at Yale University Yale University, at New Haven, Conn.; coeducational. Chartered as a collegiate school for men in 1701 largely as a result of the efforts of James Pierpont, it opened at Killingworth (now Clinton) in 1702, moved (1707) to Saybrook (now Old Saybrook), and in 1716 was . The Company has an exclusive license to develop this patented technology for new therapeutic applications and also has independently developed EGS technology not subject to the Yale license. In addition to hepatitis B, Innovir's initial disease target areas include psoriasis, inflammation, and drug-resistant microorganisms. The Company also is developing therapeutic technology that inhibits expression of disease-linked genes through VHL and is investigating multiple applications for this technology, including agricultural uses. -0- This news release contains forward looking statements which involve risks and uncertainties. Such statements are subject to certain risk factors which may cause the Company's plans to differ. Factors that may cause such differences include, but are not limited to, the progress and success of the Company's research and development programs, the Company's ability to: obtain additional funds; secure regulatory approval to market its products; compete successfully; integrate its newly acquired VHL operations; successfully enter into collaborations with third parties; enter into and progress in clinical trials; establish development and commercialization relationships; manufacture product in a cost-effective manner; and those other risk factors discussed under the heading Risk Factors included in the Company's Form S-3 Registration Statement (Reg. No. 333-12865). Cumulative Innovir Laboratories, Inc. Since Statement of Operations See Income statement. (1) 1-Sep For the Year Ended September 30, 1989 1996 1995 1994 (Inception) Revenues: Interest Income $ 115,022 $ 102,623 $ 118,583 $ 362,211 Expenses: Research and development 3,930,401 2,893,543 2,066,938 12,421,825 General and administrative(2) 5,405,574 2,093,440 1,450,852 11,536,377 Interest 170,652 105,614 64,671 1,305,160 Total expenses 9,506,627 5,092,597 3,582,461 25,263,362 Loss before extraordinary item (9,391,605) (4,989,974) (3,463,878) (24,901,151) Extraordinary item: loss on early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt - - - (407,162) Net loss $(9,391,605) $(4,989,974) $(3,463,878) $(25,308,313) Loss per share data: Weighted average number of common shares outstanding 5,671,248 3,510,047 3,089,090 Net loss per share $ (1.66) $ (1.42) $ (1.12) (1) The notes accompanying the financial statements in the Company's 10-K filed with the SEC are an integral part of these financial statements. (2) Includes a non-cash charge of approximately $3 million incurred in connection with the issuance of warrants and stock options in 1996. CONTACT: Walter Montgomery Fran Daniels or Mary Ann Dunnell (310) 278-4413 (212) 484-6721 |
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