Techniclone Announces Fiscal Year-End Results.TUSTIN, Calif.--(BUSINESS WIRE)--July 30, 1998--Techniclone Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :TCLN), a developer of leading-edge, unique therapeutics for the advanced treatment of cancer, announced today the results of operations for the fiscal year ended April 30, 1998. The company reported a net loss from operations (before 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. accretion and dividends) of $11,823,917 or $0.38 per share. This is compared to a net loss from operations of $33,181,285 (including a non-recurring expense of $27,154,402 for purchased in-process research and development related to the acquisition of Peregrine Pharmaceutical Inc.) or $1.55 per share in the prior year. "With stronger focus on moving Techniclone toward commercialization, the company's net loss primarily reflects the previously reported increase in clinical trial activity in both our Phase II/III Oncolym(R), and Phase I TNT TNT: see trinitrotoluene. TNT in full trinitrotoluene Pale yellow, solid organic compound made by adding nitrate (−NO2) groups to toluene. human studies, as well as the scale-up of our manufacturing capabilities," stated Larry O. Bymaster, president and chief executive officer. "It was shortly after the end of the fiscal year that I came aboard with Techniclone as part of the repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. of the company, and I am encouraged that Techniclone is poised for an exciting future." First Quarter Continues to Build Momentum Techniclone continues the process of restructuring internal operations to properly align the company for anticipated demands and has broadened its efforts to secure strategic partners for its platform of technologies. Management has placed a strong emphasis on investment in the company's future activities. Highlights from this first quarter include: Techniclone Strengthens Leadership. Larry Bymaster joined Techniclone as its president and chief executive officer in May. Bymaster was previously the chairman, president and chief executive officer of a pharmaceutical-biotechnology company where he was responsible for overseeing corporate partnering arrangements, new business developments, clinical trials and financing. Shortly thereafter, Techniclone appointed Thomas Testman, prior interim chief executive officer, to the board of directors as chairman, and Bymaster was also elected to a position on the company's board of directors. These additions expand Techniclone's board from five to seven members and serve to strengthen its depth and leadership abilities. Company Implements New Financial Strategic Plan. The company announced in July that it has secured access to a $20 million common stock equity line with two biotechnology institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. . Subsequently, the company announced that it notified the holders of warrants issued in conjunction with the company's Class C Preferred Stock financing that they must exercise their warrants on or before Aug. 6, 1998, or the company will redeem the warrants at $.01 per share. Then on July 28, the company announced that it had entered into an escrow agreement Escrow Agreement A certificate provided by an approved bank that guarantees the indicated securities are deposited at that particular bank. Notes: For example, an investor who writes a call option and can present an escrow agreement is considered covered. for the sale of the buildings in Tustin, Calif., that house its corporate headquarters and operations at a price greater than their purchase price. The agreement also includes a ten-year leaseback of the facilities at competitive market rates. "The successful completion of the $20 million common stock equity line, coupled with the warrant call and sale/leaseback of our headquarters enhances the company's financial position," added Elizabeth Gorbett-Frost, chief financial officer. "Moreover, we have recently completed a review of the company's operations and believe we can move the company forward in the expansion of its clinical trial activity, with an understanding of the impact and financial requirements of those activities." Top Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most Firm Retained. On July 6, the company announced that it had retained Rubenstein Public Relations Inc. as its public and media relations consultant. Shortly after engaging Rubenstein, the company received stronger media coverage including: featuring of Techniclone on Bloomberg's television news channel and on CNBC's Power Lunch program on July 23; interview of Larry Bymaster as reported on Stock Network News Radio (an audio of the interview is available on Stockline.com) and the Wall Street Corporate Reporter. Full texts of the interviews will be published within the next two weeks. TNT Shifts Into High Gear. On July 13, the company announced that the U.S. Patent and Trademark Office has allowed its patent applications for diagnostic use of its Tumor Necrosis tumor necrosis Death of tumor tissue, a common event in aggressive CAs in which the tumor rapidly outgrows its blood supply, resulting in tumor cell death. Cf Apoptosis. Therapy (TNT) technologies. Separately, the company announced on July 21 that it had completed patient enrollments for portions of the current Phase I TNT protocol for brain cancer studies being conducted at the Medical University of South Carolina “MUSC” redirects here. For Abel Santa María airport in Santa Clara, Cuba (ICAO code MUSC), see Abel Santa María Airport. The Medical University of South Carolina in Charleston. Techniclone Expands Oncolym(R) Protocol. On July 23, Techniclone announced the expansion of the current Phase II/III protocol to include patients that have failed or relapsed following treatment with other monoclonal antibodies This is a list of monoclonal antibodies, antibodies which are clones of a single parent cell. When used as medications, the generic names end in -mab (see "Nomenclature of monoclonal antibodies"). for non-Hodgkin's Lymphoma non-Hodg·kin's lymphoma n. Any of various malignant lymphomas characterized by the absence of Reed-Sternberg cells. Non-Hodgkin's lymphoma . "This protocol improves the ability to more rapidly enroll patients in this phase of the clinical trials which in turn offers the possibility of moving Oncolym(R) more rapidly toward the commercial market," stated Bymaster. Bymaster concluded, "This is a very exciting time for the company as we continue to build momentum. It is my belief we can meet the challenges and realize the opportunities that lie ahead for Techniclone." Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statements This release may contain certain 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. that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Actual events or results may differ from the company's expectations as a result of risk factors discussed in Techniclone's reports on file with the U.S. Securities and Exchange Commission, including, but not limited to, the company's report on Form 10K for the year ended April 30, 1998. Company Overview Techniclone Corp. is engaged in the research and development of unique therapeutics for the treatment of cancer. The company utilizes innovative targeting technologies to develop products potentially capable of destroying cancerous tumors throughout the body. Presently in Phase I clinical testing for malignant glioma glioma /gli·o·ma/ (gli-o´mah) a tumor composed of neuroglia in any of its states of development; sometimes extended to include all intrinsic neoplasms of the brain and spinal cord, as astrocytomas, ependymomas, etc. (brain cancer), the company's Tumor Necrosis Therapy (TNT) is designed to deliver high doses of radiation directly to the core of the tumor tumor: see neoplasm. while causing minimal damage to surrounding tissue. Oncolym(R), a therapy for the treatment of advanced non-Hodgkin's B-cell Lymphoma B-cell lymphoma is a type of non-Hodgkin lymphoma affecting B cells. Types include:
The company is also developing two additional technologies for the treatment of solid tumors, Vasopermeation Enhancement vasopermeation enhancement Oncology An investigational therapy that ↑ up to 3-fold CA cell uptake of chemotherapeutics Agents (VEAs) and Vascular Targeting Agents (VTAs). VEAs act on tumors to increase the concentration of conventional chemotherapy in the tumor site while VTAs attach to tumor blood vessels Blood vessels Tubular channels for blood transport, of which there are three principal types: arteries, capillaries, and veins. Only the larger arteries and veins in the body bear distinct names. creating a blood clot blood clot n. A semisolid, gelatinous mass of coagulated blood that consists of red blood cells, white blood cells, and platelets in a fibrin network. , which kills the tumor by eliminating its oxygen and nutrient supply. -0-
Financial Table:
Consolidated Statement of Operations
Fiscal Year Ended April 30
1998 1997 1996
Revenues
Licensing fees -- -- $ 3,000,000
Interest and other income $ 534,313 $ 346,341 $ 143,323
Total revenues 534,313 346,341 3,143,323
Costs and expenses
Cost of sales 4,300 24,940 2,580
Research and development 7,639,656 2,886,931 1,679,558
General and administrative 4,418,015 3,313,501 1,118,475
Interest 296,259 147,852 17,412
Purchased in-process research
and development 27,154,402
Total costs and expenses 12,358,230 (33,527,626) 2,818,025
Net income (loss)
Before preferred stock
accretion and dividends $(11,823,917) $(33,181,285) $ 325,298
Net (loss) income per share
before stock accretion and
dividends $ (.38) $ (1.55) $ .02
Per share preferred stock
accretion and dividends (.11) (.02) (.32)
Net income (loss) per share $ (0.49) $ (1.57) $ (0.30)
Weighted average shares
outstanding 30,947,758 21,429,858 18,466,359
CONTACT: Techniclone Corp., Tustin Elizabeth Gorbett-Frost/William V. Moding 714/508-6000 or Cynthia DeMonte, Investor Communications 212/420-0088 or Rubenstein Public Relations, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Media contact: Clint Cantwell, 212/843-8051 |
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