VIMRX Announces Fourth Quarter and Full Year 1997 Results; Management Pleased with Strengthened Company Portfolio.WILMINGTON, DE--(BW HealthWire)--March 31, 1998--VIMRX Pharmaceuticals Inc. (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 :VMRX), a biotechnology company that is commercializing innovative technologies to improve human health, announced that it has filed its results for the year ended December 31, 1997, with the Securities and Exchange Commission on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . Full Year 1997 Results For the 12 months ended December 31, 1997, operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were $62.1 million versus $21.7 million for full year 1996. The net loss for fiscal 1997 was $56.2 million, or $1.02 per share. These 1997 results include a $37.7 million, or $0.68 per share, non-recurring charge related to the acquisition of Nexell Therapeutics Inc. Excluding this non- cash charge, the 1997 net loss was $18.7 million, or $0.34 per share, compared to a net loss of $19.9 million, or $0.50 per share for 1996. The 1996 results included a one time charge of $14.5 million related to the acquisition of 68% of Innovir and 100% of Ribonetics. Weighted average shares outstanding for the year ended December 31, 1997 were 55.5 million versus 39.4 million for the comparable 1996 period. Cash and short term investments at December 31, 1997, were $57.8 million versus $46.9 million a year earlier. VIMRX's cash position at the end of 1997 is equal to approximately two years of expenses at the current expense burn rate of VIMRX's consolidated operations, including Innovir and Nexell Therapeutics Inc. "The management team is pleased to have strengthened VIMRX's portfolio over the last year by acquiring promising new technologies and companies that address critical scientific and worldwide medical needs," said Richard L. Dunning, president and chief executive officer of VIMRX. "Through our majority owned subsidiaries, we cover a wide spectrum of drug development activities including discovery, clinical development and delivery of novel diagnostics and therapeutics." Fourth Quarter For the fourth quarter ending December 31, 1997, operating expenses were $44.5 million, as compared to $14.5 million for the same period in 1996. The net loss for the fourth quarter of 1997 was $43.2 million, or $0.76 per share versus a net loss of $13.1 million, or $0.25 per share, for the same period in 1996. The fourth quarter 1997 results include the previously mentioned $37.7 million 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. related to the acquisition of Nexell Therapeutics Inc. The 1996 results contain a one time charge of $10.9 million related to the acquisition of 68% of Innovir. Weighted average shares outstanding for the three months ended December 31, 1997, were 57.1 million versus 51.7 million for the comparable 1996 period. VIMRX Pharmaceuticals Inc. VIMRX Pharmaceuticals Inc. (NASDAQ: VMRX) is a biotechnology company developing innovative technologies to improve human health. VIMRX's portfolio includes: Nexell Therapeutics Inc., a company formed with Baxter Healthcare Corporation focused on cell therapeutics for cancer and other life threatening diseases; Innovir Laboratories, Inc. (NASDAQ: INVR), which develops oligozymes for use as both therapeutics and as pharmaceutical research tools; and collaborations to commercialize Columbia University gene discoveries. VIMRX has three compounds in development: VIMRxyn(R), chemically synthesized hypericin hy·per·i·cin n. A drug, produced synthetically or as an extract of Saint John's wort, used as an antidepressant and antiviral agent. hypericin , in clinical trials for brain cancer and skin diseases; VM201, a Factor IXa inhibitor for selective inhibition selective inhibition n. See competitive inhibition. of blood clotting blood clotting, process by which the blood coagulates to form solid masses, or clots. In minor injuries, small oval bodies called platelets, or thrombocytes, tend to collect and form plugs in blood vessel openings. without the bleeding risk associated with anti-coagulation; and VM301, a Phase I novel wound healing wound healing Physiology The repair of a wound Steps Inflammation, repair and closure, remodeling, final healing; repair of incisions may be either simple–'clean' wounds with little loss of tissue heal by 'primary intention', or 'dirty' wounds heal by agent. 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 provides a "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. " for certain forward-looking statements. The forward- looking statements contained in this release are subject to certain risks and uncertainties. Actual results could differ materially from current expectations. Among the factors which could affect the Company's actual results and could cause results to differ from those contained in the forward-looking statements contained herein are the success of the Company's clinical trials, delays in receiving FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. or other regulatory approvals and the development of competing therapies and/or technologies by other companies. NOTE TO INVESTORS AND EDITORS: VIMRX's press releases are available on the Internet through www.vimrx.com and through BusinessWire's web site at http://www.businesswire.com. The releases also are available at no charge through BusinessWire's fax-on-demand service at 800-411-8792. CONTACT: Media Contact: Laura A. Mastrangelo VIMRX Pharmaceuticals 302-998-1734/Pager 800-916-8038 or Investor Contact: Dian Griesel, Ph.D. The Investor Relations Investor relations The process by which the corporation communicates with its investors. Group 212-664-8489 |
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