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 LA JOLLA, Calif., Sept. 2 /PRNewswire/ -- In response to a report related to the company by financial correspondent Dan Dorfman on "The Money Wheel" program aired on CNBC on Sept. 1, 1993, Dr. David Katz, president and CEO of LIDAK Pharmaceuticals (NASDAQ Small Cap: LDAKA), stated, "On behalf of myself and all LIDAK shareholders, I express outrage at the misstatements and false innuendoes contained in Mr. Dorfman's report on CNBC on Sept. 1, 1993. I have personally spoken to Mr. Dorfman and refuted a number of the misstatements contained in his report. Among other comments, he made several misstatements in reference to our lead therapeutic product, LIDAKOL, including:
 -- "Mr. Dorfman reported that the company has made `questionable claims' that the virus targeted by LIDAKOL does not build up resistance to LIDAKOL. Mr. Dorfman went on to say that `some pros' say that such a claim is `ridiculous.' As I explained to Mr. Dorfman, although it is true that most viruses do indeed build up resistances to the usual types of antiviral drugs, LIDAK has discovered that LIDAKOL has a different mechanism of antiviral action which avoids this problem. Outside parties have learned of this important distinction of LIDAKOL in their scientific due diligence on the company but, `some pros' may still be unaware of this new discovery. Mr. Dorfman had no response to my observation and obviously chose to ignore it by misstating the facts."
 -- "Mr. Dorfman stated that FDA approval is `way off.' Any one knowledgeable about FDA procedure understands that new drug clinical trials are lengthy and, to some extent, not within a company's control. LIDAK is more than satisfied with the progress of the clinical trials with respect to LIDAKOL to date."
 -- "His implication that most antiviral products fail ignores the most important point which is that most products fail because of toxicity. LIDAKOL has shown in trials to date not to be toxic."
 "On other company-related issues, Mr. Dorfman made the following serious misrepresentation:
 -- "Mr. Dorfman stated with alarm that a registration statement had recently been filed with the SEC and claimed to know that LIDAK insiders plan to sell a significant amount of stock in the near future. The registration statement in question related to securities originally issued to investors, including myself, in private placements occurring in July 1991 and February 1992 and became effective in November 1992. The `recent filing' was a routine update (a `post-effective amendment') of the original registration statement as required by both the SEC and in accordance with the terms and provisions of the original private placement agreement. I would also emphasize that I have not sold a single share of my LIDAK stock to date nor do I have any plans to do so at the current time."
 Dr. Katz went on to state that the company would be requesting Mr. Dorfman and CNBC to respond formally regarding the misstatements that were publicly aired. Moreover, the company is exploring all legal remedies on behalf of its shareholders.
 -0- 9/2/93
 /CONTACT: Michael Lorber, chief financial officer of LIDAK Pharmaceuticals, 619-558-0364, or Fern Lazar of Dewe Rogerson, 212-688-6840/

CO: LIDAK Pharmaceuticals ST: California IN: MTC SU:

CK-OS -- NY052 -- 8425 09/02/93 12:32 EDT
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Publication:PR Newswire
Date:Sep 2, 1993

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