THE IMMUNE RESPONSE CORP. ANNOUNCES
THIRD QUARTER 1991 FINANCIAL RESULTS
SAN DIEGO, Nov. 6 /PRNewswire/ -- The Immune Response Corp. (NASDAQ-NMS: IMNR) today reported net income of $19,000, or $.00 per share, for the third quarter ended Sept. 30, 1991 compared to net income of $310,000, or $.03 per share, recorded for the third quarter of 1990. Contract research revenue for the third quarter was $993,000 vs. $893,000 in the same period in 1990. Interest income for the third quarter of 1991 increased to $930,000 from $685,000 in the third quarter of 1990.
For the nine months ended Sept. 30, 1991, contract research revenue was $3,245,000 compared to $3,195,000 for the same period in 1990. The net loss of $2,925,000, or $.23 per share, for 1991 compares to net income of $400,000, or $.04 per share, during this period in 1990.
The reduction in net income reported for the third quarter of 1991 as compared to the third quarter in 1990 is primarily due to the increased research and development expenses related to the clinical trials of the HIV therapeutic vaccine and the expanded scope of the autoimmune disease research programs during 1991. The HIV therapeutic vaccine is in a Phase II/III clinical trial scheduled for completion in 1992. The company is currently in preclinical studies with a rheumatoid arthritis therapeutic vaccine, the first of the company's anticipated autoimmune disease treatments. The company intends to file an investigational new drug (IND) application to seek Food and Drug Administration approval to test such therapeutic vaccine in a Phase I/II human clinical trial.
For the nine months ended Sept. 30, 1991, the net loss compared to net income reported during the same period in the prior year is primarily due to the allocation of expenses from the company's joint venture with Rhone-Poulenc Rorer Inc. (RPR). During 1991, the joint venture expenses were allocated to the company from January through May and have been allocated to RPR since May. During the first nine months of 1990, all joint venture expenses were allocated to RPR. The allocation of expenses alternates between the joint venture partners and has a substantial impact on the interim operating results of the company.
The Immune Response Corp. is a biopharmaceutical company engaged in the development of proprietary products for the treatment of HIV infection, which leads to AIDS, and for the treatment of certain autoimmune diseases, particularly rheumatoid arthritis, multiple sclerosis and insulin-dependent diabetes.
THE IMMUNE RESPONSE CORP.
Consolidated Condensed Statements of Operations
(Dollars in thousands, except per share data)
Three months ended Nine months ended
Sept. 30, Sept. 30,
1991 1990 1991 1990
revenue under a
a related party $993 $893 $3,245 $3,195
development 1,413 1,009 4,396 3,469
administrative 537 295 1,674 806
Total 1,950 1,304 6,070 4,275
Interest income 930 685 2,186 1,328
Equity in operations
of joint venture 46 36 (2,286) 152
Total 976 721 (100) 1,480
Net loss (loss) $19 $310 ($2,925) $400
Net income (loss)
per share $0.00 $0.03 ($0.23) $0.04
Shares used in
loss per share 13,935,586 11,141,802 12,636,118 9,645,273
THE IMMUNE RESPONSE CORP.
Consolidated Condensed Balance Sheets
(dollars in thousands)
Sept. 30, Dec. 31,
Cash, cash equivalents
investments $54,097 $25,498
Research contract receivable
from a related party 998 1,117
Other current assets 877 979
Total 55,972 27,594
Property and equipment, net 3,157 3,033
Other assets 531 1,965
Total assets $59,660 $32,592
Liabilities $1,004 $677
Stockholders' equity 58,656 31,915
Total liabilities and
stockholders' equity $59,660 $32,592
/CONTACT: Steven L. Basta or Charles J. Cashion, VP-finance, 619-431-7080, of Immune Response Corp./
(IMNR) CO: The Immune Response Corp. ST: California IN: MTC SU: ERN KJ-EH -- SD002 -- 1528 11/06/91 08:05 EST