Full Press Release Details
Sevion Therapeutics Reports First Quarter
2015 Financial Results
Bridgewater, NJ - November 17, 2014
- Sevion Therapeutics, Inc. ("Sevion" or the "Company") (OTCQB: SVON), a biopharmaceutical company which discovers,
develops and acquires next-generation biologics for the treatment of cancer and immunological diseases, today reported financial
results for the fiscal quarter ended September 30, 2014 ("First Quarter 2015").
"During the first fiscal quarter of
2015, we made a strategic decision to focus our efforts and resources on our proprietary antibody discovery technology platforms,
including two promising antibodies that are advancing toward IND status," said Ronald Martell, Chief Executive Officer of
Sevion. "Our strategy for building long-term shareholder value is to leverage our pipeline and platforms through partnerships,
while looking at high-potential in-licensing opportunities that fit with our therapeutic areas of interest and primary scientific
focus. Through this transition phase, our goal is to streamline operations while putting in place the building blocks for reaching
our goal of becoming a preeminent next-generation biologics company with best and first-in-class product candidates and technologies."
Fiscal First Quarter 2015 and Recent
First Fiscal Quarter 2015 Financial
For the first quarter ended September 30,
the Company reported no revenue versus $0.1 million a year ago, which consisted of a milestone payment in connection with an agricultural
Research and development expenses for the
first fiscal quarter of 2015 were $2.1 million compared to $0.8 million for the first fiscal quarter of 2014. The increase was
primarily due to the acquisition of Fabrus, Inc., in May 2014, and the write-off of clinical trial materials due to the suspension
of the Company's clinical trial program.
General and administrative expenses were
$0.8 million for the first fiscal quarter of 2015 compared to $0.9 million for the comparable year-ago first quarter.
The loss applicable to common shares for
the first fiscal quarter of 2015 was $5.2 million, or $(0.38) per share, compared with a loss applicable to common shares for the
first fiscal quarter of 2014 of $1.8 million, or $(0.78) per share. This increase in the loss applicable to common shares was primarily
the result of an increase in research and development expenses and patents and clinical trial materials written off.
As of September 30, 2014, the Company had
cash and cash equivalents of $3.8 million, compared to cash and cash equivalents of $6.1 million as of June 30, 2014. The Company
believes that it has sufficient funds to maintain operations through March 2015.
About Sevion Therapeutics
Sevion Therapeutics is a biopharmaceutical
company building and developing a portfolio of innovative therapeutics, from both internal discovery and acquisition, for the
treatment of cancer and immunological diseases. The Company's product candidates are derived from multiple key proprietary
technology platforms: cell-based arrayed antibody discovery, ultralong antibody scaffolds and Chimerasome nanocages. Sevion has
leveraged these technologies to build a pipeline of innovative product candidates. For more information, please visit SevionTherapeutics.com.
Forward-Looking Statements
Certain statements included
in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Actual results could differ materially from such statements expressed or implied herein as a result of a variety of factors, including,
but not limited to: the Company's ability to integrate the Fabrus science and operations, including the rebranding of the
Company as Sevion Therapeutics; the Company's ability to continue as a going concern; the ability of the Company to consummate
additional financings; the development of the Company's gene and antibody technology; the approval of the Company's
patent applications; the current uncertainty in the patent landscape surrounding small inhibitory RNA and the Company's ability
to successfully defend its intellectual property or obtain the necessary licenses at a cost acceptable to the Company, if at all;
the successful implementation of the Company's research and development programs and collaborations; the success of the Company's
license agreements; the acceptance by the market of the Company's products; the timing and success of the Company's
preliminary studies, preclinical research competition and the timing of projects and trends in future operating performance; and
the quotation of the Company's common stock on an over-the-counter securities market, as well as other factors expressed
from time to time in the Company's periodic filings with the Securities and Exchange Commission (the "SEC"). As
a result, this press release should be read in conjunction with the Company's periodic filings with the SEC. The forward-looking
statements contained herein are made only as of the date of this press release, and the Company undertakes no obligation to publicly
update such forward-looking statements to reflect subsequent events or circumstances.
David Pitts, Argot Partners
| SEVION THERAPEUTICS, INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (unaudited) |
| September 30, | June 30, | |||||||
| 2014 | 2014 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 3,837,139 | $ | 6,111,340 | ||||
| Accounts receivable | 43,133 | 43,133 | ||||||
| Prepaid research supplies and expenses | 163,147 | 1,069,925 | ||||||
| Total Current Assets | 4,043,419 | 7,224,398 | ||||||
| Equipment, furniture and fixtures, net | 262,633 | 223,475 | ||||||
| Patent costs, net | 123,531 | 2,178,867 | ||||||
| Acquired research and development | 9,800,000 | 9,800,000 | ||||||
| Goodwill | 13,902,917 | 13,902,917 | ||||||
| Security deposit | 5,171 | 5,171 | ||||||
| TOTAL ASSETS | $ | 28,137,671 | $ | 33,334,828 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 613,020 | $ | 901,180 | ||||
| Accrued expenses | 1,074,168 | 923,991 | ||||||
| Total Current Liabilities | 1,687,188 | 1,825,171 | ||||||
| Deferred tax liability | 3,920,000 | 3,920,000 | ||||||
| Other liabilities | 99,728 | 99,728 | ||||||
| TOTAL LIABILITIES | 5,706,916 | 5,844,899 | ||||||
| COMMITMENTS | ||||||||
| STOCKHOLDERS' EQUITY: | ||||||||
| Convertible preferred stock, $0.01 par value, authorized 5,000,000 shares | ||||||||
| Series A 10,297 shares issued and 580 and 580 shares outstanding, respectively | ||||||||
| (liquidation preference of $609,000 and $594,500 | ||||||||
| at September 30, 2014 and June 30, 2014, respectively) | 6 | 6 | ||||||
| Common stock, $0.01 par value, authorized 500,000,000 shares, | ||||||||
| issued and outstanding 13,846,361 and 13,846,361, respectively | 138,463 | 138,463 | ||||||
| Capital in excess of par | 115,770,859 | 115,631,726 | ||||||
| Accumulated deficit | (93,478,573 | ) | (88,280,266 | ) | ||||
| Total Stockholders' Equity | 22,430,755 | 27,489,929 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 28,137,671 | $ | 33,334,828 |
| SEVION THERAPEUTICS, INC. AND SUBSIDIARIES |
| CONDENSED ONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
| (unaudited) |
| Three Months Ended September 30, | ||||||||
| 2014 | 2013 | |||||||
| Licensing Revenue | $ | - | $ | 100,000 | ||||
| Operating expenses: | ||||||||
| General and administrative | 774,600 | 856,631 | ||||||
| Research and development | 2,120,156 | 810,937 | ||||||
| Write-off of patents | 2,290,836 | 185,161 | ||||||
| Total operating expenses | 5,185,592 | 1,852,729 | ||||||
| Loss from operations | (5,185,592 | ) | (1,752,729 | ) | ||||
| Interest expense - net | 1,785 | (31,604 | ) | |||||
| Net loss | (5,183,807 | ) | (1,784,333 | ) | ||||
| Preferred dividends | (14,500 | ) | (21,623 | ) | ||||
| Loss applicable to common shares | (5,198,307 | ) | (1,805,956 | ) | ||||
| Other comprehensive loss | - | - | ||||||
| Comprehensive loss | $ | (5,198,307 | ) | $ | (1,805,956 | ) | ||
| Basic and diluted net loss per common share | $ | (0.38 | ) | $ | (0.78 | ) | ||
| Basic and diluted weighted-average number of common shares outstanding | 13,846,361 | 2,307,926 |