Full Press Release Details
| Investors: | Bernie Hertel, Inovio Biomedical, 858-410-3101 |
| Media: | Jeff Richardson, Richardson & Associates, 805-491-8313 |
Inovio Biomedical Reports First Quarter 2009 Financial Results
SAN DIEGO, CA May 14,
2009 Inovio Biomedical Corporation (NYSE AMEX: INO) ( Inovio ) today reported
financial results for the quarter ended March 31, 2009.
Total revenue for the
quarter ended March 31, 2009, was $369,000, compared with $653,000 for the
same period in 2008. Total operating expenses for the quarter ended March 31,
2009, were $3.9 million, compared with $4.0 million for the same period in
2008. The net loss attributable to common stockholders for the quarter ended March 31,
2009, was $3.5 million, or $0.08 per share, compared with a net loss
attributable to common stockholders of $3.0 million, or $0.07 per share for the
same period in 2008.
Revenue from license fees
and milestone payments for the quarter ended March 31, 2009 was $213,000,
compared to $193,000 for the same period in 2008. The increase in revenue under
license fees and milestone payments for the three month period ended March 31,
2009, as compared to the comparable period in 2008, was mainly due to revenue
recognized from various smaller license agreements.
Revenue recorded under
collaborative research and development arrangements for the quarter ended March 31,
2009 was $54,000, compared to $460,000 for the same period in 2008. The
decrease in revenue was primarily due to a decrease in Merck collaborative
research billings from $235,000 in the three months ended March 31, 2008,
to $54,000 in the three months ended March 31, 2009, as well as no
billings to Wyeth related to our collaborative agreement, as compared to
$225,000 in Wyeth billings for the three months ended March 31, 2008.
Revenues from collaborative research and development arrangements are expected
to decline in 2009 as compared to 2008, as Wyeth continues to evaluate internal
strategic options prior to initiating further development of
electroporation-based infectious disease programs. Under our research and
collaboration agreement with Merck, we have provided the majority of the
required device development for use in their clinical trials and we believe
that development activities for Merck will be limited until trial results are
Grant and miscellaneous
revenue for the quarter ended March 31, 2009, was $102,000, compared to no
grant and miscellaneous revenue for the same period in 2008. The increase in
grant and miscellaneous revenue for the three months ended March 31, 2009,
as compared to the comparable period in 2008, was due to revenue recognized
from a Department of Defense (U.S. Army) grant we received on September 26,
2008. This grant has a total value of $933,000, will fund research and
development of DNA-based vaccines delivered via our proprietary electroporation
system and will run through May 2010. This project is focused on
identifying DNA vaccine candidates with the potential to provide rapid, robust
immunity to protect against biowarfare and bioterror attacks.
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Research and development
expenses for the quarter ended March 31, 2009, was $964,000, compared to $1.6
million for the same period in 2008. The decrease in research and development
expenses for the three months ended March 31, 2009, as compared to the
comparable period in 2008, was primarily due to lower personnel costs due to
lower employee headcount during the period as well as a decrease in clinical
trial expenses as there were minimal costs incurred related to closing down the
SECTA clinical programs.
administrative expenses, which include business development expenses, for the
quarter ended March 31, 2009, was $3.0 million, compared to $2.4 million
for the same period in 2008. The increase in general and administrative
expenses for the three months ended March 31, 2009, as compared to the
comparable period in 2008, was primarily due to extraordinary legal and related
fees associated with the pending merger and other corporate matters. We expect
these legal fees to decrease to a significant extent in quarters following the
merger, should it be approved and consummated. These increases were offset by a
decrease in outside consulting services related to partnering our SECTA therapy
program and other corporate advisory services as well as lower personnel costs
and employee stock-based compensation expense.
Net Loss Attributable to Common Stockholders
$443,000 increase in net loss attributable to common stockholders for the year
ended March 31, 2009, as compared to the same period in 2008, resulted
primarily from a decrease in collaborative research and development revenue
recognized from our agreements with Merck and Wyeth, an increase in general and
administrative expenses and a decrease in interest income; offset by decrease
in research and development expenses and increase in grant and miscellaneous
revenue recognized from the Department of Defense (U.S. Army).
quarter 2009 with cash and cash equivalents of $11.7 million and a negative
working capital of $2.6 million, as compared to $14.1 million in cash and cash
equivalents and $554,000 in working capital as of December 31, 2008.
The decrease in working
capital during the three months ended March 31, 2009, was due to
expenditures related to our research and development activities, as well as
various general and administrative expenses related to legal, consultants,
accounting and audit, and corporate development.
Additionally, working
capital was negatively impacted by the reclassification of our auction rate
securities (ARS) and related ARS Rights to long-term assets, while our line of
credit of $12.1 million, which we anticipate will be paid in full upon the
redemption of our ARS by UBS as soon as June 2010, is classified as a
current liability. If the line of credit was classified as a long-term
liability to offset the long-term ARS and ARS Rights, working capital as of March 31,
2009, would be $9.4 million. Management
believes that Inovio s cash and cash equivalents at March 31, 2009, are
sufficient to meet its planned working capital needs through March 31,
2010. To continue our product development we plan to raise additional working
capital through equity or debt financings.
Inovio, via our wholly-owned subsidiary Genetronics, Inc., which holds the
ARS, accepted an offer of ARS Rights from our investment advisor, UBS. The ARS
Rights permit us to require UBS to purchase our ARS at par value at any time
during the period of June 30, 2010, through July 2, 2012.