| FOR IMMEDIATE RELEASE |
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AUTOIMMUNE INC. REPORTS 2005 SECOND QUARTER FINANCIAL RESULTS Pasadena, California, August 11, 2005 — AutoImmune Inc. (OTCBB: AIMM) today reported a net loss of $0.19 million, or $0.01 per share basic and diluted, for the three months ended June 30, 2005 compared with a net loss of $0.30 million , or $0.02 per share basic and diluted, for the three months ended June 30, 2004. For the six months ended June 30, 2005, the net loss was $0.37 million, or $0.02 per share basic and diluted, compared with net loss of $0.47 million, or $0.03 per share basic and diluted for the same period in 2004. As of June 30, 2005, the Company reported $9.6 million in cash and marketable securities as compared to $10.0 million in cash and marketable securities as of December 31, 2004. Robert C. Bishop, Ph.D., Chairman of the Board and Chief Executive Officer stated, "The Company's licensees made progress during the second quarter with their ongoing clinical trials of products using AutoImmune technology and Colloral LLC, our joint venture with Deseret Laboratories Inc. for dietary supplements, is preparing to embark on a new consumer oriented marketing plan created with the assistance of Business Development Resources, Inc." Under the currently applicable accounting model, AutoImmune will begin to recognize income from the joint venture when profits exceed cumulative start-up costs. AutoImmune has exclusively licensed certain of its intellectual property rights to BioMS Medical Corp., a Canadian company. Under the license agreement, BioMS makes monthly diligence payments to AutoImmune and has a royalty obligation on sales of its lead drug MBP8298, a treatment for secondary progressive multiple sclerosis, should it reach the market. BioMS is currently enrolling patients at multiple sites in a Phase II/III study of MBP8298. AutoImmune has also exclusively licensed certain of its intellectual property rights to Teva Pharmaceutical Industries, Ltd. Teva has an ongoing Phase II study looking at two different doses of on an oral formulation of COPAXONE® (glatiramer acetate), a product for the treatment of multiple sclerosis. The oral formulation utilizes the intellectual property rights licensed from AutoImmune. If Teva is successful in bringing this product to market, AutoImmune will receive both a milestone payment and a royalty on sales under its license agreement. AutoImmune is a biopharmaceutical company involved in the development of a new class of mucosally administered therapies for the treatment of autoimmune and cell-mediated inflammatory diseases and conditions. This release contains forward-looking statements which involve risks and uncertainties. The Company's actual results may differ significantly from results discussed in the forward-looking statements due to a number of important factors, including, but not limited to the development stage of the Company's and its licensees' products, uncertainties of clinical trial results, the Company's dependence on third parties for licensing revenue, the risk that Colloral® may be classified as a drug rather than a dietary supplement, and the risks of technological change and competition. These factors are more fully discussed in the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission in the section "Business-Factors to be Considered." The discussion in the Annual Report on Form 10-K is hereby referenced into this release - Financial Chart Follows - Contact: Robert C. Bishop, Ph.D. Chairman and Chief Executive Officer AutoImmune Inc. 626-792-1235 website: http://www.autoimmuneinc.com AutoImmune Inc. 1199 Madia Street Pasadena, CA 91103 Phone: 626-792-1235 Fax: 626-792-1236 |
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AUTOIMMUNE INC.
(Unaudited)
STATEMENT OF OPERATIONS |
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| Three months ended June 30, | Six months ended June 30, | |||
|---|---|---|---|---|
| 2004 | 2005 | 2004 | 2005 | |
| Revenue | $30,000 | $37,000 | $60,000 | $75,000 |
| Costs and expenses: | ||||
| Research and development | 146,000 | 21,000 | 204,000 | 148,000 |
| General and administrative | 214,000 | 21,000 | 204,000 | 148,000 |
| Total costs and expenses | 360,000 | 203,000 | 589,000 | 445,000 |
| Interest income | 30,000 | 72,000 | 61,000 | 133,000 |
| Equity in net loss of unconsolidated affiliate | - | (100,000) | - | (130,000) |
| 31,000 | (28,000) | 61,000 | 3,000 | |
| Net income (loss) | ($300,000) | ($194,000) | ($468,000) | ($367,000) |
| Net income (loss) per share - basic | ($0.02) | ($0.01) | ($0.03) | ($0.02) |
| Net income (loss) per share - diluted | ($0.02) | ($0.01) | ($0.03) | ($0.02) |
| Weighted average common shares | ||||
| outstanding - basic | 16,919,623 | 16,919,623 | 16,919,623 | 16,919,623 |
| Weighted average common shares | ||||
| outstanding - diluted | 16,919,623 | 16,919,623 | 16,919,623 | 16,919,623 |
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CONDENSED BALANCE SHEET
(Unaudited)
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| December 31, | June 30, | |
|---|---|---|
| 2004 | 2005 | |
| Cash and marketable securities | $9,996,000 | $9,606,000 |
| Other current assets | 37,000 | 76,000 |
| Other assets | 5,000 | - |
| Total assets | $10,038,000 | $9,682,000 |
| Current liabilities | $108,000 | $121,000 |
| Total stockholder's equity | 9,930,000 | 9,561,000 |
| Total liabilities and equity | $10,038,000 | $9,682,000 |