| FOR IMMEDIATE RELEASE |
|
AUTOIMMUNE INC. REPORTS 2005 FOURTH QUARTER AND YEAR END FINANCIAL RESULTS Pasadena, California, March 10, 2006 — AutoImmune Inc. (OTCBB: AIMM) today reported a net loss of $0.10 million, or $0.01 per share basic and diluted, for the three months ended December 31, 2005, compared with a net loss of $0.20 million, or $0.01 per share basic and diluted, for the three months ended December 31, 2004. For the year ended December 31, 2005, the net loss was $0.67 million, or $0.04 per share basic and diluted, compared with a net loss of $0.76 million, or $0.04 per share basic and diluted for the same period in 2004. As of December 31, 2005, the Company reported $9.3 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, "Colloral LLC, our joint venture with Deseret Laboratories Inc. for dietary supplements, successfully completed a direct mail test program during the fourth quarter and has begun expansion of that effort to a larger group of potential customers. The ultimate success of this initiative will be determined by the product re-order rate which translates into ongoing revenue for the venture." For the past two quarters, AutoImmune has consolidated Colloral LLC for financial reporting purposes in accordance with FIN 46 "Consolidation of Variable Interest Entities." Clinical trials of products using AutoImmune technology remain ongoing under the direction of the Company's licensees. 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. On February 7, 2006, BioMS announced that it had received a third positive review by the Data Safety Monitoring Board on its Phase II/III human clinical trial of MBP8298. AutoImmune has also exclusively licensed certain of its intellectual property rights to Teva Pharmaceutical Industries, Ltd. Teva is conducting a Phase II study looking at two different doses of 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. - 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 |
|
AUTOIMMUNE INC.
(Unaudited)
STATEMENT OF OPERATIONS |
||||
| Three months ended December 31, | Nine months ended December 31, | |||
|---|---|---|---|---|
| 2004 | 2005 | 2004 | 2005 | |
| Revenue | $37,000 | $60,000 | $130,000 | $179,000 |
| Costs and expenses: | ||||
| Research and development | 67,000 | (35,000) | 326,000 | 154,000 |
| General and administrative | 114,000 | 286,000 | 608,000 | 890,000 |
| Total costs and expenses | 181,000 | 251,000 | 934,000 | 1,044,000 |
| Interest income | 42,000 | 92,000 | 138,000 | 304,000 |
| Equity in net loss of unconsolidated affiliate | (95,000) | - | (95,000) | (130,000) |
| Other income | - | - | - | 25,000 |
| (53,000) | 92,000 | 43,000 | 199,000 | |
| Net income (loss) | ($197,000) | ($99,000) | ($761,000) | ($666,000) |
| Net income (loss) per share - basic | ($0.01) | ($0.01) | ($0.04) | ($0.04) |
| Net income (loss) per share - diluted | ($0.01) | ($0.01) | ($0.04) | ($0.04) |
| 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 |
|
CONDENSED BALANCE SHEET
(Unaudited)
|
||
| December 31, | December 31, | |
|---|---|---|
| 2004 | 2005 | |
| Cash and marketable securities | $9,996,000 | $9,285,000 |
| Other current assets | 37,000 | 136,000 |
| Other assets | 5,000 | - |
| Total assets | $10,038,000 | $9,421,000 |
| Current liabilities | $108,000 | $157,000 |
| Total stockholder's equity | 9,930,000 | 9,264,000 |
| Total liabilities and equity | $10,038,000 | $9,421,000 |