| FOR IMMEDIATE RELEASE |
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AUTOIMMUNE INC. REPORTS 2008 FIRST QUARTER FINANCIAL RESULTS Pasadena, California, May 9, 2008 — AutoImmune Inc. (OTCBB: AIMM) today reported a net loss of $107,000, or ($0.01) per share basic and diluted, for the three months ended March 31, 2008, compared with net income of $8,000, or break even per share basic and diluted, for the three months ended March 31, 2007. As of March 31, 2008, the Company reported $8.7 million in cash and marketable securities as compared to $8.8 million in cash and marketable securities as of December 31, 2007. Chairman of the Board and Chief Executive Officer Robert C. Bishop, Ph.D. stated, "Product sales at Colloral LLC, our joint venture with Deseret Laboratories, Inc., were down from the fourth quarter, but have begun to rebound with orders in hand from both Futurebiotics LLC and The Shopping Channel in Canada." AutoImmune consolidates Colloral LLC for financial reporting purposes in accordance with FIN 46 "Consolidation of Variable Interest Entities." 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 will pay royalties to AutoImmune on sales of its lead drug MBP8298, if it reaches the market. BioMS recently sublicensed its rights in this product to Eli Lilly and Company and stated that an interim analysis on the first 200 patients in its pivotal phase II/III trial in Canada and Western Europe evaluating MBP8298 for treatment of secondary progressive multiple sclerosis is expected in mid-2008. AutoImmune is a biopharmaceutical company involved in the development of treatments for autoimmune and cell-mediated inflammatory diseases and conditions. Statements in this release that are not strictly historical are forward-looking statements including statements about clinical trials and studies and future sales, royalties and revenue. You can identify these forward-looking statements because they involve our expectations, beliefs, projections, anticipations or other characterizations of future events or circumstances. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that may cause actual results to differ materially from those in the forward-looking statements as a result of any number of factors. These factors include, but are not limited to the uncertainties of clinical trial results, the Company's dependence on third parties for licensing revenue, and the risks of technological change and competition. These factors are more fully discussed, as are other factors, in the Company's most recent Annual Report on Form 10-KSB filed with the Securities and Exchange Commission in the section entitled "Risk Factors." - 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 March 31, | ||||
|---|---|---|---|---|
| 2007 | 2008 | |||
| Revenue | $97,000 | $67,000 | ||
| Costs and expenses: | ||||
| Cost of goods sold | 9,000 | 12,000 | ||
| Research and development | 30,000 | 42,000 | ||
| General and administrative | 185,000 | 205,000 | ||
| Total costs and expenses | 224,000 | 259,000 | ||
| Interest income | 110,000 | 84,000 | ||
| Minority interest in joint venture | - | 1,000 | ||
| Other income | 25,000 | - | ||
| 135,000 | 85,000 | |||
| Net income (loss) | $8,000 | ($107,000) | ||
| Net income (loss) per share - basic | $0.00 | ($0.01) | ||
| Net income (loss) per share - diluted | $0.00 | ($0.01) | ||
| Weighted average common shares | ||||
| outstanding - basic | 16,942,861 | 16,997,205 | ||
| Weighted average common shares | ||||
| outstanding - diluted | 17,439,507 | 16,997,205 | ||
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CONDENSED BALANCE SHEET
(Unaudited)
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| December 31, | March 31, | |
|---|---|---|
| 2007 | 2008 | |
| Cash and marketable securities | $8,804,000 | $8,680,000 |
| Other current assets | 167,000 | 139,000 |
| Total assets | $8,971,000 | $8,819,000 |
| Current liabilities | $128,000 | $161,000 |
| Minority interest in joint venture | $11,000 | $13,000 |
| Total stockholder's equity | 8,832,000 | 8,645,000 |
| Total liabilities and equity | $8,971,000 | $8,819,000 |