To Our Shareholders:
Operating
as a virtual company all of this past year, AutoImmune Inc. further lowered operating
costs and improved its balance sheet while continuing efforts to maximize shareholder
value. Total expenses were 34% below prior year and ending cash balances were
up by 9%.
The Company’s basic strategy is to license its intellectual
property to capable partners in deals that could generate significant milestone
payments and/or royalties if and when products are approved for sale. At this
point in time we have two such licenses. The first of these is with Teva Pharmaceutical
Industries, Ltd., which is working on an oral formulation of Copaxone® (glatiramer
acetate), its injectable product for the treatment of relapsing-remitting multiple
sclerosis. While its first Phase III trial of the oral product is now believed
unlikely to prove successful, Teva has publicly stated it intends to run additional
trials in the future. The second license is with BioMS Medical Corporation (formerly
known as Rycor Technology Investments Corp.), which is now analyzing final data
from a positive Phase II trial of its MBP8298 product for treatment of chronic
progressive multiple sclerosis. BioMS has advised the Company that it intends
to start a late phase trial on this product during the latter part of 2002. AutoImmune
remains optimistic that both of these products will ultimately be approved and
result in substantial income for the Company.
The oral insulin arm of
DPT-1, an NIH sponsored trial on the Company’s patented method to prevent
type 1 diabetes, remains ongoing and is expected to cease enrollment before the
end of this year. Once the last patient is entered, observation will likely continue
for an additional 24 months, soon after which results should be available. If
successful, AutoImmune expects a licensee will be found to complete development
of a product for this indication.
Most recently, the Company has made progress
in its efforts to realize with a partner the potential for Colloral® as a
dietary supplement and now hopes to see product on the market before the end of
this year.
The success of our licensing efforts is dependent on expanding
and defending AutoImmune’s intellectual property. At year end we had 109
issued US and foreign patents, plus 9 original and continuation-in-part patent
applications with numerous foreign counterparts. The majority of these deal with
methods and products to induce immunological tolerance for the treatment of disease.
We hope to add to this portfolio and are continue to support research efforts
at the Brigham and Women’s Hospital.
With adequate cash reserves to
wait for results from clinical trials on our products, we believe we are well
positioned for the future and remain confident that our technology will be proven
of significant therapeutic value.
I hope that you share our vision for
the future.
Sincerely,
Robert C. Bishop
Chairman of the Board
March 13, 2003