| FOR IMMEDIATE RELEASE |
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AUTOIMMUNE INC. REPORTS 2003 FOURTH QUARTER
AND YEAR END FINANCIAL RESULTS Pasadena, California, February 26, 2004 — AutoImmune Inc. (Nasdaq: AIMM) today reported a net loss of $0.11 million, or $0.01 per share basic and diluted, for the three months ended December 31, 2003, compared with a net loss of $0.25 million, or $0.01 per share basic and diluted, for the three months ended December 31, 2002. For the year ended December 31, 2003, net income was $0.63 million, or $0.04 per share basic and diluted, compared with a net loss of $0.89 million, or $0.05 per share basic and diluted, for the year ended December 31, 2002. Results for the year ended December 31, 2003 reflect receipt of the final payment in March 2003 from a subsidiary of Elan Corporation plc for its purchase of AutoImmune's rights to certain patent applications. As of December 31, 2003, the Company reported $10.7 million in cash and marketable securities as compared to $10.0 million in cash and marketable securities as of December 31, 2002. Robert C. Bishop, Ph.D., Chairman of the Board and Chief Executive Officer stated, "AutoImmune made good progress this past fiscal year through the efforts of its licensees and its joint venture for the manufacture, marketing and sale of Colloral® as a nutritional supplement. We are optimistic the marketing efforts underway to support Colloral will begin to have an impact over the next several quarters. Under the currently applicable accounting model, AutoImmune will begin to recognize income when profits exceed cumulative start-up costs." On December 12, 2003, BioMS reported that it had met with Canadian drug regulators and will submit the application for a Phase III trial of its MBP8298 treatment for secondary progressive multiple sclerosis, which utilizes intellectual property rights exclusively licensed from AutoImmune. On December 23, 2003, BioMS filed a prospectus with respect to a Canadian offering of units in the company, the proceeds of which would be primarily used to finance the planned clinical trial. BioMS makes monthly diligence payments to AutoImmune and has a royalty obligation on sales of MBP8298 should it reach the market. Teva Pharmaceutical Industries, Ltd. recently confirmed that during the first quarter of 2004 it hopes to begin the next human clinical studies on an oral formulation of COPAXONE® (glatiramer acetate), a product for the treatment of multiple sclerosis, which utilizes intellectual property rights exclusively 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. 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 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 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 - |
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AUTOIMMUNE INC.
(Unaudited)
STATEMENT OF OPERATIONS |
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| Three months ended December 31, | Year ended December 31, | |||
|---|---|---|---|---|
| 2002 | 2003 | 2002 | 2003 | |
| Revenue | $22,000 | $30,000 | $70,000 | $1,445,000 |
| Costs and expenses: | ||||
| Research and development | 59,000 | 73,000 | 388,000 | 314,000 |
| General and administrative | 155,000 | 97,000 | 661,000 | 605,000 |
| Total costs and expenses | 214,000 | 170,000 | 1,049,000 | 919,000 |
| Interest income | 41,000 | 32,000 | 190,000 | 127,000 |
| Equity in net loss of unconsolidated affiliate | - | - | - | (25,000) |
| Other expense | (100,000) | - | (100,000) | - |
| (59,000) | 32,000 | 90,000 | 102,000 | |
| Net income (loss) | (251,000) | (108,000) | (889,000) | 628,000 |
| Net income (loss) per share - basic | (0.01) | (0.01) | (0.05) | 0.04 |
| Net income (loss) per share - diluted | (0.01) | (0.01) | (0.05) | 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 | 17,398,633 |
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CONDENSED BALANCE SHEET
(Unaudited)
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| December 31, | December 31, | |
|---|---|---|
| 2002 | 2003 | |
| Cash and marketable securities | $10,018,000 | $8,804,000 |
| Other current assets | 81,000 | 35,000 |
| Total assets | 10,099,000 | 10,779,000 |
| Current liabilities | 187,000 | 84,000 |
| Total stockholder's equity | 187,000 | 84,000 |
| Total liabilities and equity | 10,099,000 | 10,779,000 |