Four Robust Advance-Stage Clinical Programs Accelerate as Revenues Increase.
Cash And Cash Equivalents Increased over Prior Nine Month Period
Philadelphia, PA, Friday, November 15, 2002: Hemispherx Biopharma Inc. (Amex:HEB) announced that overall losses, as of September 30, 2002 expressed as basic and diluted loss per share, decreased approximately 18% over the 9 month period ending September 30, 2001. For the nine months ended September 30, 2002, diluted loss per share was $0.19 (including non-cash expenses) versus $0.23 for the previous year. Cash and cash equivalents increased compared to the nine months ending September 30, 2001. Overall revenue for the 9 month period increased approximately 270% and current liabilities fell approximately 30% over the previous year. Basic and diluted loss per share for the three months ended September 30,2002 was $0.06 vs. $0.07 for the prior year period.
Non-cash expenses include: stock compensation expense ($132,000) investment in an affiliated company ($678,000) and intellectual property amortization or abandonment of certain non-essential foreign patents. Stock compensation expense was primarily calculated using the Black-Scholes model.
Robust Clinical Development and New Drug Pipeline
The company incurred clinical research related costs of $4,765,000 for the 9 months ending September 30, 2002, compared to $3,732,000 for the comparable period in 2001.
Hemispherx Biopharma, Inc. is a biopharmaceutical company that focuses on the innovative development of ribonucleic acid (RNA) drug technologies intended to enhance the natural anti-viral defense system of the human body, representing a potential new class of pharmaceutical products. Its primary product, Ampligen, is in two phase IIb clinical trials for HIV/AIDS, one experimental Salvage Therapy and one Strategic Treatment Intervention (STI), and a phase III clinical trial for Chronic Fatigue Syndrome (CFS), and a Treatment IND trial with cost-recovery authorized by various governmental regulatory bodies worldwide. Enrollment in the studies is expected to substantially exceed 600 patients.
Accelerated Commercial Opportunities
The Company said that in addition to proceeding on an accelerated timetable with respect to its clinical targets, it had also opened up new opportunities with various therapeutics, which also offered accelerated commercial potential. Because of its recent stock performance and low operating cost structure (Including General and Administrative costs), a company spokesperson said that the company was able to aggressively pursue acquisition opportunities to widen the range of its very near term commercial goals. The spokesman also indicated that the non cash losses attributed to the investment in the affiliated company and the amortization of intellectual property were necessitated solely to comply with accounting requirements and that these write downs do not, in managements judgment, represent an actual diminution in the commercial market value of the assets. In its currently filed 10Q, the Company reported 2,716,000 non-public outsider warrants which, if exercised, would produce gross proceeds of $14,814,000. The Company also expects to meet milestones, which may result in further financial payments and obligations of its various corporate partners.
Hemispherx Biopharma, Inc., Investor Relations
(215) 988-1712, Fax: (215) 988-1554
Dianne Will, Investor Relations
(518) 398-6222, Fax: (518) 398-6223
Robert Giordano, MRB Institutional Investors, MRB
(212) 495-0200, Fax: (212) 495-0746
HEB's Web Site: www.hemispherx.net
Information contained in this news release other than historical information, should be considered forward-looking and is subject to various risk factors and uncertainties. For instance, the strategies and operations of Hemispherx involve risk of competition, changing market conditions, change in laws and regulations affecting these industries and numerous other factors discussed in this release and in the Company's filings with the Securities and Exchange Commission. Accordingly, all the referenced investigational drugs and associated technologies of the company are experimental in nature and as such are not designated safe and effective by a regulatory authority for general use and are legally available only through clinical trials with the referenced disorders. The forward-looking statements represent the Company's judgment as of the date of this release. The Company disclaims, however, any intent or obligation to update these forward-looking statements.