Cash and Equivalents Increased 6.0 Million Dollars by Recent Transactions
G&A and Cash Loss Reduced
Phase III CFS Clinical Trials Targeted for Completion in 2003
Commercial Expansion of Fully Natural Interferon Proceeding on Target
Philadelphia, PA, Tuesday, April 15, 2003: Hemispherx Biopharma, Inc. (Amex: HEB) today announced its financial results for the fourth quarter and total year ended December 31, 2002.
Second Consecutive Year of More Efficient Operating Performance
The company reported a net loss (including non-cash expenses) of approximately $1,411,000 or $.04 per share in the fourth quarter of 2002 compared to a net loss of approximately $2,115,000 or $.07 per share in 2001 reflecting an improvement of 43%. Overall operating expenses were lower by $968,000 in the fourth quarter of 2002 reflecting increased operating efficiencies and favorable outcome of litigation.
The net loss (including non-cash expenses) for the year 2002 was approximately $7,424,000 or $.23 per share compared to a loss of approximately $9,083,000 or $.29 per share in 2001 for a reduction of approximately 21%. The actual cash loss for the year 2002 was $5,616,000 for a favorable cash preservation of 23% over the year 2001 and approximately 31% over the year 2000. During 2002, major clinical programs were conducted in CFS treatment (Phase III) and in HIV disease treatment (Phase IIb).
Transition from Research and Development to Integrated Commercial Launch Programs
Dr. William A. Carter, Chairman and Chief Executive Officer of the company, stated: “our company is transitioning from an R&D based enterprise to one centered on achieving major revenue targets with Alferon and setting the stage for potential launch of Ampligen® as we proceed to accelerated completion of our pivotal Phase III studies. At the same time, we are demonstrating both operating synergies in our New Jersey and Maryland manufacturing facilities as well as therapeutic synergies with our new pharma product lines. We are committed to exceed significantly our 2002 revenues, which on a pro forma basis, were approximately $3,000,000 (including the recent acquisition).”
Hemispherx Biopharma, based in Philadelphia, is a biopharmaceutical company engaged in the manufacture and global clinical development of new drug entities for treatment of viral and immune-based chronic disorders. Its flagship products include Alferon®, Ampligen® and Oragens™. These novel proteins and nucleic acids are being developed for globally important chronic viral diseases and disorders of the Immune system including HPV (papilloma), HIV, CFS and Hepatitis. Its platform technology includes large and small agent components for potential treatment of various chronic viral infections. Hemispherx has approximately 400 patents comprising its core intellectual property estate, a fully commercialized product (Alferon N) registered in various global markets including the U.S. and fully GMP certified manufacturing facilities for its novel pharma products. In various countries of the world, Hemispherx operates through strategic corporate alliances and/or its wholly owned subsidiaries. For more information please visit the company’s Web sit at www.hemispherx.net.
Hemispherx Biopharma, Inc., Investor Relations
(518) 398-6222, Fax: (518) 398-6223
Robert Giordano, MRB Investor Relations
(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. Any specifically referenced investigational drugs and associated technologies of the company (including AmpligenÒ and Oragensä) 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. Clinical trials for other potential indications of the approved biologic AlferonÒ do not imply that the product will be specifically approved commercially for these other treatment indications.