…..Overall Operating Expenses Decrease 22% Over Prior Year.
…..Fully Commercialized Immune-Based Antiviral Product Acquired.
Philadelphia, PA, Tuesday, May 20, 2003: Hemispherx Biopharma, Inc. (AMEX: HEB) reported today a net loss of $1,617,000 or $.05 per share for the three months ending March 31, 2003 versus a net loss of $1,488,000 or $.05 per share for the same period in 2002. The losses in 2002 all after the benefit of an initial $545,000 in license fees. Overall operating expenses were reduced to $1,658,000 in 2003 compared to $2,121,000 in 2002. Total assets were $8,729,000, reflecting an increase of 45% over the previous quarter reflecting the acquisition of certain assets from Interferon Sciences, Inc..
The company expects to complete the Phase III ME/CFS clinical trial by the end of 2003 having testing the efficacy of Ampligen in treating approximately 230 patients.
G and A Expenses Reduced 20%
General and Administrative expenses were $667,000 in the first quarter of 2003 compared to $829,000 in 2002 reflecting lower legal expenses in 2003.
Cost Associated with Assets Acquired
Production costs relating to the acquisition of the Interferon Sciences, Inc. assets were $118,000 in the first quarter of 2003. These costs were basically related to starting up the production facility in preparation of producing Alferon N Injection to inventory in anticipation of future sales. The 41,000 sq. foot cGMP, FDA approved facility is located in New Brunswick, NJ.
Dr. William Carter, CEO commented: “ The acquisition is proceeding as planned and our combined staffs are developing a heightened sense of corporate mission, which is to accelerate sales while we bring Ampligen® to the cusp of commercialization. With the recent SARS epidemic, we have once again demonstrated our core strength in R & D and effectively networking with governmental researchers worldwide to leverage our broad-based technology.”
Hemispherx Biopharma, based in Philadelphia, is a biopharmaceutical company engaged in manufacturing and in the 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, 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) and GMP certified manufacturing facilities for its novel pharma products. For more information please visit www.hemispherx.net
Hemispherx Biopharma, Inc., Investor Relations
(518) 398-6222, Fax: (518) 398-6223
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 ever be specifically approved commercially for these other treatment indications. The Alferon® asset for overseas sales for a category of STD is currently being acquired by the Company as part of a multi-step purchase contract of inventory, intellectual property, commercial licenses and GMP approved facilities, which house the biological operations.