VaxGen Releases First-Quarter Financial Results

Apr 26, 2001, 01:00 ET from VaxGen, Inc.

    BRISBANE, Calif., April 26 /PRNewswire/ -- VaxGen, Inc. (Nasdaq:   VXGN)
 today announced first-quarter financial results.  For the quarter ended
 March 31, 2001, the development-stage company reported a net loss of
 $5.9 million, or 42 cents per share, compared with a net loss of $4.6 million,
 or 34 cents per share, in the first quarter of 2000.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19991112/VAXGENLOGO )
     As of March 31, 2001, VaxGen had $42 million in cash and investment
 securities, compared with $48.5 million at the end of the previous quarter.
 The company currently expects its cash burn to total about $24 million in
 2001.
     Revenues for the most recent quarter came to $75,000 from a grant from the
 National Institutes of Health (NIH).  VaxGen had no revenues in the same
 period a year ago.
     VaxGen is using the NIH Small Business Innovation Research (SBIR) Fast
 Track grant to develop a subtype C HIV vaccine.  Subtype C is found in Africa,
 India and China and is responsible for half of the world's 36 million HIV
 infections.  The grant is valued at up to $1.1 million during the next
 2.5 years.
     The increase in the net loss for the first quarter of 2001 compared with
 the same quarter a year ago was due largely to the hiring of additional
 laboratory and clinical personnel and legal fees, including those associated
 with a successful patent defense last year.
     VaxGen will hold a conference call and web cast today at noon, EDT, to
 discuss its first-quarter results.   The following phone numbers will provide
 access to the call or a taped version, which will be archived for 24 hours.
 
     Live:      877-232-1251 (Domestic)
                706-634-5936 (Non-domestic)
                No passcode required
 
     Taped:     800-642-1687 (Domestic)
                706-645-9291 (Non-domestic)
                Passcode:  771094
 
     The web cast can be found under "Company Presentations" in the Investor
 Relations section of VaxGen's web site at www.vaxgen.com.
     VaxGen is the worldwide leader in developing preventive HIV/AIDS vaccines
 and is the only company with such vaccines in Phase III trials, the final
 stage before regulatory approval can be sought.  The company is conducting
 two separate Phase III trials, one in North America and Europe and another in
 Thailand.  The company expects to release results from an interim analysis of
 the trial in North America/Europe in November 2001.  If the analysis yields
 sufficient statistical evidence to show that the vaccine, AIDSVAX, is
 effective, VaxGen expects that the trial will be halted.  The company would
 then begin the process of applying for regulatory approval.  If the interim
 analysis is inconclusive, the trial will proceed to its scheduled conclusion
 in the fourth quarter of 2002.  VaxGen is located in Brisbane, Calif.  For
 more information, please visit the company's web site at www.vaxgen.com.
 
     NOTE:  AIDSVAX(R) is a registered trademark of VaxGen.
 
     Note:  This news release contains "forward-looking statements" within the
 meaning of the Private Securities Litigation Reform Act of 1995.  Such
 forward-looking statements are subject to known and unknown risks,
 uncertainties or other factors that may cause VaxGen's actual results to be
 materially different from historical results, expressed or implied by such
 forward-looking statements.  Factors that might cause such a difference
 include, but are not limited to, uncertainties related to the progress, costs
 and results of the company's Phase III clinical trials, the progress of other
 internal research and development projects, the establishment of collaborative
 arrangements with governmental agencies, the availability of manufacturing
 capacity, the receipt of research grants and the timing of certain expenses.
 Reference should be made to VaxGen's Annual Report on Form 10-K, filed with
 the Securities and Exchange Commission, for a more detailed description of
 such factors discussed in the "Factors Affecting Future Results" and
 "Business" sections.  Readers are cautioned not to place undue reliance on
 these forward-looking statements that speak only as of the date of this
 release.  VaxGen undertakes no obligation to update publicly any
 forward-looking statements to reflect new information, events, or
 circumstances after the date of this release or to reflect the occurrence of
 anticipated events.
 
 
     VaxGen, Inc.
     Condensed Statements of Operations (unaudited)
     (In thousands, except for per share data)
 
                                                   Quarter           Quarter
                                                    Ended             Ended
                                               March 31, 2001    March 31, 2000
     Revenues:
     Contract revenue                                   $75               $--
 
     Operating Expenses:
 
     Research and development                        (4,509)           (4,053)
     General and administrative                      (2,342)           (1,593)
 
     Loss from operations                            (6,776)           (5,646)
 
     Other income, net                                  845             1,030
 
       Net Loss                                     $(5,931)          $(4,616)
 
     Basic and diluted loss per share                $(0.42)           $(0.34)
 
     Weighted average shares used in
      computing basic and diluted loss per
      share                                          14,061            13,540
 
 
     VaxGen, Inc
     Condensed Balance Sheets (unaudited)
     (In thousands, except for footnote data)
 
 
                                                   March 31,       December 31,
                                                     2001              2000
 
     Assets:
     Cash and investment securities                 $42,022           $48,524
     Property and equipment, net                      3,045             3,202
     Other assets                                     4,889             5,071
 
     Total Assets                                   $49,956           $56,797
 
 
     Liabilities and Stockholders Equity:
 
     Current liabilities                             $3,695            $5,358
     Other liabilities                                  359               367
     Stockholders' equity                            45,902            51,072
 
     Total Liabilities and Stockholders'
      Equity                                        $49,956           $56,797
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X86515211
 
 

SOURCE VaxGen, Inc.
    BRISBANE, Calif., April 26 /PRNewswire/ -- VaxGen, Inc. (Nasdaq:   VXGN)
 today announced first-quarter financial results.  For the quarter ended
 March 31, 2001, the development-stage company reported a net loss of
 $5.9 million, or 42 cents per share, compared with a net loss of $4.6 million,
 or 34 cents per share, in the first quarter of 2000.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19991112/VAXGENLOGO )
     As of March 31, 2001, VaxGen had $42 million in cash and investment
 securities, compared with $48.5 million at the end of the previous quarter.
 The company currently expects its cash burn to total about $24 million in
 2001.
     Revenues for the most recent quarter came to $75,000 from a grant from the
 National Institutes of Health (NIH).  VaxGen had no revenues in the same
 period a year ago.
     VaxGen is using the NIH Small Business Innovation Research (SBIR) Fast
 Track grant to develop a subtype C HIV vaccine.  Subtype C is found in Africa,
 India and China and is responsible for half of the world's 36 million HIV
 infections.  The grant is valued at up to $1.1 million during the next
 2.5 years.
     The increase in the net loss for the first quarter of 2001 compared with
 the same quarter a year ago was due largely to the hiring of additional
 laboratory and clinical personnel and legal fees, including those associated
 with a successful patent defense last year.
     VaxGen will hold a conference call and web cast today at noon, EDT, to
 discuss its first-quarter results.   The following phone numbers will provide
 access to the call or a taped version, which will be archived for 24 hours.
 
     Live:      877-232-1251 (Domestic)
                706-634-5936 (Non-domestic)
                No passcode required
 
     Taped:     800-642-1687 (Domestic)
                706-645-9291 (Non-domestic)
                Passcode:  771094
 
     The web cast can be found under "Company Presentations" in the Investor
 Relations section of VaxGen's web site at www.vaxgen.com.
     VaxGen is the worldwide leader in developing preventive HIV/AIDS vaccines
 and is the only company with such vaccines in Phase III trials, the final
 stage before regulatory approval can be sought.  The company is conducting
 two separate Phase III trials, one in North America and Europe and another in
 Thailand.  The company expects to release results from an interim analysis of
 the trial in North America/Europe in November 2001.  If the analysis yields
 sufficient statistical evidence to show that the vaccine, AIDSVAX, is
 effective, VaxGen expects that the trial will be halted.  The company would
 then begin the process of applying for regulatory approval.  If the interim
 analysis is inconclusive, the trial will proceed to its scheduled conclusion
 in the fourth quarter of 2002.  VaxGen is located in Brisbane, Calif.  For
 more information, please visit the company's web site at www.vaxgen.com.
 
     NOTE:  AIDSVAX(R) is a registered trademark of VaxGen.
 
     Note:  This news release contains "forward-looking statements" within the
 meaning of the Private Securities Litigation Reform Act of 1995.  Such
 forward-looking statements are subject to known and unknown risks,
 uncertainties or other factors that may cause VaxGen's actual results to be
 materially different from historical results, expressed or implied by such
 forward-looking statements.  Factors that might cause such a difference
 include, but are not limited to, uncertainties related to the progress, costs
 and results of the company's Phase III clinical trials, the progress of other
 internal research and development projects, the establishment of collaborative
 arrangements with governmental agencies, the availability of manufacturing
 capacity, the receipt of research grants and the timing of certain expenses.
 Reference should be made to VaxGen's Annual Report on Form 10-K, filed with
 the Securities and Exchange Commission, for a more detailed description of
 such factors discussed in the "Factors Affecting Future Results" and
 "Business" sections.  Readers are cautioned not to place undue reliance on
 these forward-looking statements that speak only as of the date of this
 release.  VaxGen undertakes no obligation to update publicly any
 forward-looking statements to reflect new information, events, or
 circumstances after the date of this release or to reflect the occurrence of
 anticipated events.
 
 
     VaxGen, Inc.
     Condensed Statements of Operations (unaudited)
     (In thousands, except for per share data)
 
                                                   Quarter           Quarter
                                                    Ended             Ended
                                               March 31, 2001    March 31, 2000
     Revenues:
     Contract revenue                                   $75               $--
 
     Operating Expenses:
 
     Research and development                        (4,509)           (4,053)
     General and administrative                      (2,342)           (1,593)
 
     Loss from operations                            (6,776)           (5,646)
 
     Other income, net                                  845             1,030
 
       Net Loss                                     $(5,931)          $(4,616)
 
     Basic and diluted loss per share                $(0.42)           $(0.34)
 
     Weighted average shares used in
      computing basic and diluted loss per
      share                                          14,061            13,540
 
 
     VaxGen, Inc
     Condensed Balance Sheets (unaudited)
     (In thousands, except for footnote data)
 
 
                                                   March 31,       December 31,
                                                     2001              2000
 
     Assets:
     Cash and investment securities                 $42,022           $48,524
     Property and equipment, net                      3,045             3,202
     Other assets                                     4,889             5,071
 
     Total Assets                                   $49,956           $56,797
 
 
     Liabilities and Stockholders Equity:
 
     Current liabilities                             $3,695            $5,358
     Other liabilities                                  359               367
     Stockholders' equity                            45,902            51,072
 
     Total Liabilities and Stockholders'
      Equity                                        $49,956           $56,797
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X86515211
 
 SOURCE  VaxGen, Inc.