Iomai Announces Second Quarter 2007 Financial Results and Business Progress
GAITHERSBURG, Md., Aug. 13 /PRNewswire-FirstCall/ — Iomai Corporation today reported financial results and corporate progress for the second quarter ended June 30, 2007.
“This quarter was marked by a series of important clinical findings about our patch-based vaccines for travelers’ diarrhea and influenza. Particularly notable was an announcement earlier this month of remarkable results from the Phase 2 field study of our travelers’ diarrhea vaccine, which found that the Iomai patch cut the risk of moderate and severe diarrhea by 75 percent in travelers, a statistically significant result,” said Stanley C. Erck, President and Chief Executive Officer of Iomai. “With these new clinical data in hand, we will focus on completing the Phase 2 program for our travelers’ diarrhea vaccine program and moving into a pivotal Phase 3 clinical trial in 2008.”
“We remain on track with our other corporate goals. We plan to initiate a large, multicenter Phase 1/ 2 trial for our dose-sparing adjuvant patch for use with a pandemic influenza vaccine later this year and anticipate reporting data from this trial during the second quarter of 2008. That product candidate, which is being tested for its ability to reduce the amount of influenza vaccine required for protection in the event of a flu pandemic, is being funded by a $128 million Department of Health and Human Services (DHHS) contract,” continued Mr. Erck.
Second Quarter 2007 Financial Results
For the second quarter ended June 30, 2007, Iomai reported a net loss available to common stockholders of $6.8 million, or $0.27 per share, compared to a net loss of $7.5 million, or $0.45 per share, for the second quarter ended June 30, 2006. The lower net loss per share in the second quarter of 2007 was attributable to the revenues under our DHHS contract, as well as an increase in the weighted average number of shares outstanding due to the Company’s private placements completed in October 2006 and March 2007. As of June 30, 2007, Iomai had approximately 25.5 million common shares outstanding.
Iomai reported revenues of $2.9 million in the second quarter of 2007, compared to $408,000 in the second quarter of 2006. Revenue in the second quarter of 2007 was largely due to the DHHS contract for the development of a booster patch for use with pandemic influenza vaccines awarded in January. Under that contract, Iomai is reimbursed for costs, plus a fixed fee.
Total operating expenses were $10.0 million in the second quarter of 2007, compared to operating expenses of $8.2 million in the second quarter of 2006. The increase in operating expenses was primarily due to activities under our DHHS contract, increased clinical trial activity associated with the needle-free flu vaccine program, and higher payroll costs associated with a year-to-year increase in headcount and expensing of stock options.
As of June 30, 2007, Iomai had unrestricted cash and cash equivalents and marketable securities of $26.4 million compared to $34.6 million on March 31, 2007.
Iomai expects to be able to fund its capital expenditures and growing operations with its current working capital and reimbursement of expenses under our existing government grants and contracts into the second half of 2008.
About Iomai Corporation
Iomai Corporation discovers and develops vaccines and immune system stimulants, delivered via a novel, needle-free technology called transcutaneous immunization (TCI). TCI taps into the unique benefits of a major group of antigen-presenting cells found in the outer layers of the skin (Langerhans cells) to generate an enhanced immune response. Iomai is leveraging TCI to enhance the efficacy of existing vaccines, develop new vaccines that are viable only through transcutaneous administration and expand the global vaccine market. Iomai currently has four product candidates in development: three targeting influenza and pandemic flu and one to prevent travelers’ diarrhea. For more information on Iomai, please visit http://www.iomai.com/.
Some matters discussed in this press release constitute “forward-looking statements” that involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements. Such forward-looking statements include statements about the ability of Iomai’s patch vaccine to prevent travelers’ diarrhea; expected government funding; sufficiency of existing cash and government contract revenues to fund operations into the second half of 2008; next steps following up on reported data and results; timing and expectation for initiating new clinical trials and completing and reporting results on Iomai’s clinical trials, including follow-on Phase 2 and Phase 3 studies on the travelers’ diarrhea product candidate, and Phase 1/2 study for pandemic flu dose-sparing adjuvant. Applicable risks and uncertainties include, among others, that the clinical results described in this press release may not provide the needed information necessary to conduct future trials; that Iomai may not be able to enroll sufficient numbers of patients in future clinical trials; that future clinical trials may not replicate results seen in previous trials; that potential collaborators may determine to wait for additional clinical data prior to entering into a collaboration or may be unwilling to collaborate on terms Iomai deems acceptable; that Iomai may be unable to obtain the regulatory approvals necessary to conduct additional clinical trials or to market any product candidates for travelers’ diarrhea, pandemic and seasonal influenza; that development costs may exceed expectations; that Iomai may fail to adequately protect its intellectual property or may be determined to infringe on the intellectual property of others; and the risks identified under the heading “Factors That May Impact Future Results” in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Quarterly Report on Form 10-Q for the three months ended June 30, 2007, and filed with the Securities and Exchange Commission. While Iomai believes that its product candidates may be amenable to self-administration, in the Phase 2 travelers’ diarrhea vaccine study described in this press release, medical professionals administered the vaccine. Whether any approved product would be self-administered would depend on many factors, including the outcome of any studies the Company conducts evaluating self-administration and the views of regulatory agencies. Iomai cautions investors and others not to place undue reliance on the forward- looking statements contained in this press release. You are encouraged to read the Company’s filings for a discussion of these and other risks and uncertainties which are filed with the U.S. Securities and Exchange Commission, available at http://www.sec.gov/.
These statements speak only as of the date of this document, and Iomai undertakes no obligation to update or revise the statements.
IOMAI CORPORATION STATEMENTS OF OPERATIONS (in thousands, except share and per share data) Three Months Ended Six Months Ended June 30, June 30, 2007 2006 2007 2006 (Unaudited) (Unaudited) Revenues $2,868 $408 $4,457 $1,405 Cost and expenses: Research and development 7,831 6,801 16,691 11,730 General and administrative 2,128 1,370 4,250 2,589 Total costs and expenses 9,959 8,171 20,941 14,319 Loss from operations (7,091) (7,763) (16,484) (12,914) Other income (expense) Interest income 384 155 646 295 Interest expense (72) (98) (159) (195) Other income (expense), net (5) 162 (8) 234 Total other income (expense), net 307 219 479 334 Net loss before cumulative effect of a change in accounting principle (6,784) (7,544) (16,005) (12,580) Cumulative effect of change in accounting principle – – – 17 Net loss (6,784) (7,544) (16,005) (12,563) Dividends on and accretion of convertible redeemable preferred stock – – – (434) Net loss available to common stockholders $(6,784) $(7,544) $(16,005) $(12,997) Net loss available to common stockholders per share of common stock-basic and diluted $(0.27) $(0.45) $(0.69) $(0.92) Weighted-average number of shares of common stock — basic and diluted 25,511,046 16,908,231 23,247,501 14,059,619 IOMAI CORPORATION SELECTED BALANCE SHEET DATA (in thousands) June 30, December 31, 2007 2006 (Unaudited) Cash and cash equivalents and unrestricted marketable securities $26,384 $15,336 Accounts receivable 4,095 62 Total assets 38,788 $23,085 Total debt and capital lease obligations 4,350 $4,759 Total liabilities 9,573 9,050 Accumulated deficit (116,794) (100,788) Total stockholders’ equity 29,215 14,035
Iomai Corporation
CONTACT: Russell P. Wilson, Senior Vice President, Chief FinancialOfficer and General Counsel of Iomai Corporation, +1-301-556-4478,investors@iomai.com; or Brian Reid of WeissComm Partners, Inc.,+1-703-402-3626, breid@weisscommpartners.com, for Iomai Corporation
Web site: http://www.iomai.com/