Navigation Links
Vaxgen Files 10-Q for First Quarter With SEC, Provides Future Burn Rate Guidance

SOUTH SAN FRANCISCO, Calif., May 14 /PRNewswire-FirstCall/ -- VaxGen, Inc. (OTC Bulletin Board: VXGN), a biopharmaceutical company, today provided guidance on its expected monthly cash expenditures following the most recent restructuring undertaken on April 9, 2008. VaxGen expects that its average monthly cash expenditures going forward are unlikely to exceed $1 million, made up of the following categories:

* Costs related to the Company's real estate and facility, estimated at

32% of monthly expenditures.

* Costs related to maintaining public company status, including

professional fees, at approximately 32% of monthly expenditures.

* Costs related to the company's six remaining permanent staff and

temporary support, at approximately 21% of monthly expenditures.

* Interest payments associated with the outstanding convertible debt at

approximately 15% of monthly expenditures.

"With the completion of the most recent reduction in force, we have concluded those significant cost-reduction measures that are under the Company's sole control," said James P. Panek, VaxGen President and CEO. "While we continue to explore every avenue to reduce costs, a further significant reduction will be a function of the resolution of our efforts to sell the manufacturing plant and assign the associated lease. We are in discussions with parties interested in the plant, but cannot at this point provide assurance that a transaction will result."

VaxGen further announced today the filing of its financial results for the quarter ending March 31, 2008 on Form 10-Q with the Securities and Exchange Commission. These results reflect a number of significant impacts consequent to the termination of the proposed merger with Raven biotechnologies as follows:

* Consistent with SFAS 144, "Accounting for the Impairment and Disposal of

Long-Lived Assets" the property and equipment related to VaxGen's

manufacturing facility have been reclassified as "assets held for sale".

This reclassification shifts $10.3 million of assets on the balance

sheet out of Property and Equipment and into Current Assets. As it

relates to the Statement of Operations depreciation is not charged

against assets held for sale, and as a consequence there will be a

significant reduction in the depreciation charge going forward.

* VaxGen's net loss of $7.5 million for the first quarter of 2008 reflects

$2.3 million of expenses associated with the terminated merger and also

reflects a non-cash charge of $1.6 million related to the increase in

value of the derivative liability associated with the Company's

convertible notes. The main reason for the increase in the derivative

liability is management's assessment that there is an increased

probability of a change of control event, as defined in the indenture

related to the notes.

* VaxGen's net cash used in operating activities of $4.9 million for the

first quarter of 2008 reflects approximately $1.8 million of cash

expended on costs related to the proposed Raven merger during the


About VaxGen

VaxGen is a biopharmaceutical company based in South San Francisco, California. The company owns a state-of-the-art biopharmaceutical manufacturing facility with a 1,000-liter bioreactor that can be used to make cell culture or microbial biologic products. For more information, please visit the company's web site at

Note: This press release contains "forward-looking statements" within the meaning of the federal securities laws, including statements regarding the VaxGen's anticipated cash expenditures and its potential sale of assets and assignment of lease. These statements are subject to risks and uncertainties that could cause actual results and events to differ materially from those anticipated. Additional information concerning these and other risk factors is contained in VaxGen's Annual Report on Form 10-K for the year ended December 31, 2007. 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 except as required by law.


SOURCE VaxGen, Inc.
Copyright©2008 PR Newswire.
All rights reserved

Related biology technology :

1. VaxGen Sells Anthrax Vaccine Program and Related Assets and Technology to Emergent BioSolutions, Inc.
2. VaxGen and Raven Terminate Merger Agreement
3. VaxGen Issues Rebuttal to MedCap Letter
4. VaxGen Common Stock Now Quoted on OTC Bulletin Board
5. VaxGen Reports Financial Update
6. VaxGen to Present at the 10th Annual BIO CEO and Investor Conference
7. VaxGen and Raven Announce Form S4 Registration Statement Declared Effective
8. VaxGen Stockholders Overwhelmingly Approve Reverse Split Proposal
9. VaxGen Common Stock Expected to Qualify for Quotation on OTC Bulletin Board
10. VaxGen Addresses MPM Claims in Letter to Stockholders
11. VaxGen Files Last Outstanding Periodic Report With SEC
Post Your Comments:
(Date:11/28/2015)... ... November 28, 2015 , ... • Jeon Jin Bio ... porcine and rodent control solutions , Bird ... oil, works across all sensory modalities including visual, smell, taste and touch, enabling safe, ...
(Date:11/27/2015)... November 27, 2015 ... popularity of companion diagnostics is one of ... market with pharmaceutical companies and diagnostic manufacturers ... tests. . --> ... report on global cancer biomarkers market spread ...
(Date:11/25/2015)... 2015 --> ... - 2020 report analyzes that automating biobanking workflow ... in long-term samples, minimizing manual errors, improving the ... manual errors such as mislabeling or inaccurate sample ... plays a vital role in blood fractionation, DNA ...
(Date:11/25/2015)... , November 25, 2015 ... cat and human plaque and pave the way for more ... problems in cats     --> ... most commonly diagnosed health problems in cats, yet relatively little ... now. Two collaborative studies have been conducted by researchers from ...
Breaking Biology Technology:
(Date:11/19/2015)... YORK , Nov. 19, 2015  Although some ... market is dominated by a few companies, according to ... companies own 51% of the market share of the ... The World Market for Molecular Diagnostic s ... "The market is still controlled by one company ...
(Date:11/17/2015)...  Vigilant Solutions announces today that Mr. Dick ... --> --> Mr. ... partnership at TPG Capital, one of the largest global ... in revenue.  He founded and led TPG,s Operating Group, ... from 1997 to 2013.  In his first role, he ...
(Date:11/12/2015)... 2015   Growing need for low-cost, easy ... been paving the way for use of biochemical ... analytes in clinical, agricultural, environmental, food and defense ... in medical applications, however, their adoption is increasing ... continuous emphasis on improving product quality and growing ...
Breaking Biology News(10 mins):