Navigation Links
VaxGen Provides Financial Update Following the Filing of Its 10-Q for Second Quarter With SEC; Results Include $8.5 Million Charge in Respect of Manufacturing Plant Asset Impairment
Date:8/27/2008

SOUTH SAN FRANCISCO, Calif., Aug. 27 /PRNewswire-FirstCall/ -- VaxGen, Inc. (OTC Bulletin Board: VXGN), a biopharmaceutical company, today provided a financial and operational update since the filing of its quarterly report on Form 10-Q with the Securities and Exchange Commission on August 14, 2008.

(Logo: http://www.newscom.com/cgi-bin/prnh/19991112/VAXGENLOGO)

VaxGen had approximately $59 million in cash and equivalents and investment securities as of June 30th, 2008, or $29 million net of the Company's $30 million of outstanding convertible debt. VaxGen reported a net loss for the second quarter of $10.4 million, reflecting a non-cash asset impairment charge of $8.5 million associated with the carrying value of the Company's manufacturing and laboratory assets. VaxGen's management and board determined to take this charge in light of an aborted transaction to sell the facility and associated equipment, and reflecting the length of time that the facility has been marketed without success.

James P. Panek, VaxGen's President and CEO, commented "While we have taken several important steps to preserve capital, we are obviously disappointed that the anticipated sale of the manufacturing plant and equipment fell through, having completed diligence and agreed to terms, for reasons entirely unrelated to VaxGen or the plant. In light of this, however, our expectations going forward need to reflect the difficulty we have experienced selling this asset. The encumbrance of the facility lease represents our single largest remaining financial liability."

Since the end of the second quarter, the Company has spent $18.3 million repurchasing $22 million in face value of its convertible debt, and received repayment of $6.3 million from Raven biotechnologies in respect of the bridge loan and accrued interest. As a result, VaxGen had approximately $46.5 million in cash and equivalents and investment securities as of July 31st, 2008, or $38.5 million net of the Company's $8 million of outstanding convertible debt.

On August 25, 2008, VaxGen received a $1 million milestone payment from Emergent BioSolutions, Inc., the purchaser of the Company's recombinant anthrax vaccine development program and associated assets, related to the generation of non-clinical data demonstrating the immunopotency and improved stability of the vaccine candidate.

During the second and third quarters, VaxGen further reduced its staff and operating expenses to preserve capital as it seeks to identify a strategic transaction which can deliver shareholder value. As a result of these cost cutting efforts, VaxGen will terminate Piers Whitehead, Vice President of Corporate and Business Development as of August 31 2008.

"With our new Strategic Transaction Committee of the Board fully engaged, and given the status of the transaction process, and our business, the Company and Piers can now part ways," said James P. Panek. "Piers has made innumerable contributions to VaxGen since joining VaxGen in 2002. His strategic thinking, negotiating skills and breadth of experience have been of tremendous value to the Company. He will be missed."

VaxGen expects its average monthly cash burn to be approximately $750,000, excluding unusual items. Management considers "cash burn" to be a non-GAAP financial measure. A reconciliation to GAAP is not provided since we are unable to predict the occurrence of unusual items which could be material to the company's results of operations.

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. The facility is contained within leased premises. For more information, please visit the company's web site at http://www.vaxgen.com.

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 medicine news :

1. VaxGen and Raven biotechnologies Announce Signing of Definitive Merger Agreement
2. VaxGen Provides Updates and Encourages Stockholders to Vote In Favor of Proposed Merger With Raven
3. VaxGen Restructures Following Termination of Proposed Merger
4. Study provides hope that some transplant patients could live free of antirejection drugs
5. Study provides hope that some transplant patients could live free of anti-rejection drugs
6. USAID Provides Additional Wildfire Assistance to Greece
7. LifeMasters Provides Tips for Maintaining a Healthy Blood Cholesterol Level
8. New knock-out gene model provides molecular clues to breast cancer
9. PreMD Provides Update on 510(k) Application for PREVU(x) POC
10. SIV infection of natural hosts provides new insights into HIV disease complexity
11. Microarray provides 3 genomic guides to breast cancer treatment decisions
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:7/21/2017)... ... 21, 2017 , ... Hospital M&A activity slowed in the second quarter of ... acquisitions rose to 23 in the second quarter, up 15% from the 20 publicly ... announced deals in the year-ago second quarter. Only four of the transactions disclosed a ...
(Date:7/21/2017)... ... ... The House of Yahweh in Abilene, Texas, has written a new post this week that ... to be more open about positive changes. Yisrayl says the use of force is not ... positive way to solve all; yes, all issues, and he is ready to share this ...
(Date:7/21/2017)... ... ... “Kids aren't born knowing how to regulate their emotions any more than ... St. Louis-based positive education company Generation Mindful. To help with that daunting task, she ... , The kit uses colorful, engaging and educational illustrations and games to teach children ...
(Date:7/21/2017)... ... July 21, 2017 , ... In the ... from the Multicenter Orthopaedics Outcome Network (MOON) demonstrated that patients could perform sports-related ... though activity levels decline over time. The study, presented today at the ...
(Date:7/20/2017)... ... July 20, 2017 , ... TransPixel Volume 2 is a set of ... FCPX timeline. This effect isolates horizontal and vertical lines of pixels and sorts their ... rotating or flipping animation and can be changed using a drop-down menu. Create amazing ...
Breaking Medicine News(10 mins):
(Date:7/12/2017)... Lilly and Company (NYSE: LLY ) has entered ... patent litigation in the U.S. District Court for the Eastern ... ® (tadalafil) unit dose patent. This patent was previously ... the agreement, Cialis exclusivity is now expected to end at ... dose patent for Cialis is valid and infringed by companies ...
(Date:7/11/2017)... July 11, 2017  Dr. Echenberg, founder of Echenberg Institute, is announcing ... patients who suffer from painful intercourse and other painful pelvic pain conditions ... due to menopause. ... VuVatech LLC ... Sarasota, Florida -based start-up company, VuVatech LLC, fills a ...
(Date:7/10/2017)... -- The tenth annual BioPharm America™ will take ... the Sheraton Boston Hotel, September 26–27. The event will ... makers and innovative biotech startup companies. The event is ... impactful days. BioPharm America is now part of Biotech ... with 4,500+ life science industry influencers participating in 8+ ...
Breaking Medicine Technology: