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FORT LEE, N.J., Nov. 12, 2010 /PRNewswire-FirstCall/ -- Neurologix, Inc. (OTC Bulletin Board: NRGX) (the "Company"), a biotechnology company developing innovative gene therapies for the brain and central nervous system ("CNS"), today reported its financial results for the three and nine months ended September 30, 2010.
"We are excited about the proven potential of NLX-P101, our Parkinson's disease gene therapy product, and continue to move forward with further definitive development," said Clark A. Johnson, President and Chief Executive Officer of the Company. "Additionally, landmark research recently published in the journal Science Translational Medicine utilized our exclusively licensed gene therapy approach to demonstrate the importance of the p11 gene in modulating depression in mice, reversing depressive behavior of animals lacking the p11 gene. We are extremely excited by these results, which support expanded possibilities for the development of p11 gene therapy for therapeutic use, and consider them a testament to the future commercial success of our gene therapy platform in diseases of the brain."
For the three months ended September 30, 2010, the Company reported a net loss of $2.3 million, as compared with a net loss of $3.5 million for the three months ended September 30, 2009. Net loss for the third quarter of 2010 includes charges for the change in estimated fair value of derivative financial instruments related to warrants previously issued in connection with the Company's Series C Convertible Preferred Stock (the "Series C Stock") and the Company's Series D Convertible Preferred Stock (the "Series D Stock") of $0.3 million. Net loss for the third quarter of 2009 includes income for the change in estimated fair value of derivative financial instruments related to warrants previously issued in connection with the Series C Stock and the Series D Stock of $0.7 million.
The Company reported a net loss applicable to common stock for the third quarter of 2010 of $3.1 million, or $0.11 per basic and diluted share, which includes charges of $0.8 million, or $0.03 per basic and diluted share, related to preferred stock dividends in connection with the Company's Series C Stock and Series D Stock. For the same period in 2009, the Company reported a net loss applicable to common stock of $4.2 million, or $0.15 per basic and diluted share, which included charges related to preferred stock dividends in connection with the Series C Stock and the Series D Stock of $0.8 million, or $0.03 per basic and diluted share.
For the nine months ended September 30, 2010, the Company reported a net loss of $10.3 million, as compared with a net loss of $10.6 million for the nine months ended September 30, 2009. Net loss includes charges for the change in estimated fair value of derivative financial instruments related to warrants previously issued in connection with the issuance of the Series C Stock and the Series D Stock of $2.9 million and $2.7 million for the first nine months of 2010 and 2009, respectively. The Company reported a net loss applicable to common stock for the nine months ended September 30, 2010, of $12.6 million, or $0.45 per basic and diluted share, which includes charges of $2.4 million, or $0.09 per basic and diluted share, related to preferred stock dividends in connection with the Series C Stock and the Series D Stock. For the nine months ended September 30, 2009, the Company reported a net loss applicable to common stock of $12.8 million, or $0.46 per basic and diluted share, which included charges of $2.2 million, or $0.08 per basic and diluted share, related to preferred stock dividends in connection with the Series C Stock and the Series D Stock.
Neurologix had cash and cash equivalents of $3 million at September 30, 2010.
The Neurologix Quarterly Report on Form 10-Q, with financial statements and management's discussion of operations and results, can be found in the "Investors" section of the Company's website at http://www.neurologix.net.
About NLX-P101Neurologix's investigational AAV (adeno-associated virus) vector gene therapy, NLX-P101, is a novel, non-dopaminergic approach that uses an inhibitory gene (glutamic acid decarboxylase or "GAD") to selectively alter the neural circuitry affected in Parkinson's disease and, thereby, normalize brain physiology. Neurologix's technology is the only gene therapy strategy currently in development which bypasses the dopamine system. The Company recently announced positive results with NLX-P101 in a Phase 2 trial for advanced Parkinson's disease.
About NeurologixNeurologix, Inc. is a biotechnology company dedicated to the discovery, development, and commercialization of gene transfer therapies for serious disorders of the brain and CNS. Neurologix's therapeutic approach is built upon the groundbreaking research of its scientific founders and advisors, whose accomplishments have formed the foundation of gene therapy for neurological illnesses. The Company's current programs address such conditions as Parkinson's disease, epilepsy, depression and Huntington's disease, all of which are large markets not adequately served by current therapeutic options. For more information, please visit the Neurologix website at http://www.neurologix.net/.
Cautionary Statement Regarding Forward-Looking StatementsThis news release includes certain statements of the Company that may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and which are made pursuant to the Private Securities Litigation Reform Act of 1995. These forward-looking statements and other information relating to the Company are based upon the beliefs of management and assumptions made by and information currently available to the Company. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, or performance, as well as underlying assumptions and statements that are other than statements of historical fact. When used in this document, the words "expects," "promises," "anticipates," "estimates," "plans," "intends," "projects," "predicts," "believes," "may" or "should," and similar expressions, are intended to identify forward-looking statements. These statements reflect the current view of the Company's management with respect to future events. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, but not limited to, the following:
Other factors and assumptions not identified above could also cause the actual results to differ materially from those set forth in the forward-looking statements. Additional information about factors that could cause results to differ materially from management's expectations is found in the section entitled "Risk Factors" in the Company's 2009 Annual Report on Form 10-K. Although the Company believes these assumptions are reasonable, no assurance can be given that they will prove correct. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results. Further, the Company undertakes no obligation to update forward-looking statements after the date they are made or to conform the statements to actual results or changes in the Company's expectations.Contact:NeurologixMarc Panoff, 201-592-6451Chief Financial Officermarcpanoff@neurologix.net-- Financial tables to follow--NEUROLOGIX, INC.
(A Development Stage Company)
BALANCE SHEETS
(Amounts in thousands, except share and per share amounts)September 30,
2010December 31,
2009(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
$3,004
$9,637Prepaid expenses and other current assets
158
395Total current assets
3,162
10,032Equipment, less accumulated depreciation of $671 and $624 at September 30, 2010 and
December 31, 2009, respectively
82
129Intangible assets, less accumulated amortization of $335 and $262 at September 30, 2010 and
December 31, 2009, respectively
1,004
891Other assets
5
5Total assets
$4,253
$11,057LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable and accrued expenses
$1,838
$1,834Total current liabilities
1,838
1,834Derivative financial instruments, at estimated fair value – warrants
6,735
3,847Total liabilities
8,573
5,681Commitments and contingenciesStockholders' equity:Preferred stock; 5,000,000 shares authorizedSeries A – Convertible, $0.10 par value; 650 shares designated, 645 shares issued and
outstanding at September 30, 2010 and December 31, 2009, with an aggregate liquidation
preference of $1
-
-Series C – Convertible, $0.10 par value; 700,000 shares designated, 281,263 shares issued
and outstanding at September 30, 2010 and December 31, 2009, with an aggregate
liquidation preference of $9,119 and $7,008 at September 30, 2010 and December 31, 2009,
respectively
28
28Series D – Convertible, $0.10 par value; 792,100 shares designated, 734,898 shares issued
and outstanding at September 30, 2010 and December 31, 2009, with an aggregate
liquidation preference of $34,078 and $29,420 at September 30, 2010 and December 31,
2009, respectively
73
73 Common Stock:$0.001 par value; 100,000,000 shares authorized, 27,865,010 shares issued and outstanding
at each of September 30, 2010 and December 31, 2009
28
28 Additional paid-in capital
57,352
56,775 Deficit accumulated during the development stage
(61,801)
(51,528)Total stockholders' equity
(4,320)
5,376Total liabilities and stockholders' equity
$4,253
$11,057NEUROLOGIX, INC.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
(UNAUDITED)
(Amounts in thousands, except share and per share amounts)Nine Months Ended
September 30,
Three Months Ended
September 30,
For the period
February 12, 1999
(inception) through
September 30, 20102010
2009
2010
2009Revenues
$
-
$
-
$
-
$
-
$ -Operating expenses:Research and development
4,503
5,779
1,104
2,121
31,964General and administrative expenses
2,884
2,179
901
631
21,881Loss from operations
(7,387)
(7,958)
(2,005)
(2,752)
(53,845)Other income (expense):Dividend, interest and other income
2
55
1
6
1,885Interest expense-related parties
-
-
-
-
(411)Change in estimated fair value of derivative financial instruments - warrants
(2,888)
(2,703)
(300)
(723)
(5,665)Other (expense) income, net
(2,886)
(2,648)
(299)
(717)
(4,191)Net loss
(10,273)
(10,606)
(2,304)
(3,469)
$(58,036)Preferred stock dividends
(2,375)
(2,208)
(817)
(757)Net loss applicable to common stock
$(12,648)
$(12,814)
$(3,121)
$(4,226)Net loss applicable to common stock per share, basic and diluted
$(0.45)
$(0.46)
$(0.11)
$(0.15)Weighted average common shares outstanding, basic and diluted
27,865,010
27,819,156
27,865,010
27,865,010
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