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(August 05, 2011)
PHILADELPHIA, Aug. 5, 2011 (GLOBE NEWSWIRE) -- Hemispherx Biopharma, Inc. (NYSE Amex:HEB) announced its financial results for the three months ended June 30, 2011. The net loss (including non-cash losses) for the period was approximately $2,294,000 or $(0.02) per share as compared to a net loss of $1,416,000 or $(0.01) per share for the same period in 2010. This increase in net loss of $878,000 in 2011 was primarily due to the quarterly fair value revaluation of the estimated liability related to certain redeemable warrants resulting in a non-cash gain of $643,000 in 2011 as compared to a larger non-cash gain of $2,260,000 in 2010.
If the impact of the required revaluation of the estimated liability related to certain redeemable warrants was excluded from the financial results, the impact would be a net loss for the second quarter of 2011 of approximately $2,937,000 as compared to a net loss of $3,676,000 for the same period in 2010. With the exclusion of the non-cash impact of the redeemable warrants, the decrease in the second quarter operating net loss between 2011 and 2010 would be approximately $739,000, or 20%. The favorable variance between 2011 and 2010 was primarily due to lower operating costs in the amount of $526,000 and an increase of $224,000 in interest income from invested marketable securities.
Cash, cash equivalents and marketable securities were approximately $39,754,000 as of June 30, 2011. Net cash used in operations in the six months ended June 30, 2011 was approximately $4,802,000 as compared to $7,388,000 for the same period in 2010. This 2011 reduction in cash used in operations was primarily due to lower operating costs and the sale of prior years' New Jersey Net Operating Loss.
Utilizing our Board of Directors' approval of up to $4.4 million for full engineering studies, capital improvements, system upgrades and introduction of building management systems to enhance pharmaceutical production at our New Brunswick, New Jersey facility, the project has progressed to the construction phase. We have used the recent period to pursue cost savings where possible, including locating and acquiring equipment from major U.S. pharmaceutical manufacturers that have recently curtailed or eliminated certain manufacturing activities in the U.S. As a result, we have estimated a cost savings to date of approximately $800,000.
A clinical study of the potential for Ampligen® to enhance the effectiveness of an investigational ovarian cancer vaccine has been initiated at the University of Pennsylvania and the Food and Drug Administration (FDA) has authorized a clinical study of the potential for intranasal Ampligen® to enhance the effectiveness of a flu vaccine.
About Hemispherx Biopharma
Hemispherx Biopharma, Inc. is an advanced specialty pharmaceutical company engaged in the manufacture and clinical development of new drug entities for treatment of seriously debilitating disorders. Hemispherx's flagship products include Alferon N Injection® (FDA approved for a category of sexually transmitted diseases) and the experimental therapeutics Ampligen® and Alferon® LDO. Ampligen® is an experimental RNA nucleic acid being developed for globally important debilitating diseases and disorders of the immune system. Hemispherx's platform technology includes components for potential treatment of various severely debilitating and life threatening diseases. Hemispherx has patents comprising its core intellectual property estate and a fully commercialized product (Alferon N Injection®). The Company wholly owns and exclusively operates a GMP certified manufacturing facility in the United States for commercial products. For more information, please visit www.hemispherx.net.
Information contained in this news release, other than historical information, should be considered forward-looking and is subject to various risk factors and uncertainties. For instance, the strategies and operations of Hemispherx involve risk of competition, changing market conditions, change in laws and regulations affecting these industries and numerous other factors discussed in this release and in the Company's filings with the Securities and Exchange Commission. Any specifically referenced investigational drugs and associated technologies of the Company (including Ampligen® and Alferon® LDO) are experimental in nature and as such are not designated safe and effective by a regulatory authority for general use and are legally available only through clinical trials with the referenced disorders. The forward-looking statements represent the Company's judgment as of the date of this release. The Company disclaims, however, any intent or obligation to update these forward-looking statements. The planning, completion, results or submission of clinical trials do not imply that any experimental product will ever be approved commercially for the studied or other treatment indications. Similarly, the resumption of commercial sales of Alferon N Injection® is predicated on certain technical achievements and acceptance by FDA of resulting data reports, which may or may not occur. Similarly, the new diagnostic initiatives of the Company in CFS may need to be validated in wider clinical trials and thus may not necessarily be accepted by the FDA as a basis for evaluating the potential efficacy of Ampligen®.
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Hemispherx Biopharma, Inc.
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