EX-99.1 2 a06-5044_1ex99d1.htm EXHIBIT 99

Exhibit 99.1

 

Valentis, Inc.

 

Investor and Media Inquiries

Joe Markey

 

BPC Financial Marketing

(650) 697-1900 x369

 

John Baldissera

markey@valentis.com

 

(800)-368-1217

 

VALENTIS ANNOUNCES SECOND QUARTER FISCAL 2006 FINANCIAL RESULTS

 

Burlingame, CA, February 14, 2006 - Valentis, Inc. (NASDAQ: VLTS) today announced results for its second fiscal quarter ended December 31, 2005.

 

Valentis reported a net loss for the three months ended December 31, 2005 of $3.9 million, or $0.26 per basic and diluted share, on revenue of $146,000, compared to a net loss of $2.4 million, or $0.19 per basic and diluted share, on revenue of $124,000 for the corresponding period of the prior year. Net loss for the six months ended December 31, 2005 was $7.5 million, or $0.50 per basic and diluted share, on revenue of $473,000, compared to a net loss of $5.5 million, or $0.43 per basic and diluted share, on revenue of $1.3 million for the corresponding period of the prior year.

 

The decrease of approximately $827,000 in revenue in the six months ended December 31, 2005 compared to the corresponding period in 2004 primarily reflected approximately $1.0 million of license revenue recognized in the quarter ended September 30, 2004 that was non-recurring.

 

Total operating expenses for the quarter ended December 31, 2005 were approximately $4.1 million, an increase of approximately $1.5 million compared to the corresponding period in 2004. Total operating expenses for the six months ended December 31, 2005 were approximately $8.1 million, an increase of approximately $1.2 million compared to the corresponding period in 2004. The increases were primarily attributable to higher pre-clinical and clinical study expenses incurred in the three months and six months ended December 31, 2005, and non-cash stock-based compensation expenses of approximately $475,000 and $1.0 million recorded in the three months and six months ended December 31, 2005, respectively.

 

On December 31, 2005, Valentis had approximately $6.4 million in cash, cash equivalents and short-term investments compared to approximately $12.5 million on June 30, 2005. The decrease of approximately $6.1 million primarily reflects the funding of ongoing operations.

 

About Valentis

 

Valentis is a biotechnology company engaged in the development of innovative products for peripheral arterial disease (PAD), a large and unsatisfied market. PAD is due to chronic inflammation of the blood vessels of the legs leading to the formation of plaque which obstructs blood flow. VLTS 934, the company’s lead product, is an anti-inflammatory drug in Phase IIb testing. The company’s second product for PAD is the Del-1 angiogenic protein, a product which we believe promotes the formation of new blood vessels. Valentis has developed a series of technologies including gene delivery and expression technologies, and proprietary formulation and manufacturing technologies that allow the generation of novel therapeutics to treat a wide range of diseases. While Valentis is focusing its efforts on the development of novel peripheral arterial disease therapeutics, its technologies are being applied by its collaborators for the development of therapeutics to treat a variety of indications including infectious diseases and cancer.

 


 

Additional information about Valentis can be found at www.valentis.com.

 

Statements in this press release that are not strictly historical are “forward looking” statements as defined in the Private Securities Litigation Reform Act of 1995. The words “believes,” “expects,” “intends,” “anticipates,” variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. Factors that could affect Valentis’ actual results include uncertainties related to the timing and costs of clinical trials, uncertainties related to the results of clinical trials, our ability to obtain financing and additional capital, our ability to continue to as a going concern, the early stage of product development and uncertainties related to product development. Further, there can be no assurance that Valentis will be able to develop commercially viable therapeutics for peripheral arterial disease, that any of Valentis’ programs will be partnered with pharmaceutical partners, that necessary regulatory approvals will be obtained, or that any clinical trial, including Valentis’ Phase IIb VLTS 934 trial, will be successful. Actual results may also differ from those projected in forward-looking statements due to risks and uncertainties that exist in Valentis’ operations and business environments. The risks and uncertainties to which Valentis is subject to are described more fully in the Valentis Annual Report on Form 10-K for the period ended June 30, 2005 and Quarterly Report on Form 10-Q for the period ended December 31, 2005, as filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date and will not be updated.

 


 

VALENTIS, INC.

SELECTED CONSOLIDATED FINANCIAL DATA

 

Statement of Operations

(in thousands, except per share amounts)

(unaudited)

 

 

 

Three Months Ended
December 31,

 

Six Months Ended
December 31,

 

 

 

2005

 

2004

 

2005

 

2004

 

License and other revenue

 

$

146

 

$

124

 

$

473

 

$

1,296

 

Total revenue

 

146

 

124

 

473

 

1,296

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development

 

2,848

 

1,759

 

5,605

 

4,646

 

General and administrative

 

1,271

 

856

 

2,481

 

2,270

 

Total operating expenses

 

4,119

 

2,615

 

8,086

 

6,916

 

Loss from operations

 

(3,973

)

(2,491

)

(7,613

)

(5,620

)

 

 

 

 

 

 

 

 

 

 

Interest income

 

72

 

75

 

158

 

150

 

Other expenses

 

—

 

—

 

(35

)

(45

)

Net loss

 

$

(3,901

)

$

(2,416

)

$

(7,490

)

$

(5,515

)

 

 

 

 

 

 

 

 

 

 

Basic and diluted net loss per share

 

$

(0.26

)

$

(0.19

)

$

(0.50

)

$

(0.43

)

 

 

 

 

 

 

 

 

 

 

Weighted-average shares used in computing net loss per common share

 

14,852

 

12,986

 

14,844

 

12,942

 

 

Condensed Balance Sheet
(in thousands)

 

 

 

December 31,
2005

 

June 30, 2005

 

 

 

(unaudited)

 

(*)

 

ASSETS

 

 

 

 

 

Cash, cash equivalent and short-term investments

 

$

6,398

 

$

12,513

 

Other current assets

 

552

 

694

 

Total current assets

 

6,950

 

13,207

 

Property and equipment, net

 

50

 

39

 

Goodwill and other assets, net

 

906

 

906

 

 

 

$

7,906

 

$

14,152

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

2,790

 

$

2,583

 

Stockholders’ equity

 

5,116

 

11,569

 

 

 

$

7,906

 

$

14,152

 

 

* Derived from audited financial statements