Hollis-Eden Pharmaceuticals Reports Fourth Quarter and Year-End 2008 Financial Results
SAN DIEGO--(BUSINESS WIRE)--Mar. 31, 2009--
Hollis-Eden Pharmaceuticals, Inc. (NASDAQ:HEPH) today reported financial
results for the fourth quarter and year ended December 31, 2008.
For the quarter ended December 31, 2008, Hollis-Eden reported a net loss
of $5.0 million (or $0.17 per share), compared to a net loss of $5.2
million (or $0.18 per share) in the fourth quarter of 2007. For the full
year, the Company reported a net loss of $21.6 million (or $0.74 per
share), compared to a net loss of $23.1 million (or $0.80 per share) for
the full year 2007.
The net loss for the fourth quarter and full-year 2008 included
approximately $674,000 and $2.5 million, respectively, of stock-based
compensation expense related to the adoption of SFAS No. 123R, compared
to $673,000 and $3.2 million in the comparable periods in 2007. Results
for full-year 2007 include $645,000 in revenue generated from funding of
research and development expenses by Cystic Fibrosis Foundation
Therapeutics, Inc. under the Company's collaboration agreement with the
Foundation. There was no revenue recorded in 2008.
Research and development expenses for the fourth quarter of 2008 totaled
$3.5 million, compared to $4.2 million in the fourth quarter of 2007.
For full-year 2008, research and development expenses were $16.1 million
compared to $18.3 million in 2007. The decrease in research and
development expenses was due primarily to a decrease in head count,
bonuses, and a decline in preclinical development offset by an increase
in clinical trial expenses.
Fourth quarter 2008 general and administrative expenses were $1.5
million compared to $1.9 million in the fourth quarter of 2007, and
full-year 2008 general and administrative expenses were $6.5 million
compared to $8.1 million in 2007. The decrease in general and
administrative expenses was due mainly to a decrease in executive head
count, bonuses, Directors and Officers insurance, and in accounting and
Total other income and expenses were $1.0 million in 2008 compared to
$2.7 million in 2007. The decrease in other income and expense for 2008
compared to 2007 was due mainly to lower interest rates and lower cash
Cash used in operations for full-year 2008 totaled $19.0 million versus
$23.7 million for full-year 2007. Year-end 2008 cash and equivalents
totaled $24.2 million, compared to $43.2 million at December 31, 2007.
More detailed information is available in the Company's Form 10-K,
which was filed today with the Securities and Exchange Commission (http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000899394).
About Hollis-Eden Pharmaceuticals, Inc.
Hollis-Eden Pharmaceuticals, Inc. is developing a new series of small
molecule compounds that are metabolites or synthetic analogs of
endogenous hormones derived by the adrenal glands from the body's most
abundant circulating adrenal steroid. The Company's clinical drug
development candidates include TRIOLEX (HE3286), a next-generation
compound currently in clinical trials for the treatment of type 2
diabetes, ulcerative colitis and rheumatoid arthritis, and APOPTONE
(HE3235), a next-generation compound in a clinical trial for the
treatment of late-stage prostate cancer. For more information on
Hollis-Eden, visit the Company's website at www.holliseden.com.
This press release contains forward-looking statements within the
meaning of the federal securities laws concerning, among other things,
the potential and prospects of the Company's drug discovery program and
its drug candidates. Any statement included in this press release that
are not a description of historical facts are forward-looking statements
that involve risks, uncertainties, assumptions and other factors which,
if they do not materialize or prove correct, could cause the Company's
actual results to differ materially from historical results or those
expressed or implied by such forward-looking statements. Such statements
are subject to certain risks and uncertainties inherent in the Company's
business, including, but not limited to: the ability to complete
preclinical and clinical trials successfully and within specified
timelines, if at all; the ability to obtain regulatory approval for
TRIOLEX (HE3286), APOPTONE (HE3235) or any other investigational drug
candidate; the Company's future capital needs; the Company's ability to
obtain additional funding; the ability of the Company to protect its
intellectual property rights and to not infringe the intellectual
property rights of others; the development of competitive products by
other companies; and other risks detailed from time to time in the
Company's filings with the Securities and Exchange Commission. Existing
and prospective investors are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date of
this press release. Except as required by law, the Company
undertakes no obligation to update or revise the information contained
in this press release as a result of new information, future events or
circumstances arising after the date of this press release.
Source: Hollis-Eden Pharmaceuticals, Inc.
Scott Rieger, Vice President, Corporate Communications