PHILADELPHIA, May 7, 2012 (GLOBE NEWSWIRE) -- Hemispherx Biopharma (NYSE Amex:HEB) announced its financial results for the three months ended March 31, 2012. The net loss for the period (including non-cash effects) was $2,308,000 or $(0.02) per share as compared to a net loss of $866,000 or ($0.01) per share for the same period in 2011. This year-to-year increase in net loss for the three month period of $1,442,000 (167%) was predominantly impacted by:
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the fair value revaluation of the estimated liability related to certain redeemable warrants resulting in a non-cash loss of $151,000 in 2012 as compared to a non-cash gain of $301,000 for the same period in 2011, resulting in an increased non-cash loss of $452,000; and
- a reduction in proceeds from the sale of New Jersey state Net Operating Loss carryforwards ("NOLs") of $944,000. In January 2012, Hemispherx sold $16,000,000 of NOLs (for the years 2009 and 2010) for approximately $1,328,000 as compared to $28,000,000 of NOLs (for the years 2003 through 2008) for approximately $2,272,000 sold in February 2011.
Net Cash used in operating activities for the three months ended March 31, 2012 was approximately $1,665,000 as compared to $1,818,000 for the same period in 2011, a decrease of $153,000 or 8%.
As of March 31, 2012, we had approximately $32,190,000 in Cash, Cash Equivalents and Marketable Securities (restricted and unrestricted) for a decrease of approximately $2,201,000 from December 31, 2011.
Hemispherx continued to move forward with enhancements to its FDA licensed manufacturing facility in New Brunswick, NJ to accommodate larger production volumes of its FDA-approved therapeutic, Alferon N Injection®. The project is in an active construction phase with approximately $2,277,000 having been spent from project commencement through March 31, 2012 as compared to $1,695,000 from project commencement through December 31, 2011.
A clinical study recently commenced at the University of Alabama where Ampligen® is being administered intranasally as an adjuvant with FluMist®. The study is to assess the safety of Ampligen® and its potential enhancement of the immune response when used in conjunction with a seasonal flu vaccine. This is the first human study where Ampligen® has been nasally delivered and extends upon the work of Dr. Hideki Hasegawa at the National Institute of Infectious Diseases in Japan.
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' 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' 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 study product will ever be approved commercially for the studied or other treatment indications.