Immunovaccine Inc.
TSX VENTURE : IMV

Immunovaccine Inc.

May 24, 2012 16:05 ET

Immunovaccine Announces Financial Results for the Quarter Ended March 31, 2012

- New vaccine collaborations in infectious diseases and cocaine addiction validate the promise of Immunovaccine's technologies

- Successful private placement raises $2.8 million

HALIFAX, NOVA SCOTIA--(Marketwire - May 24, 2012) - Immunovaccine Inc. (TSX VENTURE:IMV) ("Immunovaccine" or the "Company"), a clinical stage vaccine company developing the patented DepoVax vaccine adjuvanting platform and product candidates for cancer therapy and infectious diseases, today released its financial and operational results for the quarter ended March 31, 2012.

John Trizzino, CEO of Immunovaccine, commented,

"Since the beginning of 2012, we have entered into three new collaborative agreements with world leading organizations for the purpose of developing vaccines to address cocaine addiction, bio-defense threats and the fast-growing companion animal market. We believe this traction provides validation of both our technology and development strategy. In order to sustain our momentum, we successfully completed a private financing during the period raising approximately $2.8 million. By any measure, the first quarter of 2012 has been a time of significant progress for Immunovaccine."

Highlights of the First Quarter 2012:

  • Continued to enroll and vaccinate patients in DPX-Survivac Phase I clinical trial. The ongoing Phase I trial is an open label clinical trial designed to evaluate sequentially the safety of two DPX-Survivac dosing regimens in approximately 15 patients. The goal of the Phase I clinical trial is to establish the safety and immune activity of DPX-Survivac in patients with advanced ovarian cancer.
  • Raised gross proceeds of approximately $2.8 million through a non-brokered private placement on March 7, 2012. Immunovaccine issued 9,294,005 common shares at the price of $0.30 per common share.
  • Signed a research agreement with Weill Cornell Medical College to advance a vaccine for treating cocaine addiction. The project will combine Cornell's novel cocaine antigen with Immunovaccine's DepoVax adjuvanting platform to strengthen the immune response shown in research animals in previous studies at the College.
  • Entered into a research collaboration to develop next generation bio-defense vaccines against the most threatening biological agents. These novel vaccine candidates will be evaluated as part of a US National Institutes of Health (NIH) funded study, initiated in the first quarter of 2012.

Highlights Subsequent to First Quarter End:

  • Entered into a research collaboration with one of the world's leading animal health companies to develop next generation companion animal vaccines. The resulting vaccine products, which are expected to deliver long-lasting, single-dose protection against infectious diseases in dogs and cats, will be advanced through veterinary studies in several indications by Immunovaccine's research partner.
  • Announced that biotech investment banker, Stephanie Léouzon, is being nominated to join Immunovaccine's board. Ms. Léouzon is a Senior Advisor to Torreya Partners, a New York-based life science advisory firm, and was formerly a Senior Advisor and Managing Director in Health Care Investment Banking at Credit Suisse in London.
  • Received the "Best Early-Stage Vaccine Biotech" award at the 5th Vaccine Industry Excellence (ViE) Awards ceremony during the World Vaccine Congress Washington 2012 in Washington, D.C. The annual ViE Awards honor the efforts, accomplishments and positive contributions of companies and individuals within the vaccine industry. The "Best Early-Stage Vaccine Biotech" was awarded to Immunovaccine based on the Company's strong early clinical trial results in immunotherapy and key collaborations that have the potential to expand its product pipeline in infectious diseases, addiction and bio-defense vaccines.

Q1 2012 Financial Results

The Company prepares its unaudited interim condensed consolidated financial statements in accordance with Canadian generally accepted accounting principles as set out in the Handbook of the Canadian Institute of Chartered Accountants - Part I ("CICA Handbook"), which incorporates International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").

The Company's net loss for the period decreased from a loss of $1.9 million during the quarter ended March 31, 2011 to a loss of $1.4 million during the quarter ended March 31, 2012. This decrease is due mainly to the $698,000 decrease in research and development costs and the $16,000 decrease in business development costs, offset by an increase of $225,000 in general and administrative expenses and an increase of $15,000 in accreted interest.

As of March 31, 2012, Immunovaccine had cash and cash equivalents of $6.5 million and working capital of $6.6 million as compared to $5.1 million in both cash and working capital at December 31, 2011. For the quarter ended March 31, 2012, the company's "cash burn rate" (defined as net loss for the period adjusted for non-cash transactions including amortization, accretion of long-term debt and adjustments, stock-based compensation and shares issued for professional services), was approximately $1.09 million. Management believes this provides the Company with sufficient funds to execute the strategy of completing the Phase I trial of DPX-Survivac, executing business development efforts and pre-clinical collaborations on infectious diseases, while maintaining adequate working capital for the next twelve months.

As of April 19, 2012, the number of issued and outstanding common shares was 63,505,152. On March 31, 2012, the number of stock options outstanding was 5,097,150 and the number of outstanding warrants was 4,137,556.

Immunovaccine's unaudited interim condensed consolidated financial statements for March 31, 2012, filed in accordance with IFRS, and the management discussion and analysis (MD&A), are available at www.sedar.com.

About Immunovaccine

Immunovaccine Inc. applies its novel vaccine delivery platform to the development of vaccines for cancer therapy and infectious disease. The company's DepoVax™ platform is a patented lipid delivery system that presents antigens plus adjuvant to the immune system for a prolonged period and has the potential to enhance immune responses. Immunovaccine has advanced its platform technology and proprietary cancer vaccine into Phase I human clinical trials and has demonstrated both safety and immunogenicity potential. The Company is also capitalizing on the broad potential of its delivery platform by creating new DepoVax-based vaccines through multiple development collaborations. In addition to the Company's human health vaccine strategy, it continues to capture value from animal health vaccine applications. Immunovaccine has several key partnerships in the animal health sector including an agreement with Pfizer Animal Health, which has licensed the Company's delivery technology platform to develop vaccines for livestock. Connect at www.imvaccine.com.

This press release contains forward-looking information under applicable securities law. All information that addresses activities or developments that we expect to occur in the future is forward-looking information. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made. However, they should not be regarded as a representation that any of the plans will be achieved. Actual results may differ materially from those set forth in this press release due to risks affecting the company, including access to capital, the successful completion of clinical trials and receipt of all regulatory approvals. Immunovaccine Inc. assumes no responsibility to update forward-looking statements in this press release.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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