Important note: Information in this article was accurate in 2002. The state of the art may have changed since the publication date.
Important note: Information in this article was accurate in 2002. The state of the art may have changed since the publication date.
Reuters NewMedia - Wednesday, November 20, 2002
On Wednesday, the company's shares fell 47 cents, or nearly 42 percent, to close at 65 cents on the Nasdaq stock market.
In a filing to the U.S. Securities and Exchange Commission, Carlsbad, California-based Immune Response said that as of Sept. 30 its liabilities exceeded assets by about $4.8 million.
The company, whose founders include polio-vaccine pioneer Jonas Salk, said it has limited cash resources and if it cannot obtain funding in the next few days, it will have to cease operations and file for bankruptcy.
In September, Immune Response announced plans to restructure to cut costs and focus on Remune, its therapeutic AIDS vaccine. It also announced the resignation of its chief executive officer and layoffs at its headquarters.
This week, Immune Response said Cheshire Associates LLC, which is affiliated with board member Kevin Kimberlin, may provide limited debt financing for up to 60 days. But it said the funding depends on its achieving the cost reductions targeted in the restructuring.
The company also said Spencer Trask Ventures Inc., also affiliated with Kimberlin and the placement agent for Immune Response's current private offering of stock, has said that if the offering is not completed by Nov. 29, the offering could be terminated.
Remune is designed to fight AIDS by boosting the immune system. Results from mid-stage trials of the experimental drug showed that patients who took Remune with other drugs were 37 percent less likely to experience a severe rebound in viral levels than those taking the other drugs alone.
Many analysts, however, remain skeptical about Remune's prospects after Pfizer Inc. PFE.N pulled out in July 2001 of a program to develop it.
Immune Response reported a third-quarter net loss of $5.5 million, or 56 cents per share, compared to a net profit of $1.4 million, or 16 cents per share, a year earlier due to a sharp drop in revenue which the company attributed to Pfizer's termination of the development deal.
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