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CST: 26/05/2019 08:23:00   

Vical to Discontinue Clinical Development of VL-2397 as it Considers Near Term Strategic Alternatives

95 Days ago

SAN DIEGO, Feb. 19, 2019 (GLOBE NEWSWIRE) -- Vical Incorporated (Nasdaq:VICL) today announced that it has decided to discontinue the Phase 2 clinical trial of VL‑2397 that was initiated in the first quarter of 2018. The decision was based on the Company’s decision to conserve its cash resources while it pursues its strategic alternative review process, as well as low patient accrual rates. The Phase 2 clinical trial was evaluating VL-2397 as a potential first-line treatment for invasive aspergillosis in immunocompromised adults with acute leukemia or recipients of an allogeneic hematopoietic cell transplant.

“While we believe in the potential benefits of VL-2397, we have made a strategic decision to discontinue our current development activities and conserve cash,” stated Vijay Samant, chief executive officer at Vical. “We want to thank the study investigators and their patients who participated in the trial for their support.”

In the third quarter of 2018, Vical announced plans to explore a range of strategic options to enhance shareholder value. The Company retained MTS Health Partners, L.P. to assist in the strategic review process. Given the decision announced today, the Company will focus on concluding the strategic review process.

Vical also plans to undertake a restructuring, including an appropriate reduction in staff. As a result, the Company will incur a restructuring related charge in the first quarter of 2019.

Fourth Quarter 2018 Financial and Operating Results

Vical also reported financial results for the three months ended December 31, 2018. Net loss for the fourth quarter of 2018 was $3.6 million, or $0.17 per share, compared with a net loss of $3.7 million, or $0.21 per share, for the fourth quarter of 2017. Revenues for the fourth quarter of 2018 were $0.1 million, compared with revenues of $4.0 million for the fourth quarter of 2017, reflecting revenues from Astellas Pharma Inc. for services performed under the prior ASP0113 collaborative agreements. Vical had cash and investments of $50.5 million at December 31, 2018. The Company’s net cash burn for 2018 was $12.4 million. The Company will not provide additional cash guidance until the strategic review process is complete.

About Vical
Vical develops biopharmaceutical products for the prevention and treatment of chronic or life-threatening infectious diseases. Additional information on Vical is available at www.vical.com.

Forward-Looking Statements
This press release contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those projected. Forward-looking statements include plans to complete a restructuring and the estimated impact on cash resources, as well as Vical’s plans to complete its review of strategic alternatives and the potential benefits of a strategic transaction. Risks and uncertainties include whether the termination of VL-2397 development and the planned restructuring will have the intended impact of conserving cash resources, Vical’s ability to identify potential strategic transactions and to complete any transaction that it pursues; whether Vical will be able to realize the expected benefits of any transaction; and additional risks set forth in the Company's filings with the Securities and Exchange Commission. These 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.

   
  VICAL INCORPORATED  
Selected Condensed Financial Information (Unaudited)  
                         
  Three Months Ended   Twelve Months Ended  
Statements of Operations December 31,   December 31,  
(in thousands, except per share amounts) 2018   2017   2018   2017  
Revenues:                        
Contract revenue $ 114   $ 3,943   $ 1,582   $ 13,401  
License and royalty revenue   10     10     40     418  
Total revenues   124     3,953     1,622     13,819  
Operating expenses:                        
Research and development   2,558     4,448     12,327     14,391  
Manufacturing and production   -     1,790     1,436     6,479  
General and administrative   1,517     1,596     7,505     6,335  
Total operating expenses   4,075     7,834     21,268     27,205  
Loss from operations   (3,951)     (3,881)     (19,646)     (13,386)  
Net investment and other income   346     153     3,392     426  
Net loss $ (3,605)   $ (3,728)   $ (16,254)   $ (12,960)  
Basic and diluted net loss per share $ (0.17)   $ (0.21)   $ (0.74)   $ (1.01)  
Weighted average shares used in computing                        
basic and diluted net loss per share 21,844   17,778   21,842   12,888  
                         
                 
Balance Sheets             December 31,   December 31,  
(in thousands)             2018   2017  
Assets:                        
Cash, cash equivalents, and marketable                        
securities, including restricted             $ 48,071   $ 60,691  
Other current assets               1,128     15,626  
Total current assets               49,199     76,317  
Long-term investments               2,386     2,209  
Property and equipment, net               100     606  
Other assets               659     1,362  
Total assets             $ 52,344   $ 80,494  
                         
Liabilities and stockholders' equity:                        
Current liabilities             $ 3,581   $ 16,917  
Stockholders' equity               48,763     63,577  
Total liabilities and stockholders' equity             $ 52,344   $ 80,494  
                         

Contacts:        Andrew Hopkins                                            Anthony Ramos
                       (858) 646-1127                                              Vice President and Chief Financial Officer
                       Website:  www.vical.com

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