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Chairman of the Board and Chief Executive Officer Robert C. Bishop, Ph.D.stated, "Product sales at Colloral LLC, our joint venture with DeseretLaboratories, Inc., were up from the third quarter, but results were downcompared to the fourth quarter of last year. The response to marketing throughThe Shopping Channel in Canada is encouraging." AutoImmune consolidatesColloral LLC for financial reporting purposes in accordance with FIN 46"Consolidation of Variable Interest Entities."
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AutoImmune has exclusively licensed certain of its intellectual propertyrights to BioMS Medical Corp., a Canadian company. Under the licenseagreement, BioMS makes monthly diligence payments to AutoImmune and will payroyalties to AutoImmune on sales of its lead drug MBP8298, if it reaches themarket. BioMS recently reported that it signed a licensing and developmentagreement with Eli Lilly and Company granting them exclusive worldwide rightsto MBP8298. AutoImmune's rights to payments and royalties are unchanged bythis new agreement. Dr. Bishop remarked, "It is comforting to see Eli Lillyand Company make this commitment to commercializing MBP8298. Should theproduct be successful in ongoing Phase III trials, Lilly's regulatory,marketing and sales capabilities will be of great value in capitalizing onthis opportunity."
AutoImmune is a biopharmaceutical company involved in the development oftreatments for autoimmune and cell-mediated inflammatory diseases andconditions.
This release contains forward-looking statements that involve risks anduncertainties. The Company's actual results may differ significantly fromresults discussed in the forward-looking statements due to a number ofimportant factors, including, but not limited to the uncertainties of clinicaltrial results, the Company's dependence on third parties for licensingrevenue, and the risks of technological change and competition. These factorsare more fully discussed in the Company's most recent Annual Report on Form10-KSB filed with the Securities and Exchange Commission in the section "RiskFactors." The discussion in the Annual Report on Form 10-KSB is herebyreferenced into this release.- Financial Chart Follows - AUTOIMMUNE INC. STATEMENT OF OPERATIONS (Unaudited) Three months ended Year ended December 31, December 31, 2006 2007 2006 2007 Revenue $137,000 $75,000 $401,000 $294,000 Costs and expenses: Cost of product revenue 28,000 1,000 46,000 21,000 Research and development 45,000 49,000 217,000 144,000 Selling, general and administrative 152,000 181,000 1,058,000 713,000 Total costs and expenses 225,000 231,000 1,321,000 878,000 Interest income 113,000 105,000 428,000 440,000 Minority interest in joint venture 11,000 (5,000) 11,000 1,000 Other income - - -
