SOUTH SAN FRANCISCO, Calif., May 14 VaxGen, Inc.(OTC Bulletin Board: VXGN), a biopharmaceutical company, today providedguidance on its expected monthly cash expenditures following the most recentrestructuring undertaken on April 9, 2008. VaxGen expects that its averagemonthly cash expenditures going forward are unlikely to exceed $1 million,made up of the following categories:
"With the completion of the most recent reduction in force, we haveconcluded those significant cost-reduction measures that are under theCompany's sole control," said James P. Panek, VaxGen President and CEO."While we continue to explore every avenue to reduce costs, a furthersignificant reduction will be a function of the resolution of our efforts tosell the manufacturing plant and assign the associated lease. We are indiscussions with parties interested in the plant, but cannot at this pointprovide assurance that a transaction will result."
VaxGen further announced today the filing of its financial results for thequarter ending March 31, 2008 on Form 10-Q with the Securities and ExchangeCommission. These results reflect a number of significant impacts consequentto the termination of the proposed merger with Raven biotechnologies asfollows:
VaxGen is a biopharmaceutical company based in South San Francisco,California. The company owns a state-of-the-art biopharmaceuticalmanufacturing facility with a 1,000-liter bioreactor that can be used to makecell culture or microbial biologic products. For more information, pleasevisit the company's web site at http://www.vaxgen.com.
Note: This press release contains "forward-looking statements" within themeaning of the federal securities laws, including statements regarding theVaxGen's anticipated cash expenditures and its potential sale of assets andassignment of lease. These statements are subject to risks and uncertaintiesthat could cause actual results and events to differ materially from thoseanticipated. Additional information concerning these and other risk factors iscontained in VaxGen's Annual Report on Form 10-K for the year ended December31, 2007. Readers are cautioned not to place undue reliance on theseforward-looking statements that speak only as of the date of this release.VaxGen undertakes no obligation to update publicly any forward-lookingstatements to reflect new information, events, or circumstances after the dateof this release except as required by law.
(Logo: http://www.newscom.com/cgi-bin/prnh/19991112/VAXGENLOGO)* Costs related to the Company's real estate and facility, estimated at 32% of monthly expenditures. * Costs related to maintaining public company status, including professional fees, at approximately 32% of monthly expenditures. * Costs related to the company's six remaining permanent staff and temporary support, at approximately 21% of monthly expenditures. * Interest payments associated with the outstanding convertible debt at approximately 15% of monthly expenditures.
SOURCE VaxGen, Inc.