GAITHERSBURG, Md., March 6 Iomai Corporation(Nasdaq: IOMI) today reported financial results and corporate progress for thefull year ended December 31, 2007.
"In the past few months, we have further demonstrated that Iomai's vaccineand immunostimulant patches can be safely and effectively self-applied," saidStanley C. Erck, president and chief executive officer of Iomai. "This laysthe foundation for a revolution in the way vaccination is approached. Ratherthan shots at a doctor's office or travel clinic, we believe we have aplatform that makes possible a vaccine that could be mailed to consumers andself-applied."
"2007 was a groundbreaking year for Iomai, with the positive results fromthe Phase 2 field study of our travelers' diarrhea vaccine and the$128 million government contract to fund the development of our adjuvant patchfor pandemic influenza," continued Mr. Erck. "This year, we hope to build onthose achievements by pursuing a partnering deal, announcing results from thePhase 1/2 trial of our adjuvant patch for pandemic influenza and preparing toconduct a pivotal Phase 3 trial for our travelers' diarrhea vaccine in 2009."
Full-Year and Fourth Quarter 2007 Financial Results
For the full year ended Dec. 31, 2007, Iomai reported a net loss availableto common stockholders of $28.3 million, or $1.16 per share, compared to a netloss of $32.3 million, or $2.03 per share, for the year ended Dec. 31, 2006.The lower net loss per share in 2007 was attributable to increased revenuesprincipally under our Department of Health and Human Services ("DHHS")contract, which was awarded in January 2007 and the increased number of sharesoutstanding as a result of our $30.2 million private placement completed onMarch 2, 2007. For the fourth quarter of 2007, Iomai's net loss was$6.2 million, or $0.24 loss per share, compared to a net loss in the fourthquarter of 2006 of $9.9 million, or $0.53 loss per share. As of Dec. 31, 2007,Iomai had common stock outstanding of 25,588,673 shares.
The Company reported revenues of $10.7 million for the year ended Dec. 31,2007, compared to $1.5 million in the year ended Dec. 31, 2006. The increasein revenue in 2007 was principally from the reimbursement of expenses incurredunder the DHHS contract. Iomai reported revenues of approximately$3.3 million in the fourth quarter of 2007, compared to approximately $40,000in the fourth quarter of 2006.
Total operating expenses were $39.8 million in 2007, compared to operatingexpenses of $33.9 million in 2006. The increase in operating expenses wasprimarily due to five major factors associated with supporting our developmentprograms: (1) higher payroll and stock compensation costs associated with a28% increase in full-time employee equivalents, (2) higher facility costsassociated with leasing additional space, (3) increased animal study costsassociated with work performed under our DHHS contract, (4) higher contractmanufacturing costs associated with procuring and finishing the pandemic fluvaccine for the clinical trial under the DHHS contract, and (5) higherconsulting costs associated with market studies for our product candidates.These increased costs were partially offset by lower development costs for ourskin preparation system.
Total operating costs for the fourth quarter of 2007 were $9.6 million ascompared to $10.1 million for the fourth quarter of 2006. The decrease inoperating expenses was primarily due to decreased in year-to-year clinicaltrial costs for Iomai's needle-free travelers' diarrhea vaccine and decreasedcontract manufacturing expenses.
As of Dec. 31, 2007, Iomai had unrestricted cash and cash equivalents andmarketable securities of $15.5 million compared to $22.0 million on Sept. 30,2007.
Iomai expects to be able to fund its capital expenditures and operationswith its current working capital and reimbursement of e