Exhibit 99.1
Neurologix Announces Year-End Results and Achievements
Successfully Completed First Ever Phase I Gene Therapy Trial for
Parkinson's Disease;
Plans to Begin Phase II Clinical Trial in Second Half of 2007
FORT LEE, N.J.--(BUSINESS WIRE)--April 3, 2007--Neurologix, Inc.
(OTCBB: NRGX), a biotech company engaged in the development of
innovative gene therapies for the brain and central nervous system,
announced today its financial results for the year ended December 31,
2006.
In commenting on the Company's performance, John E. Mordock,
president and chief executive officer of Neurologix, said, "Last year,
we made history. We successfully completed the first ever Phase I
trial involving gene therapy for Parkinson's disease. The trial
confirmed that our gene therapy for Parkinson's is safe for patients,
and it yielded statistically significant efficacy results. It marked
another key milestone in our goal of making this treatment available
commercially. Building on the success of the Phase I trials, we plan
to begin a Phase II clinical trial in the second half of 2007. This
trial will be a randomized, controlled study designed to further
establish the effectiveness and safety of the treatment. The trial
will be conducted in multiple medical centers, and the treatment will
be infused bi-laterally in trial subjects."
Mr. Mordock added, "Our gene therapy platform also shows potential
as a breakthrough in the treatment for epilepsy. In 2007, we plan on
commencing a Phase I clinical trial as a result of the positive
pre-clinical results we have achieved to date. Meanwhile, we continue
to move ahead with preclinical studies of our gene therapy for other
neurodegenerative and metabolic disorders. We are very excited about
2007 and the progress in our development plans."
In the coming months, the Company will be seeking additional
capital through the equity markets or through strategic partnerships
to enable it to continue to fulfill its development goals for its
Parkinson's and epilepsy indications.
For the year ended December 31, 2006, the Company reported a net
loss of $7.0 million, as compared with $5.3 million for the year ended
December 31, 2005. The Company reported a net loss applicable to
common stock for the year ended December 31, 2006, of $10.4 million,
or $0.39 per basic and diluted share, as compared with $5.3 million,
or $0.21 per basic and diluted share, for the same period in 2005. The
net loss applicable to common stock for the year ended December 31,
2006, includes charges of $3.0 million, or $0.11 per basic and diluted
share, related to accretion of a beneficial conversion feature ($2.6
million) and preferred stock dividends ($0.7 million) in connection
with the issuance of the Company's Series C Preferred Stock in May
2006. The Company had cash and cash equivalents of approximately $10.5
million at December 31, 2006.
About Neurologix
Neurologix, Inc. is a development-stage company engaged in the
research and development of proprietary treatments for disorders of
the brain and central nervous system utilizing gene therapies. The
Company's initial development efforts are focused on gene therapy for
treating Parkinson's disease, epilepsy and other neurodegenerative and
metabolic disorders. Neurologix's core technology, "NLX," is currently
in the clinical development stages, having recently been tested in a
company-sponsored Phase I human clinical trial to treat Parkinson's
disease.
Cautionary Statement Regarding Forward-looking Statements
This news release includes certain statements of the Company that
may constitute "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended, and which are made
pursuant to the Private Securities Litigation Reform Act of 1995.
These forward-looking statements and other information relating to the
Company are based upon the beliefs of management and assumptions made
by and information currently available to the Company. Forward-looking
statements include statements concerning plans, objectives, goals,
strategies, future events, or performance, as well as underlying
assumptions and statements that are other than statements of
historical fact. When used in this document, the words "expects,"
"promises," "anticipates," "estimates," "plans," "intends,"
"projects," "predicts," "believes," "may" or "should," and similar
expressions, are intended to identify forward-looking statements.
These statements reflect the current view of the Company's management
with respect to future events. Many factors could cause the actual
results, performance or achievements of the Company to be materially
different from any future results, performance or achievements that
may be expressed or implied by such forward-looking statements,
including, but not limited to, the following:
-- The Company is still in the development stage and has not
generated any revenues. From inception through December 31,
2006, it incurred net losses and negative cash flows from
operating activities of approximately $21.2 million and $16.2
million, respectively. Management believes that the Company
will continue to incur net losses and cash flow deficiencies
from operating activities for the foreseeable future. Because
it may take years to develop, test and obtain regulatory
approval for a gene-based therapy product before it can be
sold, the Company likely will continue to incur significant
losses for the foreseeable future. Accordingly, it may never
be profitable and, if it does become profitable, it may be
unable to sustain profitability.
-- In order to obtain the regulatory approvals necessary to
commercialize its current or future product candidates, from
time to time the Company will need to raise funds through
public or private equity offerings, debt financings or
additional corporate collaboration and licensing arrangements.
Availability of financing depends upon a number of factors
beyond the Company's control, including market conditions and
interest rates. The Company does not know whether additional
financing will be available when needed, or if available, will
be on acceptable or favorable terms to it or its stockholders.
-- The Company will need to conduct future clinical trials for
treatment of Parkinson's disease using the Company's NLX
technology. If the trials prove unsuccessful, future
operations and the potential for profitability will be
materially adversely affected and the business may not
succeed.
-- There is no assurance as to when, or if, the Company will be
able to successfully complete the required preclinical testing
of its gene therapy for the treatment of epilepsy to enable it
to file an Investigational New Drug Application with the FDA
for permission to begin a Phase I safety trial or that, if
filed, such permission will be granted.
Other factors and assumptions not identified above could also
cause the actual results to differ materially from those set forth in
the forward-looking statements. Additional information regarding
factors that could cause results to differ materially from
management's expectations is found in the section entitled "Risk
Factors" in the Company's 2006 Annual Report on Form 10-KSB. Although
the Company believes these assumptions are reasonable, no assurance
can be given that they will prove correct. Accordingly, you should not
rely upon forward-looking statements as a prediction of actual
results. Further, the Company undertakes no obligation to update
forward-looking statements after the date they are made or to conform
the statements to actual results or changes in the Company's
expectations.
NEUROLOGIX, INC.
(A Development Stage Company)
CONDENSED BALANCE SHEET
(Amounts in thousands, except share and per share amounts)
Dec. 31,
2006
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ASSETS
Current assets:
Cash and cash equivalents $10,478
Prepaid expenses and other current assets 413
--------
Total current assets 10,891
Equipment, less accumulated depreciation of $329 169
Intangible assets, less accumulated amortization of $79 512
Other assets 8
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Total Assets $11,580
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $729
--------
Total liabilities 729
--------
Stockholders' equity:
Preferred stock; 5,000,000 shares authorized:
Series A - Convertible, $0.10 par value; 300,000 shares
designated, 645 shares issued and outstanding with an
aggregate liquidation preference of $645 -
Series B - $0.10 par value; 4,000,000 shares designated,
no shares issued and outstanding -
Series C - Convertible, $0.10 par value; 700,000 shares
designated, 368,155 shares issued and outstanding with
an aggregate Liquidation preference of $12,708,162 37
Common Stock:
$0.001 par value; 60,000,000 shares authorized,
26,542,924 issued and outstanding at December 31, 2006
and 2005 27
Additional paid-in capital 34,573
Deficit accumulated during the development stage (23,786)
--------
Total stockholders' equity 10,851
--------
Total Liabilities and Stockholders' Equity $11,580
========
NEUROLOGIX, INC.
(A Development Stage Company)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share amounts)
For the
period
2/12/99
Year Ended (inception)
December 31, through
-----------------------
2006 2005 12/31/06
----------- ----------- -----------
Revenues $ - $ - $ -
Operating expenses:
Research and development 3,581 2,835 11,399
General and administrative
expenses 3,904 2,687 10,111
Loss from operations (7,485) (5,522) (21,510)
Other income (expense):
Dividend, interest and other
income 441 181 756
Interest expense-related parties (2) (4) (411)
Other income, net 439 177 345
Net loss (7,046) (5,345) $(21,165)
Charge for accretion of beneficial
conversion rights (2,621) -
Preferred stock dividends (708) -
Net loss applicable to common
stock $ (10,375) $ (5,345)
Net loss applicable to common
stock per share, basic and
diluted $ (0.39) $ (0.21)
Weighted average common shares
outstanding, basic and diluted 26,542,924 25,693,986
CONTACT: Neurologix, Inc.
Marc Panoff, 201-592-6451
Chief Financial Officer
marcpanoff@neurologix.net