Hemispherx Biopharma reports net loss of $13,438,000 for fiscal year 2009

Mar 15 2010

Hemispherx Biopharma, Inc. (NYSE Amex:HEB) (the "Company"), announced its financial results for the fiscal year ended December 31, 2009. The net loss for the year (including non-cash charges) was approximately $13,438,000 or $0.12 per share as compared to a net loss of $12,219,000 or $0.16 per share in 2008. This $1,219,000 increase in loss was primarily due to increased research and development expenses associated with preparing the New Brunswick, New Jersey manufacturing plant for increased production plus efforts employed in supporting the New Drug Application ("NDA") and employee compensation awards.

Cash and cash equivalents were $58,072,000 as of December 31, 2009 reflecting an increase of $51,953,000 since year end 2008 due primarily to equity financing during 2009. Cash used in operating activities for the year ended December 31, 2009 was $9,297,000 compared to $9,358,000 for the same period in 2008, a reduction of $61,000.

Progress was made in preparing the Company's production facilities, including the Company's contract manufacturer, for various FDA inspections and additional preclinical studies were conducted assessing the potential use of Ampligen^®, an experimental therapeutic, and Alferon N^TM (FDA approved for a category of sexually transmitted diseases) against influenza and certain other disease conditions. Alferon N^TM production is expected to be resumed based on an approximate $4.4 Million investment in various facility improvements in our approximate 43,000 square foot New Jersey manufacturing facility. A Complete Response Letter received on November 25, 2009, from the Food and Drug Administration ("FDA") regarding the pending NDA has prompted a broad internal and external program to design and implement a confirmatory clinical trial in chronic fatigue syndrome ("CFS") and to conduct certain additional preclinical tests.