Neurologix reports lower net loss of $3.5M for first-quarter 2010

May 14 2010

Neurologix, Inc. (OTCBB: NRGX), a biotechnology company developing innovative gene therapies for the brain and central nervous system, today announced its financial results for the quarter ended March 31, 2010.

For the three months ended March 31, 2010, the Company reported a net loss of $3.5 million, as compared with a net loss of $4.9 million for the same period in 2009. Net loss includes charges for the change in estimated fair value of derivative financial instruments related to warrants previously issued in connection with the issuance of Series C and Series D Convertible Preferred Stock of $0.4 million and $2.8 million for the first quarter of 2010 and 2009, respectively. The net loss applicable to common stock for the first quarter of 2010 was $4.3 million, or $0.15 per basic and diluted share, as compared with $5.6 million, or $0.20 per basic and diluted share, for the first quarter of 2009. The net loss applicable to common stock includes charges related to Series C and Series D Convertible Preferred Stock dividends of approximately $0.8 million, or $0.03 per share, for the first quarter of 2010, and approximately $0.7 million, or $0.03 per share, for the first quarter of 2009.

Neurologix held cash and cash equivalents of approximately $6.5 million at March 31, 2010.

Clark A. Johnson, President and Chief Executive Officer of Neurologix, noted that these first quarter financial results were consistent with the Company's expectations. "During the quarter Neurologix gained further intellectual property protections for its approach to gene therapy covering both the use of the GAD gene for the treatment of Parkinson's disease and other neurological disorders, and the use of the NPY gene for the treatment of epilepsy. These intellectual property protections further validate the innovative nature of our proprietary technology platform and approach to the treatment of central nervous system diseases, and underscore our company's leadership in the emerging field of molecular medicine for neurological disorders."

Mr. Johnson further noted that the Company's ongoing clinical program for the treatment of advanced Parkinson's disease remained on course, and Neurologix expected to announce preliminary efficacy data from the Company's Phase 2 clinical trial mid-year.

The Neurologix Quarterly Report on Form 10-Q, with financial statements and management's discussion of operations and results, can be found in the "Investors" section of the Company's website at http://www.neurologix.net.