Aeolus Pharmaceuticals Announces Third Quarter Fiscal Year 2011 Results
· Significant Progress in BARDA Base Contract Deliverables Accomplished During Quarter
Mission Viejo, California, August 15, 2011 — Aeolus Pharmaceuticals, Inc. (OTCQB: AOLS) announced today financial results for the three months ended June 30, 2011. The Company reported net income of approximately $6,293,000, or $0.10 per share (undiluted), which includes a non-cash adjustment of approximately $7,484,000 related to decreases in the fair value of warrants that are included as a component of other income in the statement of operations for the three months ended June 30, 2011, compared to a net loss of $4,623,000, or ($0.10) per share (undiluted), which includes a non-cash adjustment of approximately ($3,856,000) related to decreases in the fair value of warrants that are included as a component of other income (expenses) in the statement of operations for the three months ended June 30, 2010.
“Progress, under the $10.4 million base period of our development contract with BARDA, which could total up to $118.4 million, if all of the options are exercised, continued during the quarter with the accomplishment of several milestones and significant progress in the animal model development and validation and manufacturing areas,” stated John L. McManus, President and Chief Executive Officer. “Studies are underway to confirm the animal models that will be used during the second half of this year and in future contract periods to select the dose, duration of treatment and design the pivotal efficacy studies.”
Revenue for the three months ended June 30, 2011 was approximately $1,912,000, which compares to no revenue for the three months ended June 30, 2010. The revenue is from the contract with BARDA announced on February 11, 2011.
Research and development expenses increased about $1,673,000, or 608%, to approximately $1,948,000, for the three months ended June 30, 2011 from approximately $275,000 for the three months ended June 30, 2010. The increase is primarily attributable to work related to the BARDA contract. We currently have eight [research and] development programs in progress: five programs involving AEOL 10150 as a medical countermeasure against the effects of sulfur mustard gas and chlorine gas on the lungs, against the effects of radiation on the lungs and on the gastro-intestinal tract, and as a treatment for cancer, two programs focused on AEOL 11207 and several other compounds as potential treatments for Parkinson’s disease and epilepsy, and one program studying another one of our compounds, Hexyl, as a protectant against radiation exposure.
The following information was filed by Aeolus Pharmaceuticals, Inc. (AOLS) on Monday, August 15, 2011 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.