Diacrin Announces Year End Results

[antiquity]

Diacrin Announces Year End Results


CHARLESTOWN, Mass.--(BUSINESS WIRE)--March 28, 2002--Diacrin, Inc. (Nasdaq:DCRN) reported today financial results for the fourth quarter and year ended December 31, 2001. Net loss for the quarter was $1.3 million, or $.07 per share, compared to a net loss of $660,000, or

04 per share, for the quarter ended December 31, 2000. Net loss for the year ended December 31, 2001 was $4.6 million, or $.26 per share, compared to a net loss of $3.5 million, or $.21 per share, for the year ended December 31, 2000. Diacrin ended the year with cash and investments of $49.7 million or $2.77 per share.

"We are moving forward with multiple human clinical trials to evaluate our cell therapies and look forward to important data from several of these trials later this year," said Thomas H. Fraser, Ph.D., President and CEO.

Diacrin is developing cell transplantation technology for treating human diseases that are characterized by cell dysfunction or cell death and for which current therapies are either inadequate or nonexistent. Products under development include: porcine spinal cord cells for spinal cord injury; porcine neural cells for stroke, focal epilepsy and intractable pain; NeuroCell(TM)-PD for Parkinson's disease; porcine liver cells for acute liver failure; human liver cells for cirrhosis; and human muscle cells for cardiac disease.

DIACRIN, INC.

SELECTED FINANCIAL DATA

Three Months Year

Ended December 31, Ended December 31,

2001 2000 2001 2000

Statement of

Operations Data:

REVENUES:

Research and

development $ 127,487 $ 445,038 $ 737,290 $ 2,081,795

Investment income 568,134 952,073 3,149,543 3,124,929

Total revenues 695,621 1,397,111 3,886,833 5,206,724

OPERATING EXPENSES:

Research and

development $ 1,614,154 $ 1,400,597 $ 6,350,190 $ 5,996,550

General and

administrative 355,271 324,378 1,624,470 1,348,072

Interest expense 1,907 6,638 13,861 29,898

Total operating

expenses 1,971,332 1,731,613 7,988,521 7,374,520

EQUITY IN OPERATIONS

OF JOINT VENTURE (52,809) (325,222) (546,562) (1,368,945)

Net loss $(1,328,520) $ (659,724) $(4,648,250) $(3,536,741)

NET LOSS PER

COMMON SHARE $ (.07) $ (.04) $ (.26) $ (.21)

SHARES USED IN

COMPUTING NET LOSS

PER COMMON SHARE 17,915,438 17,914,161 17,914,889 17,073,194

December 31, December 31,

2001 2000

Balance Sheet Data:

Cash, cash equivalents

and investments $49,727,197 $54,606,731

Total assets 50,681,496 55,793,003

Long-term debt -- 119,167

Stockholders' equity 49,146,150 53,766,275

CONTACT:

Diacrin, Inc.

Kevin Kerrigan

(617) 242-9100

[Wise Young]

Let me try to summarize this. Diacrin is a publicly held company with close to 18 million shares. They are spending close to $8 million per year, $6 million of which are on research. They have about $54 million in the bank. The interest from this plus research income (from grants and other sources) comes to about $5 million per year. The difference between their expenditures and the income is a net loss of about $5 million per year. Their research expenses (clinical trials) are increasing. The big question is whether or not they have enough in the bank to take a product to market. Their stock price has fallen substantially in the past year or so and therefore they need to survive on their assets until the stock prices go up before issuing additional stock to raise money. If they have a successful trial report this year, their stock will rise and they can raise more money that way. I don't think that $50 million will last very long once they get into phase 3 trials. Wise.

[Chris Chappell]

patient results?

I can't recall hearing anything concerning those who have had the porcine cell transplants.

Anyone have any news?

Onward and Upward!

[antiquity]

They'll release the trial data later this year.

[mk99]

Hey Dr. Young, a while back you mentioned that CYTRX may be worth buying and it was around $.70 at the time. It's now at $.93 Unfortunately I never bought.

Do you think Diacrin may be a good buy here as well? Cash burn rate looks OK... if they can last for another year they should be OK.

I've been a very active investor for about 5 years now and have done very well... but I have stayed away from biotech stocks so far... maybe they are worth a closer look.

thanks

[Wise Young]

Mike, I think that it is a risky stock at best. If they get a positive clinical trial result, their stock could rise dramatically. They do have enough money to last them for a couple of years at their current expenditure rate, so that the short-term downside is not so great. If you are the gambling type, you might be able to get profit by investing now but you should be prepared to lose some money as well. Wise.

[perry]

i saw it on t.v. a day or two ago, but no further
info,just that there were six para's...........who is doing this work.....

perry

[antiquity]

Originally posted by perry:

i saw it on t.v. a day or two ago, but no further
info,just that there were six para's...........who is doing this work.....

perry

Diacrin is the only company doing porcine FSC transplants for SCI.