Marina Biotech, Inc. Announces Full Year 2011 Financial Results

Marina Biotech, Inc. Announces Full Year 2011 Financial Results 
Highlights Recent Corporate Accomplishments and Strategic Direction 
BOTHELL, WA -- (Marketwire) -- 10/11/12 --  Marina Biotech, Inc.
(PINKSHEETS: MRNA), a leading RNAi-based drug discovery and
development company, today reported financial results for the fiscal
year ended December 31, 2011, and provided an update on recent
corporate accomplishments and strategic direction.  
"The past nine months have been an extremely difficult time for the
Company, yet we remain encouraged by the continued interest in both
our broad nucleic acid-based drug discovery platform as well as our
stand-alone technologies," stated J. Michael French, President and
Chief Executive Officer of Marina Biotech. "We continue to strive to
raise sufficient capital to meet our current obligations in a timely
manner and, more importantly, to continue our focus on novel drug
discovery and development. Despite the challenges, since December
2011, we have completed four partnering deals across our discovery
platform licensing both chemistry and delivery technologies in the
fields of microRNA, DNA interference and agricultural applications.
In addition, we made good progress in our Phase 1b/2a clinical
program in Familial Adenomatous Polyposis and have completed dosing
in cohort 2." 
Mr. French continued, "In 2012, we have taken aggressive steps to
lower our expenditures, extend our runway and reduce our need for
capital. We have also issued shares of our common stock to some of
our largest unsecured creditors to satisfy approximately $1.2 million
in outstanding obligations, thereby decreasing our near-term need for
cash. Additionally, we have lowered our current and future
obligations by substantially reducing the term of the lease for our
55,000 square foot facility located in Bothell, WA so that it will
expire on March 1, 2013 -- at the latest -- rather than in 2016. As a
result of the impending expiration of this lease, and the sale of the
equipment that we used at this facility, we are now in a position to
secure a more appropriate facility to support our R&D efforts, to the
extent that sufficient funding is available. To that end, we continue
to seek both financing and strategic transaction opportunities to
finance our op
erations and advance our clinical and preclinical
programs. In addition, we intend to complete our filings with the SEC
as required within the next six weeks. While there are still
significant hurdles on our path toward success and there is no
guarantee that we will survive or continue operating as an
independent company, our team remains focused and dedicated to our
stakeholders and to the development of unique nucleic acid-based
therapeutics for the treatment of human disease." 
FINANCIAL RESULTS 
Net loss
 Net loss for the full year 2011 was approximately $29.4
million compared to net loss of $27.8 million for 2010. The increase
in our loss is due to a non-cash adjustment of approximately $16
million to the carrying value of our intangible assets. 
Revenue 
Revenue for the year ended December 31, 2011 was $2.2 million
compared to $2.5 million in 2010. In 2011 we recognized collaborative
revenue from Roche, Debiopharm and Mirna while revenue in 2010
included payments from Par and Cypress.  
Expenses
 Research and
development ("R&D") expenses decreased 37% or $6.7 million for the
full year 2011 compared to 2010. In addition to a decrease in direct
project spending, patent license fees decreased significantly due to
the cost of acquisitions in 2010, including: the acquisition of the
SMARTICLES(R) liposomal-based delivery system from Novosom AG, which
we acquired through the issuance of shares of our common stock valued
at approximately $3.8 million; the in-license of intellectual
property related to conformationally restricted nucleotides from
Valeant Pharmaceuticals; and the expansion of our previous agreement
with RiboTask for exclusive rights to the development of UsiRNA-based
therapeutics to include the development of UNA-based diagnostics.  
Selling, general and administrative ("SG&A") expenses for the full
year 2011 decreased 19% from approximately $10.4 million to $8.4
million, compared to 2010, primarily as a result of transaction costs
incurred relating to our 2010 acquisition of Cequent Pharmaceuticals,
Inc.  
Restructuring expense for 2011 was approximately $1.4 million,
compared to $3.5 million in 2010. Restructuring expense in both years
reflects the issuing of shares of our common stock to the landlord of
the exited facility at 3450 Monte Villa Parkway in Bothell, WA. In
2011 we terminated the 3450 Monte Villa lease while in 2010 the
expense resulted from an amendment to the lease of this facility. 
Non-Cash Loss on Impairment of Intangible Assets
 During 2011 we
tested the carrying value of our intangible assets for impairment
utilizing the income approach. As a result of the impairment test,
for year end 2011 we recorded a non-cash loss on impairment of the
intangible assets from the July 21, 2010 acquisition of Cequent
Pharmaceuticals, Inc. of approximately $16.0 million. 
Interest and Other Expense
 We did not record any interest or other
expense in 2011. For 2010 we recorded interest and other expense of
approximately $2.8 million consisting primarily of non-cash charges
including the fair value of price adjustable warrants issued to amend
certain securities purchase agreements in the fourth quarter of 2010
and amortization of the debt discount resulting from the fair value
of price adjustable warrants issued to note holders.  
Other Income
 We also recorded net gains of approximately $6.7
million in full year 2011 and net gains of approximately $4.4 million
in full year 2010 related to the re-measurement of price-adjustable
warrants and subscription investment units required to be classified
as liabilities. The liability is re-measured at the end of each
accounting period, and increases or decreases with changes in our
stock price and variables in our valuation model. 
Balance Sheet
 As of December 31, 2011 we had cash of approximately
$2.0 million compared to $2.1 million as of December 31, 2010. As a
result of our cash position, we received a "going concern" opinion
from KPMG LLP, our independent registered public accounting firm,
which was included in our 10-K for the 2011 fiscal year.  
In 2012, we executed an agreement for a secured loan in the aggregate
principal amount of $1.5 million, raised gross proceeds of $1.1
million in a public stock offering, and received upfront payments and
other payments from collaborative partners totaling $2.6 million. We
believe that our current resources will be sufficient to fund our
planned, limited operations only until the end of October 2012
without securing additional funding.  
RECENT CORPORATE ACCOMPLISHMENTS  


 
--  In February 2011, we entered into an exclusive agreement with
    Debiopharm S.A., a global independent biopharmaceutical development
    group of companies with a main focus in oncology and serious medical
    conditions, for the development and commercialization of the bladder
    cancer program.
    
    
--  In December 2011, we entered into an exclusive license agreement with
    Mirna Therapeutics, Inc. ("Mirna"), a privately-held biotechnology
    company pioneering microRNA replacement therapy for cancer, regarding
    the development and commercialization of microRNA-based therapeutics
    utilizing Mirna's proprietary microRNAs and our novel
    SMARTICLES(R)-based liposo
mal delivery technology.
    
    
--  In March 2012, we entered into an exclusive license agreement with
    ProNAi Therapeutics, Inc., a privately-held biotechnology company
    pioneering DNA interference (DNAi) therapies for cancer, regarding the
    development and commercialization of DNAi-based therapeutics utilizing
    our novel SMARTICLES(R)-based liposomal delivery technology.
    
    
--  In May 2012, we entered into a worldwide exclusive license agreement
    with Monsanto Company, a global leader in agriculture and crop
    sciences, regarding the agricultural applications for our delivery and
    chemistry technologies.
    
    
--  In May 2012, we entered into a strategic alliance with Girindus Group,
    a recognized leader in process development, analytical method
    development and cGMP manufacture of oligonucleotide therapeutics,
    regarding the development, supply and commercialization of certain
    oligonucleotide constructs using our conformationally restricted
    nucleotide ("CRN") technology.
    
    
--  In August 2012, we entered into a worldwide, non-exclusive license
    agreement with Novartis Institutes for Biomedical Research, Inc., a
    global leader in the development of human therapeutics, regarding the
    development of oligonucleotide therapeutics utilizing our CRN
    technology.

  
About Marina Biotech, Inc. 
Marina Biotech is a biotechnology company focused on the development
and commercialization of oligonucleotide-based therapeutics utilizing
multiple mechanisms of action including RNA interference (RNAi) and
messenger RNA translational blocking. The Marina Biotech pipeline
currently includes a clinical program in Familial Adenomatous
Polyposis (a precancerous syndrome) and two preclinical programs --
in bladder cancer and malignant ascites. Marina Biotech has entered
into an agreement with both Mirna Therapeutics and ProNAi
Therapeutics to license Marina Biotech's SMARTICLES(R) technology for
the delivery of microRNA mimics and DNAi, respectively. In addition,
Marina Biotech announced exclusive licensing agreements with Monsanto
Company for Marina Biotech's delivery and chemistry technologies and
with Girindus America for the supply of CRN-based oligonucleotides.
Marina Biotech recently entered into a non-exclusive agreement with
Novartis Institutes for Biomedical Research to license Marina
Biotech's CRN technology for development of nucleic acid-based
therapeutics. Marina Biotech's goal is to improve human health
through the development of RNAi- and oligonucleotide-based compounds
and drug delivery technologies that together provide superior
therapeutic options for patients. Additional information about Marina
Biotech is available at http://www.marinabio.com. 
Forward-Looking Statements 
Statements made in this news release may be forward-looking
statements within the meaning of Federal Securities laws that are
subject to certain risks and uncertainties and involve factors that
may cause actual results to differ materially from those projected or
suggested. Factors that could cause actual results to differ
materially from those in forward-looking statements include, but are
not limited to: (i) the ability of Marina Biotech to obtain
additional and substantial funding in the immediate future; (ii) the
ability of Marina Biotech to attract and/or maintain research,
development, commercialization and manufacturing partners; (iii) the
ability of Marina Biotech and/or a partner to successfully complete
product research and development, including preclinical and clinical
studies and commercialization; (iv) the ability of Marina Biotech
and/or a partner to obtain required governmental approvals; and (v)
the ability of Marina Biotech and/or a partner to develop and
commercialize products prior to, and that can compete favorably with
those of, competitors. Additional factors that could cause actual
results to differ materially from those projected or suggested in any
forward-looking statements are contained in Marina Biotech's most
recent periodic reports on Form 10-K and Form 10-Q that are filed
with the Securities and Exchange Commission. Marina Biotech assumes
no obligation to update and supplement forward-looking statements
because of subsequent events. 
Contact:
J. Michael French
Chief Executive Officer
+1.425.892.4322
jmfrench@marinabio.com 
 
 
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