Marina Biotech, Inc. Announces Year-to-Date 2012 Financial

Marina Biotech, Inc. Announces Year-to-Date 2012 Financial Results 
Highlights Corporate Accomplishments 
BOTHELL, WA -- (Marketwire) -- 12/06/12 --   Marina Biotech, Inc.
(PINKSHEETS: MRNA), a leading RNAi-based drug discovery and
development company, yesterday reported financial results for the
nine months ended September 30, 2012, and provided an update on 2012
corporate accomplishments.  
"We continue to rebuild the company, and improve shareholder value
through a combination of deal-based, non-dilutive financing and
aggressive expense management," stated J. Michael French, President
and Chief Executive Officer of Marina Biotech. "In the past six
weeks, we have: (1) completed a licensing transaction bringing the
total number of revenue-generating licensing agreements thus far this
year to four; (2) been issued a key U.S. patent for our Unlocked
Nucleobase Analog chemistry which allows us and our licensees to
pursue multiple RNA-based oligonucleotide therapeutics in the RNAi
and microRNA sectors; and, (3) completed the filings necessary so
that we are now current in our periodic reporting under the
Securities Exchange Act for the year. In addition, our licensee
ProNAi reported that our SMARTICLES(R) delivery technology was shown
to effectively and safely deliver oligonucleotides to tumors in a
Phase 1 human clinical study. However, we still need significant
additional capital to execute our strategy to be the single broadest
nucleic acid drug discovery company in the industry. To that end, we
continue to seek financing as well as both deal-based and strategic
transaction opportunities to fund our operations and advance our
clinical and preclinical programs. 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 nine months ended September 30, 2012 was
approximately $5.5 million compared to a net loss of $11.6 million
for same period in 2011. The decrease in our net loss is primarily a
result of a decrease in operating expenses. 
Revenue
 Revenue for the
nine months ended September 30, 2012 was approximately $2.9 million
compared to $0.6 million in 2011. In the 2012 period we recognized
collaborative revenue from agreements with Monsanto, Novartis, and
Mirna while revenue in the 2011 period included payments from
Debiopharm and Mirna.  
Expenses
 Research and development ("R&D")
expenses decreased 50% from approximately $9.1 million for the nine
months ended September 30, 2011 to $4.5 million for the same period
of 2012. The decreases were due primarily to personnel-related
expenses and direct R&D spending. On June 1, we announced that we had
ceased substantially all day-to-day operations. Substantially all of
our employees have been terminated since June 1, and our internal
research and development efforts have been minimal, pending receipt
of adequate funding.  
Selling, general and administrative expenses for the nine months
ended September 30, 2012 decreased 49% compared to the same period of
2011 from approximately $6.5 million to $3.3 million.  
Restructuring expense for the nine months ended September 30, 2012
was approximately $1.5 million, compared to $1.4 million in the same
period of 2011. The 2012 expense relates primarily to charges
associated with our facility at 3830 Monte Villa Parkway. In
September 2012, we sold most of the remaining property and equipment
at the 3830 Monte Villa Parkway facility and abandoned the leasehold
improvements at that facility. We terminated our lease for this
facility effective October 1, 2012 and expect to record additional
restructuring charges related to the termination in the fourth
quarter of 2012. Earlier in 2012, we closed our Cambridge site and
recorded restructuring expense of approximately $35,000. In 2011 we
terminated the lease for our facility at 3450 Monte Villa Parkway and
issued shares to the landlord.  
Interest and Other Expense
 For 2012 we recorded interest and other
expense of approximately $2.5 million consisting primarily of
non-cash amortization of the debt discount resulting from the fair
value of price adjustable warrants issued to note holders. We did not
record any interest or other expense in 2011.  
Other Income
 We recorded net gains of approximately $3.3 million in
the nine months ended September 30, 2012 and net gains of
approximately $4.7 million in the same period of 2011 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 September 30, 2011 we had cash of approximately
$1.1 million, including approximately $0.7 million of restricted cash
compared to $2.1 million, including $1.0 million of restricted cash
as of December 31, 2011.  
In the first nine months of 2012, we recognized revenue from upfront
payments and other payments from collaborative partners totaling $2.9
million, executed an agreement for a secured loan in the aggregate
principal amount of $1.5 million, currently due at the end of the
year, and raised net proceeds of approximately $1.1 million in a
public stock offering. We believe that our current resources will be
sufficient to fund our planned, limited operations only until the end
of 2012 without securing additional funding.  
CORPORATE ACCOMPLISHMENTS IN 2012  


 
--  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, covering 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.
    
    
--  In November 2012, we entered into a worldwide, nonexclusive license
    agreement with Tekmira Pharmaceuticals Corporation, a leader in the
    development of RNAi-based therapeutics, regarding the development of
    RNA interference therapeutics utilizing our Unlocked Nucleobase Analog
    (UNA) technology.
    
    
--  In December 2012, we announced that the U.S. Patent and Trademark
    Office (USPTO) had issued a key patent expanding protection to our
    Unlocked Nucl
eobase Analog (UNA) modification and substitution
    chemistry. The claims of the patent broadly cover the use of a UNA in
    a number of RNA-based oligonucleotides including an siRNA (either RISC
    or Dicer length), a microRNA mimic, a microRNA antagonist, and an
    RNA-binding RNA steric blocker.
    
    
--  In December 2012, we announced that our licensee ProNAi Therapeutics,
    Inc. reported statistically significant, dose-dependent, and specific
    knockdown of the Bcl-2 gene with suppression of protein levels up to
    60 percent using our proprietary nucleic acid delivery technology,
    SMARTICLES(R), in patients with advanced solid tumors for which no
    standard therapy exists. Patients received the drug for extended
    periods of time without having material side effects as seen with
    other anti-Bcl-2 drugs or nucleic acid cancer drugs in development.

  
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 myotonic dystrophy. 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 non-exclusive agreements with Novartis
Institutes for Biomedical Research and Tekmira Pharmaceuticals to
license Marina Biotech's CRN and UNA nucleic acid modification
chemistries, respectively. 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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