Vical Reports 2012 Financial Results and Progress in Key Development Programs

Vical Reports 2012 Financial Results and Progress in Key Development Programs

SAN DIEGO, Feb. 6, 2013 (GLOBE NEWSWIRE) -- Vical Incorporated (Nasdaq:VICL)
today reported financial results for the year ended December 31, 2012.
Revenues for 2012 were $17.5 million, compared with revenues of $30.0 million
for 2011, reflecting lower payments from Astellas Pharma Inc. under an
exclusive worldwide license of TransVax™, Vical's therapeutic vaccine designed
to control cytomegalovirus (CMV) reactivation in transplant recipients. In
2011, Vical received a $25.0 million upfront license payment from Astellas. In
2012, Vical received a $10.0 million milestone license payment and increased
contract revenues from Astellas driven by delivery of clinical trial material
for planned TransVax™ trials.

The net loss for 2012 was $22.9 million, or $0.27 per share, compared with a
net loss of $7.3 million, or $0.10 per share, for 2011. The increase in net
loss for 2012 was primarily a result of the lower license revenue partially
offset by higher net contract revenue under the Astellas agreements.

Vical had cash and investments of approximately $86 million at year-end 2012.
The net cash burn of approximately $19 million for 2012, excluding cash from
financing activities, was within the projected range. The company is
projecting net cash burn for the first half of 2013, excluding cash from
financing activities, of between $18 million and $20 million.

The projected net cash burn includes spending for long-lead-time activities
such as manufacturing, validation and others that the company believes will
allow timely filing of a Biologics License Application (BLA) assuming success
in its lead development program, Allovectin^® immunotherapy for patients with
metastatic melanoma. The company intends to provide net cash burn guidance for
the remainder of the year after the release of Phase 3 results.

Program highlights include:

Allovectin^®

  * In the company's Phase 3 registration trial of Allovectin^® vs.
    chemotherapy in patients with metastatic melanoma, the company conducted a
    comprehensive sweep in September 2012 of all active clinical sites to
    eliminate any time lag in death event reporting. The sweep confirmed that
    the target number of events had not been reached. It also confirmed the
    steady progress towards that goal.
  * An independent Safety Monitoring Board (SMB) for the Phase 3 trial
    completed its final review of comprehensive trial safety data in the third
    quarter and reported "no basis for any concern that there is undue risk"
    associated with Allovectin^®.
  * The company is tracking progress toward the Phase 3 secondary endpoint
    (overall survival) for both arms together in a blinded fashion.
    Independent assessment and adjudication of patient-by-patient data for the
    primary endpoint (response rate at 24 weeks or more after randomization)
    is approaching completion. Upon reaching the target number of death
    events, the databases for both endpoints will be unblinded simultaneously
    and top-line results for both endpoints are expected to be released in
    mid-2013.

TransVax™ CMV Vaccine

  * Astellas is planning to initiate a Phase 3 trial of TransVax™ for
    hematopoietic stem cell transplant (HSCT) recipients and to initiate a
    Phase 2 trial of TransVax™ for solid organ transplant (SOT) recipients in
    the first half of 2013.

Herpes Simplex Vaccine

  * The company is planning to initiate a Phase 1/2 clinical trial of its
    Vaxfectin^®-formulated therapeutic vaccine against herpes simplex virus
    type 2 (HSV-2) in the second half of 2013.
  * At the 15th Annual Meeting of the American Society of Gene & Cell Therapy
    in May 2012, Vical presented results from multiple animal studies with the
    company's Vaxfectin^®-formulated vaccines against HSV-2 demonstrating
    proof of concept.
  * Results from the company's completed mouse studies with the HSV-2 vaccines
    were published in The Journal of General Virology.
  * Results from the company's completed guinea pig studies with the HSV-2
    vaccines were published in Vaccine.

Vaxfectin^® Adjuvant

  * During the first quarter of 2012, the Naval Medical Research Center (NMRC)
    initiated a Phase 1 clinical trial of a tetravalent dengue DNA vaccine
    formulated with Vaxfectin^®. Vical manufactured the vaccine and the
    adjuvant for both the preclinical and clinical studies, and is providing
    regulatory and clinical expertise to NMRC for the dengue program.
  * Researchers at Ehime University in Japan and their collaborators developed
    a Vaxfectin^®-formulated DNA vaccine candidate with the potential to
    prevent transmission of malaria and published encouraging initial results
    in Vaccine. Vical provided the DNA vaccine plasmid backbone and the
    adjuvant used in the research.
  * In September 2012, Vical entered into a worldwide, nonexclusive license
    with Bristol-Myers Squibb Company of Vical's patented platform DNA
    immunization technology and its Vaxfectin^® adjuvant for use in the
    production of antibodies.
  * In December 2012, Vical entered into a worldwide, nonexclusive license of
    the Vaxfectin^® adjuvant to Cyvax, Inc., a privately held vaccine
    development company, for use in malaria vaccines.

Conference Call

Vical will conduct a conference call and webcast today, February 6, at noon
Eastern Time, to discuss with invited analysts and institutional investors the
company's financial results and program updates. The call and webcast are open
on a listen-only basis to any interested parties. To listen to the conference
call, dial in approximately ten minutes before the scheduled call to (913)
312-0696 (preferred), or (888) 282-4056 (toll-free), and reference
confirmation code 4549145. A replay of the call will be available for 48 hours
beginning about two hours after the call. To listen to the replay, dial (719)
457-0820 (preferred) or (888) 203-1112 (toll-free) and enter replay passcode
4549145. The call also will be available live and archived through the events
page at www.vical.com. For further information, contact Vical's Investor
Relations department by phone at (858) 646-1127 or by e-mail at ir@vical.com.

About Vical

Vical researches and develops biopharmaceutical products based on its patented
DNA delivery technologies for the prevention and treatment of serious or
life-threatening diseases. Potential applications of the company's DNA
delivery technology include DNA vaccines for infectious diseases or cancer, in
which the expressed protein is an immunogen; cancer immunotherapeutics, in
which the expressed protein is an immune system stimulant; and cardiovascular
therapies, in which the expressed protein is an angiogenic growth factor. The
company is developing certain infectious disease vaccines and cancer
therapeutics internally. In addition, the company collaborates with major
pharmaceutical companies and biotechnology companies that give it access to
complementary technologies or greater resources. These strategic partnerships
provide the company with mutually beneficial opportunities to expand its
product pipeline and address significant unmet medical needs. Additional
information on Vical is available at www.vical.com.

The Vical Incorporated logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5768

Forward-Looking Statements

This press release contains forward-looking statements subject to risks and
uncertainties that could cause actual results to differ materially from those
projected. Forward-looking statements include net cash burn guidance as well
as statements about anticipated developments and timelines in the
Allovectin^®, TransVax™ and HSV-2 vaccine programs, the Vaxfectin^® adjuvant,
and other independent and collaborative programs. Risks and uncertainties
include whether Vical will achieve levels of revenues and control expenses to
meet its financial projections; whether Vical or others will continue
development of Allovectin^®, TransVax™, HSV-2 vaccines, Vaxfectin^® adjuvant,
or any other independent or collaborative programs; whether Vical will release
top-line data from the company's Phase 3 trial of Allovectin^® in mid-2013, if
at all; whether spending for long-lead-time activities will allow timely
filing of a BLA for Allovectin^®; whether the trial will achieve all, if any,
of the defined endpoints; whether Astellas will initiate a Phase 3 trial of
TransVax™ for HSCT patients and/or a Phase 2 trial of TransVax™ for SOT
recipients in the first half of 2013, if at all; whether Vical will initiate a
Phase 1/2 clinical trial of its therapeutic HSV-2 vaccine in the second half
of 2013, if at all; whether any product candidates will be shown to be safe
and efficacious in clinical trials; the timing of clinical trials; whether
Vical or its collaborative partners will seek or gain approval to market any
product candidates; and additional risks set forth in the company's filings
with the Securities and Exchange Commission. These forward-looking statements
represent the company's judgment as of the date of this release. The company
disclaims, however, any intent or obligation to update these forward-looking
statements.

VICAL INCORPORATED
Selected Condensed Financial Information (Unaudited)
                                                                  
Statements of         Three Months Ended Dec. 31, Twelve Months Ended Dec. 31,
Operations
(in thousands, except 2012          2011          2012           2011
per share amounts)
Revenues:                                                         
Contract and grant     $ 1,909       $ 1,616       $ 6,176        $ 4,223
revenue
License and royalty    410           316           11,343         25,795
revenue
Total revenues         2,319         1,932         17,519         30,018
Operating expenses:                                               
Research and           3,439         3,971         17,340         17,975
development
Manufacturing and      3,797         2,570         13,055         10,267
production
General and            2,659         2,437         10,557         9,598
administrative
Total operating        9,895         8,978         40,952         37,840
expenses
Loss from operations   (7,576)       (7,046)       (23,433)       (7,822)
Net investment and     27            432           534            539
other income
Net loss               $ (7,549)     $ (6,614)     $ (22,899)     $ (7,283)
Basic and diluted net  $ (0.09)      $ (0.09)      $ (0.27)       $ (0.10)
loss per share
Shares used to
calculate basic and    86,504        72,126        85,966         72,031
diluted net loss per
share
                                                                  
Balance Sheets                                     December 31,   December 31,
(in thousands)                                    2012           2011
Assets:                                                           
Cash, cash equivalents, and
marketable securities, including                   $ 83,857       $ 50,427
restricted
Other current assets                               2,152          3,130
Total current assets                               86,009         53,557
Long-term investments                              2,225          5,928
Property and equipment, net                        5,284          6,226
Other assets                                       3,004          3,062
Total assets                                       $ 96,522       $ 68,773
                                                                  
Liabilities and stockholders'                                     
equity:
Current liabilities                                $ 5,779        $ 6,461
Long-term liabilities                              1,657          1,964
Stockholders' equity                               89,086         60,348
Total liabilities and stockholders'                $ 96,522       $ 68,773
equity

CONTACT: Alan R. Engbring
         Executive Director, Investor Relations
        
         Jill M. Broadfoot
         Senior Vice President and Chief Financial Officer
        
         (858) 646-1127
         Website:  www.vical.com

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