MediciNova Reports Fourth Quarter and Full Year 2012 Results

MediciNova Reports Fourth Quarter and Full Year 2012 Results

SAN DIEGO, March 28, 2013 (GLOBE NEWSWIRE) -- MediciNova, Inc. a
biopharmaceutical company traded on the NASDAQ Global Market (Nasdaq:MNOV) and
the Jasdaq Market of the Osaka Securities Exchange (Code Number: 4875), today
announced financial results for the fourth quarter and full year ended
December 31, 2012.

A detailed discussion of financial results and product development programs
can be found in MediciNova's Annual Report on Form 10-K for the year ended
December 31, 2012, which was filed with the Securities and Exchange Commission
on March 28, 2013 and is available through investors.medicinova.com/sec.cfm.

Financial Results

For the quarter ended December 31, 2012, MediciNova reported a net loss of
$2.4 million, or $0.14 per share, compared to a net loss of $3.5 million, or
$0.22 per share, for the same period last year. For the quarter ended December
31, 2012, service revenue relating to the Kissei services agreement was
approximately $40,000. There were no revenues for the quarter ended December
31, 2011. Research and development expenses were $0.8 million for the quarter
ended December 31, 2012, as compared to $1.4 million for the quarter ended
December 31, 2011. The decrease in research and development expenses was due
primarily to a decrease in spending on MN-221 resulting from the completion of
the MN-221-CL-007 trial in patients with acute exacerbations of asthma,
partially offset by an increase in spending on our MN-221-CL-012 and MN-166
clinical trials. General and administrative expenses were $1.7 million for the
quarter ended December 31, 2012, as compared to $2.1 million for the quarter
ended December 31, 2011. The decrease in general and administrative expenses
was due primarily to a decrease in employee compensation expense including
stock-based compensation.

At December 31, 2012, we had available cash and cash equivalents of $4.0
million and working capital of $3.4 million. The Company will require
additional cash funding to continue to execute its strategic plan and fund
operations through December 31, 2013. These factors raise substantial doubt
about the Company's ability to continue as a going concern. Between August 21,
2012 and today's date, we have generated proceeds of $3.0 million under the
Common Stock Purchase Agreement with Aspire Capital Fund LLC ("Aspire")
including proceeds of $1.5 million subsequent to December 31, 2012. We have
the right, subject to the terms of this agreement, to cause Aspire to acquire
up to 3,231,096 shares for total gross proceeds not to exceed $20 million
(including 2,019,696 shares issued or sold to Aspire to date for the $3.0
million). We expect to sell additional shares under this agreement during 2013
and we are also pursuing other opportunities to raise capital.

2012 Highlights

  *On January 16, 2012 MediciNova and the University of Colorado (CU) Boulder
    disclosed a license agreement for the use of ibudilast (MN-166) for the
    treatment of post-traumatic brain injury (TBI).
    
  *On February 1, 2012 MediciNova announced that it had received a Notice of
    Allowance from the U.S. Patent and Trademark Office for a pending patent
    application that covers the use of ibudilast (MN-166) for the treatment of
    progressive forms of multiple sclerosis.
    
  *On March 13, 2012 MediciNova announced that it had received a Notice of
    Allowance from the Japanese Patent Office for a pending patent application
    that covers the use of ibudilast (MN-166) for the treatment of multiple
    forms of chronic neuropathic pain.
    
  *On March 21, 2012 MediciNova announced that it had completed enrollment in
    its Phase 2 clinical trial (MN-221-CL-007) evaluating the efficacy and
    safety of MN-221 for treatment of acute exacerbations of asthma for
    patients who do not respond to standard pharmacotherapy.
    
  *On April 10, 2012 MediciNova announced the addition of David O'Toole, CPA
    to our Board of Directors. Mr. O'Toole complements the MediciNova Board
    with over 25 years of experience providing finance, consulting and
    international tax services to global companies. Mr. O'Toole is currently
    the Chief Financial Officer of Codexis, Inc., a biopharmaceutical company.
    
  *On April 23, 2012 MediciNova announced that it had received a Notice of
    Allowance from the Australian Government Patent Office for a pending
    patent application that covers the use of ibudilast (MN-166) for the
    treatment of multiple forms of chronic neuropathic pain.
    
  *On May 23, 2012 MediciNova announced preliminary trial results for our
    Phase 2b clinical trial of MN-221 in acute exacerbations of asthma and
    that the Company would move forward with an End-of-Phase 2 Meeting with
    the FDA.
    
  *On July 2, 2012 MediciNova announced that an End-of-Phase 2 meeting
    pertaining to the development of MN-221 for the treatment of acute
    exacerbations of asthma has been scheduled with the FDA. The Division of
    Pulmonary, Allergy, and Rheumatology Products (DPARP) of the FDA reviewed
    MediciNova's meeting request submission and granted an End-of-Phase 2
    meeting scheduled for October 22, 2012.
    
  *On August 20, 2012 MediciNova announced that it had entered into a common
    stock purchase agreement with Aspire Capital Fund, LLC. Aspire committed
    to purchase up to $20 million of MediciNova's common stock over a two-year
    period following the date of the purchase agreement at prices based on the
    market price at the time of each sale.
    
  *On August 23, 2012 MediciNova announced positive preliminary results of a
    Phase 1b clinical trial involving multiple administrations of intravenous
    MN-221 over several days in patients with stable, moderate-to-severe
    chronic obstructive pulmonary disease (COPD).
    
  *On September 4, 2012 the University of California, Los Angeles' (UCLA's)
    Department of Family Medicine/Center for Behavioral and Addiction
    Medicine, and MediciNova, Inc. announced approval and funding by the
    National Institutes on Drug Abuse (NIDA), part of the National Institutes
    of Health, of a Phase 2 clinical trial studying the use of ibudilast
    (MN-166) for the treatment of methamphetamine addiction.
    
  *On October 22, 2012, MediciNova announced that it conducted an
    End-of-Phase 2 meeting pertaining to the development of MN-221 for the
    treatment of acute exacerbations of asthma with the United States Food and
    Drug Administration (FDA).
    
  *On October 25, 2012 MediciNova announced that it had received a Notice of
    Allowance from the European Patent Office for a pending patent application
    which covers the use of ibudilast (MN-166) for the treatment of
    progressive forms of multiple sclerosis (MS).
    
  *On November 12, 2012 MediciNova announced the publication of
    positiveclinical results in asthma studies in the Journal of Asthma.The
    publication reported on two Phase 2a clinical trials conducted by
    MediciNova, MN-221-CL-004 and MN-221-CL-005, which assessed the safety,
    tolerability and FEV1 improvements in mild-moderate and moderate-severe
    asthmatics, respectively.
    
  *On November 18, 2012 MediciNova announced that it received Notices of
    Allowance from the European Patent Office (EPO) for two pending patent
    applications. One covers the use of ibudilast (MN-166) in drug addiction
    and the other provides for ibudilast use to enhance opioid analgesia in
    acute pain settings.
    
  *On November 20, 2012 MediciNova announced the initiation of enrollment of
    a Phase 2a trial with MN-166 (ibudilast) in prescription opioid or heroin
    abusers. The trial is being conducted at Columbia University and the New
    York State Psychiatric Institute and is funded by the National Institute
    on Drug Abuse (NIDA), a part of the National Institutes of Health.
    
  *On December 9, 2012 MediciNova announced that it was granted a Notice of
    Allowance from the U.S. Patent and Trademark Office for a pending patent
    application which covers the use of MN-221 for the treatment of acute
    exacerbations of asthma. The MN-221 patent maturing from this allowed
    patent application is expected to expire no earlier than 2030 and includes
    claims covering the use of MN-221 (bedoradrine) in combination with a
    standard of care (SOC) treatment regimen.

Recent Highlights in 2013

  *On January 3, 2013 MediciNova provided a development update on its lead
    program, MN-166, and on the MN-221 program.The company provided an update
    on its grant aided ibudilast (MN-166) neurological development program,
    which has trials ongoing in opioid dependence and methamphetamine
    dependence. The company also described the guidance it received from its
    MN-221 End-of-Phase 2 Meeting with the FDA including the next steps in
    manufacturing and clinical development, which will be partner-dependent.
    
  *On February 25, 2013 MediciNova announced that it had received Fast Track
    designation from the U.S. Food and Drug Administration (FDA) for ibudilast
    (MN-166) for the treatment of methamphetamine dependence. Fast Track is a
    process designed to facilitate the development and expedite the review of
    drugs that are intended to treat serious diseases and have the potential
    to fill an unmet medical need. 

"This past year has been very productive for MediciNova as we have
substantially increased the breadth of our MN-166 development program in
opioid dependence and methamphetamine dependence and defined an approval
pathway for MN-221. Building on this in 2013 we expect to expand the clinical
development of MN-166 with grant-aided support and seek strategic partnership
to continue the development progress of MN-221. We believe our continued focus
on partnering with leading clinical developers provides our shareholders with
very attractive leverage on the capital they have invested in us," said Yuichi
Iwaki, M.D., Ph.D, President and Chief Executive Officer of MediciNova,
Inc.

About MediciNova

MediciNova, Inc. is a publicly traded biopharmaceutical company founded upon
acquiring and developing novel, small-molecule therapeutics for the treatment
of diseases with unmet need with a commercial focus on the U.S.
market.MediciNova's current strategy is to focus on its prioritized product
candidate, MN-166 (ibudilast) for neurological disorders.MN-166 is being
developed in Phase 1 and Phase 2 clinical trials for drug dependence and pain,
largely through investigator sponsored trials and outside funding.Proceeding
with proof-of-concept Phase 2b trial(s) in Progressive MS is dependent on
receipt of funding, which we are pursuing. MediciNova is engaged in strategic
partnering and consortium funding discussions to support further development
of the ibudilast/MN-166 program and to continue the development progress of
MN-221 for the treatment of acute exacerbations of asthma.For more
information on MediciNova, Inc., please visit www.medicinova.com.

The MediciNova, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3135

Statements in this press release that are not historical in nature constitute
forward-looking statements within the meaning of the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. These forward-looking
statements include, without limitation, statements regarding our clinical
development strategies, including future development, statements regarding the
progress of clinical trials, statements regarding expectations for the
ibudilast/MN-166 program, including development of ibudilast/MN-166 for
certain indications and expectations on future progress in the development of
our drug candidates, expected timing of clinical trial results and any
implication as to the results of our development, partnering and funding
efforts, theimplication of patent terms and potential product exclusivity and
the implication that the company will have the ability to execute on its
priorities. These forward-looking statements may be preceded by, followed by
or otherwise include the words "believes," "expects," "anticipates,"
"intends," "estimates," "projects," "can," "could," "may," "will," "would," or
similar expressions. These forward-looking statements involve a number of
risks and uncertainties that may cause actual results or events to differ
materially from those expressed or implied by such forward-looking statements.
Factors that may cause actual results or events to differ materially from
those expressed or implied by these forward-looking statements, include, but
are not limited to, risks of obtaining future partner or grant funding for
development of MN-166 and MN-221 and risks of raising sufficient capital when
needed to fund MediciNova's operations and contribution to clinical
development, risks and uncertainties inherent in clinical trials, including
the potential cost, expected timing and risks associated with clinical trials
designed to meet FDA guidance and the viability of further development
considering these factors, product development and commercialization risks,
the uncertainty of whether the results of clinical trials will be predictive
of results in later stages of product development, the risk of delays or
failure to obtain or maintain regulatory approval, risks associated with the
reliance on third parties to sponsor and fund clinical trials, risks regarding
intellectual property rights in product candidates and the ability to defend
and enforce such intellectual property rights, the risk of failure of the
third parties upon whom MediciNova relies to conduct its clinical trials and
manufacture its product candidates to perform as expected, the risk of
increased cost and delays due to delays in the commencement, enrollment,
completion or analysis of clinical trials or significant issues regarding the
adequacy of clinical trial designs or the execution of clinical trials, and
the timing of expected filings with the regulatory authorities, MediciNova's
collaborations with third parties, the availability of funds to complete
product development plans and MediciNova's ability to obtain third party
funding for programs and raise sufficient capital when needed, and the other
risks and uncertainties described in MediciNova's filings with the Securities
and Exchange Commission, including its annual report on Form 10-K for the year
ended December 31, 2011 and its subsequent periodic reports on Forms 10-Q and
8-K.Undue reliance should not be placed on these forward-looking statements,
which speak only as of the date hereof. MediciNova disclaims any intent or
obligation to revise or update these forward-looking statements.

MEDICINOVA, INC.
                                                               
CONSOLIDATED BALANCE SHEETS
                                                               
                                                  December31,
                                                  2012          2011
Assets                                                          
Current assets:                                                 
Cash and cash equivalents                         $4,010,530    $15,093,124
Prepaid expenses and other current assets         411,592       614,540
Total current assets                              4,422,122     15,707,664
Goodwill                                          9,600,241     9,600,241
In-process research and development               4,800,000     4,800,000
Investment in joint venture                       667,204       650,000
Property and equipment, net                       78,474        29,425
Total assets                                      $19,568,041   $30,787,330
                                                               
Liabilities and Stockholders' Equity                            
Current liabilities:                                            
Accounts payable                                  $491,853      $718,882
Accrued expenses                                  314,652       1,515,815
Accrued compensation and related expenses         228,124       599,087
Current deferred revenue                          3,163         863,510
Total current liabilities                         1,037,792     3,697,294
Deferred tax liability                            1,956,000     1,956,000
Long-term deferred revenue                        1,694,257     1,636,490
Total liabilities                                 4,688,049     7,289,784
Stockholders' equity:                                           
Preferred stock, $0.01 par value; 3,000,000 and
500,000 shares authorized at December31, 2012 and 2,200         2,200
December31, 2011; 220,000 shares issued at
December31, 2012 and December31, 2011
Common stock, $0.001 par value; 100,000,000 and
30,000,000 shares authorized at December31, 2012
and December31, 2011; 17,407,311 and 16,127,615
shares issued at December31, 2012 and             17,407        16,128
December31, 2011, respectively, and 17,403,125
and 16,088,015shares outstanding at December31,
2012 and December31, 2011, respectively
Additional paid-in capital                        312,293,225   309,998,251
Accumulated other comprehensive loss              (67,957)      (56,845)
Treasury stock, at cost; 4,186 shares at
December31, 2012 and 39,600 shares at             (1,131,086)   (1,189,705)
December31, 2011
Deficit accumulated during the development stage  (296,233,797) (285,272,483)
Total stockholders' equity                        14,879,992    23,497,546
Total liabilities and stockholders' equity        $19,568,041   $30,787,330


MEDICINOVA, INC.
                                                               
CONSOLIDATED STATEMENTS OF OPERATIONS
                                                               
                                                               
                                                               Period from
                                                               September26,
                                                               2000
                                                               (inception)to
                                     Years ended December31,    December31,
                                     2012          2011          2012
Revenues                             $ 802,580   $ —           $2,360,807
Operating expenses:                                             
Cost of revenues                     —             —             1,258,421
Research and development             5,013,092     7,784,719     167,054,655
General and administrative           6,734,844     8,323,715     112,257,368
Total operating expenses             11,747,936    16,108,434    280,570,444
Operating loss                       (10,945,356)  (16,108,434)  (278,209,637)
Impairment charge on investment       —             —             (1,735,212)
securities
Other expense                        (29,605)      (81,292)      (389,230)
Interest expense                     —             (1,595,093)   (3,605,818)
Other income                         24,791        62,316        19,145,183
Loss before income taxes             (10,950,170)  (17,722,503)  (264,794,714)
Income taxes                         (11,144)      (11,573)      (75,961)
Net loss                             (10,961,314)  (17,734,076)  (264,870,675)
Accretion to redemption value of
redeemable convertible preferred      —             —             (98,445)
stock
Deemed dividend resulting from
beneficial conversion feature on      —             —             (31,264,677)
SeriesC redeemable convertible
preferred stock
Net loss applicable to common         $(10,961,314) $(17,734,076) $(296,233,797)
stockholders
                                                               
Basicanddilutednetlosspercommon $(0.66)       $(1.20)       
share
Shares used to compute basic and      17,261,821    14,813,156    
diluted net loss per share
                                                               
Net loss applicable to common         $(10,961,314) $(17,734,076) $(296,233,797)
stockholders
Other comprehensive loss, net of tax:                           
Foreign currency translation          (11,112)      (1,143)       (67,957)
adjustments
Comprehensive loss                   $(10,972,426) $(17,735,219) $(296,301,754)

CONTACT: INVESTOR CONTACT:
         Mike Coffee
         Chief Business Officer
         MediciNova, Inc.
         (858) 736-7180
         coffee@medicinova.com
        
         MEDIA CONTACT:
         Stephanie Ashe
         Continuum Health Communications
         (650) 245-0425
         sashe@continuumhealthcom.com

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