MediciNova Reports First Quarter 2013 Results

MediciNova Reports First Quarter 2013 Results

SAN DIEGO, May 8, 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 first quarter ended March 31, 2013 through
the filing of its quarterly report on Form 10-Q.

A detailed discussion of financial results and product development programs
can be found in MediciNova's Quarterly Report on Form 10-Q for the quarter
ended March 31, 2013, which was filed with the Securities and Exchange
Commission on May 8, 2013 and is available through
investors.medicinova.com/sec.cfm.

Financial Results

For the quarter ended March 31, 2013, MediciNova reported a net loss of $2.4
million, or $0.14 per share, compared to a net loss of $3.9 million, or $0.24
per share, for the same period last year. For the quarter ended March 31, 2013
and 2012, service revenue relating to the Kissei services agreement was
approximately $3,000 and $191,000, respectively. Research and development
expenses were $0.7 million for the quarter ended March 31, 2013, as compared
to $1.9 million for the quarter ended March 31, 2012. The decrease in research
and development expenses was due primarily to a decrease in spending on
MN-221-CL-007 and MN221-CL-012 resulting from the completion of both trials in
2012 and a decrease in stock-based employee compensation expense, partially
offset by an increase in spending on MN-166 clinical development. General and
administrative expenses were $1.7 million for the quarter ended March 31,
2013, as compared to $2.2 million for the quarter ended March 31, 2012. The
decrease in general and administrative expenses was due primarily to a
decrease in stock-based employee compensation expense.

At March 31, 2013, we had available cash and cash equivalents of $3.0 million
and working capital of $2.8 million. The Company will require additional cash
funding to continue to execute its strategic plan and fund operations. Between
August 21, 2012, the date of the Common Stock Purchase Agreement with Aspire
Capital Fund, LLC ("Aspire"), and today's date, we have generated proceeds of
$4.3 million under this agreement including proceeds of $1.4 million
subsequent to March 31, 2013. We have the right, subject to the terms of this
agreement, to cause Aspire to acquire up to approximately 3.2 million shares
for total gross proceeds not to exceed $20 million (including approximately
2.5 million shares issued or sold to Aspire to date). On April 17, 2013,
MediciNova entered into an At-the-Market Equity Distribution Agreement with
Macquarie Capital (USA) Inc. ("MCUSA") pursuant to which the Company may from
time to time sell through MCUSA shares of our common stock up to an aggregate
offering price of $6 million. Between April 17, 2013, and today's date, we
have generated net proceeds of $2.8 million under this agreement on sales of
895,000 shares of our common stock. We expect to sell additional shares under
the Aspire and MCUSA agreements and we are also pursuing other opportunities
to raise capital.

Other Recent Highlights

  *On April 17, 2013, MediciNova entered into an At-the-Market Equity
    Distribution Agreement with Macquarie Capital (USA) Inc. ("MCUSA")
    pursuant to which the Company may from time to time sell through MCUSA
    shares of our common stock up to an aggregate offering price of $6
    million.
  *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.
  *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.

"MediciNova's progress in early 2013 has been very encouraging. For MN-166 we
were very pleased with its Fast Track designation for development in
methamphetamine dependence and with MN-221 we were able to utilize the helpful
guidance from FDA to construct its development path forward for the treatment
of acute asthma," said Yuichi Iwaki, M.D., Ph.D, President and Chief Executive
Officer of MediciNova, Inc. "We believe we are well positioned to continue
this progress in 2013 and the value that can provide for our shareholders."


About MediciNova

MediciNova, Inc. is a publicly traded biopharmaceutical company founded upon
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.

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, 2012 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
                                                March 31       December31,
                                                 2013           2012
                                                (Unaudited)    
Assets                                                         
Current assets:                                                
Cash and cash equivalents                        $3,029,064    $4,010,530
Prepaid expenses and other current assets        683,582       411,592
Total current assets                             3,712,646     4,422,122
                                                              
Goodwill                                         9,600,241     9,600,241
In-process research and development              4,800,000     4,800,000
Investment in joint venture                      662,920       667,204
Property and equipment, net                      69,906        78,474
Total assets                                     $18,845,713   $19,568,041
                                                              
Liabilities and Stockholders' Equity                           
Current liabilities:                                           
Accounts payable                                 $269,858      $491,853
Accrued expenses                                 431,959       314,652
Accrued compensation and related expenses        246,333       228,124
Current deferred revenue                         —             3,163
Total current liabilities                        948,150       1,037,792
Deferred tax liability                           1,956,000     1,956,000
Long-term deferred revenue                       1,694,163     1,694,257
Total liabilities                                4,598,313     4,688,049
                                                              
Stockholders' equity:                                          
Preferred stock, $0.01 par value; 3,000,000
shares authorized at March 31, 2013 and          2,200         2,200
December31, 2012 ; 220,000 shares issued at
March 31, 2013 and December31, 2012
Common stock, $0.001 par value; 100,000,000
shares authorized at March 31, 2013 and
December31, 2012 ; 18,260,569 and 17,407,311
shares issued at March 31, 2013 and December31, 18,261        17,407
2012, respectively, and18,260,569 and
17,403,125 shares outstanding at March 31, 2013
and December31, 2012, respectively
Additional paid-in capital                       314,079,009   312,293,225
Accumulated other comprehensive loss             (74,870)      (67,957)
Treasury stock, at cost; 0 shares at March 31,   (1,124,389)   (1,131,086)
2013 and 4,186 shares at December31, 2012
Deficit accumulated during the development stage (298,652,811) (296,233,797)
Total stockholders' equity                       14,247,400    14,879,992
Total liabilities and stockholders' equity       $18,845,713   $19,568,041



MEDICINOVA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

                                                              Periodfrom
                                  Three months ended          September26,
                                 March 31,                 2000 (inception)
                                                              toMarch 31,
                                                              2013
                                 2013          2012          
Revenues                          $3,257       $191,174    $2,364,064
Operating expenses:                                         
Cost of revenues                  —            —           1,258,421
Research and development          695,972      1,878,461    167,750,627
General and administrative        1,724,579    2,185,972    113,981,947
                                                           
Total operating expenses          2,420,551    4,064,433    282,990,995
                                                           
Operating loss                    (2,417,294)  (3,873,259)  (280,626,931)
Impairment charge on investment   —           —           (1,735,212)
securities
Other expense                     (4,433)     (4,966)      (393,663)
                                                           
Interest expense                  —           —            (3,605,818)
Other income                      1,468        11,002       19,146,651
Loss before income taxes          (2,420,259)  (3,867,223)  (267,214,973)
Income taxes                      1,245        —            (74,716)
Net loss                          (2,419,014)  (3,867,223)  (267,289,689)
Accretion to redemption value of
redeemable convertible preferred  —            —            (98,445)
stock
Deemed dividend resulting from
beneficial conversion feature on
Series C redeemable convertible   —            —            (31,264,677)
preferred
stock
Net loss applicable to common     $(2,419,014) $(3,867,223) $(298,652,811)
stockholders
Basic and diluted net loss per    $(0.14)      $(0.24)      
common share
Shares used to compute basic and  17,691,266   16,088,015   
diluted net loss per common share
Net loss applicable to common     $(2,419,014) $(3,867,223) $(298,652,811)
stockholders
Other comprehensive loss, net of                            
tax:
Foreign currency translation      (6,913)      (6,788)      (74,870)
adjustments
Comprehensive loss                $(2,425,927) $(3,874,011) $(298,727,681)

CONTACT: INVESTOR CONTACT:
         Mike Coffee
         Chief Business Officer
         MediciNova, Inc.
         (858) 736-7180
         coffee@medicinova.com

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