MediciNova Reports Third Quarter 2013 Results

MediciNova Reports Third Quarter 2013 Results

SAN DIEGO, Nov. 7, 2013 (GLOBE NEWSWIRE) -- MediciNova, Inc., a
biopharmaceutical company traded on the NASDAQ Global Market (Nasdaq:MNOV) and
the Jasdaq Market of the Tokyo Stock Exchange (Code Number:4875), today
announced financial results for the third quarter ended September 30, 2013.

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 September 30, 2013, which was filed with the Securities and Exchange
Commission on November 7, 2013 and is available through

Financial Results

For the quarter ended September 30, 2013, MediciNova reported a net loss of
$2.2 million, or $0.10 per share compared to a net loss of $2.4 million, or
$0.14 per share for the same period last year. The Company reported no service
revenue for the quarter ended September 30, 2013, whereas the Company recorded
revenue relating to services performed under an agreement with Kissei
Pharmaceutical Co., Ltd. of $0.1 million for the quarter ended September 30,
2012. Research and development expenses were $0.8 million for the quarter
ended September 30, 2013, as compared to $0.9 million for the quarter ended
September 30, 2012. General and administrative expenses were $1.5 million for
the quarter ended September 30, 2013, as compared to $1.6 million for the
quarter ended September 30, 2012. The decreases in research and development
and general and administrative expenses were due primarily to reductions in
employee-related expenses.

At September 30, 2013, MediciNova had available cash and cash equivalents of
$10.7 million and working capital of $9.9 million. Between August 21, 2012,
the date of the Common Stock Purchase Agreement with Aspire Capital Fund, LLC,
or Aspire, and September 30, 2013, the Company generated net proceeds of $5.4
million under the Aspire agreement. Between April 17, 2013, the date of the
at-the-market Equity Distribution Agreement with Macquarie Capital (USA) Inc.,
or MCUSA, and September 30, 2013, the Company generated net proceeds of $5.6
million under the MCUSA agreement.In May, the Company generated net proceeds
of $3.7 million under a Securities Purchase Agreement with certain accredited
investors.The Company has not generated additional proceeds under the above
agreements subsequent to September 30, 2013 through today's date.On October
16, 2103 the Company entered into a new Equity Distribution Agreement with
MCUSA and the Company has not generated material proceeds under the new MCUSA
agreement between that date and November 5, 2013.

Recent Highlights

  *On October 16, 2013, MediciNova announced the appointment of Geoffrey
    O'Brien, J.D./M.B.A. as Vice President. Mr. O'Brien served as Senior
    Director, Business Development and Strategic Planning for MediciNova since
    2012 and was Director, Business Development from 2009-2012. Prior to
    joining MediciNova, Mr. O'Brien was an equity research analyst covering
    pharmaceutical and biotechnology companies at UBS Securities, Nomura
    Securities, and Punk, Ziegel, and was a Vice President from 2004-2008.
  *On October 16, 2013, MediciNova announced the election of Mr. Yutaka
    Kobayashi to its Board of Directors.Mr. Kobayashi complements the
    MediciNova Board with more than 20 years of experience in business.
  *On October 16, 2013, MediciNova entered into an at-the-market Equity
    Distribution Agreement with 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 $10 million.
  *On October 6, 2013, MediciNova announced that it has received a Notice of
    Allowance from the U.S. Patent and Trademark Office for a pending patent
    application which covers MN-029 (denibulin) di-hydrochloride.Once issued,
    the patent maturing from this allowed patent application is expected to
    expire no earlier than July 2032.
  *On August 25, 2013, MediciNova announced that the National Institute on
    Alcohol Abuse and Alcoholism (NIAAA), part of the National Institutes of
    Health (NIH), will fund a clinical trial of MN-166 (ibudilast) for alcohol
    dependence.This Phase 2a trial will be conducted at UCLA and will be led
    by Lara Ray, Ph.D., Associate Professor, Department of Psychology,
    Department of Psychiatry and Biobehavioral Sciences, and the UCLA Brain
    Research Institute.
  *On July 18, 2013, MediciNova announced the initiation of a cooperative
    Phase 2b trial with MN-166 (ibudilast) in progressive multiple sclerosis
    (MS). The study is a unique collaboration of medical centers, the National
    Multiple Sclerosis Society and MediciNova, with primary funding provided
    by an $11.3 million grant from the NIH. The principal investigator will be
    Robert Fox, M.D., M.S., FAAN, Staff Neurologist at the Mellen Center for
    Multiple Sclerosis at the Cleveland Clinic.

"We are very excited about the achievement of several major milestones this
quarter, including the NIH NeuroNEXT grant award for a Phase 2b trial of
MN-166 in progressive MS as well as the NIAAA grant award for a Phase 2a trial
of MN-166 in alcohol dependence," said Yuichi Iwaki, M.D., Ph.D., President
and Chief Executive Officer of MediciNova. "We believe we are well positioned
to continue to advance our development pipeline and look forward to completion
of our goals."

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 medical needs with a commercial focus on the U.S.
market. MediciNova's current strategy is to focus on its two prioritized
product candidates, MN-166 (ibudilast) for neurological disorders, and MN-221
for the treatment of acute exacerbations of asthma. MN-166 is being developed
in multiple indications, largely through investigator-sponsored trials and
outside funding. MediciNova is engaged in strategic partnering and consortium
funding discussions to support further development of both the MN-221 and
MN-166 programs. For more information on MediciNova, Inc., please visit

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 and goals, 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, the implication of patent terms and potential product exclusivity,
the implication that the company will have the ability to execute on its
priorities and plans to raise additional capital. 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, MN-221
and other product candidates 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 designed to
meet FDA guidance and the viability of further development considering these
factors, including the potential cost, expected timing and risks associated
with clinical trials, 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.


                                                September 30,  December31,
                                                 2013           2012
Current assets:                                                
Cash and cash equivalents                        $10,660,849   $4,010,530
Prepaid expenses and other current assets        378,248       411,592
Total current assets                             11,039,097    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                      676,481       667,204
Property and equipment, net                      80,801        78,474
Total assets                                     $26,196,620   $19,568,041
Liabilities and Stockholders' Equity                           
Current liabilities:                                           
Accounts payable                                 $186,892      $491,853
Accrued expenses                                 472,426       314,652
Accrued compensation and related expenses        440,086       228,124
Current deferred revenue                         —            3,163
Total current liabilities                        1,099,404     1,037,792
Deferred tax liability                           1,956,000     1,956,000
Long-term deferred revenue                       1,694,163     1,694,257
Total liabilities                                4,749,567     4,688,049
Stockholders' equity:                                          
Preferred stock, $0.01 par value; 3,000,000
shares authorized at September30, 2013 and
December31, 2012; 220,000 shares issued and     2,200         2,200
outstanding at September30, 2013 and
December31, 2012
Common stock, $0.001 par value; 100,000,000
shares authorized at September30, 2013 and
December31, 2012; 22,377,943 and 17,407,311
shares issued at September30, 2013 and          22,378        17,407
December31, 2012, respectively, and 22,377,943
and 17,403,125 shares outstanding at
September30, 2013 and December31, 2012,
Additional paid-in capital                       326,300,292   312,293,225
Accumulated other comprehensive loss             (77,838)      (67,957)
Treasury stock, at cost; 0 shares at
September30, 2013 and 4,186 shares at           (1,124,389)   (1,131,086)
December31, 2012
Deficit accumulated during the development stage (303,675,590) (296,233,797)
Total stockholders' equity                       21,447,053    14,879,992
Total liabilities and stockholders' equity       $26,196,620   $19,568,041


               Three months ended          Nine months ended           Periodfrom
              September 30,               September 30,               September26,
                                                                  (inception) to
                                                                  September 30,
              2013          2012          2013          2012          2013
Revenues       $—           $83,787      $3,257       $768,584     $2,364,064
Cost of        —            —            —            —            1,258,421
Research and   785,573      872,555      2,427,650    4,234,956    169,482,305
General and    1,456,774    1,573,943    5,023,445    5,057,802    117,280,813
operating      2,242,347    2,446,498    7,451,095    9,292,758    288,021,539
Operating loss (2,242,347)  (2,362,711)  (7,447,838)  (8,524,174)  (285,657,475)
charge on      —            —            —            —            (1,735,212)
Other expense  (395)        (14,329)     (5,920)      (19,376)     (395,150)
Interest       —            —            —            —            (3,605,818)
Other income   7,798        4,090        14,315       22,027       19,159,498
Loss before    (2,234,944)  (2,372,950)  (7,439,443)  (8,521,523)  (272,234,157)
income taxes
Income taxes   (1,806)      (5,818)      (2,350)      (5,818)      (78,311)
Net loss       (2,236,750)  (2,378,768)  (7,441,793)  (8527,341)   (272,312,468)
Accretion to
value of
redeemable     —            —            —            —            (98,445)
resulting from
feature on     —            —            —            —            (31,264,677)
Series C
Net loss
applicable to  $(2,236,750) $(2,378,768) $(7,441,793) $(8,527,341) $
common                                                                 (303,675,590)
Basic and
diluted net    $(0.10)      $(0.14)      $(0.37)      $(0.52)      
loss per
common share
Shares used to
compute basic
and diluted    22,301,773   16,585,172   20,114,289   16,273,247   
net loss per
common share
Net loss
applicable to  $(2,236,750) $(2,378,768) $(7,441,793) $(8,527,341) $
common                                                                 (303,675,590)
loss, net of
currency       756          2,864        (9,881)      (2,019)      (77,838)
Comprehensive  $(2,235,994) $(2,375,904) $(7,451,674) $(8,529,360) $
loss                                                                   (303,753,428)

         Geoff O'Brien
         Vice President
         MediciNova, Inc.

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