today announced
results for the first quarter ending December 31, 1998. The Company had income of $117,000
for the year ($0.00 per share) on revenues of $623,000. This favorably compares with the
loss of $232,000 for the quarter ended December 31, 1997 ($0.01 per share) on revenues of
$278,000.
Richard D. Ekstrom, President of Demegen stated, "Demegen is
pleased with the results from our First Fiscal Quarter of 1999. The results include fees
from the recently concluded license of transgenic crop technology to increase the
nutrition quantity and protein content in food and feed crops. Additionally, the results
include another grant from a foundation for support of the Company's cancer research
efforts. Profitable quarters are not common among biotech companies and we project a loss
for the entire year. Nonetheless, we have been successful in controlling costs and
leveraging resources, and we have begun to generate revenue from our patented
technologies.''
Demegen, Inc., is a research and development company which designs
and develops novel synthetic molecules for treatment of cancer and infectious diseases.
The Company also designs and constructs genes for the development of disease resistant and
nutrition enhanced crops. The Company has already licensed a number of agricultural
applications to Mycogen Corporation, which is owned
by The Dow Chemical Co.
This press release includes forward looking statements which reflect
management's current views as to the Company's scientific results, collaborative
arrangements, product developments and other future events and operations. There are
considerable risks and challenges to be overcome before a product is commercially viable
and regulatory approval is obtained. Other companies may develop competing technologies
and there is no assurance that the Company's patent position is adequate. Actual results
may differ materially from these forward looking statements. The Company disclaims any
intent or obligation to update these forward looking statements.
