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AIM ImmunoTech Inc. (AIM)

Q1 2016 Earnings Call· Tue, May 17, 2016

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Transcript

Operator

Operator

Good afternoon, ladies and gentlemen and welcome to the Hemispherx Biopharma Conference Call. At this time, all lines have been placed on a listen-only mode. Before management begins to speak, the company has the following statements. To the extent that statements on this conference call are not strictly historical, all such statements are forward-looking, are based upon the current beliefs and expectations of the company's management, are subject to significant risks and uncertainties, and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. We are obliged by law to provide certain legal and binding disclaimers before we begin. Words such as intends, plans, potential, beliefs, potentially, possible and similar expressions are intended to identify forward-looking statements. The inclusion of forward-looking statements should not be regarded as a representation by Hemispherx that any of its plans will be achieved. These forward-looking statements are neither promises nor guarantees of future performance, and are subject to a variety of risks and uncertainties, many of which are beyond Hemispherx's control, which could cause actual results to differ materially from these contemplated in these forward-looking statements. For example, because numerous such risks and uncertainties exist despite our efforts and believes regarding approvals, we cannot assure Ampligen will ever be commercially approved for any treatment, or that Alferon N Injection will ever be commercially approved for potential new treatment indications, or for the new manufacturing procedures underway. Examples of such risks and uncertainties include the risks described in Hemispherx's filings with the Securities and Exchange Commission, including the most recent reports on Forms 10-K, 10-Q, and 8-K. You are cautioned not to place undue reliance on forward-looking statements which speak only as of the date hereof, and Hemispherx undertakes no obligations to update or revise the information discussed on this conference call, whether as a result of new information, future events or circumstances or otherwise revised or update this release to reflect events or circumstances after the date hereof. With that covered, it is now my pleasure to turn the floor over to your host, Mr. Thomas Equels, President and Chief Executive Officer of Hemispherx Biopharma. Sir, the floor is yours.

Tom Equels

Management

Thank you very much, Paul. Good afternoon, ladies and gentlemen. Thank you for joining our call. This is our second quarterly conference call under the new administration. My name is Tom Equels. I am Hemispherx's new Chief Executive Officer. Just yesterday we filed our 10-Q for the first quarter ending March 31, 2016. Due to the timing of the filings for the year-end financials and the first quarter filings, not much time has elapsed since our last conference call, which was on March 30. So this corporate update will be somewhat brief. I'd like to begin with a brief discussion regarding the retention of Huron Consulting Group. Huron is a global professional services firm, which we have retained, focused on assisting clients with their most complex business issues by delivering high value quality solutions to support long-term business objectives. They specialize in serving claims in the healthcare industry with the focus on lifesciences, as well as many other areas, but they have a very strong lifesciences division. We are looking forward to the relationship with Huron, because of its deep industry and technical expertise. Huron provide advisory consulting technology and analytic solutions with the aim at delivering sustainable measurable results. Now, one of the key points that I made in the March 30 year-end conference call, for those of you who participated and remember, was that we're shifting from the old management view that Hemispherx can do it on, try to become the next Pfizer to what I think is a more realistic business plan or model for co-developing our existing technology, some of which is very late stage, with the existing established pharma industry partners who are able to maximize our chances of expedited commercial success, and we hope then maximizing stockholder value. To help us execute on this…

Q - Dianne Will

Management

Thank you, Tom. We have solicited written questions from our stockholders and interested parties to the extent that the presentation that Mr. Equels has already provided answers, the questions will not be addressed, because several questions address the same issue, we have grouped the questions by topic, and we'll answer the most appropriate questions by topic. Tom, the first question is what are the underutilized assets and what is the status of their sale?

Tom Equels

Management

Great. It's actually an underutilized asset. If I may describe the property and buildings which we own in New Brunswick, New Jersey, there are two separate lots that are adjacent to each other, and each lot has a building on it. One of the larger building is our manufacturing facility, and then there is a very substantial building, but it's a storage building. And it's not necessary for operations. So the truly underutilized asset is that storage building, which we have listed for sale and/or aggressively trying to sell for $1.8 million. Now, with the same broker, we have advised them that we would also entertain a leaseback arrangement or a financing with regard to the manufacturing facility, but that's at a much higher number, $8 million. And we would still retail ownership and operational control of the manufacturing facility. So the only underutilized asset we're talking about is that storage building, and it's my intention to try and sell that in 2016, if it's humanly possible.

Dianne Will

Management

All right, thank you, Tom. The second question we have for you is, please give an update on the status of Ampligen and CFS.

Tom Equels

Management

With regard to Ampligen and CFS, we had an extensive discussion on that issue in our last call, and just a little more than a month ago. And it's addressed in some detail in our filings, but rest assured, that we're doing everything we can internally in working with government agencies to try and move the ball forward for purposes of obtaining a commercial approval so that the many, many people who are in desperate need of a therapy for CFS will have access to Ampligen, if at all possible. I have to say that when you're asking for governmental approvals, you could not predict when or if the government will ever approve something like this. But we're going to make every effort to try and get that approval.

Dianne Will

Management

Thank you, Tom. The next question I have for you, is Hemispherx in play for a contract with the government for the Zika virus?

Tom Equels

Management

In answering that question, that's the way the question was received by us, but I have to step back a little bit here. Let me talk first a little bit about Ampligen, and how Ampligen works. Ampligen, our experimental therapeutic, is -- has a very dramatic effect on the human immune system. And it's been established in various experiments -- animal experiments, that it plays a role as a host-based immune-system-driven antiviral. But it's an early-onset antiviral. So when we look at the Zika virus, and when we look at the experiences with Ampligen as an early-onset therapeutic in many other viruses, for example, Ebola, there's a possibility that Ampligen would have a very positive effect with Zika in the early stages of infection. However, there have been no tests or experiments that would justify a contract for Zika. So our focus is on trying to facilitate testing -- experimental testing. And we're seeking opportunities to engage in that experimental testing. If those experiments provide a basis for going further, then we would expect that there would be clinical activity testing Ampligen with the Zika virus. And at some stage, if that were successful, the possibility of contracts would exist. So the question itself has got the cart way before the horse, to use the old saying. We have to solicit and obtain experimental results with the Zika virus before anybody will consider governments' specifically contractual activities related to the Zika virus.

Dianne Will

Management

Thank you, Tom. And the final question for you today is what is the status of co-development and/or licensing partners?

Tom Equels

Management

The company is placing a high priority on that activity. Our relationship with Huron is to facilitate those types of activities. However, I can only say the following, we have commenced actual talks, but they're preliminary in nature, and they're confidential. So I have to respect the fact that as we begin this process we're not going to be in a position to be giving a quarterly blow-by-blow on discussions and negotiations. And those types of activities, by their nature, are confidential until they are finalized and ready to be announced if they are successful. And whether they will be successful or not, it remains to be seen. We're certainly going to give a 110% effort at Hemispherx to create these opportunities though.

Dianne Will

Management

Okay. That was your final question, Tom. Thank you. Thank you, ladies and gentlemen…

Tom Equels

Management

Thank you, Dianne.

Dianne Will

Management

This concludes today's presentation. You may disconnect your lines, and have a wonderful day.

Tom Equels

Management

Thank you, Dianne.