EXHIBIT 99.1 PRESS RELEASE OF THE REGISTRANT, DATED DECEMBER 19, 2000
VAXGEN CEO AND CHAIRMAN STEPS DOWN; PRESIDENT ASSUMES CEO DUTIES
BRISBANE, Calif., Dec. 19 /PRNewswire/ -- VaxGen, Inc. (Nasdaq: VXGN - news)
announced today that its chairman and chief executive officer, Robert C.
Nowinski, Ph.D., has resigned from the Board of Directors and full-time
employment effective Dec. 15, 2000. Dr. Nowinski will continue to serve as a
consultant to the company and as Chairman Emeritus.
According to VaxGen's bylaws, company President Donald P. Francis, M.D., D.Sc.,
remains as president and assumes the duties of chief executive officer.
"Developing the first AIDS vaccine has been the most fulfilling opportunity of
my career," Dr. Nowinski said. "However, my strength and passion lie in starting
new biotech companies. Now that VaxGen's Phase III trials are well underway and
the company is in good hands, I'm looking forward to pursuing new
opportunities."
Dr. Nowinski said his decision to resign was accelerated by health reasons,
which have made it difficult for him to continue commuting between his home in
Seattle and VaxGen's headquarters near San Francisco.
Dr. Nowinski co-founded VaxGen in 1995 with Dr. Francis. His principal roles at
VaxGen were corporate financing and investor relations. He successfully brought
VaxGen through an initial public offering in 1999 and led three successful
private placements. In his role as consultant, Dr. Nowinski, 55, will remain
available to assist in the area of corporate finance.
"Bob played a critical role in building VaxGen and although he will no longer
have daily involvement in the company, we will still be able to turn to him for
advice and counsel," Dr. Francis said.
Dr. Nowinski founded three publicly held biotech companies before co-founding
VaxGen. His first company, Genetic Systems Corp., was founded in 1981 and
developed one of the first blood tests for HIV. He subsequently founded ICOS
Corp. and PathoGenesis Corp.
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VaxGen is the only company with preventive HIV/AIDS vaccines in Phase III
clinical trials, the final stage before regulatory approval. The company is
conducting two separate trials, one in North America and Europe and another in
Thailand. An interim analysis of the Phase III trial in North America/Europe is
scheduled for November 2001. If the analysis yields sufficient statistical
evidence to show that AIDSVAX is effective, VaxGen will halt the trial and begin
the process of applying for regulatory approval. If the analysis is
inconclusive, VaxGen will proceed as planned and complete the trial at the end
of 2002. VaxGen is located in Brisbane, Calif. For more information, please
visit the company's web site at www.vaxgen.com.
NOTE: This news release contains "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to known and unknown risks, uncertainties or other
factors that may cause VaxGen's actual results to be materially different from
historical results, expressed or implied by such forward-looking statements.
Factors that might cause such a difference include, but are not limited to,
uncertainties related to the progress, costs and results of the Company's Phase
III clinical trials, the progress of other internal research and development
projects, the establishment of collaborative arrangements with governmental
agencies, the receipt of research grants and the timing of certain expenses.
Reference should be made to VaxGen's Annual Report on Form 10-K, filed with the
Securities and Exchange Commission, for a more detailed description of such
factors discussed in the "Factors Affecting Future Results" and "Business"
sections. Readers are cautioned not to place undue reliance on these
forward-looking statements that speak only as of the date of this release.
VaxGen undertakes no obligation to update publicly any forward-looking
statements to reflect new information, events, or circumstances after the date
of this release or to reflect the occurrence of anticipated events.
