UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[x] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the quarter ended September 30, 1995
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the transition period from __________________ to ________________________
Commission File Number: 2-89332
INTERFERON SCIENCES RESEARCH PARTNERS, LTD.
(Exact Name of Registrant as Specified in its Charter)
New Jersey 22-2502556
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
783 Jersey Avenue, New Brunswick, New Jersey 08901
(Address of principal executive offices) (Zip code)
(908) 249 - 3250
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period) that the registrant was
required to file such reports and (2) has been subject to such filing
requirements for the past 90 days.
Yes [ X ] No [ ]
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INTERFERON SCIENCES RESEARCH PARTNERS, LTD.
TABLE OF CONTENTS
Page No.
Part I. Financial Information:
Condensed Balance Sheets--September 30, 1995
and December 31, 1994 . . . . . . . . . . . . . . . . . . . . . . . .1
Condensed Statements of Operations--Three Months and Nine Months
Ended September 30, 1995 and 1994 . . . . . . . . . . . . . . . . . .2
Condensed Statements of Cash Flows--
Nine Months Ended September 30, 1995 and 1994 . . . . . . . . . . . .3
Notes to Condensed Financial Statements . . . . . . . . . . . . . . . .4
Management's Discussion and Analysis of Financial
Condition and Results of Operations . . . . . . . . . . . . . . . .5-6
Qualification Relating to Financial Information . . . . . . . . . . . .7
Part II. Other Information . . . . . . . . . . . . . . . . . . . . . . . .8
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
<PAGE>
PART I. FINANCIAL INFORMATION
INTERFERON SCIENCES RESEARCH PARTNERS, LTD.
CONDENSED BALANCE SHEETS
September 30, December 31,
1995 1994
(Unaudited)
ASSETS
Total assets $ --- $ ---
LIABILITIES AND PARTNERS' CAPITAL
Partners' capital
Limited partners $ --- $ ---
General partner --- ---
Total partners' capital --- ---
Total liabilities and partners' capital $ --- $ ---
The accompanying notes are an integral part of these condensed financial
statements.
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INTERFERON SCIENCES RESEARCH PARTNERS, LTD.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1995 1994 1995 1994
Net income (loss) $ --- $ --- $ --- $ ---
Net income (loss) -
Limited Partners $ --- $ --- $ --- $ ---
Net income (loss) -
General Partner --- --- --- ---
Net income (loss) $ --- $ --- $ --- $ ---
Net income Net income Net income Net income
(loss) (loss) (loss) (loss)
per unit per unit per unit per unit
Net income (loss) -
Limited Partners
(1038.7 units
outstanding) $ --- $ --- $ --- $ ---
The accompanying notes are an integral part of these condensed financial
statements.
<PAGE>
INTERFERON SCIENCES RESEARCH PARTNERS, LTD.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
September 30,
1995 1994
Net change in cash $ --- $ ---
Cash at beginning of period $ --- $ ---
Cash at end of period $ --- $ ---
The accompanying notes are an integral part of these condensed financial
statements.
<PAGE>
INTERFERON SCIENCES RESEARCH PARTNERS, LTD.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
Note 1. Related Party Transactions
During 1984, the Partnership and Interferon Sciences, Inc. (ISI)
entered into several agreements including a Development Contract
whereby substantially all of the net proceeds of the 1984 sale of
Partnership Units were paid to ISI in periodic payments over the term
of the Partnership's development program. Such payments were used to
fund research and development and clinical trials necessary for
obtaining regulatory approval with respect to a topical formulation
containing recombinant alpha interferon for the treatment of herpes
genitalis (Alferon Gel). By September 30, 1986, the Partnership
exhausted the net proceeds of the offering. The General Partner,
Interferon Sciences Development Corporation (ISD), a wholly owned
subsidiary of ISI, agreed to contribute up to an additional $433,000,
under certain circumstances, to continue the research. Notwith-
standing that commitment, from September 1986 to October 1990,
the General Partner contributed $1,997,000 towards the cost of such
research. Beginning November 1990, the General Partner discontinued
funding the development of Alferon Gel containing recombinant
interferon. Beginning in 1992, ISI commenced further development
of Alferon Gel using ISI's natural source multi-species alpha
interferon (Alferon N Gel) in place of recombinant interferon.
<PAGE>
INTERFERON SCIENCES RESEARCH PARTNERS, LTD.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Financial Condition and Liquidity
As of September 30, 1986, the Partnership had exhausted all of its available
funds for the funding of research and development of Alferon Gel. The General
Partner agreed to contribute up to an additional $433,000, under certain
conditions, to continue the research. Such amount was based on the number of
units sold in the offering. Notwithstanding that commitment, from September
1986 to October 1990, the General Partner contributed $1,997,000 towards the
cost of such research. During May 1987, ISI filed a Product License Application
with the Food and Drug Administration (FDA) for approval to market Alferon Gel.
This filing was supplemented in 1989 with an updated clinical summary and a
comprehensive statistical analysis of the completed trials. At a meeting with
the FDA in February 1990, the FDA indicated that additional process development
and clinical trials would be necessary prior to approval of Alferon Gel. ISI
believed, at that time, that the costs to complete the required process
development and clinical trials would be substantial, and there could be no
assurance that the clinical trials would be successful. As a result of the
above events, in March 1992, ISI withdrew its FDA Product License Application
for Alferon Gel containing recombinant interferon.
The General Partner does not anticipate that the Partnership will receive any
revenues in 1995. In addition, the Partnership is not in a position to incur
additional expenses since it has exhausted all its available funds, and ISI is
currently developing Alferon Gel using ISI's natural source, multi-species alpha
interferon (Alferon N Gel) in place of recombinant interferon.
ISI does not presently intend to exploit Alferon Gel (the Partnership Product).
ISI is currently focusing its clinical efforts on Alferon N Gel, a formulation
containing ISI's natural alpha interferon (interferon alfa-n3) which was
developed for the topical treatment of viral diseases and cancers affecting the
skin and mucosal tissues. Now that ISI has expanded capacity to manufacture
sufficient quantities of its natural-source alpha interferon due to the
expansion of its manufacturing facilities in 1991, ISI resumed a clinical trial
of this topical preparation utilizing its natural source alpha interferon as
the active ingredient. A Phase 2 clinical trial utilizing its reformulated
Alferon N Gel has been completed for the treatment of mild cervical dysplasia.
Based upon the initial results of this study, a physician sponsored study in
HIV-infected women with cervical dysplasia commenced in August 1995. Under
the terms of the Partnership Agreement, a royalty may be payable to the
Partnership by reason of the commercial exploitation of Alferon N Gel to
the extent that it utilizes any of the Partnership Technology, which royalty
will be adjusted based upon the proportional funding contributions to the
development of Alferon N Gel by the Partnership and ISI. If ISI obtains
additional financing in the future, ISI may exploit Alferon N Gel for
herpes genitalis which may entitle the Partnership to a royalty in respect
to a product which competes with the Partnership Product; however, this
royalty will be adjusted based upon the proportional funding contributions
to the development of Alferon N Gel by the Partnership and ISI.
Results of Operations
Since ISI did not make any contributions to the Partnership during the nine
months ended September 30, 1995 and 1994, the Partnership did not record any
expense or loss.
<PAGE>
INTERFERON SCIENCES RESEARCH PARTNERS, LTD.
QUALIFICATION RELATING TO FINANCIAL INFORMATION
September 30, 1995
The financial information included herein is unaudited. Such information,
however, reflects all adjustments (consisting solely of normal recurring
adjustments) which are, in the opinion of the General Partner, necessary to
a fair statement of the results for the interim periods. The results for
interim periods are not necessarily indicative of results to be expected for
the year.
<PAGE>
INTERFERON SCIENCES RESEARCH PARTNERS, LTD.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(b) Reports on Form 8-K
There were no reports on Form 8-K filed for the period ended
September 30, 1995.
<PAGE>
INTERFERON SCIENCES RESEARCH PARTNERS, LTD.
SEPTEMBER 30, 1995
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed in its behalf by the
undersigned thereunto duly authorized.
Interferon Sciences Research Partners, Ltd.,
A Limited Partnership
(Registrant)
By: Interferon Sciences
Development Corporation -
General Partner
DATE: November 13, 1995 By: /s/ Samuel H. Ronel, Ph.D.
Samuel H. Ronel, Ph.D.
President
DATE: November 13, 1995 By: /s/ Donald W. Anderson
Donald W. Anderson
Controller
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