<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
------------------------------------
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission file number: 0-15006
AVANT IMMUNOTHERAPEUTICS, INC.
(Exact name of registrant as specified in its charter)
DELAWARE NO. 13-3191702
(State of Incorporation) (I.R.S. Employer Identification No.)
119 FOURTH AVENUE, NEEDHAM, MASSACHUSETTS 02494-2725
(Address of principal executive offices)
(781) 433-0771
(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 .
--- ---
State the number of shares outstanding of each of the registrant's classes of
common equity, as of the latest practicable date:
Shares Outstanding as
Class of May 08, 2000
----------------------------- ---------------
Common Stock, $.001 par value 50,084,334
Exhibit index located on page 14
1
<PAGE>
AVANT IMMUNOTHERAPEUTICS, INC.
FORM 10-Q
QUARTER ENDED MARCH 31, 2000
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
PART I -- FINANCIAL INFORMATION
<S> <C>
Consolidated Balance Sheet at March 31, 2000 and December 31, 1999........3
Consolidated Statement of Operations for the Three Months Ended
March 31, 2000 and 1999..............................................4
Consolidated Statement of Cash Flows for the Three Months Ended
March 31, 2000 and 1999..............................................5
Notes to Consolidated Financial Statements................................6
Management's Discussion and Analysis of Financial Condition
and Results of Operations............................................8
PART II -- OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits.......................................................12
(b) Reports on Form 8-K............................................12
Signatures...............................................................13
Index to Exhibits........................................................14
</TABLE>
<PAGE>
PART I -- FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
AVANT IMMUNOTHERAPEUTICS, INC.
CONSOLIDATED BALANCE SHEET
MARCH 31, 2000 AND DECEMBER 31, 1999
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
2000 1999
===================================================================================================
ASSETS (unaudited)
<S> <C> <C>
Current Assets:
Cash and Cash Equivalents $ 18,761,600 $ 13,619,000
Current Portion Lease Receivable 431,700 431,700
Prepaid Expenses and Other Current Assets 506,100 439,000
- ---------------------------------------------------------------------------------------------------
Total Current Assets 19,699,400 14,489,700
- ---------------------------------------------------------------------------------------------------
Property and Equipment, Net 1,165,900 1,256,800
Restricted Cash -- 217,000
Long-Term Lease Receivable 287,800 395,700
Other Assets 3,410,500 3,523,500
- ---------------------------------------------------------------------------------------------------
Total Assets $ 24,536,600 $ 19,882,700
- ---------------------------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable $ 362,400 $ 575,300
Accrued Expenses 1,036,200 1,331,500
Current Portion Deferred Revenue 615,400 --
Current Portion Lease Payable 293,700 293,700
- ---------------------------------------------------------------------------------------------------
Total Current Liabilities 2,307,700 2,200,500
- ---------------------------------------------------------------------------------------------------
Long-Term Deferred Revenue 2,923,100 --
Long-Term Lease Payable 195,800 269,200
Stockholders' Equity:
Common Stock, $.001 Par Value; 75,000,000 Shares
Authorized; 50,084,000 Issued and Outstanding at
March 31, 2000 and 48,127,400 Issued and
Outstanding at December 31, 1999 50,100 48,100
Additional Paid-In Capital 154,555,700 150,710,300
Accumulated Deficit (135,468,800) (133,345,400)
- ---------------------------------------------------------------------------------------------------
Total Stockholders' Equity 19,137,000 17,413,000
- ---------------------------------------------------------------------------------------------------
Total Liabilities and Stockholders' Equity $ 24,536,600 $ 19,882,700
===================================================================================================
</TABLE>
SEE ACCOMPANYING NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
3
<PAGE>
AVANT IMMUNOTHERAPEUTICS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
MARCH 31, MARCH 31,
2000 1999
=====================================================================================
<S> <C> <C>
OPERATING REVENUE:
Product Development and
Licensing Agreements $ 153,800 $ 337,900
- -------------------------------------------------------------------------------------
OPERATING EXPENSE:
Research and Development 1,817,300 1,798,800
General and Administrative 1,102,400 1,062,100
Legal Settlements (500,000) --
Amortization of Goodwill 137,300 409,800
- -------------------------------------------------------------------------------------
Total Operating Expenses 2,557,000 3,270,700
- -------------------------------------------------------------------------------------
Operating Loss (2,403,200) (2,932,800)
Non-Operating Income, Net 279,800 191,000
- -------------------------------------------------------------------------------------
Net Loss $(2,123,400) $(2,741,800)
=====================================================================================
Basic and Diluted Net Loss Per Common Share $ (0.04) $ (0.06)
=====================================================================================
Weighted Average Common Shares Outstanding 49,799,100 42,526,300
=====================================================================================
</TABLE>
SEE ACCOMPANYING NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
4
<PAGE>
AVANT IMMUNOTHERAPEUTICS, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
MARCH 31, MARCH 31,
2000 1999
=================================================================================================
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss $ (2,123,400) $ (2,741,800)
Adjustments to Reconcile Net Loss to Net Cash
Used by Operating Activities:
Depreciation and Amortization 322,600 561,000
Changes in Assets and Liabilities:
Prepaid Expenses and Other Current Assets (67,100) (5,700)
Accounts Payable and Accrued Expenses (508,200) 51,100
Deferred Revenue 3,538,500 (250,000)
Lease Receivable 107,900 51,900
Lease Payable (73,400) (48,900)
- -------------------------------------------------------------------------------------------------
Net Cash Provided by (Used in) Operating Activities 1,196,900 (2,382,400)
- -------------------------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of Property and Equipment (45,700) (482,000)
Redemption of Marketable Securities -- 4,903,100
Decrease in Restricted Cash 217,000 40,000
Increase in Patents and Licenses (73,000) (49,700)
- -------------------------------------------------------------------------------------------------
Net Cash Provided by Investing Activities 98,300 4,411,400
- -------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the Exercise of Stock Options 1,305,200 16,300
Proceeds from the Exercise of Warrants 234,500 --
Net Proceeds from Stock Issuance 2,307,700 600
- -------------------------------------------------------------------------------------------------
Net Cash Provided by Financing Activities 3,847,400 16,900
- -------------------------------------------------------------------------------------------------
Increase in Cash and Cash Equivalents 5,142,600 2,045,900
Cash and Cash Equivalents at Beginning of Period 13,619,000 8,937,200
- -------------------------------------------------------------------------------------------------
Cash and Cash Equivalents at End of Period $ 18,761,600 $ 10,983,100
=================================================================================================
</TABLE>
SEE ACCOMPANYING NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
5
<PAGE>
AVANT IMMUNOTHERAPEUTICS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2000
(1) NATURE OF BUSINESS
AVANT Immunotherapeutics, Inc. ("AVANT") is a biopharmaceutical company
engaged in the discovery, development and commercialization of products that
harness the human immune response to prevent and treat disease. Our lead
therapeutic program is focused on compounds that inhibit the inappropriate
activity of the complement cascade, a vital part of the body's immune defense
system. AVANT is also developing on its own a proprietary therapeutic vaccine
for the management of atherosclerosis and Therapore(TM), a novel system for the
delivery of immunotherapeutics for chronic viral infections and certain cancers.
AVANT and its collaborators are developing vaccines using the proprietary
adjuvants, Adjumer(R) and Micromer(R), for the prevention of respiratory
syncytial virus (RSV), Lyme disease and several other vaccine targets. Through
additional collaboration, we are also developing an oral human rotavirus vaccine
and a cholera vaccine.
The unaudited consolidated financial statements include the accounts of
AVANT Immunotherapeutics, Inc. and its wholly owned subsidiary, Polmerix, Inc.
All intercompany transactions have been eliminated.
(2) INTERIM FINANCIAL STATEMENTS
The accompanying unaudited consolidated financial statements for the
three months ended March 31, 2000 and 1999 include the consolidated accounts of
AVANT, and have been prepared in accordance with generally accepted accounting
principles and with the instructions to Form 10-Q and Article 10 of Regulation
S-X. In the opinion of management, the information contained herein reflects all
adjustments, consisting solely of normal recurring adjustments, that are
necessary to present fairly the financial positions at March 31, 2000 and
December 31, 1999, the results of operations for the quarters ended March 31,
2000 and 1999, and the cash flows for the three months ended March 31, 2000 and
1999. The results of operations for the quarter ended March 31, 2000 are not
necessarily indicative of results for any future interim period or for the full
year.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been omitted, although we believe that the disclosures included
are adequate to make the information presented not misleading. The unaudited
consolidated financial statements and the notes included herein should be read
in conjunction with footnotes contained in AVANT's Annual Report on Form 10-K
for the year ended December 31, 1999.
Certain amounts in the 1999 results for the quarter ended March 31,
1999 have been reclassified to provide consistent presentation with the 2000
results for the quarter ended March 31, 2000.
6
<PAGE>
(3) PROPERTY AND EQUIPMENT
Property and equipment includes the following:
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
===========================================
<S> <C> <C>
Laboratory Equipment $ 2,598,200 $ 2,595,400
Office Furniture and Equipment 1,218,000 1,176,800
Leasehold Improvements 939,800 938,100
-------------------------------------------
Property and Equipment, Total 4,756,000 4,710,300
Less Accumulated Depreciation and Amortization (3,590,100) (3,453,500)
-------------------------------------------
$ 1,165,900 $ 1,256,800
===========================================
</TABLE>
(4) OTHER ASSETS
Other assets include the following:
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
===========================================
<S> <C> <C>
Capitalized Patent Costs $ 2,174,300 $ 2,101,300
Accumulated Amortization (764,000) (715,300)
-------------------------------------------
Capitalized Patent Costs, Net 1,410,300 1,386,000
Goodwill and Other Intangible Assets, Net of
Accumulated Amortization of $1,959,600
and $1,822,200 1,876,200 2,013,500
Other Non Current Assets 124,000 124,000
-------------------------------------------
$ 3,410,500 $ 3,523,500
===========================================
</TABLE>
(5) COMMON STOCK
In July 1999, Novartis exercised its option to license TP10 for use in
the field of transplantation. The decision to license TP10 resulted in a $6
million payment by Novartis which was received by AVANT in January 2000. The
payment included an equity investment of $2,307,700 for 1,439,496 shares of our
common stock at $1.60 per share and a license fee of $3,692,300. We are
amortizing the license fee over twenty-four quarters, the projected development
period for the licensed field.
(6) NET INCOME (LOSS) PER SHARE
Consistent with SFAS 128, basic earnings (loss) per share amounts are
based on the weighted average number of shares of common stock outstanding
during the period. Diluted earnings (loss) per share amounts are based on the
weighted average number of shares of common stock and the potential common stock
outstanding during the period. We have excluded all of the potential common
stock shares from the calculation of diluted weighted average share amounts for
the three-month periods ended March 31, 2000 and 1999 as its inclusion would
have been anti-dilutive.
7
<PAGE>
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995: STATEMENTS CONTAINED IN THE FOLLOWING, ITEM 2. MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, THAT ARE NOT
HISTORICAL FACTS MAY BE FORWARD-LOOKING STATEMENTS THAT ARE SUBJECT TO A VARIETY
OF RISKS AND UNCERTAINTIES. THERE ARE A NUMBER OF IMPORTANT FACTORS THAT COULD
CAUSE THE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN ANY
FORWARD-LOOKING STATEMENTS MADE BY AVANT. THESE FACTORS INCLUDE, BUT ARE NOT
LIMITED TO: (I) OUR ABILITY TO SUCCESSFULLY COMPLETE PRODUCT RESEARCH AND
DEVELOPMENT, INCLUDING PRE-CLINICAL AND CLINICAL STUDIES, AND COMMERCIALIZATION;
(II) OUR ABILITY TO OBTAIN SUBSTANTIAL ADDITIONAL FUNDING; (III) OUR ABILITY TO
OBTAIN REQUIRED GOVERNMENTAL APPROVALS; (IV) OUR ABILITY TO ATTRACT
MANUFACTURING, SALES, DISTRIBUTION AND MARKETING PARTNERS AND OTHER STRATEGIC
ALLIANCES; AND (V) OUR ABILITY TO DEVELOP AND COMMERCIALIZE OUR PRODUCTS BEFORE
OUR COMPETITORS.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
OVERVIEW
We are engaged in the discovery, development and commercialization of
products that harness the human immune response to prevent and treat disease.
Our products derive from a broad set of complementary technologies with the
ability to inhibit the complement system, regulate T and B cell activity, and
enable the creation and delivery of preventative and therapeutic vaccines. We
are using these technologies to develop vaccines and immunotherapeutics that
prevent or treat disease caused by infectious organisms, and drugs and treatment
vaccines that modify undesirable activity by the body's own proteins or cells.
ACQUISITION
On August 21, 1998, we acquired Virus Research Institute, Inc. ("VRI"),
a company engaged in the discovery and development of systems for the delivery
of vaccines and immunotherapeutics, and novel vaccines for adults and children.
AVANT issued 14,036,400 shares and warrants to purchase 1,811,200 shares of it's
common stock in exchange for all of the outstanding common stock of VRI, on the
basis of 1.55 shares and .20 of a warrant to purchase one share of AVANT's
common stock for each share of VRI common stock. The acquisition has been
accounted for as a purchase. Consequently, the purchase price was allocated to
the acquired assets and assumed liabilities based upon their fair value at the
date of acquisition. The excess of the purchase price over the tangible assets
acquired was assigned to collaborative relationships, work force and goodwill
and is being amortized on a straight line basis over 12 to 60 months. An
allocation of $44,630,000 was made to in-process research and development
("IPR&D") which represented purchased in-process technology which had not yet
reached technological feasibility and had no alternative future use. The amount
was charged as an expense in our financial statements during the third quarter
of 1998.
NEW DEVELOPMENTS
COMPLEMENT INHIBITORS: In 1997, we entered into an agreement with
Novartis relating to the development of TP10 for use in xenotransplantation
(animal organs into humans) and allotransplantation (human organs into humans).
We granted Novartis a two-year option to license TP10 with exclusive worldwide
marketing rights (except Japan) in the fields of xenotransplantation and
allotransplantation. In July 1999, Novartis exercised its option to license TP10
for use in the field of transplantation. In December 1999, the Novartis
agreement was amended to include marketing rights for Japan. The decision to
license TP10 resulted in a $6 million equity investment and license payment by
Novartis which was received by AVANT in January 2000. Under the agreement, we
may receive additional milestone payments of up to $14 million upon attainment
of certain development and regulatory goals.
We will also be entitled to royalties on product sales under the agreement.
We have elected to independently develop and commercialize TP10 for
pediatric cardiac surgery. In September 1999, we initiated an open-label, Phase
I/II trial of TP10 in infants undergoing cardiac surgery for congenital heart
defects. The trial will evaluate the ability of TP10 to mitigate the injury to
the heart and other organs that occurs when patients are placed on
cardiopulmonary bypass circuits. Patient enrollment in this Phase I/II trial was
completed in January 2000. In March 2000, we received orphan drug designation
for TP10 in
8
<PAGE>
infants undergoing cardiac surgery. We expect to initiate a pivotal
Phase III trial in this indication around the end of 2000. AVANT additionally
plans to refine the TP10 dosing regimen in additional infants prior to starting
the Phase III study.
We also plan to initiate Phase II trials for adult cardiac surgery
during the second half of 2000, with an expectation to partnering that program
when additional clinical data are available.
ATHEROSCLEROSIS TREATMENT VACCINE: We are developing a therapeutic
vaccine against endogenous cholesteryl ester transfer protein ("CETP") which may
be useful in reducing risks associated with atherosclerosis. CETP is a key
intermediary in the balance of HDL and LDL. We are developing a vaccine (CETi-1)
to stimulate an immune response against CETP which we believe may improve the
ratio of HDL to LDL cholesterol and reduce the progression of atherosclerosis.
We have conducted preliminary studies of rabbits which have demonstrated the
ability of CETi-1 vaccine to elevate HDL and reduce the development of blood
vessel lesions. In June 1999, we initiated a double-blind placebo controlled,
Phase I clinical trial of our CETi-1 vaccine in adult volunteers. The object of
the study is to demonstrate the safety of single administrations of the vaccine
at four different dosage strengths. Patient enrollment in this Phase I trial was
completed in February 2000. We plan to initiate a Phase II study during the
second half of 2000. As clinical data becomes available, we plan to seek a
corporate partner to complete development and to commercialize the vaccine.
ROTAVIRUS VACCINE: Rotavirus is a major cause of diarrhea and vomiting
in infants and children. No vaccine against rotavirus is currently on the
market. In 1997, we licensed our oral rotavirus vaccine to SmithKline Beecham
plc ("SmithKline"). In 1999, after our Phase II study demonstrated 89%
protection in a study involving 215 infants, SmithKline paid us an additional
license fee and assumed full responsibility for funding and performing all
remaining clinical development. SmithKline has initiated Phase I/II bridging
studies in Europe using its newly manufactured rotavirus vaccine, called
Rotarix(TM), and is now planning to start Phase III safety and efficacy studies
in 2001 after review with health authorities. Assuming product development and
commercialization continues satisfactorily, SmithKline will pay us additional
milestones and a royalty based on sales.
CHOLERA VACCINE: We are developing a single dose, oral cholera vaccine
using a live, genetically attenuated cholera strain. Based on this technology,
developed in academia, we have developed the vaccine through early Phase II
trials. We then negotiated a collaboration agreement under which a Phase IIb
trial will be performed and funded by the Walter Reed Army Institute of Research
("WRAIR") and the National Institutes of Health (the "NIH"). This trial, set to
begin in 2000, will test the safety, immunogenecity and protective capacity of
the vaccine against a challenge with live virulent cholera. We will then
determine our commercialization strategy with respect to the cholera vaccine
based on clinical data from the trial.
RESULTS OF OPERATIONS
Three Month Period Ended March 31, 2000 as Compared
With the Three Month Period Ended March 31, 1999
-------------------------------------------------------
AVANT reported consolidated net loss of $2,123,400, or $.04 per share,
for the first quarter ended March 31, 2000, compared with a net loss of
$2,741,800, or $.06 per share, for the first quarter ended March 31, 1999. The
weighted average common shares outstanding used to calculate net loss per common
share was 49,799,100 in 2000 and 42,526,300 in 1999.
OPERATING REVENUE: Total operating revenue decreased $184,100, or
54.5%, to $153,800 for the first quarter of 2000 compared to $337,900 for the
first quarter of 1999. This decrease is due primarily to timing differences in
revenue recognition of option and license payments from Novartis between
quarterly periods. During the first quarter of 1999, AVANT recognized revenue
from a Novartis option payment which was amortized over the option term. During
the first quarter of 2000, AVANT received a license payment from Novartis which
is being recognized over the projected development period of the licensed field.
9
<PAGE>
OPERATING EXPENSE: Total operating expense decreased $713,700, or
21.8%, to $2,557,000 for the first quarter of 2000 compared to $3,270,700 for
the first quarter of 1999. The decrease in total operating expense is primarily
due to the receipt of legal settlement payments and the reduction of goodwill
amortization by $272,500 in the first quarter of 2000 compared with the same
period last year. Research and development expense increased $18,500, or 1.0%,
to $1,817,300 for the first quarter of 2000 compared to $1,798,800 for the first
quarter of 1999. The increase in research and development expense is due to a
increase in laboratory supplies and services expenses. General and
administrative expense increased $40,300, or 3.8%, to $1,102,400 for the first
quarter of 2000 compared to $1,062,100 for the first quarter of 1999. The
increase is primarily attributed to increased general and patent legal expenses
combined with increased corporate development and investor relations costs.
During the quarter, we received legal settlement payments totaling $500,000 from
the resolution of disputes arising from contractual arrangements.
NON-OPERATING INCOME, NET: Non-operating income increased $88,800, or
46.5%, to $279,800 for the first quarter of 2000 compared to $191,000 for the
first quarter of 1999. The increase is primarily due to an increase in interest
income as a result of higher interest rates and higher average cash balances
during the first quarter of 2000 compared to the first quarter of 1999.
LIQUIDITY AND CAPITAL REOURCES
AVANT ended the first quarter of 2000 with cash and cash equivalents of
$18,761,600 compared to cash and cash equivalents of $13,619,000 at December 31,
1999. Cash provided by operations was $1,196,900 in the first quarter of 2000
compared to $2,382,400 used in operations in the first quarter of 1999.
In July 1999, Novartis exercised its option to license TP10 for use in
the field of transplantation. The decision to license TP10 resulted in a $6
million payment by Novartis which was received by AVANT in January 2000. The
payment included an equity investment of $2,307,700 and a license fee of
$3,692,300.
Also, during the first quarter of 2000, AVANT raised approximately
$1,305,200 and $244,500 in additional equity investment through the exercise of
stock options and warrants, respectively.
AVANT believes that cash inflows from existing collaborations, interest
income on invested funds and our current cash and cash equivalents will be
sufficient to meet estimated working capital requirements and fund operations
beyond December 31, 2000 and into the first half of 2001. The working capital
requirements of AVANT are dependent on several factors including, but not
limited to, the costs associated with research and development programs,
preclinical and clinical studies and the scope of collaborative arrangements.
During 2000, we expect to take steps to raise additional capital including, but
not limited to, licensing of technology programs with existing or new
collaborative partners, possible business combinations, or issuance of common
stock via private placement and public offering.
YEAR 2000
THE STATEMENTS IN THIS SECTION INCLUDE THE "YEAR 2000 READINESS
DISCLOSURE" WITHIN THE MEANING OF THE YEAR 2000 INFORMATION AND READINESS
DISCLOSURE ACT. THIS SECTION CONTAINS CERTAIN STATEMENTS THAT ARE
FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE SECURITIES
ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934,
AS AMENDED. AVANT'S YEAR 2000 READINESS, AND THE EVENTUAL AFFECTS OF THE YEAR
2000 ON AVANT MAY BE MATERIALLY DIFFERENT THAN CURRENTLY PROJECTED. THIS MAY BE
DUE TO, AMONG OTHER THINGS, THE INABILITY OF AVANT OR OF KEY THIRD PARTIES WITH
WHOM WE HAVE A SIGNIFICANT BUSINESS RELATIONSHIP TO ACHIEVE OR MAINTAIN YEAR
2000 READINESS.
The "Year 2000" issue affects computer systems that have date sensitive
programs that may not properly recognize the year 2000. Systems that do not
properly recognize such information could generate data or cause a system to
fail, resulting in business interruption. Through the first four months of the
year 2000,
10
<PAGE>
AVANT's operations are fully functioning and have not experienced any
significant issues associated with the Year 2000 problem discussed above. Costs
associated with modifications made by AVANT to be Year 2000 compliant were
immaterial. There can be no assurance, however, that a failure by another
company's system to be Year 2000 compliant would not have a material adverse
affect on our business, operating results and financial condition.
11
<PAGE>
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISE
In January 1997, the Securities and Exchange Commission issued
Financial Reporting Release No. 48, which expands the disclosure requirements
for certain derivatives and other financial instruments. The Company does not
utilize derivative financial instruments.
PART II -- OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) EXHIBITS
27.1 Financial Data Schedule
(B) REPORTS ON FORM 8-K
No reports on Form 8-K were filed by the Company during the
quarter for which this report is filed.
12
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
AVANT IMMUNOTHERAPEUTICS, INC.
BY:
Dated: May 09, 2000 /s/ Una S. Ryan
-----------------------------------
Una S. Ryan, Ph.D.
President and Chief Executive Officer
(Principal Executive Officer)
Dated: May 09, 2000 /s/ Avery W. Catlin
-----------------------------------
Avery W. Catlin
Senior Vice President, Treasurer
and Chief Financial Officer
(Principal Financial and
Accounting Officer)
13
<PAGE>
INDEX TO EXHIBITS
Exhibit Number Description
- -------------- -----------
27.1 Financial Data Schedule.
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED FINANCIAL STATEMENTS OF AVANT IMMUNOTHERAPEUTICS, INC. FOR
THE THREE MONTHS ENDED MARCH 31, 2000 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 18,761,600
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 19,699,400
<PP&E> 4,756,000
<DEPRECIATION> (3,590,100)
<TOTAL-ASSETS> 24,536,600
<CURRENT-LIABILITIES> 2,307,700
<BONDS> 0
0
0
<COMMON> 50,100
<OTHER-SE> 19,086,900
<TOTAL-LIABILITY-AND-EQUITY> 24,536,600
<SALES> 0
<TOTAL-REVENUES> 153,800
<CGS> 0
<TOTAL-COSTS> 2,557,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (2,123,400)
<INCOME-TAX> 0
<INCOME-CONTINUING> (2,123,400)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,123,400)
<EPS-BASIC> (0.04)
<EPS-DILUTED> (0.04)
</TABLE>
