<PAGE>
EXHIBIT 99.1
FOR IMMEDIATE RELEASE
COMPANY CONTACT: VION PHARMACEUTICALS, INC.
Alan Kessman, President and CEO
(203) 498-4210 ph
FINANCIAL COMMUNICATIONS CONTACT: SHANDWICK INTERNATIONAL
Sue L. Yeoh (investors)
(646) 658-8375 ph
Lisa Bradlow (media)
(212) 579-7428 ph
VION REPORTS 2000 THIRD QUARTER AND NINE MONTH FINANCIAL RESULTS
NEW HAVEN, CONN., NOVEMBER 13, 2000 - VION PHARMACEUTICALS, INC. (NASDAQ NM:
VION) today announced third quarter and nine month financial results for the
period ended September 30, 2000.
The loss applicable to common shareholders was $3,245,890 in the third
quarter of 2000, compared with $2,410,409 in the third quarter of 1999,
primarily due to increased research and development expenses and increased
general and administrative expenses, which were partially offset by increased
interest income generated from additional cash resources. Revenues for the 2000
third quarter rose 28% to $368,092, compared with revenues of $286,936 reported
in the third quarter of 1999. This reflects an increase of $218,083 in contract
research revenue received for the company's core drug delivery platform,
TAPET'r', which was partially offset by the elimination of revenues from
reimbursed development costs under the revised terms of Vion's collaboration
agreement with Boehringer Ingelheim GmbH (BI) for the development of
Promycin'r', restructured in December 1999. Research and development expenses
for the third quarter of 2000 were $3,011,545, compared with $2,192,961 for the
three months ended September 30, 1999, reflecting increased preclinical
activities related to the company's Sulfonyl Hydrazine technology, and patient
enrollment for the Phase I human clinical trial of TAPET. General and
administrative expenses were $1,055,429 for the three months ended September 30,
2000, versus $465,868 for the three months ended September 30, 1999, due to
higher patent-related and professional fees.
The loss applicable to common shareholders was $9,734,449 in the nine
months ended September 30, 2000, compared with $8,856,385 in the nine months
ended September 30, 1999. Revenues for the nine months ended September 30, 2000
were $786,805, versus revenues of $1,616,150 for the first nine months of 1999,
reflecting the elimination of revenues from reimbursed development costs under
the revised terms of Vion's collaboration agreement with BI for the development
of Promycin, which was restructured in December 1999. Revenue from contract
research grants increased 141% to $628,780 for the nine months of 2000, compared
with grants of $260,880 for the period ended September 30, 1999. Research and
development expenses for the first nine months of 2000 were $8,307,359, compared
with expenses of $8,517,035, reported in the first nine months of 1999,
reflecting increased preclinical activities related to the company's Sulfonyl
Hydrazine technology, and patient enrollment for the Phase I human clinical
trial of TAPET, offset by lower expenses under Vion's revised collaboration
agreement with BI for the development of Promycin. General and administrative
expenses were $2,607,851 for the nine months ended September 30, 2000, versus
$1,666,198 reported in the same period last year, due to higher patent-related
and professional fees.
- more -
<PAGE>
VION REPORTS 2000 THIRD QUARTER AND NINE MONTH FINANCIAL RESULTS
PAGE 2
All outstanding shares of the company's Series 1998 Redeemable Convertible
Preferred Stock were converted to common stock on February 22, 2000, which
resulted in the elimination of non-cash accretion of Preferred Stock dividends.
As such, preferred stock dividends and accretion were zero for the three months
ended September 30, 2000, compared with $77,332 for the three months ended
September 30, 1999. Preferred stock dividends and accretion were $600,570 for
the nine months ended September 30, 2000, versus $434,700 for the nine months
ended September 30, 1999. The difference primarily represents the recording of
non-cash dividends related to the company's Series 1998 Convertible Redeemable
Preferred Stock valued at market prices higher than their conversion price.
"One of our primary goals for the year 2000 was to strengthen our balance sheet
and to simplify our capital structure. Over the last two quarters, we have
completed several transactions that have allowed us to achieve these objectives.
As of September 30, 2000, Vion had approximately 26,112,000 common shares
outstanding and cash resources of approximately $27.6 million. We believe we
have sufficient cash resources through 2001 to support our current business
plans, which include advancing Phase I trials of both TAPET'r' and Triapine'r',
as well as conducting additional preclinical toxicology studies of a SHP
candidate to evaluate its suitability for future clinical trials, expected to
begin in 2001," concluded Mr. Kessman.
Vion Pharmaceuticals, Inc. is a biopharmaceutical company engaged in the
research, development and commercialization of cancer treatment technologies.
Vion's product portfolio consists of TAPET, a drug delivery platform, and cancer
therapeutics (Triapine and Sulfonyl Hydrazine Prodrugs). TAPET has been shown in
preclinical models to effectively deliver anticancer agents while having a
minimal toxic effect on healthy normal tissues. TAPET uses genetically altered
strains of Salmonella as a bacterial vector, or vehicle, for delivering
cancer-fighting drugs preferentially to solid tumors. Triapine, which is
designed to prevent the replication of tumor cells by blocking a critical step
in the synthesis of DNA, is currently being evaluated for its safety in several
Phase I clinical trials. Sulfonyl Hydrazine Prodrugs, compounds that are
designed to be converted to unique potent, alkylating agents, are currently
being evaluated in preclinical studies. For additional information on Vion and
its research and product development programs, visit the company's Internet web
site at http://www.vionpharm.com.
Statements included in this press release, which are not historical in nature,
are forward-looking statements made pursuant to the safe-harbor provisions of
the Private Securities Litigation Reform Act of 1995. Forward-looking statements
regarding the company's future business prospects, plans, objectives,
expectations and intentions are subject to certain risks, uncertainties and
other factors that could cause actual results to differ materially from those
projected or suggested in the forward-looking statements, including, but not
limited to those contained in Vion Pharmaceuticals' Registration Statement filed
on Form S-3/A (file no. 333-95671). This press release shall not constitute an
offer to sell or the solicitation of an offer to buy the common stock nor shall
there be any sale of these securities in any state in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state.
(tables follow)
<PAGE>
VION PHARMACEUTICALS, INC.
(A DEVELOPMENT STAGE COMPANY)
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
2000 1999 2000 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Revenues:
Contract research grants $ 314,787 $ 96,704 $ 628,780 $ 260,880
Research support -- 183,813 -- 1,298,851
Technology license revenues 25,005 6,419 76,113 56,419
Laboratory support service revenue 28,300 -- 81,912 --
-------------------------------------------------------------------
Total revenues 368,092 286,936 786,805 1,616,150
Operating expenses:
Research and development 3,011,545 2,192,961 8,307,359 8,517,035
General and administrative 1,055,429 465,868 2,607,851 1,666,198
Interest income (454,468) (45,720) (1,003,888) (173,075)
Interest expense 1,476 6,904 9,362 27,677
---------------------------------------------------------------------
Net loss $(3,245,890) $(2,333,077) $(9,133,879) $(8,421,685)
---------------------------------------------------------------------
Preferred stock dividends and accretion $ -- $ (77,332) $ (600,570) $ (434,700)
---------------------------------------------------------------------
Loss applicable to common shareholders $(3,245,890) $(2,410,409) $(9,734,449) $(8,856,385)
---------------------------------------------------------------------
Basic and diluted loss applicable
to common shareholders per share $ (0.13) $ (0.16) $ (0.42) $ (0.59)
---------------------------------------------------------------------
Weighted average common stock
and common stock equivalents
outstanding 25,804,736 15,550,930 23,455,570 14,921,896
</TABLE>
CONDENSED BALANCE SHEET DATA
<TABLE>
<CAPTION>
SEPTEMBER 30, 2000 DECEMBER 31, 1999
<S> <C> <C>
Cash, cash equivalents and
short-term investments $27,613,022 $11,105,262
Total assets 29,115,652 13,933,805
Total liabilities 1,285,970 2,901,254
Redeemable preferred stock -- 5,179,287
Shareholders' equity $27,829,682 $5,853,264
</TABLE>
