Investor Relations | Press Releases
MediciNova Announces Adjustment in Business Forecasts
SAN DIEGO, California - June 17, 2005 MediciNova, Inc. today announced that the company lowered its business forecasts regarding performance results which were reported in connection with the announcement of its financial results on March 22, 2005.
1. Adjustment of the forecast of performance results for the period from January 1, 2005 to June 30, 2005 (unless otherwise noted, all amounts are expressed in U.S. Dollars):
| Revenues | Operating profit | Net income | |
| The forecast on March 22, 2005 (A) | 42,200 | (18,600,000) | (17,100,000) |
| The forecast on July 17, 2005 (B) | 32,100 | (14,200,000) | (12,500,000) |
| Variance (B-A) | 10.113 | (4,400,000) | (4,600,000) |
2. Adjustment of the forecast of performance results for the period from January 1, 2005 to December 31, 2005 (unless otherwise noted, all amounts are expressed in U.S. Dollars):
| Revenues | Operating profit | Net income | |
| The forecast on March 22, 2005 (A) | 750,000 | (40,900,000) | (37,700,000) |
| The forecast on July 17, 2005 (B) | 750,000 | (37,100,000) | (33,400,000) |
| Variance (B-A) | 0.0 | (3,700,000) | (4,300,000) |
| Variance rate (%) | 0.0 | - | - |
| Results of operation in the previous period | 490,282 | (48,612,386) | (48,272,603) |
3. Reason for the Adjustments: MediciNova calculated the forecast of performance results based on a master services agreement with Argenes, Inc., a Japanese pharmaceutical company headquartered in Tokyo, Japan (whose President is Mr. Masaru Kamishohara). Accordingly, the company included a payment it anticipated receiving pursuant to such agreement as the company's main revenue for the first half of 2005. However, due to delays related to work to be performed by a contract research organization in connection with the Argenes agreement, it is anticipated that such payment will not be received until the second half of 2005, requiring an adjustment of the forecast of performance results for the first half of 2005 from $42,000 to $32,100. The company has not changed its forecast of performance results for the full fiscal year.
The March 22, 2005 forecast of operating loss and net loss for 2005 was based on the assumption that research and development (R&D) expenses would increase in connection with the progress of clinical trials of product candidates. During the first half of 2005, however, the company has had lower R&D and general administration expenses than expected. In addition, the hiring of personnel including members of the senior management team has been delayed until the second half of 2005. As a result, the forecast of operating loss and net loss was decreased from $18,600,000 and $17,100,000 to $14,200,000 and $12,500,000, respectively. However, this decreased expenditure in the first half of 2005 will be partially offset by increased R&D expense during the second half of 2005 due to the expedited progress of certain clinical trials. The hiring plan for 2005 remains unchanged. As a result of the foregoing, while the forecast of operating loss and net loss for the first half of 2005 requires adjustment, the forecast of operating loss and net loss for the full fiscal year requires less substantial adjustment.
Contact
Shintaro Asako
MediciNova, Inc. (USA)
Phone: (858)373-1500
Email: asako@medicinova.com
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