Press Release Source: Viragen, Inc.
Viragen's Chairman Presents Mid-Year Progress Report
Wednesday June 18, 9:30 am ET
PLANTATION, Fla., June 18 /PRNewswire-FirstCall/ -- The following is a letter from the Chairman of Viragen, Inc. (Amex: VRA - News) and Viragen International, Inc. (OTC Bulletin Board: VGNI - News), Mr. Carl N. Singer. In addition to these comments, stockholders are referred to the Company's Form 10-K and Form 10-Q (Annual and Quarterly Reports filed with the SEC); press releases and other publicly disseminated information; information posted on Viragen's Website at www.Viragen.com; and other printed information which may be supplied by the Company on request.
Dear Stockholder,
On January 30th of this year, Robert Salisbury and I accepted the respective responsibilities of President & CEO and Chairman in steering Viragen through its next stage of progress, development and growth. In doing so, we have prioritized the initiatives of our Company to focus on those activities that we believe will result in Viragen reaching an appropriate market valuation for its valued stockholders. Over the past months, we have challenged our Board, Senior Management, employees and collaborative partners with achieving the following ambitious goals aimed towards building stockholder value:
2003 Goals - First Half Report
* Build Multiferon(TM) revenue
* Expand Multiferon(TM) indications and geographic approvals
* Enter into additional international supply and distribution agreements
* Report significant Avian Transgenics milestones
* Obtain debt financing by offering debentures convertible at a premium
to market price
* Contain costs, cut cash burn rate, focus resources on priority programs
* Implement Director/Management stock-based compensation program
While it has been less than six months since setting these goals, I am pleased to report that tangible progress has been reported regarding all of these initiatives. We invite you to review these press announcements at www.Viragen.com. Our reported results demonstrate that our global Multiferon program is growing steadily and our R&D projects, including Avian Transgenic Technology and certain anti-cancer efforts, appear capable of fulfilling their promise. While our progress to date is encouraging, it is only the very beginning of our long-term strategy and vision. Over the next twelve months, we expect to continue to report important commercial and scientific milestones, which build upon all of the previously mentioned goals, as well as include the following:
2003/2004 Goals - Next 12 Months
* Strengthen our Board of Directors
* Obtain long-term beneficial financing
* Report combined production of Multiferon(TM) from two facilities in
Sweden
* Secure early access Avian Technology production collaboration
* Enter into strategic partnerships (all platforms)
* Publish peer-reviewed data in medical publications
* Strengthen intellectual property (patent) portfolio
* Obtain independent research coverage
* Increase exposure to institutional and retail investors
On Wednesday, June 25th, we will hold a Special Meeting of Stockholders for the purpose of seeking stockholder approval regarding certain items including increasing the number of Viragen's authorized shares. Our Board has determined that the approval of these measures would provide Viragen the flexibility to execute its long-range business plan. With the approval of these measures, we will have access to our recently announced $12 million equity line of credit, subject to SEC clearance.
We are concerned about potential dilution, so we intend to draw upon the equity line only as needed to fund our operations and progress our commercial and scientific programs. We have based our request for the increased authorization on a set of assumptions which provides for unexpected events and/or opportunities, but our intent is to minimize the use of authorized but unissued shares.
While the equity line should be capable of providing needed funding, we will continue to seek strategic partners and new investors which could reduce the number of equity transactions needed to fund operations. Growth and expansion of our commercial activities could also diminish our reliance upon equity transactions to fund our business plan. In addition, management continues to aggressively contain costs, direct resources to priority programs and work towards building stockholder value. We appreciate our stockholders' continued support.
Sincerely,
Carl N. Singer
Chairman of the Board
About Viragen, Inc.
Viragen is a biotechnology company specializing in the research, development and commercialization of natural and recombinant protein-based drugs designed to treat a broad range of viral and malignant diseases. These protein-based drugs include natural human alpha interferon, monoclonal antibodies, peptide drugs and therapeutic vaccines. Viragen's strategy also includes the development of Avian Transgenic Technology for the large-scale, cost-effective manufacturing of its portfolio of protein-based drugs, as well as offering Contract Manufacturing for the biopharmaceutical industry.
Viragen is publicly traded on the American Stock Exchange (VRA). Viragen's majority owned subsidiary, Viragen International, Inc., is publicly traded on the Over-The-Counter Bulletin Board (VGNI). Viragen's key partners and licensors include: Roslin Institute, Memorial Sloan-Kettering Cancer Center, National Institutes of Health, Cancer Research UK, University of Nottingham (U.K.), University of Miami, America's Blood Centers and the German Red Cross.
For more information, please visit our Web site at: www.Viragen.com
Viragen, Inc. Corporate Contact:
Douglas Calder, Director of Communications
Phone: (954) 233-8746; Fax: (954) 233-1414
E-mail: dcalder@viragen.com
The foregoing letter contains forward-looking statements that can be identified by such terminology such as "expect", "potential", "suggests", "may", "will", "should", "could" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. In particular, management's expectations regarding future research, development and/or commercial results could be affected by, among other things, uncertainties relating to clinical trials and product development; availability of future financing; unexpected regulatory delays or government regulation generally; the Company's ability to obtain or maintain patent and other proprietary intellectual property protection; and competition in general. Forward-looking statements speak only as to the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
