NTII Neurobiological Technologies (MM)

EMERYVILLE, Calif., May 8 /PRNewswire-FirstCall/ -- Neurobiological Technologies, Inc. (NTI(R)) (NASDAQ:NTII) today announced financial results for the three-month and nine-month periods ended March 31, 2009. Revenues for the third quarter of fiscal 2009 were $3.0 million compared to $3.7 million for the third quarter of fiscal 2008. Research and development expenses were $1.9 million for the three months ended March 31, 2009 compared to $5.9 million for the three months ended March 31, 2008. The lower research and development expenses for the 2009 quarter were primarily due to the termination of the Viprinex(TM) program for stroke following the interim analysis in December 2008. General and administrative expenses were $1.4 million for the three months ended March 31, 2009 compared to $1.8 million for the three months ended March 31, 2008. During the third quarter of fiscal 2009, the Company terminated the employment of approximately 75% of its workforce, and the employee termination costs are included in the operating expenses for the 2009 period. The net loss for the third quarter of fiscal 2009 was $0.4 million, or $0.02 per share, compared to a net loss of $5.1 million, or $0.19 per share, for the third quarter of fiscal 2008. Revenues for the first nine months of fiscal 2009 were $10.1 million compared to revenues of $11.2 million for the same period of fiscal 2008. Research and development expenses were $17.7 million for the nine months ended March 31, 2009 compared to $18.8 million for the nine months ended March 31, 2008. General and administrative expenses were $4.0 million for the nine months ended March 31, 2009 compared to $5.3 million for the nine months ended March 31, 2008. The net loss for the nine months ended March 31, 2009 was $11.0 million, or $0.41 per share, compared to a net loss of $12.9 million, or $0.76 per share, for the nine months ended March 31, 2008. Cash, cash equivalents and investments were $28.8 million at March 31, 2009. The cash and total investments balance included cash, cash equivalents and short-term investments of $21.6 million and long-term auction-rate securities carried at an estimated value of $7.2 million and classified as long-term investments. Total liabilities, excluding deferred revenue of $14.7 million and a warrant liability of $0.2 million, were $6.4 million at March 31, 2009. "During the third quarter of fiscal 2009, we wound-down most of our operations and significantly reduced expenses. We also initiated a process to identify and evaluate alternatives for the Company's future. Our board's stated mandate in looking at these strategic alternatives is to maximize the value of our cash and other assets for the benefit of all our shareholders, and to proceed expeditiously in the process," stated William Fletcher, acting Chief Executive Officer. Assuming accrued costs associated with the Viprinex program are fully paid off by June 30, 2009 as currently estimated, the Company expects to end its fiscal year with approximately $23 million in cash, short-term and long-term investments. -Tables to follow - About Neurobiological Technologies, Inc. Neurobiological Technologies, Inc. is a biopharmaceutical company historically focused on developing investigational drugs for central nervous system conditions. The company recently terminated development of its most advanced product candidate, Viprinex(TM) (ancrod), which was studied in Phase 3 clinical trials as a potential new drug to treat acute ischemic stroke. NTI has more recently chosen not to extend its early-stage research programs for Huntington's and Alzheimer's diseases. NTI has rights to receive payments from an approved drug for Alzheimer's disease and an investigational drug which has recently completed a Phase 3 trial for brain swelling. NOTE: Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, including risks relating to our terminated clinical trials, our remaining contractual commitments, the success of our efforts to maximize the value of our cash and other assets for our shareholders, and levels of future operations and expenditures, as well as other risks detailed from time to time in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Actual results may differ materially from those projected. These forward-looking statements represent our judgment as of the date of the release and we undertake no obligation to update these forward-looking statements. CONDENSED STATEMENTS OF OPERATIONS (Unaudited - in thousands, except per share amounts) Three months ended Nine months ended March 31, March 31, 2009 2008 2009 2008 REVENUES Royalty 1,505 2,161 5,590 6,245 Technology sale and collaboration services 1,508 1,523 4,479 5,002 Total revenues 3,013 3,684 10,069 11,247 EXPENSES Research and development 1,857 5,945 17,701 18,822 General and administrative 1,438 1,757 3,970 5,327 Total expenses 3,295 7,702 21,671 24,149 Operating loss (282) (4,018 ) (11,602) (12,902) Interest income 136 540 649 1,020 Gain on sale of long-term investment - - 170 - Impairment charge for decrease in value of investments (55) (1,778) (55) (1,778) Interest expense, including non-cash amortization of $2,336 discount on notes for the nine months ended March 31, 2008 - - - (2,479) Non-cash (loss) gain on change in fair value of warrants (230) 193 (193) 3,271 NET LOSS $(431) $(5,063) $(11,031) $(12,868) BASIC AND DILUTED NET LOSS PER SHARE $(0.02) $(0.19) $(0.41) $(0.76) Shares used in basic and diluted net loss per share calculation 26,927 26,913 26,925 16,963 SELECTED BALANCE SHEET DATA (in thousands) March 31, 2008 June 30, 2008 (unaudited) (Note 1) Cash and cash equivalents $6,009 $27,941 Short-term investments 15,592 2,039 Long-term investments 7,202 11,850 Total assets 29,317 43,187 Current liabilities 12,102 9,042 Total liabilities 21,269 22,901 Stockholders' equity 8,048 20,286 (1) Derived from audited financial statements. DATASOURCE: Neurobiological Technologies, Inc. CONTACT: Matthew M. Loar, CFO of Neurobiological Technologies, Inc., +1-510-595-6000 Web Site: http://www.ntii.com/

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