MediciNova Reports Second Quarter 2010 Results
At June 30, 2010, $9.9 million of our Auction Rate Securities ("ARS") consisted primarily of government-guaranteed student loan securities and were classified as current investment securities. At June 30, 2010, $1.8 million of our ARS consisted of private placement securities and were classified as long-term investment securities. None of the underlying collateral for our ARS consisted of subprime mortgages or collateralized debt obligations.
Our ARS Loan balance at June 30, 2010 was $2.0 million and we exercised our ARS Put on June 30, 2010.
- On May 10, 2010, we entered into a loan and security agreement with Oxford Finance Corporation providing for a term loan of $15.0 million. This loan is secured by substantially all of our assets other than intellectual property. The proceeds from this financing will be used to satisfy working capital needs in the continued clinical development of MN-221.
- In June, we announced that Michael Coffee joined MediciNova as its Chief Business Officer.
- The June 22, 2010 issue of Proceedings of the National Academy of Sciences (PNAS) USA included an article related to the mechanism of action of MN-166 (ibudilast), as an emerging therapeutic for neurological disorders. The research was lead by Dr. Elias Lolis at Yale University, and the article identifies Macrophage Migration Inhibitor Factor (MIF) as a potent and selective target for ibudilast which likely accounts for some of the drug's anti-inflammatory and neuroprotective action. MIF is one of the oldest-known pro-inflammatory cytokines thought to be involved in a number of serious medical conditions including severe systemic inflammation, autoimmunity and neuronal death and dysfunction following spinal cord injury.
- On July 1, 2010, MediciNova completed the sale of all of its Auction Rate Securities ("ARS") held by UBS AG at par value. After repaying the ARS Loan, MediciNova netted $9.5 million from the transaction, all of which has been invested in money market funds.
"In the second quarter we made significant progress in strengthening our company. We are pleased that Michael Coffee joined our management team as Chief Business Officer as we actively pursue potential partnership opportunities for both our core compounds: MN-166 and MN-221," said Yuichi Iwaki, M.D., Ph.D., President and Chief Executive Officer of MediciNova, Inc. "In addition, the clinical development of MN-221 continues to progress and with asthma season up-coming, in conjunction with a protocol amendment, we anticipate enrollment in the on-going clinical trial to accelerate."
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