InVivo Therapeutics Reports 2011 Financial Results, Provides Business Update

CAMBRIDGE, Mass.--(BUSINESS WIRE)--

InVivo Therapeutics Holdings Corp. (OTCBB: NVIV), a developer of groundbreaking technologies for the treatment of spinal cord injuries (SCI), today reported the financial results for the year ended December 31, 2011 and provided a business update.

InVivo has pioneered a new treatment that uses a biocompatible polymer-based scaffold to provide structural support to a damaged spinal cord in order to spare tissue from scarring while improving recovering and prognosis after a traumatic spinal cord injury. Today, there is no effective treatment for the spinal cord for paralysis caused by SCIs, and the market potential is estimated to be over $10 billion.

2011 was a landmark year for InVivo, performing under budget for the sixth consecutive year. We made significant progress advancing the commercialization of our first product for SCI and expanding our product pipeline to the rest of the nervous system. We also laid the groundwork to have three product applications under review by FDA by the end of 2012, said Frank Reynolds, InVivos Chief Executive Officer. Our biopolymer scaffolding is poised to enter human clinical trials for SCI during the second half of 2012 and we expect to file two additional Investigational Device Exemptions for our hydrogel products to treat both SCI and chronic pain from peripheral nerve injuries. Weve had a great start to 2012 by closing an oversubscribed $20 million public offering led by globally-recognized healthcare investment institutions and by adding key leadership to our senior management team.

Recent Corporate Highlights

Biopolymer Scaffolding Scheduled to Enter Clinical Studies for SCI in 2012: InVivo expects to commence a pilot human clinical trial during the second half of 2012 pending approval of an Investigational Device Exemption (IDE) application by the FDA. The study will be an open label study and is designed to evaluate the safety and efficacy in ten SCI patients following treatment with the biopolymer scaffolding. This study follows promising pre-clinical studies completed in non-human primates. InVivo is the first to successfully demonstrate functional improvement in non-human primates that were paralyzed after a spinal cord injury model. Data from this study was published in the Journal of Neuroscience Methods and won the prestigious 2011 Apple Award from the American Spinal Injury Association recognizing excellence in SCI research.

IDE Submissions to be Filed with FDA for Injectable Hydrogel to Treat Peripheral Nerve Injuries and SCI: InVivo has commenced a preclinical study with Geisinger Health System to evaluate the Companys injectable biocompatible hydrogel for the treatment of chronic pain caused by peripheral nerve compression. Approximately 3.2 million pain injections are performed annually to treat back, neck and leg pain caused by peripheral nerve compression. InVivos hydrogel is designed to time-release anti-inflammatory drugs for extended pain relief. The product addresses a $15 billion market for peripheral nerve injuries. InVivo expects to file two IDEs in the second half of 2012 for the use of the injectable hydrogel to treat peripheral nerve injuries and SCI.

Raised $23 Million of Equity Capital: In February 2012, InVivo completed a $20 million public offering led by a select group of institutional investors. The Company issued 9,523,810 shares of common stock at a price to the public of $2.10 per share. Net proceeds to InVivo were approximately $18.1 million. In December 2011, InVivo completed a private placement of common stock and warrants with an existing institutional investor that raised $2 million of net proceeds. In the fourth quarter of 2011, warrants with an exercise price of $1.40 per share were exercised providing $1 million of cash. InVivo has the potential to receive an additional $18.6 million from the exercise of warrants.

Key Additions to the Senior Management Team: InVivo announced the appointments of Edward Wirth III, MD, PhD, formerly of Geron, as its Chief Science Officer, Brian Hess, formerly of Stryker, as Director of Product Development, and Jonathan Slotkin, MD as Medical Director.

Opening New Corporate Headquarters including Manufacturing & Research Facilities: In December 2011, InVivo executed a multi-year lease for a 21,000 square foot facility at One Kendall Square in Cambridge, MA. The new facility will house corporate offices, lab space, a rodent vivarium and a cGMP clean room to meet the needs for the planned human clinical studies.

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InVivo Therapeutics Reports 2011 Financial Results, Provides Business Update