CEL-SCI Corp. (CVM) is involved in the research and development of drugs and vaccines. The company's first and main, product, MULTIKINE, manufactured using the company's proprietary cell culture technologies, is a combination, or "cocktail", of natural human interleukin-2 (IL-2) and certain lymphokines and cytokines. MULTIKINE is being tested to determine how effective it is in improving the immune response of cancer patients. MULTIKINE has been tested in more than 190 patients in clinical trials conducted in the United States, Canada, Europe and Israel. Most of the patients were head and neck cancer patients, but some studies were also conducted in prostate cancer patients, HIV-infected patients and HIV-infected women with Human Papilloma Virus (HPV)-induced cervical dysplasia, the precursor stage before the development of cervical cancer. As of Sept. 30, 2002, CVM was conducting one additional Phase II head and neck cancer study and one study with HIV-infected women with HPV-induced cervical dysplasia. Results from the ongoing Phase I clinical trial of MULTIKINE in cervical dysplasia in HPV/HIV co-infected women indicated elimination or reduction of dysplasia in 71% of the patients, excellent treatment tolerance, and the confirmation of dysplasia elimination or reduction in severity by histopathology. Research and development expenses in FY 02 (Sept.) declined significantly because the company completed its production of MULTIKINE during the first quarter. During FY 02, the company instituted a cost reduction program and reduced its workforce significantly.