MORRIS PLAINS, N.J., May 10 /PRNewswire-FirstCall/ -- Immunomedics, Inc. , a biopharmaceutical company focused on developing monoclonal antibodies, today reported revenues of $1.3 million and a net loss of $5.7 million, or $0.10 per share, for the third quarter of fiscal year 2006, which ended March 31, 2006. This compares to revenues of $1.1 million and a net loss of $6.1 million, or $0.11 per share, for the same period last year. The decrease in net loss for the three-month period was primarily due to cost savings initiatives instituted over the previous several months and increased product sales, which were partially offset by increased interest expense from the 5% senior convertible notes. In addition, the current period’s results benefited from the renegotiation for reduced maintenance fees associated the ALLEVIATE trials for SLE.
For the first nine months of the 2006 fiscal year, the Company reported revenues of $2.2 million and a net loss of $23.1 million, or $0.42 per share. This compares to revenue of $3.2 million and a net loss of $16.7 million, or $0.31 per share, for the same period last year. The increase in the net loss for the nine-month period resulted primarily from increased interest expense resulting from the 5% senior convertible notes and lower product sales of LeukoScan in the earlier part of the year. In addition, the 2005 results included a net litigation settlement gain.
“As a result of our cost savings initiatives we now have two quarters in a row where we managed to maintain our operating losses at levels similar to those of the same period last year despite expenditure related to the continued enrollment for the ALLEVIATE trials. With the completion of out- licensing epratuzumab to UCB, we anticipate our cash outflow will be reduced from our current level. More importantly, the anticipated gross receipt of the $38 million initial cash payments will allow us to continue the research and development of other antibodies in our pipeline portfolio that are in line with our corporate strategy,” commented Gerard G. Gorman, Vice President, Finance, and Chief Financial Officer.
At March 31, 2006, the Company had $10.3 million in cash and marketable securities. On May 9, 2006, the Company entered into a collaboration and license agreement with UCB granting UCB the exclusive worldwide rights to develop, market and sell epratuzumab for all autoimmune disease indications. As a result, over the next ten business days the Company will receive the initial cash payments totaling $38 million, before fees.
About Immunomedics
Immunomedics is a New Jersey-based biopharmaceutical company focused on the development of monoclonal, antibody-based products for the targeted treatment of cancer, autoimmune and other serious diseases. We have developed a number of advanced proprietary technologies that allow us to create humanized antibodies that can be used either alone in unlabeled or “naked” form, or conjugated with radioactive isotopes, chemotherapeutics or toxins, in each case to create highly targeted agents. Using these technologies, we have built a pipeline of therapeutic product candidates that utilize several different mechanisms of action. Our lead product candidate, epratuzumab, which has been licensed to UCB for all autoimmune indications worldwide, is currently in two pivotal Phase III trials for the treatment of patients with moderate and severe lupus (ALLEVIATE A and B). At present, there is no cure for lupus and no new lupus drug has been approved in the U.S. in the last 40 years. We believe that our portfolio of intellectual property, which includes approximately 90 patents issued in the United States, and more than 250 other issued patents worldwide, protects our product candidates and technologies. Visit our web site at http://www.immunomedics.com.
This release, in addition to historical information, may contain forward- looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Such statements, including statements regarding clinical trials, out-licensing arrangements (including the timing and amount of contingent payments), and capital raising activities, involve significant risks and uncertainties and actual results could differ materially from those expressed or implied herein. Factors that could cause such differences include, but are not limited to, risks associated with new product development (including clinical trials outcome and regulatory requirements/actions), competitive risks to marketed products and availability of required financing and other sources of funds on acceptable terms, if at all, as well as the risks discussed in the Company’s filings with the Securities and Exchange Commission. The Company is not under any obligation, and the Company expressly disclaims any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.
For More Information: Dr. Chau Cheng Associate Director, Investor Relations & Business Analysis (973) 605-8200, extension 123 ccheng@immunomedics.com IMMUNOMEDICS, INC. Condensed Consolidated Balance Sheets March 31, June 30, 2006 2005 ASSETS Current Assets: Cash and cash equivalents $8,947,085 $11,937,483 Marketable securities 1,373,601 3,547,507 Accounts receivable 778,747 409,458 Inventory 620,506 493,603 Other current assets 799,633 785,677 Restricted securities 1,275,200 15,575,200 13,794,772 32,748,928 Property and equipment, net 8,949,786 10,152,115 Restricted securities 1,594,000 2,550,400 Other long-term assets 1,571,672 2,471,706 $25,910,230 $47,923,149 LIABILITIES AND STOCKHOLDERS’ DEFICIT Current liabilities $10,071,263 $9,422,923 Long-term debt 30,527,534 36,743,233 Other Liabilities - 2,748,240 Minority interest 198,944 272,160 Stockholders’ deficit (14,887,511) (1,263,407) $25,910,230 $47,923,149 Condensed Consolidated Statements of Operations Three Months Ended Nine Months Ended March 31, March 31, 2006 2005 2006 2005 Revenues: Product sales $1,142,461 947,386 1,685,186 2,806,171 License fee and other revenues 83,250 74,457 246,931 263,386 Research & development 89,523 67,143 268,570 134,286 Revenues $1,315,234 1,088,986 2,200,687 3,203,843 Costs and Expenses 6,008,414 7,114,180 21,337,742 21,396,453 Operating Loss (4,693,180) (6,025,194) (19,137,055) (18,192,610) Interest and Other Income (Expense) (1,049,841) 69,963 (4,484,350) 1,180,941 Net Loss before Income Tax Expense (5,743,021) (5,955,231) (23,621,405) (17,011,669) Income Tax Benefit - (103,792) 514,350 347,565 Net Loss $(5,743,021) $(6,059,023) $(23,107,055) $(16,664,104) Net Loss per Common Share, Basic and Diluted $(0.10) (0.11) (0.42) (0.31) Weighted average number of common shares outstanding 55,670,994 54,073,059 54,606,327 53,554,566
Immunomedics, Inc.
CONTACT: Dr. Chau Cheng, Associate Director, Investor Relations & BusinessAnalysis of Immunomedics, Inc., +1-973-605-8200, ext. 123,ccheng@immunomedics.com
Web site: http://www.Immunomedics.com/
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