BOCA RATON, Fla., Nov. 14 /PRNewswire-FirstCall/ -- Nabi Biopharmaceuticals today announced that the audit committee has completed a voluntary review of the company’s historical and current year equity grant programs. The audit committee engaged an independent outside law firm to conduct this review. The review found no issues of fraud, back dating or spring loading.
The review did identify errors in the determination of the measurement date of certain equity awards in years prior to 2006, primarily due to incomplete or missing documentation. Nabi Biopharmaceuticals has assessed the impact of the measurement date errors both individually and in the aggregate and concluded that they were not material to current or prior periods. As a result of this assessment, the cumulative effect of these errors has been recorded in the three and nine month periods ended September 30, 2006.
Nabi Biopharmaceuticals also announced that the company has filed its 10-Q for the third quarter of fiscal year 2006 within the five-day extension period. Summary financial tables for the three and nine month periods ended September 30, 2006 are attached to this release.
Thomas H. McLain, chairman, chief executive officer and president, Nabi Biopharmaceuticals, remarked, “We are pleased that this independent and thorough review of our equity grant programs has been completed and that it confirms our adherence to good corporate governance principles.”
About Nabi Biopharmaceuticals
Nabi Biopharmaceuticals leverages its experience and knowledge in powering the immune system to develop and market products that fight serious medical conditions. The company has two products on the market today: Nabi-HB(R) [Hepatitis B Immune Globulin (Human)], and Aloprim(TM) (allopurinol sodium) for Injection. Nabi Biopharmaceuticals is focused on developing products that address unmet medical needs and offer commercial opportunities in our core business areas: Hepatitis and transplant, Gram-positive bacterial infections and nicotine addiction. For a complete list of pipeline products, please go to: http://www.nabi.com/pipeline/index.php. The company is headquartered in Boca Raton, Florida. For additional information about Nabi Biopharmaceuticals, please visit our website: http://www.nabi.com.
Forward-Looking Statements
Statements in this press release about the company that are not strictly historical are forward-looking statements and include statements related to our plans to explore strategic alternatives and prospects. You can identify these forward-looking statements because they involve our expectations, beliefs, intentions, plans, projections, or other characterizations of future events or circumstances. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that may cause actual results to differ materially from those in the forward-looking statements as a result of any number of factors. These factors include, but are not limited to, risks relating to the company’s ability to advance the development of products currently in the pipeline or in clinical trials; maintain the human and financial resources to commercialize current products and bring to market products in development; obtain regulatory approval for its products in the U.S., Europe or other markets; successfully develop, manufacture and market its products; successfully partner with other companies; realize future sales growth for its biopharmaceutical products; maintain sufficient intellectual property protection or positions; raise additional capital on acceptable terms; re-pay its outstanding convertible senior notes when due; and identify and complete transactions that represent strategic alternatives and opportunities. Many of these factors are more fully discussed, as are other factors, in the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005 and Quarterly Report on Form 10-Q for the Quarter ended September 30, 2006 filed with the Securities and Exchange Commission.
Nabi Biopharmaceuticals CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, amounts in thousands, except per share data) For the Three Months For the Nine Months Ended Ended September September September September 30, 2006 24, 2005 30, 2006 24, 2005 Sales $19,634 $22,375 $59,525 $67,379 Costs and expenses: Costs of products sold, excluding amortization of intangible assets 15,035 13,051 43,081 41,543 Royalty expense 325 460 1,025 3,139 Gross Margin, excluding amortization of intangible assets 4,274 8,864 15,419 22,697 Selling, general and administrative expense 10,226 15,678 32,968 39,869 Research and development expense 10,240 15,789 27,900 47,672 Amortization of intangible assets 68 160 204 545 Other operating expense, principally freight 140 118 398 272 Operating loss (16,400) (22,881) (46,051) (65,661) Interest income 908 1,266 2,916 2,744 Interest expense (937) (889) (2,796) (1,480) Other (expense) income, net (54) 74 329 (111) Loss from continuing operations before benefit for income taxes (16,483) (22,430) (45,602) (64,508) Benefit for income taxes 152 6,741 152 18,335 Loss from continuing operations (16,331) (15,689) (45,450) (46,173) Discontinued Operations Loss from discontinued operations (5,492) (614) (9,274) (9,356) Benefit for income taxes 10 185 10 2,659 Loss from discontinued operations (5,482) (429) (9,264) (6,697) Net loss $(21,813) $(16,118) $(54,714) $(52,870) Basic and diluted loss per share Continuing operations $ 0.27) $(0.26) $(0.75) $(0.77) Discontinued operations (0.09) (0.01) (0.15) (0.12) Basic and diluted loss per share $(0.36) $(0.27) $(0.90) $(0.89) Basic and diluted weighted average shares outstanding 61,185 59,991 60,830 59,738 SUPPLEMENTAL INFORMATION Sales by Operating Segment Biopharmaceutical Products $7,424 $11,822 $23,449 $36,864 Antibody Products: Specialty antibodies 6,257 4,143 19,926 14,121 Non-specific antibodies 5,953 6,410 16,150 16,394 Total antibodies 12,210 10,553 36,076 30,515 Total $19,634 $22,375 $59,525 $67,379 Nabi Biopharmaceuticals CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, amounts in thousands) September 30, December 31, 2006 2005 Cash and cash equivalents $32,020 $101,762 Marketable securities 32,925 5,172 Restricted cash, current 819 816 Trade accounts receivable, net 11,223 19,683 Inventories, net 22,169 20,500 Prepaid expenses and other assets 3,630 3,449 Assets of discontinued operations 82,190 81,220 Property, plant and equipment, net 90,174 93,865 Intangible assets, net 1,751 1,955 Other assets, net 757 914 Total assets $277,658 $329,336 Trade accounts payable and accrued expenses $27,373 $30,535 Capital lease obligations, net 344 461 Liabilities of discontinued operations 27,355 26,990 2.875% Convertible Senior Notes 109,271 109,145 Other liabilities 236 378 Stockholders’ equity 113,079 161,827 Total liabilities and stockholders’ equity $277,658 $329,336
Capital expenditures were $2.1 million and $6.6 million for the nine months ended September 30, 2006 and September 24, 2005, respectively.
Depreciation and amortization expenses were $11.8 million and $14.3 million for the nine months ended September 30, 2006 and September 24, 2005, respectively. In addition, the three and nine month period of 2006 includes a $2.9 million impairment of assets held for sale.
The 2005 condensed balance sheet has been derived from the audited balance sheet for the year ended December 31, 2005.
The assets, liabilities, revenue and expenses related to PhosLo are reflected in discontinued operations for all periods presented as a result of the definitive agreement executed with Fresenius Medical Care in October 2006 related to the sale of the PhosLo assets. Certain items in the 2005 consolidated financial statements have been reclassified to conform to the current year’s presentation.
Nabi Biopharmaceuticals
CONTACT: Thomas E. Rathjen, Vice President, Investor Relations of NabiBiopharmaceuticals, +1-561-989-5800