SEATTLE, Nov. 21 /PRNewswire-FirstCall/ -- Trubion Pharmaceuticals, Inc. , a biopharmaceutical company developing treatments for autoimmune disease and cancer, today announced financial results for its third quarter and nine months ended September 30, 2006.
For the three and nine months ended September 30, 2006, revenue was $16.5 million and $30.2 million, respectively. Trubion recorded revenue of $0 and $127,000 in the three and nine months ended September 30, 2005. Revenue in 2006 was earned through the company’s strategic collaboration with Wyeth and consisted of collaborative research funding, amortization of the upfront fee of $40 million received in January 2006 and a milestone payment.
Total operating expenses for the quarter ended September 30, 2006 were $11.6 million, compared to $5.0 million in 2005. Total operating expenses for the nine months ended September 30, 2006 were $30.6 million, compared to $13.4 million in the first nine months of 2005. The increases in both periods of 2006 were due to increased manufacturing costs to support clinical trials for the company’s lead product candidate, TRU-015, an increase in fees related to filings for the protection of the company’s intellectual property, increased personnel-related expenses and clinical trial costs related to the company’s lead product candidate, TRU-015. Operating expenses for the three and nine months ended September 30, 2006 also included stock-based compensation of $1.0 million and $4.1 million, respectively.
Net income for the third quarter of 2006 was $5.4 million, or $0.40 per diluted common share, compared to a net loss of $5.0 million, or $6.33 per diluted common share, for the comparable period in 2005. For the nine months ended September 30, 2006, net income was $871,000, or $0.06 per diluted common share, compared to a net loss of $13.2 million, or $17.49 per diluted common share, in the nine months ended September 30, 2005.
“We are very pleased with our progress to date, including the recent pricing of our initial public offering and listing on the Nasdaq Global Market,” said Peter Thompson, M.D., co-founder, Chairman and CEO of Trubion. “Achievement of these important milestones allows us to pursue additional opportunities for the discovery, development and commercialization of safer and more effective protein therapeutics to treat autoimmune disease and cancer.”
As of September 30, 2006, Trubion had $34.6 million in cash, cash equivalents and investments, compared to $9.9 million at December 31, 2005. Subsequent to the close of the third quarter, the company completed its initial public offering of 4,000,000 shares of common stock at a price $13.00 per share. Trubion also sold an additional 600,000 shares of its common stock in connection with the exercise of the over-allotment option granted to the underwriters of its recent initial public offering. In addition, the company sold 800,000 shares of common stock in a private placement to Wyeth at the initial public offering price.
Recent Highlights -- Priced its initial public offering and began trading on the Nasdaq Global Market under the trading symbol “TRBN” on October 18, 2006. -- Initiated a Phase IIb clinical trial of TRU-015, the company’s lead Small Modular ImmunoPharmaceutical (SMIP(TM)) drug candidate for the treatment of rheumatoid arthritis (RA). -- Announced clinical data, presented at the 2006 European League Against Rheumatism (EULAR) annual congress, showing that TRU-015, a novel CD20 directed therapy, resulted in dose dependent B lymphocyte depletion in subjects with RA. B cell depletion therapy has been demonstrated to be highly effective in RA and shows promise in several other autoantibody-associated diseases. About Trubion
Trubion is a biopharmaceutical company creating a pipeline of product candidates to treat autoimmune disease and cancer. The company’s product candidates are novel proteins known as single-chain polypeptides and are designed using its SMIP(TM) custom drug assembly technology. Trubion’s business model is focused on large, established markets and is designed to reduce clinical development risks by developing product candidates directed against validated targets. In less than 24 months, Trubion designed, developed and submitted to the FDA an Investigational New Drug application for its lead product candidate, TRU-015, which is currently being tested in a Phase IIb clinical trial for the treatment of rheumatoid arthritis. In December 2005, the company entered into a collaboration agreement with Wyeth for the development and worldwide commercialization of certain therapeutics, including TRU-015. For additional information visit www.trubion.com.
Forward-Looking Statements
This press release contains forward-looking statements, including, without limitation, statements related to payments and reimbursements Trubion expects to receive; Trubion’s future clinical development programs for TRU-015 and other SMIP drug candidates and the timing thereof; the therapeutic and commercial potential of TRU-015 and other SMIP drug candidates; future clinical development plans; the details of the clinical trials; and the anticipated future size of the RA market. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Words such as “believes,” “anticipates,” “plans,” “expects,” “will,” “intends,” “potential,” “possible” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon Trubion’s current expectations. Forward-looking statements involve risks and uncertainties. Trubion’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, the ability of the company to successfully conduct clinical trials for TRU-015 and other SMIP candidates; the uncertainty of the FDA approval process and other regulatory requirements; and the therapeutic and commercial value of Trubion’s drug candidates. Trubion expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.
TRBN-G Contact: Michelle Burris, SVP, Chief Financial Officer Trubion Pharmaceuticals, Inc. (206) 838-0500 TRUBION PHARMACEUTICALS. INC. STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Three months ended Nine months ended September 30, September 30, 2006 2005 2006 2005 Revenue $16,539 $- $30,175 $127 Operating expenses: Research and development 9,570 4,201 23,451 10,924 General and administrative 2,032 759 7,101 2,498 Total operating expenses 11,602 4,960 30,552 13,422 Loss from operations 4,937 (4,960) (377) (13,295) Interest income 419 128 1,389 378 Interest expense (49) (52) (163) (150) Other expense 83 (66) 22 (66) Loss before cumulative effect of change in accounting principle $5,390 $(4,950) 871 (13,133) Cumulative effect of change in accounting principle - (62) - (62) Net loss $5,390 $(5,012) $871 $(13,195) Basic earnings per common share $3.79 $(6.33) $0.63 $(17.49) Diluted earnings per common share $0.40 $(6.33) $0.06 $(17.49) Shares used in computation of basic earnings per share 1,421 791 1,376 754 Shares used in computation of diluted earnings per share 13,245 791 13,163 754 September 30, December 31, 2006 2005 Balance Sheet Data: Cash and cash equivalents $10,828 $4,681 Investments 23,745 5,228 Total assets 59,030 54,009 Deferred revenue 33,778 39,778 Total stockholders’ deficit $(32,865) $(37,902)
Trubion Pharmaceuticals, Inc.
CONTACT: Michelle Burris, SVP, Chief Financial Officer of TrubionPharmaceuticals, Inc., +1-206-838-0500
Web site: http://www.trubion.com/
