Contract Revenues More Than Doubled in 2000
FREMONT, Calif., Jan. 30 /PRNewswire/ -- Abgenix, Inc. (Nasdaq: ABGX)
today reported financial results for the fourth quarter and year ended
December 31, 2000.
For the year ended December 31, 2000, the company reported a net loss of
$8.8 million or $0.11 per share, compared to a net loss of $20.5 million or
$0.35 per share for the year ended December 31, 1999. Contract revenues for
2000 increased 116% to $26.6 million from $12.3 million in 1999. Including
interest income, total revenues for the year 2000 increased to $59.4 million
from $15.3 million in 1999.
For the quarter ended December 31, 2000, the company reported a net loss
of $4.5 million or $0.05 per share, compared to a net loss of $10.3 million or
$0.16 per share in the same period of 1999. Contract revenues for the fourth
quarter in 2000 were $13.5 million compared to $6.9 million in the same period
of 1999. Including interest income, total fourth quarter revenues increased
to $24.0 million from $8.0 million for the fourth quarter in 1999. These
revenues did not include certain non-refundable payments received from
corporate partners that were recorded as deferred revenue. Deferred revenue
totaled $7.0 million as of December 31, 2000, up from $3.8 million at
December 31, 1999.
Abgenix ended the year with $703 million in cash, cash equivalents and
short-term investments. In addition, Abgenix holds long-term investments,
primarily equity in corporate partners, totaling $79 million.
"Abgenix had a phenomenal year in 2000 as we advanced our product
pipeline, expanded our access to proprietary targets, strengthened our balance
sheet, added to our list of corporate collaborators and recruited high quality
talent to our team," stated R. Scott Greer, chairman and chief executive
officer of Abgenix. "Abgenix took important steps in 2000 toward its goal of
building a new biotechnology powerhouse and we plan to continue this rapid
progression in 2001."
Highlights and Accomplishments:
Fourth quarter 2000 company highlights included:
-- Proceeding with a Phase IIb clinical trial of ABX-IL8 in psoriasis,
based on meeting pre-determined safety and efficacy criteria in a Phase
IIa psoriasis study. In addition, the company started a Phase IIa
clinical trial of ABX-IL8 in a second indication, rheumatoid arthritis;
-- Being added to the NASDAQ 100 index as one of the 100 largest
non-financial companies listed on the Nasdaq stock market;
-- Expanding the collaboration with Curagen to develop up to
250 therapeutic antibody candidates;
-- Acquiring ImmGenics, a private biotechnology company with an exciting
proprietary technology for accelerating antibody product discovery;
-- Entering a new agreement with Immunex Corp. to share equally in the
development and commercialization of up to 10 antibody-based therapies
for cancer;
-- Acquiring IntraImmune, a private research company with technologies to
give antibodies access to intracellular targets;
-- Raising $284 million ($53 million for Cell Genesys) in a private
placement of 4.1 million shares of Abgenix common stock; and
-- Announcing the first licensee (Pfizer) to submit an IND for an antibody
product candidate generated with the company's XenoMouse(TM)
technology.
Other major accomplishments for the year 2000 include raising $725 million
(including $203 million for Cell Genesys) in a follow-on offering of common
stock in the first quarter, bringing the total capital raised in 2000 to
approximately $1 billion; adding eight new XenoMouse technology partners and
expanding alliances with four others; and forming two 50/50 product
development alliances with Immunex Corp. (for ABX-EGF) and SangStat (for
ABX-CBL).
In addition to these achievements in 2000, the company recently announced
a collaboration with Dyax to develop a new technology that will combine the
company's XenoMouse transgenic mouse antibody generating technology with
Dyax's phage display technology to create customized libraries of high
affinity, fully human antibody sequences. Also, Abgenix was issued a fourth
U.S. patent relating to its XenoMouse technology. Furthermore, Abgenix
recently expanded its existing agreements with Pfizer and Amgen.
Outlook:
The following statements are based on current goals. These statements are
forward-looking, and actual results may differ materially from those described
in these statements. For a discussion of the important risk factors that may
cause such a difference, please refer to our Form S-1 registration statements
filed recently with the SEC.
We expect the year 2001 to be another year of significant growth for
Abgenix. We plan to expand our clinical development efforts with at least
two Phase II trials involving ABX-IL8 and three Phase II trials with ABX-EGF.
In addition, we plan to put one new proprietary Abgenix product into the
clinic during the year. To support these clinical trials, we plan to
dramatically increase our product development headcount and expenditures. We
also expect the research organization to grow to align its ability to validate
new product candidates with our extensive access to novel targets. Overall,
Abgenix expects R&D expenditures to range between $105 - $120 million in 2001.
Recognizing the need for clinical manufacturing capacity, Abgenix also
plans to invest over $100 million during 2001 and 2002 to build its own pilot
plant. This facility, together with dedicated capacity at a contract
manufacturer, should meet both Abgenix's and many of its partners' needs for
clinical material.
Assuming that interest in XenoMouse technology deals remains strong, we
expect contract revenues to rise to the $30 - $35 million level in 2001.
Interest income is expected to be between $30 - $35 million. Therefore, the
company's 2001 target loss, before amortization of goodwill and other
intangibles, is $50 - $60 million. We plan to continue evaluating acquisition
opportunities that would enhance shareholder value. Depending on the nature
and size of any acquisitions completed, the preceding estimates could be
altered. We undertake no obligation to update the public as our expectations
change.
Specifically, Abgenix plans to achieve the following milestones in 2001:
-- Complete enrollment in a Phase IIb clinical trial of ABX-IL8 in
psoriasis and a Phase IIa clinical trial in rheumatoid arthritis;
-- Present Phase IIa clinical trial results of ABX-IL8 in psoriasis at AAD
in March;
-- Complete a Phase I clinical trial of ABX-EGF and present results at
ASCO in May;
-- Initiate Phase II clinical trials of ABX-EGF in several cancer
indications;
-- Complete enrollment in a Phase II/III clinical trial of ABX-CBL in
Graft Versus Host Disease;
-- File an IND on a new Abgenix proprietary product candidate;
-- Announce three IND filings by licensees;
-- Establish Xenomouse technology collaborations covering ten new
products; and
-- Establish additional target and technology access collaborations.
Abgenix will hold a conference call at 5:30 p.m. EST on January 30, 2001
to discuss these financial results. Interested parties may listen to the call
by dialing 888-273-9889 and mentioning the "Abgenix Conference Call." A
replay of the call will be available starting at 9 p.m. on January 30, 2001
through
11 p.m. on February 13, 2001. To listen to the replay, dial 800-475-6701 and
enter the replay access code 564605 when prompted.
Abgenix is a biopharmaceutical company focused on the development and
commercialization of fully human monoclonal antibody therapies for a variety
of diseases. The company's antibody technology platform, which includes
XenoMouse(TM) technology, enables the rapid generation of high affinity, fully
human antibody product candidates to essentially any disease target
appropriate for antibody therapy. Abgenix leverages its leadership position
in human antibody technology by building a large and diversified product
portfolio through the establishment of licensing arrangements with multiple
pharmaceutical, biotechnology and genomics companies and through the
development of its own internal proprietary products. For more information on
Abgenix, visit the company's website at http://www.abgenix.com.
The forward-looking statements in this press release and in our conference
call express our goals and expectations as of the date of this press release
and the conference call, respectively. We undertake no obligation to update
these statements even if our goals and expectations change from time to time.
The posting of this press release on our website and the replay availability
of the conference call do not imply that the statements herein or therein
remain an accurate reflection of our goals and expectations at any time
subsequent to their respective original dates.
Statements made in this press release about Abgenix's financial goals for
2001, XenoMouse technology, product development activities and collaborative
arrangements, other than statements of historical fact, are forward looking
statements and are subject to a number of uncertainties that could cause
actual results to differ materially from the statements made, including risks
associated with the success of clinical trials, the progress of research and
product development programs, the regulatory approval process, competitive
products, future capital requirements and the extent and breadth of Abgenix's
patent portfolio. Please see Abgenix's public filings with the Securities and
Exchange Commission for information about risks that may affect Abgenix.
A registration statement relating to Abgenix's common stock has been filed
with the Securities and Exchange Commission but has not yet become effective.
Such securities may not be sold nor may offers to buy be accepted prior to the
time the registration statement becomes effective. This press release shall
not constitute an offer to sell or the solicitation of an offer to buy nor
shall there be any sale of such securities in any State in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such State.
SELECTED UNAUDITED FINANCIAL INFORMATION
Three Months Ended Twelve Months Ended
December 31, December 31,
STATEMENT OF OPERATIONS DATA 2000 1999 2000 1999
(in thousands except per share data)
Revenues:
Contract revenues $13,524 $6,895 $26,601 $12,285
Interest income 10,513 1,090 32,848 3,045
Total revenues 24,037 7,985 59,449 15,330
Costs and Expenses:
Research and development 19,420 6,735 51,329 21,106
General and administrative 2,513 1,736 7,667 5,164
Amortization of intangible assets 1,663 -- 3,992 --
Equity in income from Xenotech
joint venture -- 11 -- (546)
In-process research and
development charge 5,215 -- 5,215 --
Termination fee -- 8,667 -- 8,667
Other expense (income), net (278) 91 39 438
Total costs and expenses 28,533 17,240 68,242 34,829
Net loss before income tax (4,496) (9,255) (8,793) (19,499)
Foreign income tax expense -- 1,000 -- 1,000
Net loss ($4,496) ($10,255) ($8,793) ($20,499)
Net loss per share, basic and
diluted* ($0.05) ($0.16) ($0.11) ($0.35)
Shares used in computing basic and
diluted
earnings per share 83,879 63,716 80,076 58,148
Shares used in computing diluted ESP ($0.05) ($0.16) ($0.11) ($0.35)
earnings per share 83,879 63,716 80,076 56,196
BALANCE SHEET DATA December 31,
(in thousands) 2000 1999
Cash, cash equivalents
and marketable securities $702,676 $58,012
Property and equipment, net 18,374 5,300
Long-term investment 79,181 29,225
Intangible assets, net 117,997 46,591
Other assets 18,572 9,413
Total assets $936,800 $148,541
Deferred revenue $6,978 $3,767
Other liabilities 14,718 7,714
Acquisition liability** 76,347 --
Stockholders' equity: 838,757 137,060
Total liabilities and
stockholders' equity $936,800 $148,541
*After giving effect to both of the two for one stock splits effective
April 6, 2000 and July 7, 2000.
**The Company acquired ImmGenics Pharmaceutical Inc. in November 2000.
The deal was structured as an all-stock transaction and is treated
as a purchase. As part of the acquisition, ImmGenics' special shares were
issued to former shareholders of ImmGenics. The ImmGenics special
shares are convertible into common shares of Abgenix once the Abgenix
shares are registered. Until the registration statement is declared
effective, the Company has recorded its obligation to the shareholders as
a liability.
SOURCE Abgenix, Inc.
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Related links:
http://www.abgenix.com
Company News On-Call:
http://www.prnewswire.com/comp/126548.html or fax,
800-758-5804, ext. 126548
CONTACT:
Ina Cu, Manager, Investor Relations of
Abgenix, Inc., 510-608-4662
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