MORRIS PLAINS, N.J., Feb. 8 /PRNewswire-FirstCall/ -- Immunomedics,
Inc. (Nasdaq: IMMU), a biopharmaceutical company focused on developing
monoclonal antibodies to treat cancer and other serious diseases, today
reported revenue of $3.4 million and a net loss of $4.5 million, or $0.08
per share, for the second quarter of fiscal year 2007, which ended December
31, 2006. This compares to revenue of $0.5 million and a net loss of $8.8
million, or $0.16 per share, for the same period last year. The increase in
revenue for the three-month period was primarily due to the recognition of
deferred revenue of $2.7 million from the May 9, 2006 Development,
Collaboration and License Agreement between the Company and UCB, S.A., and
increased sales of LeukoScan(R) in Europe. The increased revenue combined
with lower operating and interest expenses and higher interest income were
the primary contributors to the improved net loss position for the
three-month period ended December 31, 2006.
For the first half of fiscal year 2007, the Company reported revenue of
$6.7 million and a net loss of $7.0 million, or $0.12 per share. This
compares to revenue of $0.9 million and a net loss of $17.4 million, or
$0.32 per share, for the same period last year. Recognition of portions of
the initial cash payment from UCB and increased LeukoScan(R) sales were
also primarily responsible for the improvement in revenue, as well as
higher interest income and lower interest and operational expenses for the
decrease in net loss for the six-month period ended December 31, 2006.
During the second quarter of fiscal year 2007, the Company received
$0.6 million in tax benefits through the New Jersey Technology Tax
Certificate Transfer Program. As of December 31, 2006, the Company had
$31.4 million in cash and marketable securities, excluding restricted
securities.
"We are pleased to report that the results for the second quarter were
in line with our expectations. We anticipate that our operations for fiscal
2007 will be at our forecasted levels, while bringing a new therapeutic
into the clinic," commented Gerard G. Gorman, Senior Vice President,
Finance and Business Development, and Chief Financial Officer. "Phase I/II
clinical trials with our humanized CD74 antibody have begun enrolling
patients with multiple myeloma," he added.
As reported previously during the second quarter of fiscal year 2007,
other developments of note were as follows:
-- The Company was awarded U.S. patent 7,151,164 covering methods for
treating B-cell disorders using the Company's humanized monoclonal
antibody that binds to the CD20 antigen present on B-lymphocytes for
the treatment of B-cell lymphomas, leukemias and autoimmune diseases.
-- The Company reported follow-up clinical results for hA20 in non-
Hodgkin's lymphoma at the 48th Annual Meeting of American Society of
Hematology.
-- Also at the 48th Annual Meeting of American Society of Hematology, the
Company presented new multivalent antibodies against the CD20 and CD22
antigens present on normal and malignant B-lymphocytes.
-- The Company presented at the 70th annual meeting of the American
College of Rheumatology and the 41st annual meeting of the Association
of Rheumatology Health Professionals results that showed that
epratuzumab and rituximab have distinct mechanisms of action.
-- The Company provided corporate overviews at the Lazard Capital Markets
3rd Annual Life Sciences Conference, the Rodman & Renshaw 8th Annual
Healthcare Conference, and the C.E. Unterberg, Towbin Life Sciences
Conference.
-- Mayo Clinic investigators, conducting a clinical trial in
collaboration with the North Central Cancer Treatment Group of the
National Institute of Health, published results in Cancer volume
107(12): pages 2826-32, 2006, showing that adding epratuzumab to
rituximab and combined cyclophosphamide, doxorubicin, vincristine, and
prednisone chemotherapy to treat patients with newly diagnosed diffuse
large B-cell lymphoma produced promising results.
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. We have recently
licensed our lead product candidate, epratuzumab, to UCB, S.A. for the
treatment of all autoimmune disease indications worldwide. We have retained
the rights for epratuzumab in oncology indications for which UCB has been
granted a buy-in option. UCB has development, manufacture and
commercialization rights, and is responsible for all clinical trials
evaluating epratuzumab for the treatment of patients with moderate and
severe lupus. 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. The Company is
conducting clinical trials with hA20 in patients with non-Hodgkin's
lymphoma, epratuzumab as a potential therapeutic for patients with lymphoma
and leukemia, (90)Y-epratuzumab for the therapy of patients with lymphoma,
(90)Y-hPAM4 for pancreas cancer therapy and hCD74 as a therapy for patients
with multiple myeloma. We believe that our portfolio of intellectual
property, which includes approximately 108 patents issued in the United
States, and more than 250 other issued patents worldwide, protects our
product candidates and technologies. We also have a majority ownership in
IBC Pharmaceuticals, Inc., which is developing a novel Dock and Lock (DNL)
methodology, and a new method of delivering imaging and therapeutic agents
selectively to disease, especially different solid cancers (colorectal,
lung, pancreas, etc.), by proprietary, antibody-based, pretargeting
methods. 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), forecasts of future operating results,
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.
IMMUNOMEDICS, INC.
Condensed Consolidated Balance Sheets
December 31, June 30,
2006 2006
ASSETS
Current Assets:
Cash and cash equivalents $14,853,633 $40,877,766
Marketable securities 16,551,835 948,820
Accounts receivable, net of
allowance for doubtful accounts 442,263 498,612
Inventory, net of reserve for
obsolescence 411,570 541,030
Other current assets 1,233,995 602,736
Restricted cash and securities -
current portion 1,275,200 1,275,200
34,768,496 44,744,164
Property and equipment, net 8,022,109 8,496,060
Restricted securities - long-term
portion 637,600 1,275,200
Other long-term assets 1,474,901 1,362,419
$44,903,106 $55,877,843
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities $19,477,079 $19,035,185
Long-term debt 29,448,186 29,525,377
Deferred revenues - long term 20,476,154 25,810,769
Minority interest 133,752 182,000
Stockholders' deficit (24,632,065) (18,675,488)
$44,903,106 $55,877,843
Condensed Consolidated Statements of Operations
Three Months Ended Six Months Ended
December 31, December 31,
2006 2005 2006 2005
Revenues:
Product
sales $659,105 $262,651 $1,320,708 $542,725
License fee
and other
revenues 2,672,835 65,604 5,340,866 163,681
Research &
development 67,140 134,285 67,140 179,047
Total Revenues $3,399,080 462,540 6,728,714 885,453
Costs and
Expenses 6,563,177 7,430,465 12,628,617 15,329,328
Operating Loss (3,164,097) (6,967,925) (5,899,903) (14,443,875)
Interest and
Other Income
(Expense) (1,939,755) (2,367,131) (1,666,834) (3,434,509)
Loss before
Income Tax
Expense (5,103,852) (9,335,056) (7,566,737) (17,878,384)
Income Tax
Benefit 623,162 514,350 603,744 514,350
Net Loss $(4,480,690) $(8,820,706) $(6,962,993) $(17,364,034)
Net Loss per
Common Share,
Basic and Diluted $(0.08) $(0.16) $(0.12) $(0.32)
Weighted average
number of common
shares
outstanding 57,764,040 54,098,072 57,651,036 54,085,566
For More Information:
Dr. Chau Cheng
Associate Director, Investor Relations & Business Analysis
(973) 605-8200, extension 123
ccheng@immunomedics.com
SOURCE Immunomedics, Inc.
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Related links:
http://www.immunomedics.com
http://www.prnewswire.com/comp/113121.html /
CONTACT:
Dr. Chau Cheng, Associate Director, Investor
Relations & Business Analysis, +1-973-605-8200, extension 123,
ccheng@immunomedics.com
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