MORRIS PLAINS, N.J., Feb. 9 /PRNewswire-FirstCall/ -- Immunomedics, Inc.
(Nasdaq: IMMU) today reported revenues of $1.1 million and a net loss of $4.9
million, or $0.10 per share, for the second quarter of fiscal year 2004 which
ended December 31, 2003. This compares to revenues of $3.1 million and a net
loss of $1.8 million, or $0.04 per share, for the same period last year.
For the first half of fiscal year 2004, the Company reported revenues of
$2.2 million and a net loss of $10.0 million, or $0.20 per share, which ended
December 31, 2003. This compares to revenues of $6.4 million and a net loss
of $4.7 million, or $0.09 per share, for the same period last year.
The decline in revenues for the three and six-month periods ended December
31, 2003, resulted primarily from the Company recognizing its final portion of
the $18.0 million up-front licensing payment from Amgen in the third quarter
of fiscal year 2003. At December 31, 2003, the Company had $21.1 million in
cash and liquid securities, including $5.7 million of restricted securities
associated with the New Jersey Economic Development Authority financing
completed for construction of expanded manufacturing facilities.
Mr. Gerard G. Gorman, the Company's Vice President, Finance, and Chief
Financial Officer, commented: "We are pleased to report that the results for
the first half of the fiscal year were in line with our expectations. In early
January 2004, we added $10 million to our cash reserves through a private sale
of convertible debt securities. We will continue to consider opportunities to
raise additional capital through further licensing of our products and
technologies, the sale of debt and/or equity securities, or some combination
of the foregoing as they arise."
During the second quarter of fiscal 2004, the Company entered into a
research collaboration with Schering AG (FSE: SCH; NYSE: SHR) of Berlin,
Germany, involving bispecific antibody, pretargeting technologies for cancer
therapy, being developed by IBC Pharmaceuticals, the Company's majority-owned
subsidiary. Other developments of note during the second quarter of fiscal
year 2004 were as follows:
* Multiple presentations on the Company's potential humanized
antibody-based products, which involve targeting CD22 (epratuzumab
and 90Y-epratuzumab), CD20 (IMMU-106), and CD74 (IMMU-110) antigens
expressed on various hematological cancers were given at the
American Society of Hematology (ASH) meeting in December 2003.
* The Company announced discussions with Amgen regarding return of
North American and Australian development rights for epratuzumab,
the Company's humanized monoclonal antibody therapeutic candidate.
These discussions are nearing completion.
* The Company reported on a new drug candidate, IMMU-110, which showed
unexpectedly high efficacy in an animal model for human non-
Hodgkin's lymphoma (NHL). This agent consists of the Company's
humanized monoclonal antibody against the CD74 marker, conjugated
with doxorubicin(TM), a well-known cancer drug.
* The Company announced results from recent studies of its
proprietary, humanized antibody, hRS7 (IMMU-112), which demonstrated
that when the compound is labeled with iodine-131 using a new,
residualizing method patented by Immunomedics, an almost ten-fold
increase in tumor uptake and retention was observed in human breast
cancer growing in mice, as compared to results obtained with the
same antibody labeled with I-131 using the conventional labeling
method.
* The Company commenced Phase I clinical trials in Europe with its
humanized CD20 monoclonal antibody (IMMU-106) in patients with NHL.
* The Company commenced Phase I clinical trials in Europe with its
humanized CD22 monoclonal antibody, epratuzumab, in patients with
autoimmune disease.
"The continued growth of our product pipeline with the discovery of new
agents and the acceleration of potential products into the clinic are very
positive developments for the Company," commented Company President and Chief
Executive Officer, Cynthia L. Sullivan. "Our investments in research and
development, including the addition of key personnel to our clinical research
and operations departments and the expansion of our manufacturing capacity,
continue to yield important advances for our Company," Ms. Sullivan added.
Immunomedics is a biopharmaceutical company focused on the development,
manufacture and commercialization of diagnostic imaging and therapeutic
products for the detection and treatment of cancer and other serious diseases.
Integral to these products are highly specific monoclonal antibodies and
antibody fragments designed to deliver radioisotopes and chemotherapeutic
agents to tumors and other sites of disease. Immunomedics has nine
therapeutic product candidates in clinical development and has two marketed
diagnostic imaging products. The most advanced therapeutic product candidates
are LymphoCide(R) (epratuzumab), for which certain Phase II clinical trials
for the treatment of non-Hodgkin's lymphoma have already been completed, and
CEA-Cide(R) (labetuzumab), which is in Phase I/II clinical trials for the
treatment of certain solid tumors.
This release, in addition to historical information, contains forward-
looking statements made pursuant to the Private Securities Litigation Reform
Act of 1995. Such statements, including statements regarding clinical trials,
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 financing and other sources of capital, as well as the risks discussed in
the Company's Annual Report on Form 10-K for the year June 30, 2003.
Company Contact: Gerard G. Gorman, Vice President, Finance, and Chief
Financial Officer, (973) 605-8200, extension 278. Visit the Company's web
site at http://www.Immunomedics.com
IMMUNOMEDICS, INC.
Condensed Consolidated Balance Sheets
December 31, June 30,
2003 2003
ASSETS
Current Assets:
Cash and cash equivalents $8,274,043 $13,601,627
Marketable securities 7,097,903 10,194,813
Restricted securities 1,275,200 1,381,466
Accounts receivable 1,059,964 930,134
Inventory 680,440 839,480
Other current assets 1,680,266 825,372
20,067,816 27,772,892
Property and equipment, net 11,821,388 12,298,971
Restricted Cash 4,463,200 4,994,534
Other long-term assets 79,388 63,157
$36,431,792 $45,129,554
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $7,889,103 $5,997,212
Long-term debt 4,463,200 4,994,534
Minority interest 427,058 471,044
Stockholders' equity 23,652,431 33,666,764
$36,431,792 $45,129,554
Condensed Consolidated Statements of Operations
Three Months Ended Six Months Ended
December 31, December 31,
2003 2002 2003 2002
Revenues:
Product sales $932,232 735,813 1,737,052 1,545,101
License fee and
other revenues 74,639 2,388,466 405,960 4,785,778
Research &
development 49,999 - 100,000 25,282
Revenues $1,056,870 3,124,279 2,243,012 6,356,161
Costs and Expenses 6,452,912 5,139,287 12,937,346 11,644,128
Operating Loss (5,396,042) (2,015,008) (10,694,334) (5,287,967)
Interest and Other
Income 136,953 289,746 310,441 630,836
Interest Expense (18,969) - (38,871) -
Minority Interest 20,930 24,439 43,986 42,422
Foreign Currency
Transaction (Loss)
Gain 41,549 (83,710) 8,998 (55,976)
Net Loss before
Income Tax Benefit (5,215,579) (1,784,533) (10,369,780) (4,670,685)
Income Tax
(Provision) Benefit 357,737 - 329,037 -
Net Loss $(4,857,842) (1,784,533) (10,040,743) (4,670,685)
Net Loss per Common
Share, Basic and
Diluted $(0.10) (0.04) (0.20) (0.09)
Weighted average
number of common
shares outstanding 49,883,193 49,877,736 49,882,378 49,877,590
SOURCE Immunomedics, Inc.
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Related links:
http://www.Immunomedics.com
Company News On-Call:
http://www.prnewswire.com/comp/113121.html
CONTACT:
Gerard G. Gorman, Vice President, Finance,
and Chief Financial Officer, Immunomedics, Inc., +1-973-605-8200,
ext. 278
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