MORRIS PLAINS, N.J., Feb. 14 /PRNewswire-FirstCall/ -- Immunomedics, Inc.
(Nasdaq: IMMU), a biopharmaceutical company focused on developing monoclonal
antibodies, today reported revenues of $0.5 million and a net loss of $8.8
million, or $0.16 per share, for the second quarter of fiscal year 2006, which
ended December 31, 2005. This compares to revenues of $1.0 million and a net
loss of $6.4 million, or $0.12 per share, for the same period last year. For
the first half of the 2006 fiscal year, the Company reported revenues of $0.9
million and a net loss of $17.4 million, or $0.32 per share. This compares to
revenue of $2.1 million and a net loss of $10.6 million, or $0.20 per share,
for the same period last year. The increase in net loss for the three-month
period was primarily due to increased interest expense from the Company's
outstanding 5% senior convertible notes issued in April 2005, and reduced
sales revenue from diagnostic imaging products. The increased interest
expense includes the amortization of the debt issuance costs and debt
discounts, and a $1.0 million charge resulting from the change in the market
value of the derivative interest liability associated with the make-whole
interest provision relating to the 5% senior convertible notes. The increase
in the net loss for the six-month period was due to these factors as well as
higher levels of R&D spending, primarily to support the Phase III trials
evaluating epratuzumab in patients with lupus. Additionally, the 2004 results
included a net litigation settlement gain of $1.2 million.
During this second quarter, the Company received $0.5 million in tax
benefits through the New Jersey Technology Tax Certificate Transfer Program.
At December 31, 2005, the Company had $14.6 million in cash and marketable
securities, in addition to $3.2 million of restricted securities that
collateralize the New Jersey Economic Development Authority financing
completed in May 2003 for the construction of the Company's expanded
manufacturing facilities.
"The implementation of our cost savings program during this quarter has
allowed us to maintain our operating loss at a level similar to that of the
same period last year. To further conserve capital for our research and
development programs, we have deferred certain executive's salaries, the
executive bonus program and continue to evaluate the deferral of non-essential
expenditures. At the same time we are working diligently on establishing a
global corporate partner for the further clinical development and
commercialization of epratuzumab," commented Gerard G. Gorman, Vice President,
Finance, and Chief Financial Officer.
As reported previously during the second quarter of fiscal year 2006,
other developments of note were as follows:
- The Company provided details of the ALLEVIATE trial designs, testing
epratuzumab in patients with lupus, at the Lazard Capital Markets Annual
Life Sciences Conference.
- The Company presented updated clinical results for epratuzumab in
Sjogren's syndrome at the 2005 annual scientific meeting of American
College of Rheumatology/Association of Rheumatology Health
Professionals.
- At the 47th Annual Meeting of American Society of Hematology, the
Company reported preclinical results on a new therapeutic, advances in
lymphoma therapy with a humanized anti-CD20 antibody, and results with
the combination of epratuzumab and rituximab in patients with lymphoma.
- The Company presented at the Rodman & Renshaw Techvest 7th Annual
Healthcare Conference during which a corporate overview was provided.
- The Company published an article on a new diagnostic assay for
pancreatic cancer in the Journal of Clinical Oncology.
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. Our lead product candidate, epratuzumab, is
currently in two pivotal Phase III trials for the treatment of patients with
moderate and severe lupus (ALLEVIATE A and B). 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. We believe that our portfolio of intellectual property, which includes
approximately 90 patents issued in the United States, and more than 250 other
issued patents worldwide, protects our product candidates and technologies.
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, 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.
For More Information:
Dr. Chau Cheng
Associate Director, Investor Relations & Business Analysis
(973) 605-8200, extension 123
ccheng@immunomedics.com
IMMUNOMEDICS, INC.
Condensed Consolidated Balance Sheets
December 31, June 30,
2005 2005
ASSETS
Current Assets:
Cash and cash equivalents $12,146,262 $11,937,483
Marketable securities 2,416,999 3,547,507
Accounts receivable 184,444 409,458
Inventory 737,298 493,603
Other current assets 1,154,508 785,677
Restricted securities 1,275,200 15,575,200
17,914,711 32,748,928
Property and equipment, net 9,383,181 10,152,115
Restricted securities 1,912,800 2,550,400
Other long-term assets 2,006,956 2,471,706
$31,217,648 $47,923,149
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities $10,089,517 $9,422,923
Long-term debt 35,175,562 36,743,233
Other Liabilities - 2,748,240
Minority interest 221,304 272,160
Stockholders' deficit (14,268,735) (1,263,407)
$31,217,648 $47,923,149
Condensed Consolidated Statements of Operations
Three Months Ended Six Months Ended
December 31, December 31,
2005 2004 2005 2004
Revenues:
Product sales $262,651 796,092 542,725 1,858,785
License fee and
other revenues 65,604 136,015 163,681 188,929
Research &
development 134,285 67,143 179,047 67,143
Revenues $462,540 999,250 885,453 2,114,857
Costs and Expenses 7,430,465 7,852,470 15,329,328 14,282,273
Operating Loss (6,967,925) (6,853,220) (14,443,875) (12,167,416)
Interest and
Other Income
(Expense) (2,367,131) (84,646) (3,434,509) 1,110,978
Net Loss before
Income Tax
Expense (9,335,056) (6,937,866) (17,878,384) (11,056,438)
Income Tax
Benefit 514,350 581,445 514,350 451,357
Net Loss $(8,820,706) $(6,356,421) $(17,364,034) $(10,605,081)
Net Loss per
Common Share,
Basic and
Diluted $(0.16) (0.12) (0.32) (0.20)
Weighted average
number of
common shares
outstanding 54,098,072 54,073,059 54,085,566 53,300,955
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:
Dr. Chau Cheng, Associate Director, Investor
Relations & Business Analysis, +1-973-605-8200, extension 123,
ccheng@immunomedics.com
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