FREMONT, Calif., Feb. 22 /PRNewswire-FirstCall/ -- Abgenix, Inc.
(Nasdaq: ABGX) today reported financial results for the fourth quarter and
full year ended December 31, 2004.
For the quarter ended December 31, 2004, the company reported a net loss
of $42.9 million or $0.48 per share, compared to a net loss of $53.0 million
or $0.60 per share for the same period in 2003. The net loss for the fourth
quarter of 2003 included a $7.9 million impairment charge related to an
investment. The company ended 2004 with $416.3 million in cash, cash
equivalents and marketable securities.
Revenues for the fourth quarter of 2004 were $5.9 million, compared to
$6.4 million for the same period in 2003. Contract revenues for the quarter
ended December 31, 2004 primarily consisted of milestones and fees from
technology licensing agreements, including milestones from Human Genome
Sciences, Chiron and CuraGen for advancing XenoMouse(R)-derived antibodies
into the clinical phase. The company's revenues typically result from
milestone payments and fees associated with various collaborations and
technology licensing agreements.
Operating expenses for the fourth quarter of 2004 were $47.2 million,
compared to $51.8 million for the same period in 2003. The majority of fourth
quarter 2004 research and development costs related to advancement of the
company's proprietary clinical product candidates, including its lead oncology
product candidate, panitumumab, and ABX-PTH, an antibody for secondary
hyperparathyroidism (SHPT). Included in both periods were manufacturing
start-up costs related to operating the company's antibody production
facility. A portion of the costs associated with this facility will continue
to be classified as manufacturing start-up costs until the facility is
operating at normal capacity.
For the year ended December 31, 2004, the company reported a net loss of
$187.5 million, compared to a net loss of $196.4 million for 2003. Revenues
for the year ended December 31, 2004 were $17.8 million, compared to $16.9
million for the full year 2003. Operating expenses for the year ended
December 31, 2004 were $203.4 million, compared to $209.5 million for 2003.
The net loss for 2004 included a $17.2 million charge for the write-off of
intangible assets for technology and intellectual property in the field of
catalytic antibodies. The net loss for 2003 included a charge of $28.0 million
resulting from Abgenix's cancellation of a manufacturing agreement with Lonza
and an impairment charge of $7.9 million associated with an investment made in
connection with a collaboration.
Net cash used in operating activities in the fourth quarter of 2004 was
$18.8 million. For the year ended December 31, 2004, net cash used in
operating activities was $130.8 million. Capital spending was $8.6 million
for the year ended December 31, 2004.
"In 2004 we made significant progress advancing our lead product candidate
panitumumab towards commercialization with our codevelopment partner Amgen.
In addition, we strengthened our balance sheet through a successful
convertible note offering and pursued operating efficiencies to help reduce
our operating use of cash," said Bill Ringo, president and CEO of Abgenix.
"We are looking forward to a productive 2005, including a potential BLA filing
for panitumumab, data-dependent, towards year-end and additional progress in
our proprietary and partner pipelines. As we continue to evaluate our
strategic plans and strengthen our leadership team, we also intend to decrease
our operating use of cash in 2005 by continuing to focus on optimizing our
efficiency and prudent cost controls."
Fourth quarter 2004 and recent company highlights include:
-- The issuance of $300 million principal amount of convertible senior
notes, including $75 million representing the initial purchasers'
exercise of their option to purchase additional notes, in a private
placement. The Company has repurchased $86.3 million of its
outstanding convertible subordinated notes due March 15, 2007 with a
portion of the proceeds of the offering. The Company expects to use the
remaining proceeds of the offering for research and development,
capital expenditures, working capital and other corporate purposes,
which may include further repurchase of the outstanding notes.
-- Interim data from part one of an ongoing Phase 2 study was presented at
the European Society for Medical Oncology's (ESMO) 29th Congress in
Vienna. The data suggest that panitumumab has activity as a first-line
treatment with chemotherapy in patients with metastatic colorectal
cancer. Part 2 of this study (n=24) is ongoing to evaluate safety,
pharmacokinetics and efficacy of panitumumab administered with the
FOLFIRI regimen (FOLinic acid, Fluorouracil, and IRInotecan), currently
the more widely applied of the various irinotecan-based regimens.
-- Abgenix received several payments from technology licensing partners
related to advancement of XenoMouse(R)-derived antibodies into the
clinical phase of development. These milestones are reflected in
fourth quarter 2004 revenues, including milestone payments from:
-- CuraGen Corporation for the advancement of CR002, a fully human
antibody, into a Phase 1 clinical trial.
-- Human Genome Sciences, Inc. in conjunction with the filing of an
Investigational New Drug application (IND) for a fully human
monoclonal antibody to the CCR5 receptor.
-- Chiron Corporation following the filing of an IND for the novel
oncology compound CHIR-12.12, a fully human antagonist antibody
targeting CD40.
Conference call information
Abgenix will hold a conference call today at 1:30 p.m. PT, 4:30 p.m. ET,
to discuss financial results. To participate in the teleconference, please
dial 800-638-4817 fifteen minutes before the conference begins. International
callers should dial 617-614-3943. The pass code is 30874380. The call will
also be webcast live at http://www.abgenix.com. A replay of the call will be
available until March 8, 2005 on the company's website or by dialing
888-286-8010. International callers should dial 617-801-6888. The replay
participant code is 61046372.
About Abgenix
Abgenix is a biopharmaceutical company focused on the discovery,
development and manufacturing of human therapeutic antibodies. The company's
antibody development platform includes a leading technology and state-of-the-
art manufacturing capabilities that enable the rapid generation, selection and
production of high affinity, fully human antibody product candidates to a
variety of disease targets. Abgenix leverages its leadership position in human
antibody technology to build a diversified product portfolio through its own
development efforts and the establishment of collaborations with multiple
pharmaceutical and biotechnology companies. For more information on Abgenix,
visit the company's website at http://www.abgenix.com.
This press release contains forward-looking statements about Abgenix's
technologies, product development activities, clinical trials and clinical
trial results, the potential submission of a biologic license application for
panitumumab, collaborative arrangements, process sciences and manufacturing
activities, projected financial and operating results, use of proceeds from
its convertible senior notes and achievement of milestone or similar payments
or other revenues. Such statements are subject to a number of uncertainties
that could cause actual results to differ materially from the statements made,
including risks associated with conducting clinical trials, the progress of
research and product development programs, product manufacturing, regulatory
approval processes and meeting requirements for regulatory approval,
competitive products and services, capital requirements and the extent and
breadth of Abgenix's patent portfolio, and other factors set forth in
Abgenix's public filings with the Securities and Exchange Commission,
including the risks described in Abgenix's quarterly report on Form 10-Q for
the quarter ended September 30, 2004 and annual report on Form 10-K for the
year ended December 31, 2003. Abgenix is providing this information as of the
date of this press release and does not undertake any obligation to update any
forward-looking statements.
CONSOLIDATED STATEMENT OF Three Months Ended Year Ended
OPERATIONS DATA December 31, December 31,
(in thousands except 2004 2003 2004 2003
per share data) (unaudited) (unaudited) *
Revenues:
Contract revenue $5,557 $6,389 $16,070 $16,852
Contract manufacturing revenue 370 -- 1,695 --
Total revenues 5,927 6,389 17,765 16,852
Operating expenses:
Cost of goods manufactured 370 -- 2,227 --
Research and development 30,175 31,659 124,758 98,159
Manufacturing start-up costs 8,943 9,346 25,430 72,473
General and administrative 6,233 9,027 27,271 30,209
Amortization of intangible
assets 1,441 1,792 6,465 7,190
Impairment of intangible assets -- -- 17,241 1,443
Total operating expenses 47,162 51,824 203,392 209,474
Loss from operations (41,235) (45,435) (185,627) (192,622)
Other income (expense):
Interest and other income
(expense), net 551 1,943 5,382 9,953
Interest expense (2,185) (1,651) (7,233) (5,784)
Impairment of investments -- (7,892) -- (7,892)
Total other expense (1,634) (7,600) (1,851) (3,723)
Loss before income tax expense (42,869) (53,035) (187,478) (196,345)
Foreign income tax expense -- -- -- 84
Net loss ($42,869) ($53,035) ($187,478)($196,429)
Basic and diluted net loss
per share ($0.48) ($0.60) ($2.11) ($2.23)
Shares used in computing basic
and diluted net loss per
share 89,009 88,175 88,710 87,930
CONSOLIDATED BALANCE Dec. 31, Dec. 31,
SHEET DATA 2004 2003
(in thousands) (unaudited) *
Cash, cash equivalents and
marketable securities $416,329 $347,763
Other current assets 19,187 17,816
Total current assets 435,516 365,579
Property and equipment, net 223,004 246,277
Long-term investments 23,300 20,695
Intangible assets, net 94,790 118,496
Deposits & other assets 36,108 29,146
Total assets $812,718 $780,193
Deferred revenue $11,692 $10,919
Other current liabilities 23,257 50,368
Total current liabilities 34,949 61,287
Convertible notes 463,630 200,000
Deferred rent 7,519 6,153
Other long-term liabilities 25,626 --
Redeemable convertible
preferred stock 49,869 99,737
Stockholders' equity 231,125 413,016
Total liabilities and
stockholders' equity $812,718 $780,193
* Derived from the December 31, 2003 audited financial statements.
Note: Certain amounts have been reclassified to conform to the current
year presentation.
SOURCE Abgenix, Inc.
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Related links:
http://www.abgenix.com
CONTACT:
Ami Knoefler, Senior Director, Corporate
Communications and Investor Relations, of Abgenix, Inc.,
+1-510-284-6350 or +1-510-284-6605
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