FREMONT, Calif., April 26 /PRNewswire-FirstCall/ -- Abgenix, Inc.
(Nasdaq: ABGX) today reported financial results for the first quarter ended
March 31, 2005.
For the quarter ended March 31, 2005, the company reported a net loss of
$42.6 million, or $0.48 per share, compared to a net loss of $41.6 million or
$0.47 per share for the same period in 2004. Net cash used in operating
activities in the first quarter of 2005 was $15.2 million. The company ended
the quarter with $400.7 million in cash, cash equivalents and marketable
securities.
"In the first quarter of 2005, we continued to focus on preparing for the
potential BLA submission for panitumumab. We have contained overall costs by
offsetting our increasing spend on panitumumab with cost reductions in other
areas of the company," said Bill Ringo, president and CEO of Abgenix.
Revenues for the first quarter of 2005 were $2.7 million, compared to $2.9
million for the same period in 2004. Contract revenues for the quarter ended
March 31, 2005 primarily consisted of milestones and fees from technology
licensing agreements, including a milestone from Amgen for advancing a
XenoMouse(R)-derived fully human antibody into the clinic. The company's
revenues typically result from milestone payments and fees associated with
various collaborations and technology licensing agreements.
Operating expenses for the first quarter of 2005 were $44.9 million,
compared to $44.5 million for the same period in 2004. The majority of first
quarter 2005 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, a fully human antibody for the
potential treatment of secondary hyperparathyroidism (SHPT). Included in both
periods were manufacturing start-up costs related to 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.
First quarter 2005 and recent company highlights include:
* Announcement of the completion of patient enrollment by Amgen in a
pivotal trial evaluating panitumumab as monotherapy for metastatic
colorectal cancer patients who have failed standard chemotherapy.
* Exercise by Genentech Inc. of its option to extend its technology
licensing agreement with Abgenix for three additional years, by
which Genentech will have access to the company's proprietary
antibody generation technology.
* Presentation of three abstracts on panitumumab at the recent
Association for Cancer Research (AACR) meeting, which took place
April 16-20 in Anaheim, California. The data presentations further
characterize the biological activity of panitumumab.
* Appointment of Don Joseph as Senior Vice President, General Counsel
and Secretary.
Upcoming ASCO Presentations
Two abstracts on panitumumab will be presented at the 41st American
Society of Clinical Oncology (ASCO) annual meeting May 13-17 in Orlando,
Florida. These include:
* "Updated Results from a Dose and Schedule Study of Panitumumab (ABX-
EGF) Monotherapy, in Patients with Advanced Solid Malignancies" will
be presented on Sunday, May 15 from 8:00 a.m. to 12:00 p.m. during
the General Poster Session; and
* "Safety and Efficacy of Panitumumab Monotherapy in Patients with
Metastatic Colorectal Cancer (mCRC)" will be presented during a
Poster Discussion on Tuesday, May 17 from 8:00 a.m. to 12:00 p.m.
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 866-761-0748 fifteen minutes before the conference begins. International
callers should dial 617-614-2706. The pass code is 89600730. The call will
also be webcast live at http://www.abgenix.com. A replay of the call will be
available until May 10, 2005 on the company's website or by dialing
888-286-8010. International callers should dial 617-801-6888. The replay
participant code is 86920645.
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.
Certain statements in this press release are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. These include 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, and achievement of milestone or similar payments or other
revenues. All 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, regulatory
approval processes and meeting requirements for regulatory approval, the
progress of research and product development programs, product manufacturing,
competitive products and services, capital requirements, 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 annual report on Form 10-K for the
year ended December 31, 2004. 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.
Three Months Ended
CONSOLIDATED STATEMENT OF March 31,
OPERATIONS DATA 2005 2004
(in thousands except per share data) (unaudited)
Revenues:
Contract revenue $2,658 $2,890
Operating expenses:
Research and development 35,784 28,457
Manufacturing start-up costs 1,977 7,346
General and administrative 5,703 6,888
Amortization of intangible assets 1,441 1,792
Total operating expenses 44,905 44,483
Loss from operations (42,247) (41,593)
Other income (expenses):
Interest and other income (expense), net 2,956 1,670
Interest expense (3,342) (1,643)
Total other income (expenses) (386) 27
Net loss ($42,633) ($41,566)
Basic and diluted net loss per share ($0.48) ($0.47)
Shares used in computing basic and diluted
net loss per share 89,253 88,307
March 31, December 31,
CONSOLIDATED BALANCE SHEET DATA 2005 2004
(in thousands) (unaudited) *
Cash, cash equivalents
and marketable securities $400,732 $416,329
Other current assets 13,031 19,187
Total current assets 413,763 435,516
Property and equipment, net 216,919 223,004
Long-term investments 13,611 23,300
Intangible assets, net 93,349 94,790
Deposits and other assets 35,634 36,108
Total assets $773,276 $812,718
Deferred revenue $11,386 $11,692
Other current liabilities 19,802 23,257
Total current liabilities 31,188 34,949
Convertible notes 463,633 463,630
Deferred rent 7,804 7,519
Other long-term liabilities 41,111 25,626
Redeemable convertible preferred stock 49,869 49,869
Stockholders' equity 179,671 231,125
Total liabilities and stockholders'
equity $773,276 $812,718
* Derived from the December 31, 2004 audited financial statements.
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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