MORRIS PLAINS, N.J., May 8 /PRNewswire-FirstCall/ -- Immunomedics, Inc.
(Nasdaq: IMMU), a biopharmaceutical company focused on developing
monoclonal antibodies to treat cancer and other serious diseases, today
reported revenues of $0.9 million and a net loss of $5.1 million, or $0.08
per share, for the third quarter of fiscal year 2007, which ended March 31,
2007. This compares to revenues of $1.3 million and a net loss of $5.7
million, or $0.10 per share, for the same period last year. Revenues for
the three-month period ended March 31, 2007 did not include any
amortization of deferred revenues derived from the May 2006 agreement with
UCB, due to the decision by UCB to begin new clinical trials for the
treatment of systemic lupus erythematosus ("SLE"). As a result of this
decision, Immunomedics has discontinued the amortization of the deferred
revenue until a determination can be made as to how the UCB decision will
impact the Company's obligations under the UCB agreement. The decrease in
net loss for the three-month period in 2007 was primarily due to higher
interest income combined with lower interest and operating expenses.
For the first nine months of the 2007 fiscal year, the Company reported
revenues of $7.7 million and a net loss of $12.1 million, or $0.20 per
share. This compares to revenue of $2.2 million and a net loss of $23.1
million, or $0.42 per share, for the same period last year. Recognition of
deferred revenue from the UCB agreement for the first six months of the
2007 fiscal year contributed to the decrease in net loss for the nine-month
period in 2007, as well as increased sales of LeukoScan in Europe, and
higher interest income. The current period's results also benefited from
reduced operating and interest expenses.
At March 31, 2007, the Company had $27.7 million in cash and marketable
securities. On May 7, 2007, the Company closed on its previously announced
$24 million registered direct offering of common stock. After payment of
fees and expenses, the net proceeds to the Company are expected to be
approximately $22.3 million.
"We are pleased that our financial results for the third quarter of the
2007 fiscal year were in line with our expectations. Although we have
recently bolstered our cash position with a sale of our common stock,
licensing remains an important means for us to raise capital," commented
Gerard G. Gorman, Senior Vice President, Finance and Business Development,
and Chief Financial Officer. "We are committed to identifying a potential
partner for the licensing of hA20 for all indications on a worldwide
basis."
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 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, 90Y-epratuzumab for
the therapy of patients with lymphoma, 90Y-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. For additional
information on us, please visit our web site at
http://www.immunomedics.com. The information on our website does not,
however, form a part of this press release.
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), our
dependence on our licensing partner for the further development of
epratuzumab for autoimmune indications, 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
March 31, June 30,
2007 2006
ASSETS
Current Assets:
Cash and cash equivalents $12,425,084 $40,877,766
Marketable securities 15,316,000 948,820
Accounts receivable, net of allowance
for doubtful accounts 639,169 498,612
Inventory, net of reserve for
obsolescence 526,250 541,030
Other current assets 716,807 602,736
Restricted cash and securities -
current portion 1,275,200 1,275,200
30,898,510 44,744,164
Property and equipment, net 7,655,961 8,496,060
Restricted securities - long-term
portion 318,800 1,275,200
Other long-term assets 630,941 1,362,419
$39,504,212 $55,877,843
LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT)
Current liabilities $7,099,908 $19,035,185
Long-term debt 1,015,717 29,525,377
Deferred revenues - long term 31,145,385 25,810,769
Minority interest 102,825 182,000
Stockholders' equity (deficit) 140,377 (18,675,488)
$39,504,212 $55,877,843
Condensed Consolidated Statements of Operations
Three Months Ended Nine Months Ended
March 31, March 31,
2007 2006 2007 2006
Revenues:
Product sales $839,438 $1,142,461 $2,160,146 $1,685,186
License fee and
other revenues 32,577 83,250 5,373,443 246,931
Research &
development 67,145 89,523 134,285 268,570
Total Revenues $939,160 1,315,234 7,667,874 2,200,687
Costs and Expenses 5,829,642 6,008,414 18,458,259 21,337,742
Operating Loss (4,890,482) (4,693,180) (10,790,385) (19,137,055)
Interest and Other
Income (Expense) (206,002) (1,049,841) (1,872,836) (4,484,350)
Loss before Income
Tax Expense (5,096,484) (5,743,021) (12,663,221) (23,621,405)
Income Tax(Expense)
Benefit (44,021) - 559,723 514,350
Net Loss $(5,140,505) $(5,743,021) $(12,103,498) $(23,107,055)
Net Loss per
Common Share,
Basic and
Diluted $(0.08) $(0.10) $(0.20) $(0.42)
Weighted average
number of common
shares
outstanding 65,000,333 55,670,994 60,065,038 54,606,327
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 of Immunomedics, Inc.,
+1-973-605-8200, ext. 123, ccheng@immunomedics.com
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