MORRIS PLAINS, N.J., May 10 /PRNewswire-FirstCall/ -- Immunomedics,
Inc. (Nasdaq: IMMU), a biopharmaceutical company focused on developing
monoclonal antibodies, today reported revenues of $1.3 million and a net
loss of $5.7 million, or $0.10 per share, for the third quarter of fiscal
year 2006, which ended March 31, 2006. This compares to revenues of $1.1
million and a net loss of $6.1 million, or $0.11 per share, for the same
period last year. The decrease in net loss for the three-month period was
primarily due to cost savings initiatives instituted over the previous
several months and increased product sales, which were partially offset by
increased interest expense from the 5% senior convertible notes. In
addition, the current period's results benefited from the renegotiation for
reduced maintenance fees associated the ALLEVIATE trials for SLE.
For the first nine months of the 2006 fiscal year, the Company reported
revenues of $2.2 million and a net loss of $23.1 million, or $0.42 per
share. This compares to revenue of $3.2 million and a net loss of $16.7
million, or $0.31 per share, for the same period last year. The increase in
the net loss for the nine-month period resulted primarily from increased
interest expense resulting from the 5% senior convertible notes and lower
product sales of LeukoScan in the earlier part of the year. In addition,
the 2005 results included a net litigation settlement gain.
"As a result of our cost savings initiatives we now have two quarters
in a row where we managed to maintain our operating losses at levels
similar to those of the same period last year despite expenditure related
to the continued enrollment for the ALLEVIATE trials. With the completion
of out- licensing epratuzumab to UCB, we anticipate our cash outflow will
be reduced from our current level. More importantly, the anticipated gross
receipt of the $38 million initial cash payments will allow us to continue
the research and development of other antibodies in our pipeline portfolio
that are in line with our corporate strategy," commented Gerard G. Gorman,
Vice President, Finance, and Chief Financial Officer.
At March 31, 2006, the Company had $10.3 million in cash and marketable
securities. On May 9, 2006, the Company entered into a collaboration and
license agreement with UCB granting UCB the exclusive worldwide rights to
develop, market and sell epratuzumab for all autoimmune disease
indications. As a result, over the next ten business days the Company will
receive the initial cash payments totaling $38 million, before fees.
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, which has been licensed to UCB for all autoimmune
indications worldwide, 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 (including the timing
and amount of contingent payments), 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
March 31, June 30,
2006 2005
ASSETS
Current Assets:
Cash and cash equivalents $8,947,085 $11,937,483
Marketable securities 1,373,601 3,547,507
Accounts receivable 778,747 409,458
Inventory 620,506 493,603
Other current assets 799,633 785,677
Restricted securities 1,275,200 15,575,200
13,794,772 32,748,928
Property and equipment, net 8,949,786 10,152,115
Restricted securities 1,594,000 2,550,400
Other long-term assets 1,571,672 2,471,706
$25,910,230 $47,923,149
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities $10,071,263 $9,422,923
Long-term debt 30,527,534 36,743,233
Other Liabilities - 2,748,240
Minority interest 198,944 272,160
Stockholders' deficit (14,887,511) (1,263,407)
$25,910,230 $47,923,149
Condensed Consolidated Statements of Operations
Three Months Ended Nine Months Ended
March 31, March 31,
2006 2005 2006 2005
Revenues:
Product sales $1,142,461 947,386 1,685,186 2,806,171
License fee
and other
revenues 83,250 74,457 246,931 263,386
Research &
development 89,523 67,143 268,570 134,286
Revenues $1,315,234 1,088,986 2,200,687 3,203,843
Costs and Expenses 6,008,414 7,114,180 21,337,742 21,396,453
Operating Loss (4,693,180) (6,025,194) (19,137,055) (18,192,610)
Interest and
Other Income
(Expense) (1,049,841) 69,963 (4,484,350) 1,180,941
Net Loss before
Income Tax
Expense (5,743,021) (5,955,231) (23,621,405) (17,011,669)
Income Tax
Benefit - (103,792) 514,350 347,565
Net Loss $(5,743,021) $(6,059,023) $(23,107,055) $(16,664,104)
Net Loss per
Common Share,
Basic and
Diluted $(0.10) (0.11) (0.42) (0.31)
Weighted average
number of
common shares
outstanding 55,670,994 54,073,059 54,606,327 53,554,566
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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