MORRIS PLAINS, N.J., Aug. 25 /PRNewswire-FirstCall/ -- Immunomedics,
Inc. (Nasdaq: IMMU), a biopharmaceutical company focused on developing
monoclonal antibodies, today reported revenues of $2.2 million and a net
loss of $5.7 million, or $0.10 per share, for the fourth quarter of fiscal
year 2006, which ended June 30, 2006. This compares to revenues of $0.6
million and a net loss of $10.1 million, or $0.19 per share, for the same
period last year. For the fiscal year 2006, the Company reported revenues
of $4.4 million and a net loss of $28.8 million, or $0.52 per share. This
compares to revenues of $3.8 million and a net loss of $26.8 million, or
$0.50 per share, for fiscal year 2005.
Revenues for the fourth quarter and the fiscal year were positively
impacted by the recognition of $1.5 million of the $38 million initial
payment received from UCB, S.A., for the licensing of epratuzumab for all
autoimmune diseases worldwide, despite lower LeukoScan(R) sales in Europe
for the fiscal year. Net loss for the fourth quarter improved due to the
transfer of the SLE clinical trials to UCB as part of the May 9, 2006
agreement. For the fiscal year, lower R&D expense was offset by increased
interest expense for the 5% convertible notes. At June 30, 2006, the
Company had $41.8 million in cash and liquid securities.
"Our cash position was strengthened substantially with the $38 million
payment from UCB. Additionally, because UCB will be responsible for funding
all current and future clinical development of epratuzumab in autoimmune
diseases, we will be able to devote our resources to further development of
our extensive product candidate pipeline, focusing on markets with high
unmet medical needs and on those compounds that have a high probability to
become commercial successes within the shortest timeframe," commented
Gerard G. Gorman, Senior Vice President, Finance and Business Development,
and Chief Financial Officer.
"We are pleased that, during this fiscal year, we have executed three
important components of our business strategy," said Cynthia L. Sullivan,
President and Chief Executive Officer of the Company. "We consummated an
out-licensing agreement with UCB for the clinical development and
commercialization of epratuzumab for all autoimmune disease indications on
a world-wide basis, we continued to progress with the evaluation of
epratuzumab in patients with lupus in the Phase III ALLEVIATE trials, and
in discovery, we have developed a novel platform technology called the
Dock-and-Lock methodology," she further remarked.
Other developments of note during the fourth quarter of fiscal year
2006 were:
* The Company published in the Proceedings of the National Academy of
Sciences of the USA (PNAS) a novel platform technology called Dock-and-
Lock that can be used to generate multifunctional agents for diverse
applications.
* At the 42nd Annual Meeting of the American Society of Clinical Oncology
(ASCO) the Company presented updated clinical results from a Phase I/II
study with the humanized anti-CD20 antibody (hA20) in non-Hodgkin's
lymphoma, and also reported the construction of two new bispecific
antibodies that bind to both CD20 and CD22 antigens on B-lymphocytes,
using the Dock-and-Lock methodology.
* The Company and its subsidiary, IBC Pharmaceuticals, Inc., presented
four studies at the 53rd Annual Meeting of the Society of Nuclear
Medicine on the Dock-and-Lock methodology, immunoPET detection of
xenografts, bispecific antibody pretargeting of neovasculature, and of
renal cell carcinoma.
* The Company presented at Rodman & Renshaw 3rd Annual Global Healthcare
Conference during which a corporate overview was provided.
* Results from the phase II study of epratuzumab in systemic lupus
erythematosus were published in Arthritis Research & Therapy.
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 recently
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 the two, ongoing, pivotal
Phase III 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. 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 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. 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
June 30, June 30,
2006 2005
ASSETS
Current Assets:
Cash and cash equivalents $40,877,766 $11,937,483
Marketable securities 948,820 3,547,507
Accounts receivable 498,612 409,458
Inventory 541,030 493,603
Other current assets 602,736 785,677
Restricted securities 1,275,200 15,575,200
44,744,164 32,748,928
Property and equipment, net 8,496,060 10,152,115
Restricted securities 1,275,200 2,550,400
Other long-term assets 1,362,419 2,471,706
$55,877,843 $47,923,149
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $19,035,185 $9,422,923
Long-term debt 29,525,377 36,743,233
Deferred revenues - long-term
portion 25,810,769 -
Other liabilities - 2,748,240
Minority interest 182,000 272,160
Stockholders' deficit (18,678,488) (1,263,407)
$55,874,843 $47,923,149
Condensed Consolidated Statements of Operations
Three Months Ended Year Ended
June 30, June 30,
2006 2005 2006 2005
Revenues:
Product sales $568,562 $543,312 2,253,748 3,349,483
License fee and
other revenues 1,583,529 66,287 1,830,460 329,674
Research &
development - - 268,570 134,285
Revenues $2,152,091 609,599 4,352,778 3,813,442
Costs and Expenses 7,565,360 11,117,806 28,903,102 32,514,259
Operating Loss (5,413,269) (10,508,207) (24,550,324) (28,700,817)
Interest and Other
Income (220,149) 376,822 (4,704,499) 1,557,763
Net Loss before
Income Tax Expense (5,633,418) (10,131,385) (29,254,823) (27,143,054)
Income Tax
(Expense) Benefit (23,935) 37,555 490,415 385,120
Net Loss $(5,657,353) $(10,093,830) $(28,764,408) $(26,757,934)
Net Loss per Common
Share, Basic and
Diluted $(0.10) (0.19) (0.52) (0.50)
Weighted average
number of common
shares outstanding 57,241,618 54,073,059 55,263,365 53,683,834
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, +1-973-605-8200, extension 123, or
ccheng@immunomedics.com
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