BOCA RATON, Fla., Oct. 16 /PRNewswire-FirstCall/ -- Nabi
Biopharmaceuticals (Nasdaq: NABI) announced today that its Board of
Directors has sent the following letter to shareholders:
October 16, 2006
Dear Shareholder:
We are pleased to update you on two important milestones Nabi
Biopharmaceuticals has reached regarding our PhosLo(R) (calcium acetate)
and NicVAX(R) (Nicotine Conjugate Vaccine) assets. These announcements are
part of the company's ongoing strategic plan to continue building value in
our core business areas, with the ultimate goal of enhancing the value of
your investment in our company. While we are focused on executing our
business plan to create shareholder value, we are also committed to
exploring strategic alternatives. If we determine that greater shareholder
value can be achieved through the implementation of one or more strategic
alternatives, we will pursue those alternatives.
As the board, management and our outside advisors continue to work
together to define and take actions that will build value for investors,
Nabi Biopharmaceuticals is committed to:
-Focusing our business on areas where the company has competitive
advantages and can deliver unique value to physicians and patients;
-Building a sustainable financial model for executing that business plan;
and
-Examining a broad range of strategic alternatives available to the
company with the assistance of Banc of America Securities LLC to enhance
shareholder value.
As you may already know, we announced that we have entered into an
agreement to sell our PhosLo business to Fresenius Medical Care for
consideration of up to $150 million in three components -- up front cash,
milestone payments, and royalties on incremental sales of a new product
formulation under development. The sale of PhosLo to Fresenius, a company
we believe provides a strong foundation to support and promote PhosLo,
enables us to significantly increase our cash position. Further, it allows
us to focus our resources and energies on our three most promising areas
of development -- our development stage products in organ transplant,
nicotine addiction and Gram-positive bacterial infections. The sale of
PhosLo is the right business decision at the right time and represents an
excellent financial outcome for Nabi Biopharmaceuticals.
We also made an important announcement regarding NicVAX, our highly
promising product candidate for the treatment of nicotine addiction and
the prevention of smoking relapse. Thanks to the dedication and diligence
of our clinical team, we were able to complete enrollment for the Phase
IIB "proof of- concept" study a full three months ahead of schedule. As a
result, we are now poised to have trial results early in the second
quarter of 2007. This accelerated timing helps to advance our stated goal
of selecting a development and commercial partner for NicVAX and then with
that partner, initiating pivotal Phase III trials in the second half of
2007.
We are excited about NicVAX for many reasons, including the fact that
early clinical data indicates that NicVAX, if approved, could potentially
be one of the most efficacious smoking cessation products available. In a
Phase II clinical trial, NicVAX achieved a 40 percent quit rate in smokers
who received the highest dose level versus nine percent in the placebo
group. These results represented a vaccine only effect, as patients were
not given any supplemental treatments, behavioral support or counseling.
The cash proceeds from the PhosLo sale, our partnership with Kedrion to
develop Civacir(R) [Hepatitis C Immune Globulin (Human)], and our ability
to successfully partner our lead vaccine programs, NicVAX and StaphVAX(R)
(Staphylococcus aureus Polysaccharide Conjugate Vaccine), will strengthen
our financial position. Following the sale of PhosLo we expect to achieve
a significant reduction in our selling, general and administrative
expenses. These actions position Nabi Biopharmaceuticals to fund the
important development programs which will deliver value for our
shareholders. We are confident that our improved financial strength and
more focused business plan are important steps to achieving that goal.
We want to emphasize that your Board of Directors is firmly committed to
acting in the best interests of the company and all its shareholders.
While the company is focused on executing its business plan to create
shareholder value, we are also committed to exploring strategic
alternatives that may further enhance shareholder value. If we determine
that greater shareholder value can be achieved through the implementation
of one or more strategic alternatives, including joint ventures, strategic
alliances, and the sale or merger of all or part of the company, we will
pursue those alternatives.
Sincerely,
Nabi Biopharmaceuticals' Board of Directors
About Nabi Biopharmaceuticals
Nabi Biopharmaceuticals leverages its experience and knowledge in
powering the immune system to develop and market products that fight
serious medical conditions. The company has three products on the market
today: PhosLo(R) (calcium acetate), Nabi-HB(R) [Hepatitis B Immune Globulin
(Human)], and Aloprim(TM) (allopurinol sodium) for Injection. Nabi
Biopharmaceuticals is focused on developing products that address unmet
medical needs and offer commercial opportunities in our core business
areas: Hepatitis and transplant, Gram-positive bacterial infections and
nicotine addiction. For a complete list of pipeline products, please go to:
http://www.nabi.com/pipeline/index.php. The company is headquartered in
Boca Raton, Florida. For additional information about Nabi
Biopharmaceuticals, please visit our website: http://www.nabi.com.
Forward-Looking Statements
Statements in this press release about the company that are not
strictly historical are forward-looking statements and include statements
related to our plans to explore strategic alternatives and prospects. You
can identify these forward-looking statements because they involve our
expectations, beliefs, intentions, plans, projections, or other
characterizations of future events or circumstances. These forward-looking
statements are not guarantees of future performance and are subject to
risks and uncertainties that may cause actual results to differ materially
from those in the forward-looking statements as a result of any number of
factors. These factors include, but are not limited to, risks relating to
the company's ability to advance the development of products currently in
the pipeline or in clinical trials; maintain the human and financial
resources to commercialize current products and bring to market products in
development; obtain regulatory approval for its products in the U.S.,
Europe or other markets; successfully develop, manufacture and market its
products; successfully partner with other companies; realize future sales
growth for its biopharmaceutical products; maintain sufficient intellectual
property protection or positions; raise additional capital on acceptable
terms; re-pay its outstanding convertible senior notes when due; and
identify and complete transactions that represent strategic alternatives
and opportunities. Many of these factors are more fully discussed, as are
other factors, in the company's Annual Report on Form 10-K for the fiscal
year ended December 31, 2005 and Quarterly Report on Form 10-Q for the
Quarter ended July 1, 2006 filed with the Securities and Exchange
Commission.
SOURCE Nabi Biopharmaceuticals
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Related links:
http://www.nabi.com
http://www.nabi.com/pipeline/index.php
CONTACT:
Thomas E. Rathjen, Vice President, Investor
Relations of Nabi Biopharmaceuticals, +1-561-989-5800
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