- Strategic Initiatives Advance During Third Quarter -
BOCA RATON, Fla., Oct. 25 /PRNewswire-FirstCall/ -- Nabi
Biopharmaceuticals (Nasdaq: NABI) announced today that revenues, including
revenues from PhosLo(R) (calcium acetate) which will be reported as
discontinued operations beginning in the third quarter of 2006, were $26.4
million for the third quarter of 2006 compared to $30.5 million in the
third quarter of 2005. Nabi-HB(R) [Hepatitis B Immune Globulin (Human)]
revenues were lower as the company continues to negotiate the terms of a
supply contract with one of its product distributors. Cash, cash
equivalents and marketable securities were $64.9 million at the end of the
third quarter of 2006. During the third quarter of 2006, cash used in
operating activities was $4.3 million compared to $18.4 million used in
operating activities during the comparable 2005 quarter. Importantly, this
represents a 63% improvement from the second quarter of 2006 and an 81%
improvement from the 2006 first quarter as the company continues to focus
on reducing its cash burn rate.
The company also announced today that in light of current public
company focus on stock option practices, as well as questions raised by
certain shareholders about its 2006 equity grants, the audit committee of
the board of directors initiated a voluntary review of its historical and
current year equity grant programs and the accounting for these programs.
The audit committee has engaged an independent outside law firm to assist
in this review. The governance review for 2006 equity grants has been
completed and no fraud, back dating or spring loading issues were
identified. The governance review for years prior to 2006 and the
accounting review for all periods are ongoing and the company is working
toward completing the review shortly. The company's complete third quarter
financial results will be issued after completion of these reviews.
"We are extremely pleased at the value-building events we have been
able to achieve for our shareholders in recent months," said Thomas H.
McLain, chairman, chief executive officer and president, Nabi
Biopharmaceuticals. "The agreement to sell PhosLo to Fresenius is expected
to provide us with a significant cash infusion in the fourth quarter. At
closing we will receive $65 million. We also expect to receive up to $10
million in milestone payments during the fourth quarter. During the third
quarter we have continued to significantly reduce our cash burn rate. The
sale of PhosLo will allow us to make further reductions in selling, general
and administration expenses. When these accomplishments are combined with a
successful partnering of our vaccine development programs which we are
pursuing, we will be well positioned to focus our resources and energies on
advancing our most promising pipeline programs. The recent completion of
enrollment for the NicVAX Phase IIB "proof-of-concept" clinical trial three
months ahead of schedule is a demonstration of our ability to execute on
the key milestones we have established for these programs."
"We continue taking actions to build value in our core business. In the
third quarter, we announced that we acquired exclusive world-wide rights to
a novel hyperimmune immunoglobulin extraction technology [yield-enhancing
plasma purification technology] from ProMetic Life Sciences for its use in
the production of our hyperimmune products under development, including
Civacir and Altastaph. This and other efforts will advance in 2007.
Clearly, the last 12 months have been some of the most challenging in our
history. Working together, the board of directors, management and our
outside advisors are committed to executing on a business plan that is
sustainable and will advance the development of important new product
opportunities. These efforts are expected to create value for our
shareholders either directly or in the context of a strategic transaction.
We will continue to work diligently toward executing on this plan, while we
also pursue and evaluate other strategic alternatives," stated Mr. McLain.
Advancing Strategic Initiatives
On September 27, 2006, Nabi Biopharmaceuticals announced it had
retained Banc of America Securities LLC to assist with its exploration of
the full range of strategic alternatives available to the company to
further enhance shareholder value. While the company continues to focus on
executing its business plan to create shareholder value, management and the
board of directors are also moving forward with the exploration of
strategic alternatives. If these efforts 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, the company will pursue those
alternatives. There can be no assurance that the exploration of strategic
alternatives will result in any agreements or transactions.
Earlier this year, Nabi Biopharmaceuticals established three strategic
objectives -- optimizing value from operations, building incremental value
through partnerships and alliances and developing proof-of-concept evidence
for our key pipeline programs. Listed below are recent accomplishments and
future milestones directly aligned with these objectives:
Strategic Goal Review
Accomplishment Related Strategic Significance
Objective
Agreement to sell PhosLo Optimizes value Strengthens balance
to Fresenius from operations. sheet, allows greater focus
on core business and
reduces ongoing SG&A
expenses.
Completion of enrollment Develops proof- Data early Q2 2007.
of Phase IIB "proof-of- of-concept Trial will identify
concept" clinical trial evidence for optimal formulation of
for NicVAX(R) (Nicotine key pipeline NicVAX and allow us to
Conjugate Vaccine) programs. attract a strategic
partner with more
favorable financial
terms.
Blood Products Advisory Optimizes value Supports approval of
Committee's from indication for a key
recommendation to Food operations. marketed product that
and Drug Administration has been granted
for approval of Nabi-HB(R) Orphan Drug
Intravenous [Hepatitis B Designation.
Immune Globulin (Human)
Intravenous] in the U.S.
Acquisition of exclusive Optimizes value Expected to reduce
rights to novel plasma from manufacturing costs
fractionation technology operations. while increasing the
from ProMetic Life production capacity
Sciences and margin for
promising product
candidates.
Milestone Update
Product/Product Upcoming Expected Timing
Candidate Milestone(s)
PhosLo Close PhosLo Q4 2006
sale
transaction
Nabi-HB Intravenous for U.S. approval Q4 2006*
liver transplant
indication
Civacir(R) [Hepatitis C Initiate Phase Q4 2006
Immune Globulin (Human)] II proof-of-
concept trial
NicVAX Execute Phase Data expected in early
IIB proof-of- Q2 2007
concept trial
NicVAX Development H1 2007
partnership
and/or external
funding
HEBIG(TM) [Hepatitis B European 2007*
Immune Globulin (Human) Approval
Intravenous]
Multi-Valent StaphVAX(R) With partner, 2007
(Staphylococcus aureus initiate Phase
Polysaccharide Conjugate II or Phase III
Vaccine) study
Multi-Valent Altastaph(R) With outside 2007
[Staphylococcus aureus funding,
Immune Globulin initiate Phase
Intravenous (Human)] II "proof-of-
concept" study
ATG-Fresenius S in solid Data from Phase H2 2008
organ transplant III trial
patients
*expected timing based on regulatory approval which is beyond company
control
Review of Operations
Revenue
Biopharmaceutical Sales
PhosLo(R) (calcium acetate). During the third quarter of 2006, PhosLo
revenues were $6.8 million compared to $8.1 million for the third quarter
of 2005. The decrease in revenues was due to the deferral of $1.9 million
of third quarter 2006 revenues associated with the announced divestiture of
this product. Revenues from PhosLo will be reported as discontinued
operations beginning in the third quarter of 2006.
Nabi-HB(R) [Hepatitis B Immune Globulin (Human)]. Sales of Nabi-HB were
$6.8 million for the third quarter of 2006 compared to $10.8 million for
the third quarter of 2005. During the third quarter of 2006, patient demand
for Nabi-HB remained above prior year levels. However, Nabi-HB revenue
decreased from prior year levels because of inventory reductions at a
significant customer while supply contract negotiations are concluded. As a
result, we shipped a minimal amount of Nabi-HB to that customer.
Other biopharmaceutical products. Other biopharmaceutical products
primarily include Aloprim(TM) (allopurinol sodium) for Injection and
intermediate products manufactured in our plant. We also perform contract
manufacturing for others. Other biopharmaceutical products sales for the
third quarter of 2006 were $0.6 million, compared to $1.0 million in the
third quarter of 2005.
Antibody Sales
Total antibody sales for the third quarter of 2006 were $12.2 million
compared to $10.6 million for the third quarter of 2005.
Specialty antibody sales. Specialty antibody sales totaled $6.3 million
in the third quarter of 2006 compared to $4.2 million in the third quarter
of 2005, primarily reflecting increased sales of anti-HBs antibodies.
Non-specific antibody sales. Sales of non-specific antibodies for the
third quarter of 2006 totaled $5.9 million compared to $6.4 million for the
third quarter of 2005. Sales of non-specific antibodies decreased as a
result of a shift in production to our higher margin specialty antibodies.
Cash and Cash Flow from Operating Activities
As of September 30, 2006, cash, cash equivalents and marketable
securities totaled $64.9 million compared to $106.9 million at December 31,
2005. Cash used by operating activities for the three months ended
September 30, 2006 was $4.3 million compared to $18.4 million in the third
quarter of 2005. The company has focused on reducing its cash burn rate
throughout 2006. Cash used in operating activities improved 63% when
compared to second quarter of 2006 and 81% from the 2006 first quarter.
Call and Webcast Information
The live webcast can be accessed today at 4:30 p.m. ET at:
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-
eventDetails&c=100445&eventID=1399547 (due to url length, please copy and
paste into browser) or via the Nabi Biopharmaceuticals website at
http://www.nabi.com . If you do not have Internet access, the U.S./Canada
call-in number is 866-277-1182 conference code 73651534, and the
international call-in number is 617-597-5359 conference code 73651534. An
audio replay will be available for U.S./Canada callers at 888-286-8010
conference code 57282531, and for international callers at 617-801-6888
conference code 57282531.
An archived version of the webcast will be available at the same
Internet address through November 1, 2006. The audio replay will also be
available through November 1, 2006. The press release will be available on
the company's website at http://www.nabi.com .
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, kidney disease (nephrology), 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.
RECONCILIATION OF REVENUE: For the Three Months Ended
September 30, September 24,
2006 2005
Revenue from Continuing Operations
Biopharmaceutical Products $7,424 $11,821
Antibody Products:
Specialty antibodies 6,257 4,143
Non-specific antibodies 5,953 6,410
Total antibodies 12,210 10,553
Total revenue from Continuing Operations 19,634 22,374
Revenue from Discontinued Operations 6,789 8,117
Total revenue $26,423 $30,491
SOURCE Nabi Biopharmaceuticals
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Related links:
http://www.nabi.com/
CONTACT:
Thomas E. Rathjen, Vice President, Investor
Relations of Nabi Biopharmaceuticals, +1-561-989-5800
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