- Independent Review Finds No Issues of Impropriety in Historical or
Current Year Equity Grant Programs -
BOCA RATON, Fla., Nov. 14 /PRNewswire-FirstCall/ -- Nabi
Biopharmaceuticals (Nasdaq: NABI) today announced that the audit committee
has completed a voluntary review of the company's historical and current
year equity grant programs. The audit committee engaged an independent
outside law firm to conduct this review. The review found no issues of
fraud, back dating or spring loading.
The review did identify errors in the determination of the measurement
date of certain equity awards in years prior to 2006, primarily due to
incomplete or missing documentation. Nabi Biopharmaceuticals has assessed
the impact of the measurement date errors both individually and in the
aggregate and concluded that they were not material to current or prior
periods. As a result of this assessment, the cumulative effect of these
errors has been recorded in the three and nine month periods ended
September 30, 2006.
Nabi Biopharmaceuticals also announced that the company has filed its
10-Q for the third quarter of fiscal year 2006 within the five-day
extension period. Summary financial tables for the three and nine month
periods ended September 30, 2006 are attached to this release.
Thomas H. McLain, chairman, chief executive officer and president, Nabi
Biopharmaceuticals, remarked, "We are pleased that this independent and
thorough review of our equity grant programs has been completed and that it
confirms our adherence to good corporate governance principles."
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 two products on the market
today: 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 September 30, 2006 filed with the Securities and Exchange
Commission.
Nabi Biopharmaceuticals
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, amounts in thousands, except per share data)
For the Three Months For the Nine Months
Ended Ended
September September September September
30, 2006 24, 2005 30, 2006 24, 2005
Sales $19,634 $22,375 $59,525 $67,379
Costs and expenses:
Costs of products
sold, excluding
amortization of
intangible assets 15,035 13,051 43,081 41,543
Royalty expense 325 460 1,025 3,139
Gross Margin, excluding
amortization of
intangible assets 4,274 8,864 15,419 22,697
Selling, general and
administrative
expense 10,226 15,678 32,968 39,869
Research and
development expense 10,240 15,789 27,900 47,672
Amortization of
intangible assets 68 160 204 545
Other operating
expense, principally
freight 140 118 398 272
Operating loss (16,400) (22,881) (46,051) (65,661)
Interest income 908 1,266 2,916 2,744
Interest expense (937) (889) (2,796) (1,480)
Other (expense)
income, net (54) 74 329 (111)
Loss from continuing
operations before
benefit for income
taxes (16,483) (22,430) (45,602) (64,508)
Benefit for income taxes 152 6,741 152 18,335
Loss from continuing
operations (16,331) (15,689) (45,450) (46,173)
Discontinued Operations
Loss from discontinued
operations (5,492) (614) (9,274) (9,356)
Benefit for income taxes 10 185 10 2,659
Loss from discontinued
operations (5,482) (429) (9,264) (6,697)
Net loss $(21,813) $(16,118) $(54,714) $(52,870)
Basic and diluted loss
per share
Continuing operations $ 0.27) $(0.26) $(0.75) $(0.77)
Discontinued operations (0.09) (0.01) (0.15) (0.12)
Basic and diluted loss
per share $(0.36) $(0.27) $(0.90) $(0.89)
Basic and diluted
weighted average
shares outstanding 61,185 59,991 60,830 59,738
SUPPLEMENTAL INFORMATION
Sales by Operating Segment
Biopharmaceutical
Products $7,424 $11,822 $23,449 $36,864
Antibody Products:
Specialty antibodies 6,257 4,143 19,926 14,121
Non-specific
antibodies 5,953 6,410 16,150 16,394
Total antibodies 12,210 10,553 36,076 30,515
Total $19,634 $22,375 $59,525 $67,379
Nabi Biopharmaceuticals
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, amounts in thousands)
September 30, December 31,
2006 2005
Cash and cash equivalents $32,020 $101,762
Marketable securities 32,925 5,172
Restricted cash, current 819 816
Trade accounts receivable, net 11,223 19,683
Inventories, net 22,169 20,500
Prepaid expenses and other assets 3,630 3,449
Assets of discontinued operations 82,190 81,220
Property, plant and equipment, net 90,174 93,865
Intangible assets, net 1,751 1,955
Other assets, net 757 914
Total assets $277,658 $329,336
Trade accounts payable and accrued expenses $27,373 $30,535
Capital lease obligations, net 344 461
Liabilities of discontinued operations 27,355 26,990
2.875% Convertible Senior Notes 109,271 109,145
Other liabilities 236 378
Stockholders' equity 113,079 161,827
Total liabilities and stockholders' equity $277,658 $329,336
Capital expenditures were $2.1 million and $6.6 million for the nine
months ended September 30, 2006 and September 24, 2005, respectively.
Depreciation and amortization expenses were $11.8 million and $14.3
million for the nine months ended September 30, 2006 and September 24,
2005, respectively. In addition, the three and nine month period of 2006
includes a $2.9 million impairment of assets held for sale.
The 2005 condensed balance sheet has been derived from the audited
balance sheet for the year ended December 31, 2005.
The assets, liabilities, revenue and expenses related to PhosLo are
reflected in discontinued operations for all periods presented as a result
of the definitive agreement executed with Fresenius Medical Care in October
2006 related to the sale of the PhosLo assets. Certain items in the 2005
consolidated financial statements have been reclassified to conform to the
current year's presentation.
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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