MORRIS PLAINS, N.J., Nov. 6 /PRNewswire-FirstCall/ -- Immunomedics, Inc. , a leading biopharmaceutical company focused on developing monoclonal antibody-based products, today reported revenues of $3.3 million and a net loss of $2.5 million, or $0.04 per share, for the first quarter of fiscal year 2007, which ended September 30, 2006. This compares to revenues of $0.4 million and a net loss of $8.5 million, or $0.16 per share, for the same period last year.
The increase in revenues for the first quarter was primarily due to the recognition of $2.7 million of the $38 million initial payment received from UCB, S.A., for the licensing of epratuzumab for all autoimmune diseases worldwide, and increased LeukoScan(R) sales in Europe. The operating expenses for the first quarter improved due to lower R&D expenses resulting from the transfer of the ALLEVIATE trials to UCB as part of the May 9, 2006 agreement. Lower interest expense and higher interest income have also contributed to the lower net loss for the first quarter. At September 30, 2006, the Company had $35.0 million in cash and marketable securities, excluding restricted securities.
“Our burn rate improved this quarter as a result of our licensing agreement with UCB. We are committed to bringing new antibodies into the clinic that have the shortest path to commercial success in markets with unmet medical needs. Consequently, we expect our R&D expenses to moderately increase in future quarters as these new antibodies enter the clinic,” commented Gerard G. Gorman, Senior Vice President, Finance and Business Development, and Chief Financial Officer. “An example of such product development is our humanized CD74 antibody, which will begin clinical trials in patients with multiple myeloma in the near future,” he added.
“We are working closely with UCB to expedite efforts to remove the clinical hold status instituted by the FDA and other regulatory agencies, which would minimize any further delay in making epratuzumab available to patients,” said Cynthia L. Sullivan, President and Chief Executive Officer of the Company. “We share UCB’s enthusiasm in the continued development of epratuzumab in autoimmune disease indications, and we look forward to resuming dosing patients with lupus in the near future,” she further remarked.
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 all clinical 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 September 30, June 30, 2006 2006 ASSETS Current Assets: Cash and cash equivalents $16,990,350 $40,877,766 Marketable securities 17,967,550 948,820 Accounts receivable, net of allowance for doubtful accounts 606,492 498,612 Inventory, net of reserve for obsolescence 476,110 541,030 Other current assets 1,396,821 602,736 Restricted securities - current portion 1,275,200 1,275,200 38,712,523 44,744,164 Property and equipment, net 8,278,773 8,496,060 Restricted securities - long-term portion 956,400 1,275,200 Other long-term assets 1,606,675 1,362,419 $49,554,371 $55,877,843 LIABILITIES AND STOCKHOLDERS’ DEFICIT Current liabilities $17,838,417 $19,035,185 Long-term debt 29,486,783 29,525,377 Deferred revenues - long term 23,143,460 25,810,769 Minority interest 156,974 182,000 Stockholders’ deficit (21,071,263) (18,675,488) $49,554,371 $55,877,843 Condensed Consolidated Statements of Operations Three Months Ended September 30, 2006 2005 Revenues: Product sales 661,603 280,074 License fee and other revenues 2,668,031 98,077 Research & development -- 44,762 Total Revenues 3,329,634 422,913 Costs and Expenses 6,065,440 7,898,863 Operating Loss (2,735,806) (7,475,950) Interest and Other Income (Expense) 272,921 (1,067,378) Loss before Income Tax Expense (2,462,885) (8,543,328) Income Tax Expense (19,418) -- Net Loss $(2,482,303) $(8,543,328) Net Loss per Common Share, Basic and Diluted (0.04) (0.16) Weighted average number of common shares outstanding 57,538,031 54,073,059
Immunomedics, Inc.
CONTACT: Dr. Chau Cheng, Associate Director, Investor Relations & BusinessAnalysis of Immunomedics, Inc., +1-973-605-8200, ext. 123,ccheng@immunomedics.com
Web site: http://www.immunomedics.com/
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