Exhibit 99.1
IMMUNOMEDICS REPORTS FISCAL THIRD QUARTER 2003 RESULTS
Morris Plains, NJ, May 8, 2003 - Immunomedics, Inc. (Nasdaq: IMMU) today
reported revenues of $5.6 million and net income of $453,000, or $0.01 per
share, for the third quarter of fiscal year 2003 which ended March 31, 2003.
This compares to revenues of $3.3 million and a net loss of $296,000, or $0.01
per share, for the same period last year. The net income was mainly due to the
Company's recognition of previously deferred payments of supply fees from its
licensee, Amgen, in the amount of $3.8 million. Income recognition had been
deferred until the Company was able to satisfy certain supply obligations that
were satisfied in the third quarter.
For the first nine months of fiscal year 2003, Immunomedics reported revenues of
$12.0 million and a net loss of $4.2 million, or $0.08 per share. This compares
to revenues of $10.0 million and a net loss of $1.1 million, or $0.02 per share,
for the same period last year.
Mr. Gerard G. Gorman, the Company's Vice President, Finance, and Chief Financial
Officer commented: "We are pleased to report that the results for the third
fiscal quarter were in line with our expectations. At March 31, 2003 we had
$28.4 million in cash and liquid securities. The construction of our new
manufacturing facility is nearing completion and we intend to refinance the
construction costs of $6.3 million with a bank credit facility in the near
future to further improve our cash position."
Ms. Cynthia L. Sullivan, President and Chief Executive Officer of Immunomedics,
added: "Our expanded manufacturing facility will provide the production capacity
needed to develop and support our extensive product pipeline. Phase I clinical
trials with our humanized alpha-fetoprotein antibody for evaluation in patients
with primary liver cancer are now beginning, and we plan to begin additional
clinical trials with another therapeutic product candidate before the end of the
calendar year.
Other developments of note since the start of the third quarter are as follows:
o The Company and Amgen announced their continued focus on the
development of Immunomedics' proprietary compound, epratuzumab, with
particular emphasis on its use in combination with Rituximab. "We
are pleased with the focus of this development program to generate
additional supportive data for combination therapy and also pleased
with Amgen's work with cooperative study groups of the National
Cancer Institute to evaluate the benefits of the antibody
combination with chemotherapy in aggressive NHL patients," Ms.
Sullivan added.
o The Company announced that an article published in The Journal of
Nuclear Medicine (Vol. 44, No. 1, January 2003) described an
improved method of linking yttrium-90 (Y-90) to its antibody,
epratuzumab in clinical trials for therapy of NHL. "This improved
conjugation method could potentially reduce the side effect of
hematological toxicity and should enable higher doses of Y-90 to be
administered safely," Ms. Sullivan remarked.
o The Company met with investors and analysts at the Raymond James
Equity Conference.
"Our investments in research and development continue to yield important
advances for our Company with the discovery of new antibodies. The continued
growth of our research and development capabilities in 2003, together with the
completion of our expanded production facilities by year-end,
will further facilitate our aggressive development plans for our therapeutic
product pipeline," Ms. Sullivan remarked.
In a positive development for the Company's majority owned subsidiary, IBC
Pharmaceuticals, Inc., two distinguished scientists, Henry N. Wagner, Jr., M.
D., and John B. Landis, Ph.D., were elected to the IBC Board of Directors. "Dr.
Wagner is, in my view, the best known and most respected nuclear medicine
physician-scientist and advocate on an international basis, and Dr. Landis is an
exceptional chemist and research executive with a proven track record in the
pharmaceutical industry," commented Dr. David M. Goldenberg, founder and
Chairman of the Board of Directors of IBC Pharmaceuticals and also of
Immunomedics.
Immunomedics is a biopharmaceutical company focused on the development,
manufacture and commercialization of diagnostic imaging and therapeutic products
for the detection and treatment of cancer and infectious diseases. Integral to
these products are highly specific monoclonal antibodies and antibody fragments
designed to deliver radioisotopes and chemotherapeutic agents to tumors and
sites of infection. Immunomedics has six therapeutic product candidates in
clinical trials and has two marketed diagnostic imaging products. The most
advanced therapeutic product candidates are LymphoCide(R) (epratuzumab), which
is in Phase II clinical trials for the treatment of non-Hodgkin's lymphoma, and
CEA-Cide(R) (labetuzumab), which is in Phase I/II clinical trials for the
treatment of certain solid tumors.
This release, in addition to historical information, contains forward-looking
statements made pursuant to the Private Securities Litigation Reform Act of
1995. Such statements, including statements regarding clinical trials, 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 financing and other sources of capital, as well as the risks discussed in the
Company's Annual Report on Form 10-K for the year June 30, 2002.
Company Contact: Gerard G. Gorman, Vice President, Finance, and Chief Financial
Officer, (973) 605-8200, extension 185. Visit the Company's web site at
http://www.Immunomedics.com (http://www.immunomedics.com/)
IMMUNOMEDICS, INC
Condensed Consolidated Balance Sheets
March 31, June 30,
2003 2002
----------- -----------
ASSETS
Current Assets:
Cash and cash equivalents ......................... $11,370,720 $13,062,954
Marketable securities ............................. 17,040,711 31,724,789
Accounts receivable ............................... 958,361 1,106,716
Inventory ......................................... 972,229 641,686
Other current assets .............................. 924,535 1,801,979
----------- -----------
31,266,556 48,338,124
Property and equipment, net .......................... 11,873,291 6,561,901
Long-term assets ..................................... 57,157 51,157
----------- -----------
$43,197,004 $54,951,182
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities, including deferred revenue ... $ 5,268,591 $13,296,060
Minority interest ................................. 492,977 559,222
Stockholders' equity .............................. 37,435,436 41,095,900
----------- -----------
$43,197,004 $54,951,182
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Condensed Consolidated Statements of Operations
Three Months Ended Nine Months Ended
March 31, March 31,
2003 2002 2003 2002
------------ ---------- ---------- ----------
Revenues:
Product sales ........................... $ 1,088,012 964,891 2,633,113 2,838,027
License fee and other revenues .......... 4,518,709 2,252,888 9,304,487 6,930,491
Research & development .................. 8,428 65,196 33,710 215,999
------------ ---------- ---------- ----------
Revenues ................................... $ 5,615,149 3,282,975 11,971,310 9,984,517
Costs and Expenses ......................... 6,213,307 5,169,115 17,870,989 13,861,732
------------ ---------- ---------- ----------
Operating Loss ............................. (598,158) (1,886,140) (5,899,679) (3,877,215)
Interest and Other Income .................. 306,701 384,701 937,537 1,611,706
------------ ---------- ---------- ----------
Net Loss before Income Tax Benefit ......... (291,457) (1,501,439) (4,962,142) (2,265,509)
Income Tax Benefit ......................... 744,756 1,205,530 744,756 1,205,530
------------ ---------- ---------- ----------
Net Income (Loss) .......................... $ 453,299 (295,909) (4,217,386) (1,059,979)
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Net Income (Loss) per Common Share ......... $ 0.01 (0.01) (0.08) (0.02)
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Weighted average number of common
shares outstanding ...................... 49,878,193 49,706,146 49,877,788 49,602,377
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