Exhibit 99.1
IMMUNOMEDICS ANNOUNCES THIRD QUARTER FISCAL 2004 RESULTS
Morris Plains, NJ, May 11, 2004 - Immunomedics, Inc. (Nasdaq: IMMU) today
reported revenues of $1.2 million and a net loss of $5.5 million, or $0.11 per
share, for the third quarter of fiscal year 2004, which ended March 31, 2004.
This compares to revenues of $5.6 million and net income of $0.5 million, or
$0.01 per share, for the same period last year.
For the first nine months of the fiscal year 2004 which ended March 31, 2004,
the Company reported revenues of $3.4 million and a net loss of $15.5 million,
or $0.31 per share. This compares to revenues of $12.0 million and a net loss of
$4.2 million, or $0.08 per share, for the same period last year.
The decline in revenues and loss for the three and nine-month periods ended
March 31, 2004, resulted primarily from the Company recognizing its final
portion of the $18.0 million up-front licensing payment from Amgen Inc. in the
third quarter of fiscal year 2003. At March 31, 2004, the Company had $25.0
million in cash and liquid securities, including $5.4 million of restricted
securities that collateralize the New Jersey Economic Development Authority
financing completed in May 2003 for construction of expanded manufacturing
facilities.
"Our financial results for the first nine months of the fiscal year are in line
with our expectations. We have increased our level of spending in the research
and development area for the development and commercialization of our diagnostic
and therapeutic products. In particular, spending for clinical research and
clinical trial manufacturing efforts have increased over the previous year. With
the completion of a private sale of convertible debt securities in January 2004,
we are able to continue to expand our research and development efforts. We are
continuing our review of opportunities to raise additional capital through
licensing of our products and technologies, the sale of debt and/or equity
securities, or some combination of the foregoing as they arise," commented
Gerard G. Gorman, the Company's Vice President, Finance, and Chief Financial
Officer.
In early April, the Company's discussions with Amgen over return of the North
American rights to epratuzumab were concluded. "By regaining rights to our
product, we can now discuss worldwide licensing of this product with other
interested companies. Since epratuzumab is currently being tested in patients
with autoimmune disease, we anticipate that it also may have utility in this
group of indications," remarked the Company's President and Chief Executive
Officer, Cynthia L. Sullivan. To date, epratuzumab has been studied, either
alone or in combination with rituximab, in over 300 patients with indolent or
aggressive non-Hodgkin's lymphomas, which are newly diagnosed in more than
50,000 patients annually in the United States, where there are over 350,000
patients being followed with this disease.
Other developments of note during the third quarter of fiscal year 2004 were as
follows:
o The Company and its subsidiary, IBC Pharmaceuticals, Inc., reported an
advance in proprietary pretargeting technology involving a novel trivalent
fusion protein for radioimmunotherapy, whereby the selective targeting of
a tumor is separated from the second step of delivering the therapeutic.
o The Company was awarded a U. S. patent for humanized CEA antibody
conjugates.
o The Company reported Phase II Colorectal Cancer therapy data at the GI
Cancer Symposium of the American Society of Clinical Oncology in January.
o The Company presented at the JP Morgan Healthcare Conference and at the
Lehman Brothers Annual Healthcare Conference.
"The Company remains focused on the continued growth of our therapeutic product
pipeline. Our investments in research and development, including the addition of
key personnel to our clinical research and operations departments and the
expansion of our manufacturing capacity, continue to yield important advances
for our Company," Ms. Sullivan added.
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 other serious diseases. Integral
to these products are highly specific monoclonal antibodies and antibody
fragments designed to deliver radioisotopes and chemotherapeutic agents to
tumors and other sites of disease. Immunomedics has nine therapeutic product
candidates in clinical development and has two marketed diagnostic imaging
products. The most advanced therapeutic product candidates are LymphoCide(R)
(epratuzumab), for which certain Phase II clinical trials for the treatment of
non-Hodgkin's lymphoma have already been completed, 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, 2003. 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.
Company Contact: Gerard G. Gorman, Vice President, Finance, and Chief Financial
Officer, (973) 605-8200, extension 278. Visit the Company's web site at
http://www.Immunomedics.com
- ----------------------------
IMMUNOMEDICS, INC.
Condensed Consolidated Balance Sheets
March 31, June 30,
2004 2003
------------ -----------
ASSETS
Current Assets:
Cash and cash equivalents..................................................$ 14,058,703 $ 13,601,627
Marketable securities...................................................... 5,492,950 10,194,813
Restricted securities...................................................... 1,275,200 1,381,466
Accounts receivable........................................................ 1,313,284 930,134
Inventory.................................................................. 630,795 839,480
Other current assets....................................................... 1,004,519 825,372
------------ ------------
23,775,451 27,772,892
Property and equipment, net..................................................... 11,743,353 12,298,971
Restricted cash................................................................. 4,144,400 4,994,534
Other long-term assets.......................................................... 77,788 63,157
------------ ------------
$ 39,740,992 $ 45,129,554
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities........................................................ $ 7,044,766 $ 5,997,212
Long-term debt............................................................. 14,144,400 4,994,534
Minority interest.......................................................... 406,744 471,044
Stockholders' equity....................................................... 18,145,082 33,666,764
------------ ------------
$ 39,740,992 $ 45,129,554
============ ============
Condensed Consolidated Statements of Operations
Three Months Ended Nine Months Ended
March 31, March 31,
2004 2003 2004 2003
------------------------------ ----------------------------------
Revenues:
Product sales ...................................$ 1,053,616 1,088,012 2,790,668 2,633,113
License fee and other revenues................... 54,043 4,518,709 460,003 9,304,487
Research & development........................... 43,749 8,428 143,749 33,710
------------- ------------- -------------- -------------
Revenues..............................................$ 1,151,408 5,615,149 3,394,420 11,971,310
Costs and Expenses.................................... 6,649,785 6,213,307 19,587,131 17,870,989
------------- -------------- -------------- -------------
Operating Loss........................................ (5,498,377) (598,158) (16,192,711) (5,899,679)
Interest and Other Income............................. 67,446 306,701 392,000 937,537
------------- -------------- -------------- -------------
Net Loss before Income Tax Benefit.................... (5,430,931) (291,457) (15,800,711) (4,962,142)
Income Tax (Provision) Benefit........................ (58,187) 744,756 270,850 744,756
------------- -------------- -------------- -------------
Net Loss (Income).....................................$ (5,489,118) 453,299 (15,529,861) (4,217,386)
============= ============== ============== =============
Net Loss per Common Share,
Basic and Diluted..................................$ (0.11) 0.01 (0.31) (0.08)
============= ============== ============== =============
Weighted average number of common
shares outstanding................................. 49,887,644 49,878,193 49,884,120 49,877,788
============= ============== ============== =============