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EXHIBIT NO. 99.1
CONTACTS:
Sondra Henrichon Wayne Hendry
Director, Investor Relations and Corporate Communications Investor Relations
AltaRex Corp. The Equicom Group, Inc
Waltham, MA USA Toronto, ON Canada
(781) 672-0138 ext. 1510 (416)815-0700 ext. 238
shenrichon@altarex.com whendry@equicomgroup.com
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FOR IMMEDIATE RELEASE
ALTAREX ANNOUNCES FINANCIAL RESULTS FOR THE FOURTH QUARTER 2000
- HIGHLIGHTS ACCOMPLISHMENTS -
WALTHAM, MA, MARCH 14, 2001- ALTAREX CORP. (TSE: AXO, OTC: ALXFF), a developer
of antigen-targeted monoclonal antibodies for the treatment of certain cancers,
today announced its financial results for the fourth quarter and for the year
ending December 31, 2000. All dollars reported are Canadian.
In summary, the Company reported a net loss for the fourth quarter of 2000 of
$5.4 million or $0.29 per share compared to a net loss of $4.4 million or $0.32
per share for the fourth quarter of 1999. The net loss for the year ended
December 31, 2000 was $17.7 million or $1.08 per share compared to a net loss of
$24.0 million or $2.32 per share for the year ended December 31, 1999. As of
December 31, 2000, the Company's cash and short-term investments totaled $13.3
million which was increased on February 13, 2001 by the net proceeds of
approximately $7.2 million from the sale of 4.4 million common shares in a
public offering.
"The positive news in the last quarter of 2000 and into 2001 from our studies
of OvaRex(R) and BrevaRex(R) MAbs demonstrates a consistency of findings and a
growing basis of data to support the final stages of development of OvaRex(R)
and the advancement of BrevaRex(R) into further clinical study", commented
Richard Bagley, President and CEO of AltaRex. "The recent announcements of our
U.S. patent allowance and the extension of our technology platform into
prostate cancer and infectious disease are indicative of what we believe to be
growing value for shareholders of AltaRex."
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ALTAREX FOURTH QUARTER 2000 RESULTS
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In the fourth quarter of 2000 and into 2001, the Company announced developments
in clinical trials, partnering, intellectual property and funding, all
reflecting the successful achievement of a number of important milestones:
* Data announced from clinical trials of OvaRex(R) MAb and BrevaRex(R) MAb
support the Company's belief that its antibodies induce therapeutically
beneficial, robust immune responses with a benign safety profile. The
apparent lack of significant toxicity demonstrated in these trials
differentiates OvaRex(R) MAb and BrevaRex(R) MAb from current
chemotherapeutic choices and could contribute positively to patients'
quality of life.
- In an interim analysis of its lead 345-patient double blind,
placebo-controlled Phase IIb OvaRex(R) trial, the Company announced
more than doubling in time to relapse among ovarian cancer patients
who mounted an immune response to OvaRex(R) MAb.
- In results from our Phase II OvaRex(R) trials in Vancouver and Dallas,
the Company announced a survival benefit comparable to "salvage"
chemotherapy without the severe side effects seen with such
chemotherapy.
- In studies of both OvaRex(R) MAb and BrevaRex(R) MAb, the Company has
noted the broad activation of T-cells and the cellular arm of the
immune system.
- BrevaRex(R) clinical results, in combination with the results of a
laboratory study published in the journal BLOOD (BLOOD 2000, 96:3147),
provide strong rationale to pursue the treatment of multiple myeloma
with BrevaRex(R) MAb.
OvaRex(R) MAb continues in late stage development for the treatment of
ovarian cancer, with two potentially pivotal trials scheduled for primary
analysis during 2001. Results from a total of six trials will form the
foundation of data for the Company's U.S. Biologics License Application
(BLA), expected to begin by year end 2001, under Fast Track provisions
granted OvaRex(R) MAb by the U.S. Food and Drug Administration. The benefit
to the Company of Fast Track designation is the ability to bring OvaRex(R)
MAb to market at an earlier stage of clinical development than otherwise
allowed.
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ALTAREX FOURTH QUARTER 2000 RESULTS
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More specifically, the Company plans to seek approval of OvaRex(R) MAb
based on results from Phase II/IIb clinical trials, with a post-approval
commitment for additional patient study.
* The Company's intellectual property position has been significantly
strengthened. The Company received notice of allowance of claims for a
cornerstone "multi-epitopic" patent that is initially applicable to
OvaRex(R) MAb . The allowed claims cover the Company's novel technology of
administering a low-dose foreign antibody (OvaRex(R) MAb) to any patient
expressing the target antigen (CA125) and thereby activating an anti-tumor
immune response unique to that individual. This "multi-epitopic" patent
allowance has positive implications for the Company's entire antibody
pipeline. The Company has filed, and continues to file, multiple patent
applications in the U.S. and internationally that will enable it to protect
its proprietary technology.
* The Company announced the formation of a strategic alliance with regional
leader Dompe Farmaceutici S.p.A. for the commercialization of its lead
product OvaRex(R) MAb in Italy, Spain, Portugal, Switzerland, Austria and
certain Eastern European countries. Under the terms of the Memorandum of
Understanding dated November 15, 2000, Dompe also has the right of first
offer in these territories for additional cancer antibodies being developed
by AltaRex. In connection with this alliance, Dompe purchased 3.5 million
AltaRex common shares in a private placement at $2.20 per share, for net
proceeds to the Company of approximately $7.75 million.
* The private placement of 3.5 million common shares with Dompe was followed
by the closing of the sale of 4.4 million common shares for net proceeds of
approximately $7.2 million in a public offering in February, 2001. In this
offering, the Company again attracted institutional investors in both the
U.S. and Canada and increased its visibility throughout the institutional
investment community. The completion of this offering was preceded by the
implementation in November, 2000 of a previously approved one-for-four
share consolidation.
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ALTAREX FOURTH QUARTER 2000 RESULTS
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The increase in net loss of $1.0 million for the fourth quarter of 2000 as
compared to the fourth quarter of 1999 was due primarily to the increased costs
associated with clinical trials of OvaRex(R) MAb. The decrease in net loss of
$6.3 million for the year ended December 31, 2000 as compared to the year ended
December 31, 1999 reflected the effect of cost reduction activities implemented
in late 1999 on research and development as well as general and administrative
expenses, and the lack of litigation expense that was prominent in 1999. The
decrease in net loss per share for both the fourth quarter and the year ended
December 31, 2000, as compared to the same periods in 1999, also reflect the
increase in the weighted average number of common shares outstanding as a result
of various issuances of common shares which raised a net total of $22.5 million
in capital in 2000 and $17.6 million in 1999.
Additional information about AltaRex research and development, news and events
can be found on its web site at www.altarex.com. Clinical information can also
be found at www.centerwatch.com. Additional information about ovarian cancer can
be found at www.nci.nih.gov, www.ovariancanada.org and at www.ovarian.org.
This news release contains forward-looking statements that involve risks and
uncertainties, which may cause actual results to differ materially from the
statements made. For this purpose, any statements that are contained herein that
are not statements of historical fact may be deemed to be forward-looking
statements. Without limiting the foregoing, the words "believes," "anticipates,"
"plans," "intends," "expects" and similar expressions are intended to identify
forward-looking statements. Such risks and uncertainties include, but are not
limited to our need for capital and the risk that the Company can not raise
funds on a timely basis on satisfactory terms or at all, changing market
conditions, completion of clinical trials, patient enrollment rates, uncertainty
of pre-clinical, retrospective and early clinical trial results, which may not
be indicative of results that will be obtained in ongoing or future clinical
trials, the establishment of manufacturing processes and new corporate
alliances, the timely development, regulatory approval and market acceptance of
the Company's products, uncertainty as to whether patents will issue from
pending patent applications and, if issued, as to whether such patents will be
sufficiently broad to protect the Company's technology, and other risks detailed
from time-to-time in the Company's filings with the United States Securities and
Exchange Commission and Canadian securities authorities.
THE TORONTO STOCK EXCHANGE HAS NOT APPROVED OR DISAPPROVED OF THE
INFORMATION CONTAINED HEREIN.
- FINANCIAL TABLES TO FOLLOW -
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ALTAREX FOURTH QUARTER 2000 RESULTS
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CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In Canadian dollars, unaudited)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
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2000 1999 2000 1999
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Revenue $ 81,807 $ 115,153 $ 389,826 $ 687,710
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Expenses
Research and development 3,586,631 2,872,129 12,022,218 12,828,617
General and administration 1,895,316 6,091,686 1,587,043 6,802,546
Settlement costs -- 59,002 -- 5,074,714
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5,481,947 4,518,174 18,113,904 24,705,877
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Net loss for the period $ (5,400,140) $ (4,403,021) $(17,724,078) $(24,018,167)
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Net loss per common share $ (0.29) $ (0.32) $ (1.08) $ (2.32)
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Weighted average number of
Common shares outstanding 18,854,087 13,903,153 16,433,031 10,347,434
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CONDENSED CONSOLIDATED BALANCE SHEET
(In Canadian dollars, unaudited)
DECEMBER 31,
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2000 1999
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ASSETS
Cash and short-term investments $13,256,510 $ 7,206,680
Other current assets 429,704 153,900
Capital assets, net 490,115 934,893
Other assets 578,227 271,956
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$14,754,556 $ 8,567,429
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 3,793,766 $ 2,302,960
Deferred lease credit and other liabilities -- 46,513
Shareholders' equity 10,960,790 6,217,956
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$14,754,556 $ 8,567,429
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