EXHIBIT 99.2
ALTAREX ANNOUNCES FINANCIAL RESULTS FOR SECOND QUARTER 2002
WALTHAM, Mass., Aug. 29 /CNW/-- AltaRex Corp. (TSE: AXO, OTC: ALXFF.PK),
announced its financial results for the second quarter ended June 30, 2002. All
amounts reported are in Canadian dollars unless otherwise stated.
The Company recorded a net loss of $0.5 million, or ($0.01) per share, for the
three months ended June 30, 2002 compared to a net loss of $7.5 million, or
($0.28) per share, for the same period in 2001. For the six month period ended
June 30, 2002, the Company recorded a net loss of $6.2 million, or ($0.17) per
share, compared to a net loss of $13.8 million, or ($0.54) per share, for the
same period in 2001. The decreased net loss for each of the 2002 periods
primarily reflected the assumption by United Therapeutics Corporation of all
expenses associated with the ongoing development of OvaRex(R) MAb, including
certain former personnel of the Company, pursuant to the License Agreement
signed by the Company and United Therapeutics on April 17, 2002. The losses for
the three and six month periods ended June 30, 2002 were offset by the
reimbursement of $2.37 million by United Therapeutics of costs incurred prior to
April 17, 2002 associated with OvaRex(R) manufacturing and other development
expenses.
At June 30, 2002, the Company's cash, cash equivalents and short-term
investments totaled $2.7 million as compared to $16.2 million at June 30, 2001
and $9.1 million at December 31, 2001. Subsequent to the close of the second
quarter, in August 2002, United Therapeutics exercised a warrant issued pursuant
to a License Agreement with the Company and purchased 3.25 million common shares
of the Company for an aggregate purchase price of approximately $2.6 million
(US$1.625 million). United Therapeutics also purchased a second convertible
debenture in the principal amount of $1.39 million (US$875,000) of which
approximately $0.7 million (US$441,960) of the principal amount thereof has
since automatically converted into 883,380 common shares of the Company.
AltaRex Corp. is focused on the research, development and commercialization of
antigen-targeted antibody-based therapies for life threatening diseases
utilizing monoclonal antibodies as immunotherapeutic agents.
For additional information about AltaRex, visit the Company website at
www.altarex.com.
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, the need to obtain and
maintain corporate alliances, such as the alliance with United Therapeutics, and
the risk that the Company cannot establish corporate alliances on a timely
basis, on satisfactory terms, or at all, changing market conditions,
uncertainties regarding the timely and successful completion of clinical trials
and patient enrollment rates, uncertainty of pre-clinical, retrospective, early
and interim clinical trial results, which may not be indicative of results that
will be obtained in ongoing or future clinical trials, whether the Company
and/or its
collaborators will file for regulatory approval on a timely basis, uncertainties
as to when, if at all, the FDA will accept or approve regulatory filings for the
Company's products, the need to establish and scale-up manufacturing processes,
uncertainty as to the timely development 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 Company does not
assume any obligation to update any forward-looking statement.
THE TORONTO STOCK EXCHANGE HAS NOT APPROVED OR DISAPPROVED OF THE INFORMATION
CONTAINED HEREIN
Condensed Consolidated Statement of Operations
(In Canadian dollars, Unaudited)
Three months ended Six months ended
June 30, June 30, June 30, June 30,
2002 2001 2002 2001
Revenues $ 2,510 $ 141,238 $ 27,545 $ 326,607
Expenses
Research &
development (1,150,444) 5,672,897 2,875,312 10,742,349
General &
administration 1,682,412 1,938,259 3,320,088 3,391,906
531,968 7,611,156 6,195,400 14,134,255
Net loss for
the period $ (529,458) $(7,469,918) $(6,167,855) $(13,807,648)
Net loss per
common share $ (0.01) $ (0.28) $ (0.17) $ (0.54)
Weighted average
number of
common shares
outstanding 40,823,056 26,434,411 36,751,956 25,364,234
Condensed Consolidated Balance Sheet
(In Canadian dollars, Unaudited)
As of As of
June 30, Dec. 31,
2002 2001
ASSETS
Cash and cash equivalents $ 2,672,363 $ 8,211,313
Short-term investments -- 856,051
Other current assets 1,315,699 853,152
Capital assets, net 468,309 634,870
Other assets 235,671 235,671
Total assets $ 4,692,102 $10,791,057
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 3,460,951 $ 7,383,751
Total shareholder's equity 1,231,151 3,407,306
Total liabilities and shareholders' equity $ 4,692,102 $10,791,057
Contact:
Kathy Theriault
Corporate Controller
(781) 672-0138
investor@altarex.com
FOR FURTHER INFORMATION
Kathy Theriault, Corporate Controller of AltaRex Corp., +1-781-672-0138,
investor@altarex.com