(ALTAREX CORP. LOGO)
CONTACT:
Robert Newman
Vice President, Business Operations
(781) 672-0138
investor@altarex.com
ALTAREX ANNOUNCES FINANCIAL RESULTS FOR FOURTH QUARTER AND YEAR ENDED
DECEMBER 31, 2002
WALTHAM, MA, APRIL 9, 2003 - ALTAREX CORP. (AXO.TO, ALXFF.OTC) announced its
financial results for the fourth quarter and year ended December 31, 2002. All
dollars reported are Canadian.
The Company recorded a net loss of $0.8 million, or $0.02 per share, for the
three months ended December 31, 2002 compared to a net loss of $10.1 million, or
$0.31 per share, for the same period in 2001. For the year ended December 31,
2002, the Company recorded a net loss of $8.5 million, or $0.20 per share,
compared to a net loss of $33.8 million, or $1.21 per share, for the same period
in 2001. The decreased net loss for each of the 2002 periods primarily reflects
the April 17, 2002 license to United Therapeutics Corporation of the Company's
OvaRex(R) and certain other MAb products for North America, Japan, and other
countries, United's assumption of ongoing development responsibilities and
associated expenses of OvaRex(R) MAb in the licensed territory, United's hiring
of certain former personnel of the Company and a resulting significant decrease
in the Company's research and development and supporting general administrative
expenses in the third and fourth quarters of 2002.
At December 31, 2002, the Company's cash, cash equivalents and short-term
investments totaled $3.6 million as compared to $9.1 million at December 31,
2001. The Company believes that its available cash and cash equivalents and
interest earned thereon should be sufficient to finance its operations and
capital needs into the third quarter of 2003. The Company is currently pursuing
corporate alliances and financing options in order to raise the cash required to
continue to fund its operations.
AltaRex Corp. is focused on the research, development and commercialization of
foreign antibodies that modulate the immune system for the treatment of certain
cancers and other diseases where there exists an unmet medical need. Additional
information about AltaRex Corp. can be found on its 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 the Company's need for capital; 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 Corporation, 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 and
other similar regulatory agencies will accept or approve regulatory filings for
the Company's products; the need to establish and scale-up manufacturing
ALTAREX CORP.
SUITE 350, 1601 TRAPELO ROAD
WALTHAM, MA 02451
TEL. 781-672-0138 FAX. 781-672-0142
processes, uncertainty as to the timely development and market acceptance of the
Company's products; the risk that the claims allowed under any issued patent
owned or licensed by the Company will not be sufficiently broad to protect the
Company's technology, that any patents issued to the Company will not be
sustained if challenged in court proceedings or otherwise or that third parties
will be able to develop products or processes that do not infringe valid patents
owned or licensed by the Company, 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
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FINANCIAL TABLES TO FOLLOW
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In Canadian dollars, Unaudited)
THREE MONTHS ENDED YEAR ENDED
------------------------------- -------------------------------
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2002 2001 2002 2001
------------ ------------ ------------ ------------
Revenues $ 5,715 $ 69,737 $ 34,765 $ 523,095
------------ ------------ ------------ ------------
Expenses
Research & development (150,506) 8,361,566 2,893,435 26,919,785
General & administration 989,351 1,803,827 5,610,591 7,405,677
------------ ------------ ------------ ------------
838,845 10,165,393 8,504,026 34,325,462
------------ ------------ ------------ ------------
Net loss for the period $ (833,130) $(10,095,656) $ (8,469,261) $(33,802,367)
============ ============ ============ ============
Net loss per common share $ (0.02) $ (0.31) $ (0.20) $ (1.21)
============ ============ ============ ============
Weighted average number of
common shares outstanding 45,896,936 32,473,156 41,821,767 27,962,625
============ ============ ============ ============
CONDENSED CONSOLIDATED BALANCE SHEET
(In Canadian dollars, Unaudited)
AS OF AS OF
DECEMBER 31, DECEMBER 31,
2002 2001
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ASSETS
Cash and cash equivalents $ 3,625,736 $ 8,211,313
Short-term investments -- 856,051
Other current assets 552,350 853,152
Capital assets, net 325,846 634,870
Other assets 42,935 235,671
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TOTAL ASSETS $ 4,546,867 $10,791,057
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 1,646,759 $ 7,383,751
Debt 674,763 --
Total shareholder's equity 2,225,345 3,407,306
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 4,546,867 $10,791,057
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