Immunomedics Announces Third Quarter Fiscal 2007 Results
MORRIS PLAINS, N.J., May 8 /PRNewswire-FirstCall/ -- Immunomedics, Inc.
(Nasdaq: IMMU), a biopharmaceutical company focused on developing monoclonal
antibodies to treat cancer and other serious diseases, today reported revenues
of $0.9 million and a net loss of $5.1 million, or $0.08 per share, for the
third quarter of fiscal year 2007, which ended March 31, 2007. This compares to
revenues of $1.3 million and a net loss of $5.7 million, or $0.10 per share, for
the same period last year. Revenues for the three-month period ended March 31,
2007 did not include any amortization of deferred revenues derived from the May
2006 agreement with UCB, due to the decision by UCB to begin new clinical trials
for the treatment of systemic lupus erythematosus ("SLE"). As a result of this
decision, Immunomedics has discontinued the amortization of the deferred revenue
until a determination can be made as to how the UCB decision will impact the
Company's obligations under the UCB agreement. The decrease in net loss for the
three-month period in 2007 was primarily due to higher interest income combined
with lower interest and operating expenses.
For the first nine months of the 2007 fiscal year, the Company reported
revenues of $7.7 million and a net loss of $12.1 million, or $0.20 per share.
This compares to revenue of $2.2 million and a net loss of $23.1 million, or
$0.42 per share, for the same period last year. Recognition of deferred revenue
from the UCB agreement for the first six months of the 2007 fiscal year
contributed to the decrease in net loss for the nine-month period in 2007, as
well as increased sales of LeukoScan in Europe, and higher interest income. The
current period's results also benefited from reduced operating and interest
expenses.
At March 31, 2007, the Company had $27.7 million in cash and marketable
securities. On May 7, 2007, the Company closed on its previously announced $24
million registered direct offering of common stock. After payment of fees and
expenses, the net proceeds to the Company are expected to be approximately $22.3
million.
"We are pleased that our financial results for the third quarter of the
2007 fiscal year were in line with our expectations. Although we have recently
bolstered our cash position with a sale of our common stock, licensing remains
an important means for us to raise capital," commented Gerard G. Gorman, Senior
Vice President, Finance and Business Development, and Chief Financial Officer.
"We are committed to identifying a potential partner for the licensing of hA20
for all indications on a worldwide basis."
About Immunomedics
Immunomedics is a New Jersey-based biopharmaceutical company focused on
the development of monoclonal, antibody-based products for the targeted
treatment of cancer, autoimmune and other serious diseases. We have developed a
number of advanced proprietary technologies that allow us to create humanized
antibodies that can be used either alone in unlabeled or "naked" form, or
conjugated with radioactive isotopes, chemotherapeutics or toxins, in each case
to create highly targeted agents. Using these technologies, we have built a
pipeline of therapeutic product candidates that utilize several different
mechanisms of action. We have licensed our lead product candidate, epratuzumab,
to UCB, S.A. for the treatment of all autoimmune disease indications worldwide.
We have retained the rights for epratuzumab in oncology indications for which
UCB has been granted a buy-in option. UCB has development, manufacture and
commercialization rights, and is responsible for all clinical trials evaluating
epratuzumab for the treatment of patients with moderate and severe lupus. At
present, there is no cure for lupus and no new lupus drug has been approved in
the U.S. in the last 40 years. The Company is conducting clinical trials with
hA20 in patients with non-Hodgkin's lymphoma, epratuzumab as a potential
therapeutic for patients with lymphoma and leukemia, 90Y-epratuzumab for the
therapy of patients with lymphoma, 90Y-hPAM4 for pancreas cancer therapy and
hCD74 as a therapy for patients with multiple myeloma. We believe that our
portfolio of intellectual property, which includes approximately 108 patents
issued in the United States, and more than 250 other issued patents worldwide,
protects our product candidates and technologies. We also have a majority
ownership in IBC Pharmaceuticals, Inc., which is developing a novel Dock and
Lock (DNL) methodology, and a new method of delivering imaging and therapeutic
agents selectively to disease, especially different solid cancers (colorectal,
lung, pancreas, etc.), by proprietary, antibody-based, pretargeting methods. For
additional information on us, please visit our web site at
http://www.immunomedics.com. The information on our website does not, however,
form a part of this press release.
This release, in addition to historical information, may contain forward-
looking statements made pursuant to the Private Securities Litigation Reform Act
of 1995. Such statements, including statements regarding clinical trials,
out-licensing arrangements (including the timing and amount of contingent
payments), forecasts of future operating results, and capital raising
activities, 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), our dependence on our licensing partner for the further
development of epratuzumab for autoimmune indications, competitive risks to
marketed products and availability of required financing and other sources of
funds on acceptable terms, if at all, as well as the risks discussed in the
Company's filings with the Securities and Exchange Commission. 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.
For More Information:
Dr. Chau Cheng
Associate Director, Investor Relations & Business Analysis
(973) 605-8200, extension 123
ccheng@immunomedics.com
IMMUNOMEDICS, INC.
Condensed Consolidated Balance Sheets
March 31, June 30,
2007 2006
ASSETS
Current Assets:
Cash and cash equivalents $12,425,084 $40,877,766
Marketable securities 15,316,000 948,820
Accounts receivable, net of allowance
for doubtful accounts 639,169 498,612
Inventory, net of reserve for
obsolescence 526,250 541,030
Other current assets 716,807 602,736
Restricted cash and securities -
current portion 1,275,200 1,275,200
30,898,510 44,744,164
Property and equipment, net 7,655,961 8,496,060
Restricted securities - long-term
portion 318,800 1,275,200
Other long-term assets 630,941 1,362,419
$39,504,212 $55,877,843
LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT)
Current liabilities $7,099,908 $19,035,185
Long-term debt 1,015,717 29,525,377
Deferred revenues - long term 31,145,385 25,810,769
Minority interest 102,825 182,000
Stockholders' equity (deficit) 140,377 (18,675,488)
$39,504,212 $55,877,843
Condensed Consolidated Statements of Operations
Three Months Ended Nine Months Ended
March 31, March 31,
2007 2006 2007 2006
Revenues:
Product sales $ 839,438 $ 1,142,461 $ 2,160,146 $ 1,685,186
License fee and
other revenues 32,577 83,250 5,373,443 246,931
Research &
development 67,145 89,523 134,285 268,570
Total Revenues $ 939,160 1,315,234 7,667,874 2,200,687
Costs and Expenses 5,829,642 6,008,414 18,458,259 21,337,742
Operating Loss (4,890,482) (4,693,180) (10,790,385) (19,137,055)
Interest and Other
Income (Expense) (206,002) (1,049,841) (1,872,836) (4,484,350)
Loss before Income
Tax Expense (5,096,484) (5,743,021) (12,663,221) (23,621,405)
Income Tax(Expense)
Benefit (44,021) -- 559,723 514,350
Net Loss $ (5,140,505) $ (5,743,021) $(12,103,498) $(23,107,055)
Net Loss per
Common Share,
Basic and
Diluted $ (0.08) $ (0.10) $ (0.20) $ (0.42)
Weighted average
number of common
shares
outstanding 65,000,333 55,670,994 60,065,038 54,606,327
SOURCE Immunomedics, Inc.
-0- 05/08/2007
/CONTACT: Dr. Chau Cheng, Associate Director, Investor Relations &
Business Analysis of Immunomedics, Inc., +1-973-605-8200, ext. 123,
ccheng@immunomedics.com/
/Company News On-Call: http://www.prnewswire.com/comp/113121.html/
/Web site: http://www.immunomedics.com/