Exhibit 99.1
Antigenics Reports Fourth Quarter and Year-End 2003
Financial Results and Highlights
NEW YORK--(BUSINESS WIRE)--Feb. 19, 2004--Antigenics Inc.
(Nasdaq:AGEN) reported today financial results and operating
highlights for the quarter and year ended December 31, 2003. For the
three months ended December 31, 2003, the company incurred a net loss
attributable to common stockholders of $18.3 million, or $0.46 per
share, basic and diluted, compared with a net loss attributable to
common stockholders of $16.3 million, or $0.49 per share, basic and
diluted, for the same period in 2002. For the year ended December 31,
2003, Antigenics incurred a net loss attributable to common
stockholders of $66.2 million, or $1.70 per share, basic and diluted,
compared with a net loss attributable to common stockholders of $55.9
million, or $1.70 per share, basic and diluted, for the same period in
2002. The increased losses reflect the further progress of the
company's clinical product candidates, including Oncophage(R)
(HSPPC-96), Antigenics' lead product candidate, and AG-858; costs
associated with the transition of its operations from its Woburn
facility to its Lexington facility; as well as costs associated with
the evolution of other clinical and development projects.
Cash, cash equivalents and short-term investments equaled $89.5
million on December 31, 2003. In February 2004, the company increased
its cash, cash equivalents and short-term investments balance by
completing a public offering of common stock, raising more than $50
million.
Revenues for the three months and year ended December 31, 2003,
were $0.9 million and $4.5 million, respectively, compared with $0.8
million and $3.4 million for the same periods in 2002. Total research
and development expenses for the three months and year ended December
31, 2003, were $12.8 million and $48.5 million, respectively, compared
with $11.5 million and $40.0 million for the same periods in 2002.
Total general and administrative expenses for the three months and
year ended December 31, 2003, were $6.1 million and $21.7 million,
respectively, compared with $5.8 million and $19.5 million for the
same periods in 2002.
"2003 was a year in which Antigenics reached key milestones," said
Garo H. Armen, Ph.D., chairman and CEO of Antigenics. "We enter 2004
equipped with the successful completion of the interim analysis of our
Phase III trial of Oncophage for renal cell carcinoma, a depth of
experience in our management team and board of directors, and a strong
balance sheet -- all of which are critical to our success as we
progress further toward our goal of product commercialization."
Highlights of Antigenics' accomplishments in 2003 include:
Clinical and Regulatory Developments
-- In December 2003, the independent Data Monitoring Committee
(DMC) for the Phase III clinical trial of Oncophage in the
treatment of renal cell carcinoma (RCC) convened as scheduled
for the trial's interim analysis. The DMC recommended that the
trial proceed as planned and that there was no need to change
the patient accrual goals for analysis of the randomized Phase
III trial. The DMC declared the design and conduct of the
trial sound and raised no safety concerns.
-- In November 2003, the US Food and Drug Administration (FDA)
lifted the partial clinical hold on the two Phase III clinical
trials of Oncophage. The FDA's decision to lift the hold came
13 weeks after its request for product characterization
information in September 2003.
-- Antigenics began a Phase II trial of AG-858 cancer vaccine in
chronic myelogenous leukemia (CML) in April 2003 that is being
conducted at leading CML medical centers in the United States
and the United Kingdom.
-- Updated results from clinical trials of HSPPC-70, a
personalized heat shock protein-based vaccine for CML, and
Oncophage were presented at the 45th annual meeting of the
American Society of Hematology in December 2003. In separate
poster sessions, preliminary data from a Phase I study of
HSPPC-70 in CML and from a Phase II trial of Oncophage in
non-Hodgkin's lymphoma indicated that treatment with the heat
shock protein-based vaccines is well tolerated and feasible,
and may be associated with clinical response.
-- Five abstracts were presented at the 39th annual meeting of
the American Society of Clinical Oncology in June 2003,
including an oral presentation of updated results from an
ongoing pilot study of HSPPC-70 in combination with
Gleevec(TM) (imatinib mesylate, Novartis) for treatment of
CML. Interim results from four clinical trials were presented
in poster sessions: two Phase II studies demonstrating that
treatment with Oncophage was associated with clinical and
immunological response in both RCC and non-Hodgkin's lymphoma,
and two clinical trials conducted at Memorial Sloan-Kettering
Cancer Center evaluating cancer vaccines containing
Antigenics' QS-21 immune stimulant.
-- Two abstracts were presented at the 12th annual European
Cancer Conference held in Copenhagen in September 2003,
including an oral presentation of results from a Phase I
clinical trial of Oncophage in patients with nonmetastatic
pancreatic cancer. Also presented in a poster session were
findings from a Phase II trial of Aroplatin(TM) in metastatic
colorectal cancer refractory to standard therapy.
-- "Clinical Cancer Research" published final results from a
Phase II study of Oncophage in colorectal cancer in August
2003. In the study, researchers determined that more than half
of the 29 patients who received Oncophage demonstrated
significant immunological response -- which not only appeared
to be correlated with clinical response but also was found to
be an independent factor for prognosis.
-- Immunological results from Phase II trials evaluating
Oncophage in the treatment of both advanced melanoma and
colorectal cancer were published in the October 2003 issue of
"The Journal of Immunology." In the analysis, researchers
observed a significant cancer-specific immune response among
patients receiving Oncophage and determined that the
immunological mechanism of action is the same for both
melanoma and colorectal cancer.
Corporate Developments
-- Antigenics completed a follow-on offering of common stock in
January 2003, raising net proceeds of approximately $59.5
million; secured a $17.1 million credit facility with GE
Capital in July 2003; and issued $31.6 million worth of newly
created Series A convertible preferred stock in a private
placement with an existing stockholder in September 2003.
-- Antigenics' board of directors appointed Margaret Eisen, Wadih
(Bill) Jordan and Mark Kessel as its newest members.
-- Renu Gupta, M.D., was appointed to the position of senior vice
president of development, Jeff D. Clark was promoted to the
newly created position of chief financial officer and John
Cerio was appointed as the company's vice president of human
resources.
-- Antigenics completed the majority of its move to a new
manufacturing, research and development facility in Lexington,
Massachusetts.
Conference Call Information
Antigenics executives, including Chairman and CEO Garo Armen,
Ph.D., and Senior Vice President of Development Renu Gupta, M.D., will
host a conference call at 11:00 a.m. ET today. To access the live
call, dial 877-416-2362 (domestic) or 706-679-3850 (international);
the access code is 5126017. The call will also be webcast and will be
accessible from the company's Web site at www.antigenics.com/webcast/.
A replay will be available approximately two hours after the call
through midnight ET on March 4, 2004. The replay number is
800-642-1687 (domestic) or 706-645-9291 (international), and the
access code is 5126017. The replay will also be available at
www.antigenics.com.
About Antigenics
Antigenics is working to develop personalized immunotherapeutics
and revolutionary treatments for cancers, infectious diseases and
autoimmune disorders. The company's lead product candidate is
Oncophage, a late-stage, personalized cancer vaccine being evaluated
in several indications, including renal cell carcinoma and metastatic
melanoma. Antigenics' portfolio also includes AG-858, a personalized
cancer vaccine in Phase II development; Aroplatin, a Phase II
liposomal chemotherapeutic; and AG-702, a Phase I genital herpes
immunotherapeutic.
This press release contains forward-looking statements, including
statements regarding product commercialization. These statements are
subject to risks and uncertainties that could cause actual results to
differ materially from those projected in these forward-looking
statements. These risks and uncertainties include, among others, that
the final data from Phase III trials will not sufficiently demonstrate
levels of efficacy and safety necessary to support marketing approval
by the FDA and other regulatory agencies; that Antigenics will be
required to conduct additional Phase III trials of Oncophage in order
to obtain marketing approval even if the final data demonstrate safety
and efficacy; that budget constraints will limit or slow down
Antigenics' commercialization efforts; that Antigenics may fail to
adequately protect its intellectual property or be determined to
infringe on the intellectual property of others; and the factors
described in the company's periodic filings with the Securities and
Exchange Commission. Please see the disclosure under the heading
"Factors That May Impact Future Results" in the Management's
Discussion and Analysis of Financial Condition and Results of
Operations section of the Antigenics Quarterly Report on Form 10-Q for
the quarter ending September 30, 2003, for a more complete discussion
of these and other risk factors. Antigenics cautions investors not to
place considerable reliance on the forward-looking statements
contained in this press release. These statements speak only as of the
date of this document, and Antigenics undertakes no obligation to
update or revise the statements. All forward-looking statements are
expressly qualified in their entirety by this cautionary statement.
Antigenics' business is subject to substantial risks and
uncertainties, including those identified above. When evaluating
Antigenics' business and securities, investors should give careful
consideration to these risks and uncertainties.
Summary Consolidated Financial Information
Consolidated Statements of Operations Data
(in thousands, except per share data)
(unaudited)
Three months ended Year ended
December 31, December 31,
2003 2002 2003 2002
---------- ---------- ---------- ----------
Revenue:
Product sales $ 859 $ 709 $ 3,465 $ 2,627
Research and
development 56 95 985 785
---------- ---------- ---------- ----------
Total revenue 915 804 4,450 3,412
Operating expenses:
Cost of sales 384 345 1,942 1,337
Research and
development 12,829 11,497 48,527 39,983
General and
administrative 6,111 5,779 21,716 19,467
---------- ---------- ---------- ----------
Operating loss (18,409) (16,817) (67,735) (57,375)
Interest income, net 127 288 918 1,225
Other income 227 200 883 272
---------- ---------- ---------- ----------
Net loss (18,055) (16,329) (65,934) (55,878)
Dividends on Series A
Convertible Preferred
Stock 198 - 224 -
---------- ---------- ---------- ----------
Net loss attributable to
common stockholders $ (18,253) $ (16,329) $ (66,158) $ (55,878)
========== ========== ========== ==========
Net loss per common
share attributable to
common stockholders,
basic and diluted $ (0.46) $ (0.49) $ (1.70) $ (1.70)
Weighted average number
of shares outstanding,
basic and diluted 39,490 33,088 38,989 32,905
Consolidated Balance Sheet Data
(in thousands)
(unaudited)
December 31,
2003 2002
---------- ----------
Cash, cash equivalents
and short-term
investments $ 89,478 $ 58,725
Total assets 140,080 89,063
Total stockholders'
equity 105,246 77,757
CONTACT: Antigenics Inc., New York
Tanya R. Sripanich (Investor Relations), 212-994-8266
tsripanich@antigenics.com
or
Sunny Uberoi (Corporate Communications), 212-994-8206
suberoi@antigenics.com