Exhibit 99.1
Antigenics Reports Fourth Quarter and Year-End 2005 Financial Results
and Highlights
NEW YORK--(BUSINESS WIRE)--Feb. 23, 2006--Antigenics Inc.
(NASDAQ:AGEN) today reported financial results and operating
highlights for the quarter and year ended December 31, 2005. For the
three months ended December 31, 2005, the company incurred a net loss
attributable to common stockholders of $17.9 million, or $0.39 per
share, basic and diluted, compared with a net loss attributable to
common stockholders of $17.6 million, or $0.39 per share, basic and
diluted, for the same period in 2004. For the year ended December 31,
2005, Antigenics incurred a net loss attributable to common
stockholders of $74.9 million, or $1.64 per share, basic and diluted,
compared with a net loss attributable to common stockholders of $57.0
million, or $1.27 per share, basic and diluted, for the same period in
2004. The increase in net loss from continuing operations reflects the
costs to advance development of the company's product candidates,
including Oncophage(R) (vitespen; formerly HSPPC-96), Antigenics' lead
product candidate, as well as costs associated with other clinical and
development projects. The increase in net loss attributable to common
stockholders compared with that in 2004 is primarily attributable to
the gain on the sale to Virbac S.A. during 2004, of our manufacturing
rights for feline leukemia vaccine, as well as increased research and
development expenses associated with our clinical programs during
2005. Cash, cash equivalents and short-term investments amounted to
$61.7 million on December 31, 2005.
"In 2005, we generated our first randomized Phase 3 data with
Oncophage, which showed that a prospectively defined group of
better-prognosis stage IV melanoma patients who received Oncophage
appeared to be living much longer than similar patients who did not
receive the vaccine," said Garo H. Armen, PhD, chairman and CEO of
Antigenics. "With data from our Phase 3 kidney cancer trial being
analyzed in the coming weeks, we hope to further demonstrate the
clinical activity of Oncophage. Our other vital development programs,
including Aroplatin(TM), AG-707 and our QS-21 adjuvant, continue to
progress, positioning Antigenics as a company with a diversified
pipeline offering multiple sources of potential revenue."
Corporate Highlights
-- A Phase 3 trial testing Oncophage, a patient-specific
therapeutic cancer vaccine, in adjuvant renal cell carcinoma
(RCC; the most common form of kidney cancer) is on track for
data analysis in March 2006, with top-line data available
shortly thereafter.
-- Antigenics anticipates publishing final data from a Phase 3
trial testing Oncophage in metastatic melanoma in a
peer-reviewed journal and presenting it at an upcoming medical
conference. Preliminary data showed a greater than 50-percent
improvement (not statistically significant) in median survival
on an intent-to-treat basis in stage IV M1a patients in the
Oncophage-treated arm compared with those in the physician's
choice arm (20.9 months versus 12.8 months).
-- The company continues to pursue Phase 1/2 trials evaluating
Oncophage in combination with chemotherapeutic or biological
agents, with the goal of generating information related to
safety and tumor response in cancer patients with more
advanced disease. The first US investigational new drug (IND)
application for the study of Oncophage in combination with
ATRA-IV in a Phase 1 trial in patients with metastatic RCC and
melanoma has been approved.
-- An investigator-sponsored Phase 1/2 study of Oncophage as a
treatment for recurrent glioma is being conducted at the Brain
Tumor Research Center at the University of California, San
Francisco. The first patient has been enrolled.
-- A multicenter Phase 1 clinical trial has been initiated with
Aroplatin, a liposomal formulation of a proprietary platinum
chemotherapeutic. This dose-ranging study involves patients
with advanced solid malignancies or B-cell lymphoma, and will
evaluate the safety and pharmacokinetic profile of Aroplatin,
which has been reformulated to enhance the drug's activation
and stability.
-- AG-707, a therapeutic vaccine for genital herpes, is under
investigation in a Phase 1 multicenter clinical trial
evaluating the safety of and immune response to AG-707 in
patients infected with herpes simplex virus type 2, the
primary cause of genital herpes.
-- An expanded exploratory Phase 2 clinical study is underway
with AG-858, a patient-specific therapeutic cancer vaccine, in
combination with Gleevec(R) (imatinib mesylate, Novartis) for
the treatment of chronic myelogenous leukemia patients
refractory to Gleevec. The trial will assess extended dosing
of AG-858.
-- The company continues to advance important preclinical
programs, such as AU-801 for the treatment of autoimmune
diseases and higher-activity Oncophage made through an
improved process.
-- A number of Antigenics' partners' products containing our
QS-21 adjuvant have advanced in the clinic. The company
estimates that as many as five products containing QS-21 have
significant commercial potential and may enter the market over
the next several years, potentially generating significant
royalty income for Antigenics.
-- Antigenics is operating with a streamlined organization
following the December 2005 reevaluation of its preclinical
and clinical development programs, which resulted in headcount
reductions across functions and significant cost savings in
future periods. The company has also strategically invested in
key hires, including Bruce A. Leicher as vice president and
general counsel and Jill M. Forrest as vice president of
marketing and sales.
Conference Call Information
Antigenics executives will host a conference call at 11:00 a.m. ET
today. To access the live call, dial 888.271.9082 (domestic) or
706.679.7741 (international); the access code is 5442896. 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 9,
2006. The replay number is 800.642.1687 (domestic) or 706.645.9291
(international), and the access code is 5442896. The replay will also
be available on the company's Web site approximately two hours after
the live call.
About Antigenics
Antigenics is a biotechnology company working to develop
patient-specific immunotherapeutics and revolutionary treatments for
cancers, infectious diseases and autoimmune disorders. The company's
lead product candidate is Oncophage (vitespen; formerly HSPPC-96), a
late-stage, patient-specific cancer vaccine being evaluated in several
indications, including renal cell carcinoma and metastatic melanoma.
Antigenics' portfolio of investigational products also includes AG-858
(HSPPC-70), a patient-specific cancer vaccine in Phase 2 development;
two liposomal cancer treatments, Aroplatin and ATRA-IV; AG-707, a
Phase 1 genital herpes vaccine; and QS-21, an immune adjuvant. For
more information, please visit www.antigenics.com.
This press release contains forward-looking statements, including
statements regarding the further demonstration of clinical activity of
Oncophage, the revenue-generating potential of the product pipeline,
the timing of analysis and announcement of data from the Phase 3 trial
in RCC, timing of and plans to publish and present data from the Phase
3 trial in melanoma, plans to commence new clinical trials, plans to
generate information related to the safety, efficacy,
pharmacokinetics, dosing and immune response generation of product
candidates, plans to advance preclinical programs and the commercial
potential and market entry of products containing QS-21 as well as
associated royalty income for Antigenics. These forward-looking
statements are subject to risks and uncertainties that could cause
actual results to differ materially. These risks and uncertainties
include, among others, timing of events in the RCC trial, the results
of clinical trials, the cost of additional clinical trials, the
ability to raise additional capital, and the factors described under
Factors That May Impact Future Results in the Management's Discussion
and Analysis of Financial Condition and Results of Operations section
of Antigenics' Form 10-Q as filed with the Securities and Exchange
Commission on November 4, 2005. 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
Condensed Consolidated Statements of Operations Data
(in thousands, except per share data)
(unaudited)
Three months ended Year ended
December 31, December 31,
2005 2004 2005 2004
--------- --------- --------- ---------
Revenue $ 348 $ 128 $ 630 $ 707
Operating expenses:
Cost of sales - - - 5
Research and development 10,689 10,077 47,080 41,718
General and administrative 6,361 7,345 25,869 25,784
Severance costs 990 - 1,596 -
Acquired in-process research
and development - - - 2,888
-------- -------- -------- --------
Operating loss (17,692) (17,294) (73,915) (69,688)
Other (expense) income, net (26) 290 (189) 937
--------- --------- --------- ---------
Loss from continuing operations (17,718) (17,004) (74,104) (68,751)
Income (loss) from
discontinued operations, net
of tax (including gain on
disposal of $14,000 in 2004) - (445) - 12,589
--------- --------- --------- ---------
Net loss (17,718) (17,449) (74,104) (56,162)
Dividends on Series A
convertible preferred stock (198) (197) (791) (790)
Net loss attributable to common -------- --------- --------- ---------
stockholders $(17,916) $(17,646) $(74,895) $(56,952)
======== ======== ======== ========
Per common share data:
Loss from continuing
operations, basic and diluted$ (0.39) $ (0.38) $ (1.64) $ (1.56)
Net loss attributable to
common stockholders, basic
and diluted $ (0.39) $ (0.39) $ (1.64) $ (1.27)
Weighted average number of
common shares outstanding,
basic and diluted 45,591 45,518 45,577 44,685
Condensed Consolidated Balance Sheet Data
(in thousands)
(unaudited)
December 31, December 31,
2005 2004
----------- -------------
Cash, cash equivalents and
short-term investments $ 61,748 $ 86,921
Total assets 104,151 133,058
Total stockholders' equity 31,899 106,443
CONTACT: Antigenics Inc.
Investor Relations:
Shalini Sharp, 800-962-2436
ir@antigenics.com
or
Corporate Communications:
Sunny Uberoi, 212-994-8206
suberoi@antigenics.com