Exhibit 99.1
Antigenics Reports First Quarter 2006 Financial Results
NEW YORK--(BUSINESS WIRE)--May 3, 2006--Antigenics Inc. (NASDAQ:
AGEN) reported results today for the quarter ended March 31, 2006. The
company incurred a net loss attributable to common stockholders of
$16.3 million, or $0.36 per share, basic and diluted, for the first
quarter of 2006, compared with a net loss attributable to common
stockholders in the first quarter of 2005 of $18.2 million, or $0.40
per share, basic and diluted. Reflecting continued activity and
shifting emphasis in the company's product candidate portfolio,
Antigenics incurred reduced research and development costs of $9.7
million for the quarter ended March 31, 2006, compared with $11.3
million for the quarter ended March 31, 2005. General and
administrative expenses decreased to $6.3 million in the quarter ended
March 31, 2006, from $6.8 million in the comparable period last year.
Cash, cash equivalents and short-term investments amounted to $44.5
million on March 31, 2006. As a result of the adoption, effective
January 1, 2006, of Statement of Financial Accounting Standards No.
123R, related to the expensing of stock-based compensation, Antigenics
incurred a non-cash charge of $0.9 million, or $0.02 per share, basic
and diluted, in the first quarter of 2006. Of this charge, $0.3
million was included in research and development costs, and $0.6
million was included in general and administrative expenses.
"The first quarter has been a transitional period for Antigenics,
as we position the company to operate at a lower burn rate for the
balance of the year. In addition, our priorities are to complete the
in-depth analysis of our Phase 3 renal cell carcinoma trial and
continue to pursue our Phase 1 and preclinical programs as well as
partnering activities," said Garo H. Armen, PhD, chairman and CEO of
Antigenics.
Corporate Update
-- In March, Antigenics announced top-line results that its Phase
3 study of Oncophage(R) (vitespen) in nonmetastatic kidney
cancer did not meet its endpoints.
-- An in-depth analysis of data from the Phase 3 kidney cancer
trial is expected to be completed in late May, and the results
will be discussed with the US Food and Drug Administration and
a panel of experts. At the conclusion of these meetings, the
results will be made public, and development plans for
Oncophage as a monotherapy and in combination therapy for
various cancer indications will be updated.
-- Updated results of the final analysis of Antigenics' Phase 3
study of Oncophage in metastatic melanoma are planned for
release in the second quarter of 2006.
-- Enrollment continues in Phase 1 studies of AG-707 in genital
herpes and Aroplatin(TM) (L-NDDP) in solid tumors and B-cell
lymphomas.
-- An investigator-sponsored Phase 1/2 study of Oncophage in
recurrent glioma, which is being conducted at the University
of California, San Francisco, has fully enrolled its first
cohort of patients. The second cohort is expected to begin
enrolling next month.
-- Antigenics continues to make progress in developing leads such
as AU-801 for autoimmune diseases.
-- In order to prudently manage its cash balances, Antigenics
recently implemented a restructuring, resulting in a more
focused product development effort and the elimination of 42
positions. This initiative should result in an estimated
annualized net cash burn rate (cash used in operating
activities plus cash from investing activities and debt
repayments), based on our current plans, of approximately $35
million from the third quarter of 2006 onward. Antigenics'
current cash resources are estimated to be sufficient to fund
the company's operations through mid-2007.
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 8085047. The call
will also be webcast and will be accessible from the company's website
at www.antigenics.com/webcast/. A replay will be available
approximately two hours after the call through midnight ET on May 17,
2006. The replay number is 800.642.1687 (domestic) or 706.645.9291
(international), and the access code is 8085047. The replay will also
be available on the company's website approximately two hours after
the live call.
About Antigenics
Antigenics is a biotechnology company working to develop
treatments for cancers, infectious diseases and autoimmune disorders.
The company's investigational product portfolio includes Oncophage(R)
(vitespen), a patient-specific therapeutic cancer vaccine being
evaluated in several indications; Aroplatin(TM) (L-NDDP), a liposomal,
third-generation platinum chemotherapeutic; ATRA-IV, a liposomal
retinoic acid; AG-707, a therapeutic vaccine for the treatment of
genital herpes; AU-801, a preclinical program targeting autoimmune
disorders; and QS-21, an adjuvant being evaluated by Antigenics'
corporate partners in several late-stage clinical trials. For more
information, please visit www.antigenics.com.
This press release contains forward-looking statements, including
statements regarding the company's ongoing analysis of the Oncophage
Part 1 kidney cancer trial data; the planned release of such data and
the future development of Oncophage; the company's plans for
restructuring and reduction of its burn rate; its future preclinical
and Phase 1 clinical programs involving Aroplatin, AG-707 and AU-801;
and its collaborative partnering activities. These risks and
uncertainties include, among others, the risk of unfavorable data
resulting from the analysis of the Oncophage Part 1 kidney cancer
trial data; retention of key employees; clinical trial enrollment;
decisions by collaborative partners; decisions by regulatory agencies;
timing and results of preclinical studies; 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-K as filed with the
Securities and Exchange Commission on March 15, 2006. 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
March 31,
2006 2005
--------- ---------
Revenue $60 $120
Operating expenses:
Research and development 9,672 11,304
General and administrative 6,328 6,800
--------- ---------
Operating loss (15,940) (17,984)
Other expense, net (179) (19)
--------- ---------
Net loss (16,119) (18,003)
Dividends on Series A convertible preferred stock (198) (198)
--------- ---------
Net loss attributable to common stockholders $(16,317) $(18,201)
========= =========
Per common share data:
Net loss attributable to common stockholders,
basic and diluted $(0.36) $(0.40)
Weighted average number of common shares
outstanding, basic and diluted 45,702 45,563
Condensed Consolidated Balance Sheet Data
(in thousands)
(unaudited)
March 31, December 31,
2006 2005
--------- ----------
Cash, cash equivalents and short-term investments $44,459 $61,748
Total assets 84,019 104,151
Total stockholders' equity 16,710 31,899
CONTACT: Antigenics Inc.
Investor Relations:
Shalini Sharp, 800-962-2436
ir@antigenics.com
or
Corporate Communications:
Sunny Uberoi, 212-994-8206
suberoi@antigenics.com