Exhibit 99.1
Antigenics Reports Second Quarter 2006 Financial Results
NEW YORK--(BUSINESS WIRE)--Aug. 1, 2006--Antigenics Inc. (NASDAQ:
AGEN) reported results today for the quarter ended June 30, 2006. The
company incurred a net loss attributable to common stockholders of
$14.3 million, or $0.31 per share, basic and diluted, for the second
quarter of 2006, compared with a net loss attributable to common
stockholders in the second quarter of 2005 of $21.3 million, or $0.47
per share, basic and diluted. The decreased loss reflects, among other
factors, the company's ongoing commitment to reducing cash burn.
Research and development costs decreased to $7.9 million in the
quarter ended June 30, 2006, compared with $13.1 million for the
quarter ended June 30, 2005. General and administrative expenses
decreased to $5.4 million in the quarter ended June 30, 2006, compared
with $7.5 million in the same period in 2005. As a result of the
adoption of Statement of Financial Standards No. 123R, effective
January 1, 2006, Antigenics incurred a non-cash charge related to the
expensing of stock-based compensation of $1.0 million, or $0.02 per
share, basic and diluted, in the second quarter of 2006. Of this
charge, $0.1 million was included in research and development costs,
and $0.9 million was included in general and administrative expenses.
Cash, cash equivalents and short-term investments amounted to $31.9
million on June 30, 2006. Subsequent to the end of the quarter,
Antigenics received a $3 million cash payment related to QS-21.
"In the past year we have significantly reduced our burn rate
while simultaneously positioning Antigenics to maximize the value of
our most important assets, including Oncophage, QS-21, Aroplatin and
AG-707," said Garo H. Armen, PhD, chairman and CEO of Antigenics.
"Additional analysis of our Phase 3 trials in kidney cancer and
melanoma indicates that Oncophage is associated with clinically
meaningful benefit in better-prognosis patients. In addition, our new
QS-21 license and supply agreements with GlaxoSmithKline represent an
important collaboration for both companies as a new generation of
prophylactic and therapeutic vaccines nears commercialization."
Corporate Update
-- Antigenics recently announced the expansion of its QS-21
Stimulon(R) adjuvant license and supply agreements with
GlaxoSmithKline Biologics (GSK). Antigenics will receive
manufacturing fees, milestone payments and royalties on net
sales for at least 10 years after first commercial sale.
-- QS-21 is currently being used in 20 clinical-stage product
candidates in development by six of Antigenics' collaborative
partners. The first product could launch as early as 2010.
-- Recent data from Phase 3 trials in nonmetastatic kidney cancer
and metastatic melanoma indicate that Oncophage(R) (vitespen)
shows clinically significant anticancer activity in
better-prognosis patients, which corroborates extensive
preclinical research. In the kidney cancer trial, Oncophage
was associated with a 43-percent improvement in
recurrence-free survival (P = 0.018; hazard ratio = 0.567) in
a subset of 361 better-prognosis nonmetastatic kidney cancer
patients. In the melanoma trial, Oncophage was associated with
a 143-percent improvement in overall survival (P = 0.017;
hazard ratio = 0.427) in a subset of earlier-stage metastatic
melanoma patients receiving at least 10 doses of vaccine.
-- Antigenics continues to follow patients for overall survival
and recurrence-free survival in its Phase 3 study of Oncophage
in nonmetastatic kidney cancer. The company is exploring the
most expeditious development and commercialization path for
this product.
-- Enrollment in the Phase 1 study of Aroplatin(TM) (L-NDDP) in
solid tumors and B-cell lymphomas has proceeded at a rapid
pace. Due to the specific biodistribution characteristics of
Aroplatin and a high unmet medical need, pancreatic cancer has
been identified as a potential path forward for this product.
-- Enrollment continues in Antigenics' Phase 1 trial of AG-707 in
genital herpes as well as for an investigator-sponsored Phase
1/2 study of Oncophage in recurrent glioma, being conducted at
the University of California, San Francisco. The first cohort
of patients in the glioma study has been fully enrolled.
-- As announced in July, Shalini Sharp will succeed Peter
Thornton as chief financial officer as of September 30, 2006.
Additionally, Christine Klaskin will become vice president of
finance.
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 3169931. 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 August
15, 2006. The replay number is 800.642.1687 (domestic) or 706.645.9291
(international), and the access code is 3169931. The replay will also
be available on the company's website approximately two hours after
the live call.
About Antigenics
Antigenics (NASDAQ: AGEN) 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 commitment to reduce cash
burn; the company's potential revenue from development milestones,
manufacturing fees and royalties under its QS-21 agreements with GSK;
the development of products containing QS-21 by the company's
collaborative partners and licensees; the company's ongoing collection
of data from its Oncophage Phase 3 Part 1 kidney cancer trial and the
future clinical development and commercialization of Oncophage; and
its future preclinical and Phase 1 clinical programs involving
Aroplatin and AG-707, and potential development paths. These risks and
uncertainties include, among others, the risk of unfavorable data
resulting from the analysis of the Oncophage Phase 3 Part 1 kidney
cancer trial data; retention of key employees; clinical trial
enrollment; decisions by collaborative partners and licensees;
decisions by regulatory agencies; timing and results of clinical and
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-Q as filed with the Securities and Exchange Commission on May
12, 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 Condensed Consolidated Financial Information
Condensed Consolidated Statements of Operations Data
(in thousands, except per share data)
(unaudited)
Three months ended Six months ended
June 30, June 30,
2006 2005 2006 2005
--------- --------- --------- ---------
Revenue $96 $85 $156 $205
Operating expenses:
Research and development 7,866 13,093 16,376 24,396
General and administrative 5,407 7,471 11,283 14,271
Restructuring costs 645 606 1,374 606
--------- --------- --------- ---------
Operating loss (13,822) (21,085) (28,877) (39,068)
Other expense, net (266) (43) (445) (63)
--------- --------- --------- ---------
Net loss (14,088) (21,128) (29,322) (39,131)
Dividends on Series A
convertible preferred stock (198) (198) (395) (395)
--------- --------- --------- ---------
Net loss attributable to
common stockholders $(14,286) $(21,326) $(29,717) $(39,526)
========= ========= ========= =========
Per common share data, basic and diluted:
Net loss attributable to
common stockholders $(0.31) $(0.47) $(0.65) $(0.87)
Weighted average number of
common shares outstanding,
basic and diluted 45,811 45,564 45,757 45,563
Condensed Consolidated Balance Sheet Data
(in thousands)
(unaudited)
June December
30, 31,
2006 2005
-------- --------
Cash, cash equivalents and short-term investments $31,867 $61,748
Total assets 69,130 104,151
Total stockholders' equity 3,047 31,899
CONTACT: Antigenics
Investor Relations
Shalini Sharp, 800-962-2436
ir@antigenics.com
or
Corporate Communications
Sunny Uberoi, 212-994-8206
suberoi@antigenics.com