Exhibit 99.1
Antigenics Reports Third Quarter 2006 Financial Results
NEW YORK--(BUSINESS WIRE)--Oct. 31, 2006--Antigenics Inc. (NASDAQ:
AGEN) reported results today for the quarter ended September 30, 2006.
The company incurred a net loss attributable to common stockholders of
$11.2 million, or $0.24 per share, basic and diluted, for the third
quarter of 2006, compared with a net loss attributable to common
stockholders in the third quarter of 2005 of $17.5 million, or $0.38
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 $6.3 million in the
quarter ended September 30, 2006, compared with $12.0 million for the
quarter ended September 30, 2005. General and administrative expenses
decreased to $4.7 million in the quarter ended September 30, 2006,
compared with $5.2 million in the same period in 2005. As a result of
the adoption of Statement of Financial Accounting 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 third quarter of 2006.
Of this charge, $0.3 million was included in research and development
costs and $0.7 million was included in general and administrative
expenses. Cash, cash equivalents and short-term investments amounted
to $24.4 million on September 30, 2006. Subsequent to the end of the
quarter, Antigenics entered into an agreement to issue $25 million in
convertible senior notes and received an upfront payment under a QS-21
Stimulon(R) adjuvant option agreement with Acambis.
"With today's announcement of our $25 million financing and our
ongoing cost containment efforts, we expect to be better positioned to
explore the value of our portfolio," said Garo H. Armen, PhD, chairman
and CEO of Antigenics. "We are committed to prudently seeking
additional financing opportunities and advancing our internal
pipeline, including Aroplatin, AG-707, and Oncophage for glioma and in
combination with other agents in metastatic solid tumors."
Corporate Update
-- Antigenics announced today that it has executed an agreement
for the sale of $25 million of convertible senior notes.
Interest is payable at the rate of 8 percent per annum in cash
or in additional payment-in-kind notes, at Antigenics' option.
The notes are convertible at $3.50 per share, a 74-percent
premium to the company's closing price on October 30, 2006.
Alternatively, the notes, including any additional
payment-in-kind notes, can be converted into an interest in a
wholly-owned subsidiary of Antigenics holding the QS-21 and
AG-707 programs. The notes mature on August 30, 2011, at which
point Antigenics may repay the outstanding balance in cash or
in common stock of Antigenics, subject to the market
capitalization of Antigenics exceeding $300 million at such
time.
-- A two-year option agreement was recently signed with Acambis
for the right to use QS-21 in their proprietary M2e influenza
vaccine and in other proprietary traditional influenza vaccine
products. Antigenics received an upfront option fee and will
receive an option exercise fee if Acambis decides to enter
into a full license agreement. An option maintenance fee is
due one year from signing if Acambis has not yet exercised its
option. If the option is exercised, Antigenics will be
eligible for development milestones, sublicense fees, minimum
annual payments, manufacturing payments, and royalties from
product sales for ten years after first commercial sale of
influenza vaccine products.
-- It is anticipated that data from the first cohort of patients
enrolled in the investigator-sponsored Phase 1/2 study of
Oncophage(R) (vitespen) in recurrent glioma will be presented
at a neuro-oncology conference in the fourth quarter.
Enrollment in the second cohort of patients has been
completed.
-- Antigenics continues to follow patients for overall survival
and recurrence-free survival in its Phase 3 study of Oncophage
in nonmetastatic kidney cancer and plans on performing a
follow-up analysis of the data by mid-2007.
-- Enrollment in the company's Phase 1 trial of Aroplatin(TM)
(L-NDDP) continues on schedule and the maximum tolerated dose
may be identified as early as the first quarter of 2007.
Following this trial, the company plans to initiate a second
study evaluating Aroplatin in combination with a standard
chemotherapeutic agent in pancreatic cancer.
-- Hyam Levitsky, MD, a professor of oncology, medicine and
urology at The Sidney Kimmel Comprehensive Cancer Center at
Johns Hopkins and an expert in the field of cancer
immunotherapy, joined Antigenics' board of directors in
September.
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 8954597. 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 November
14, 2006. The replay number is 800.642.1687 (domestic) or 706.645.9291
(international), and the access code is 8954597. The replay will also
be available on the company's Web site 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; 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.
Participation of Dr. Levitsky on Antigenics' board of directors
does not constitute or imply endorsement by the Johns Hopkins
University or the Johns Hopkins University Hospital and Health System.
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 future financing
opportunities, payments under its QS-21 option, license and
collaboration agreements; 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 potential timing and future clinical development
and commercialization of Oncophage; and the company's ongoing and
future preclinical, Phase 1 and Phase 2 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 or in the ongoing Aroplatin and AG-707 Phase 1
trials; retention of key employees; delays in clinical trial
enrollment; decisions by collaborative partners and licensees;
decisions by regulatory agencies that impact future development and
commercialization activities; 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
August 9, 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 Nine months ended
September 30, September 30,
2006 2005 2006 2005
--------- --------- --------- ---------
Revenue $ 216 $ 77 $ 372 $ 282
Operating expenses:
Research and development 6,252 11,995 22,628 36,391
General and administrative 4,740 5,236 16,023 19,508
Restructuring costs - - 1,374 606
--------- --------- --------- ---------
Operating loss (10,776) (17,154) (39,653) (56,223)
Other expense, net (245) (101) (691) (163)
--------- --------- --------- ---------
Net loss (11,021) (17,255) (40,344) (56,386)
Dividends on Series A
convertible preferred stock (198) (198) (593) (593)
--------- --------- --------- ---------
Net loss attributable to
common stockholders $(11,219) $(17,453) $(40,937) $(56,979)
========= ========= ========= =========
Per common share data, basic and
diluted:
Net loss attributable to
common stockholders $ (0.24) $ (0.38) $ (0.89) $ (1.25)
Weighted average number of
common shares outstanding,
basic and diluted 45,848 45,591 45,789 45,573
Condensed Consolidated Balance Sheet Data
(in thousands)
(unaudited)
September 30, December 31,
2006 2005
------------- ------------
Cash, cash equivalents and short-term
investments $ 24,389 $ 61,748
Total assets 59,679 104,151
Total stockholders' (deficit) equity (6,975) 31,899
CONTACT: Antigenics Inc.
Investor Relations:
Robert Anstey, 800-962-2436
ir@antigenics.com
or
Corporate Communications:
Sunny Uberoi, 212-994-8206
suberoi@antigenics.com