Exhibit 99.1
Antigenics Reports Fourth Quarter and Year-End 2006 Financial Results
NEW YORK--(BUSINESS WIRE)--Feb. 21, 2007--Antigenics Inc. (NASDAQ:
AGEN) reported results today for the quarter and year ended December
31, 2006. For the three months ended December 31, 2006, the company
incurred a net loss attributable to common stockholders of $11.7
million, or $0.26 per share, basic and diluted, compared with a net
loss attributable to common stockholders of $17.9 million, or $0.39
per share, basic and diluted, for the same period in 2005. For the
year ended December 31, 2006, Antigenics incurred a net loss
attributable to common stockholders of $52.7 million, or $1.15 per
share, basic and diluted, compared with a net loss attributable to
common stockholders of $74.9 million, or $1.64 per share, basic and
diluted, for the same period in 2005. The decreased loss reflects,
among other factors, the company's restructuring efforts in 2006, the
completion of most activity related to its Phase 3 clinical trials,
and its general ongoing commitment to reducing cash burn. Research and
development costs decreased to $28.6 million for the year ended
December 31, 2006, compared with $47.1 million for the year ended
December 31, 2005. General and administrative expenses decreased to
$21.3 million for the year ended December 31, 2006, compared with
$25.9 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 $3.3 million, or $0.07 per
share, basic and diluted, for the year ended 2006, and $1.2 million,
or $0.03 per share, basic and diluted, for the quarter ended December
31, 2006. Cash, cash equivalents and short-term investments amounted
to $40.1 million on December 31, 2006. Subsequent to the end of the
quarter, Antigenics received net proceeds of approximately $1.5
million from the sale of its stake in the Applied Genomic Technology
Capital Fund, L.P.
"2006 was a year of both challenges and opportunities for
Antigenics. Although the results of our kidney cancer trial did not
put us on a path for rapid commercialization in the US, we are
pursuing several paths to bring Oncophage to patients in other major
markets based on the significant benefit observed in a significant
proportion of well defined, intermediate-risk kidney cancer patients,"
said Garo H. Armen, PhD, chairman and CEO of Antigenics. "Last year we
also solidified our position in one of the industry's rapidly emerging
and fastest growth segments by extending our QS-21 vaccine adjuvant
collaborations with GlaxoSmithKline, Acambis and others in the vaccine
space."
Corporate Update
QS-21 Stimulon(R) Adjuvant
-- Subsequent to the end of the year, Antigenics completed the
sharing of manufacturing technologies and related know-how
with GlaxoSmithKline (GSK), triggering a $2 million milestone
payment to Antigenics.
-- In a recent review of the malaria vaccine landscape published
in Vaccine (Girard et al. Vaccine 2007;25), it was noted that
protective immune response was induced with the use of the
RTS,S antigen and GSK's proprietary AS02 adjuvant formulation,
which contains QS-21.
Oncophage(R) (vitespen)
-- The lead US investigator from the Phase 3 study of Oncophage
in kidney cancer will present data from the trial at the
American Urological Association's annual meeting in May.
-- Antigenics plans to continue to follow patients from this
study for recurrence-free survival and overall survival
through March of 2007, and anticipates announcing data from an
updated analysis in mid-2007. The company will discuss the
updated data with regulatory agencies to define a pathway by
which Oncophage may be made available to kidney cancer
patients in the United States and other territories.
-- In November 2006, the company announced preliminary data from
an investigator-sponsored Phase 1/2 study of Oncophage in
recurrent glioma. In the first cohort of six patients, all
patients exceeded the overall survival historical benchmark of
14.6 months from time of diagnosis. Enrollment is near
completion in the second cohort of six patients, which will be
followed by initiation of enrollment in the Phase 2 portion of
the study. Experience gained from this study will guide the
design of a potential follow-on study. Updated data will be
presented at the annual meeting of the American Association of
Neurological Surgeons in April.
-- Final data from Antigenics' Phase 3 metastatic melanoma study
are expected to be published in a peer-reviewed journal by the
end of the year.
-- In mid- to late-2007, Antigenics expects to launch one or more
small clinical trials of Oncophage in combination with other
agents to evaluate tumor response in patients with stage IV
disease. Data should be available within 12 to 18 months of
first patient enrollment.
Aroplatin(TM) (L-NDDP)
-- Treatment continues in Antigenics' Phase 1 study in advanced
solid tumors and B cell lymphomas. Data generated thus far
indicate a safety profile consistent with past studies of
Aroplatin, including no significant reports of neurotoxicity.
The maximum tolerated dose is expected to be reached in the
first quarter, after which Antigenics anticipates initiating a
trial in pancreatic cancer.
AG-707
-- More than one third of the required patients have been
enrolled in the ongoing Phase 1 trial in genital herpes.
Antigenics anticipates completing enrollment by the end of
2007, at which time the immunological testing component of the
trial will begin.
Corporate
-- With the closing of the $25 million convertible note in
October, Antigenics expects cash reserves to be sufficient to
fund operations into 2008. The company is reviewing additional
financing strategies that would further strengthen its balance
sheet while minimizing dilution to existing shareholders.
Meanwhile, efforts to further reduce the company's cash burn
are ongoing.
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 8810929. 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 March 7,
2007. The replay number is 800.642.1687 (domestic) or 706.645.9291
(international), and the access code is 8810929. 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 and infectious diseases. 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; AG-707, a therapeutic vaccine for the
treatment of genital herpes; and QS-21 Stimulon, 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 anticipated sufficiency of funds and ability to
bolster its cash position; the potential market for, and the growth in
development of products containing QS-21 by the company's
collaborative partners and licensees; the current and future
preclinical and clinical development and commercialization activities
and timelines for Oncophage; and the company's Phase 1 clinical
programs involving Aroplatin and AG-707 and their potential
development paths. These risks and uncertainties include, among
others, the risk of the inability of the company to operate within its
targeted burn rate and identify additional means of cost savings;
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; timely and successful development of QS-21
manufacturing capabilities 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 9, 2006. Antigenics cautions investors not to
place considerable reliance on the forward-looking statements
contained in this release. These statements speak only as of the date
of this release, 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,
2006 2005 2006 2005
--------- --------- --------- ---------
Revenue $ 320 $ 348 $ 692 $ 630
Operating expenses:
Research and development 6,015 10,689 28,643 47,080
General and administrative 5,265 6,360 21,288 25,868
Restructuring costs - 990 1,374 1,596
--------- --------- --------- ---------
Operating loss (10,960) (17,691) (50,613) (73,914)
Other expense, net (577) (27) (1,268) (190)
--------- --------- --------- ---------
Net loss (11,537) (17,718) (51,881) (74,104)
Dividends on Series A
convertible preferred
stock (197) (197) (790) (790)
--------- --------- --------- ---------
Net loss attributable to
common stockholders $(11,734) $(17,915) $(52,671) $(74,894)
========= ========= ========= =========
Per common share data, basic
and diluted:
Net loss attributable to
common stockholders $ (0.26) $ (0.39) $ (1.15) $ (1.64)
Weighted average number of
common shares outstanding,
basic and diluted 45,868 45,591 45,809 45,577
Condensed Consolidated Balance Sheet Data
(in thousands)
(unaudited)
December 31, 2006 December 31, 2005
----------------- -----------------
Cash, cash equivalents and short-
term investments $ 40,095 $ 61,748
Total assets 72,952 104,151
Total stockholders' (deficit)
equity (17,393) 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