Exhibit 99.1
Antigenics Reports Second Quarter 2007
Financial Results
Conference Call to Follow
NEW YORK--(BUSINESS WIRE)--Aug. 2, 2007--Antigenics Inc. (NASDAQ:
AGEN) reported results today for the quarter ended June 30, 2007. The
company incurred a net loss attributable to common stockholders of
$10.1 million, or $0.22 per share, basic and diluted, for the second
quarter of 2007, compared with a net loss attributable to common
stockholders in the second quarter of 2006 of $14.3 million, or $0.31
per share, basic and diluted. The decreased loss reflects, among other
things, increased revenues and the company's efforts to control costs
in order to maintain a low rate of cash burn. Antigenics incurred
research and development costs of $6.1 million for the quarter ended
June 30, 2007, compared with $7.9 million for the quarter ended June
30, 2006. General and administrative expenses decreased to $4.4
million in the quarter ended June 30, 2007, from $5.4 million in the
comparable period last year. Cash, cash equivalents and short-term
investments amounted to $25.4 million as of June 30, 2007.
"In June we completed a landmark event for Antigenics: the filing
for approval of Oncophage for kidney cancer patients in Russia," said
Garo H. Armen, PhD, chairman and CEO of Antigenics. "Meanwhile, our
licensees have continued to move forward rapidly with their vaccines
containing QS-21, as this quarter saw advancements in vaccines for
lung cancer, Alzheimer's disease and influenza."
Corporate Update
-- Antigenics has submitted an application for marketing
authorization with the Russian Ministry of Public Health for
the use of Oncophage(R) (vitespen) in the treatment of
nonmetastatic renal cell carcinoma patients (RCC, the most
common type of kidney cancer) at intermediate-risk of
recurrence. The company plans to also discuss the data with
regulatory authorities in other territories.
-- Follow-up data from the company's Phase 3 study of Oncophage
cancer vaccine in RCC indicated an improvement in
recurrence-free survival (RFS) of approximately 45 percent (P
less than 0.01; hazard ratio = 0.55) in the intermediate-risk
patient population (n = 362).
-- Improved overall survival, the secondary endpoint, was also
observed in the intermediate-risk patient population. While
not statistically significant, these data reflect an
additional 17 months of maturity. Since the initial data
cut-off in November 2005, one additional patient had died in
the Oncophage arm versus 13 patients in the observation arm,
bringing the total reported deaths to 15 patients (8.2
percent) in the Oncophage arm compared with 25 deaths (14.0
percent) in the observation arm.
-- The updated data from the Phase 3 study in nonmetastatic RCC
were presented at the annual meetings of the American
Urological Association and Canadian Urological Association in
May and June, respectively.
-- The investigator sponsoring the ongoing Phase 1/2 study of
Oncophage in recurrent glioma plans to submit data for
publication in a peer-reviewed journal and present additional
data from the trial at upcoming scientific conferences.
-- GlaxoSmithKline (GSK) announced the advancement of its MAGE-A3
Antigen-Specific Cancer Immunotherapeutic, which is combined
with a proprietary adjuvant system containing Antigenics'
QS-21 Stimulon(R) vaccine adjuvant, into the largest Phase 3
clinical trial ever conducted in non-small cell lung cancer.
-- A $2-million payment from GSK will be payable to Antigenics in
the third quarter of 2007 pursuant to a binding letter of
intent executed in July. This initial payment, as well as
additional payments totaling $5.25 million over five years,
are consideration for Antigenics' acceleration of GSK's QS-21
manufacturing rights previously granted in July 2006. All of
GSK's previous royalty obligations to Antigenics will remain
the same.
-- A $1-million milestone payment from Elan is payable to
Antigenics related to the initiation of a Phase 2 study of
Elan's Alzheimer's disease vaccine that contains QS-21. The
National Institute on Aging estimates that about 4.5 million
Americans currently live with the disease - a number that
could reach 13.2 million by 2050.
-- A $100,000 milestone payment is payable from Acambis to
Antigenics related to Acambis' initiation of a Phase 1
clinical study of its M2e-based universal flu vaccine
containing QS-21. The M2e antigen is intended to confer
protective immunity against all 'A' strains of influenza,
seasonal and pandemic, as opposed to current vaccines that are
reformulated annually. Influenza is the single largest vaccine
market, with an estimated 1 billion cases and 300,000 to
500,000 deaths worldwide each year.
-- In total, there are more than 20 vaccines containing QS-21
under development by Antigenics' QS-21 licensees. Antigenics
generally receives manufacturing fees for the supply of QS-21
for clinical development and commercial sale, payments upon
the achievement of certain milestones, and royalties on net
sales for a period of at least 10 years after first commercial
sale.
-- In June, Antigenics announced the appointment of John
Hatsopoulos to its board of directors. Mr. Hatsopoulos brings
significant financial and operational expertise to the
company's board.
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 5896425. 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
16, 2007. The replay number is 800.642.1687 (domestic) or 706.645.9291
(international), and the access code is 5896425. 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, an adjuvant used in numerous
vaccines under development by Antigenics' collaborative partners. For
more information, please visit www.antigenics.com.
This press release contains forward-looking statements, including,
but not limited to, statements regarding the potential clinical
benefit of Oncophage in kidney cancer based on a subgroup analysis;
activities and potential strategies for pursuing marketing
registration for Oncophage; the publication of data; present and
future clinical trials using QS-21; the future development of products
using QS-21 by Antigenics' licensees; the future payment of milestone
payments and royalties in connection with the development and
commercialization of QS-21; and the expertise of the company's board
of directors. 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,
decisions by regulatory authorities; the ability to raise capital and
finance future development of Oncophage; Antigenics' dependence on its
collaborative partners such as GSK to successfully develop and
commercialize products containing QS-21; the scientific risk
associated with the development of vaccines; the competitive risk that
other sources of competitive adjuvants could become available;
difficulties and delays in manufacturing QS-21; 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 10, 2007. 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,
2007 2006 2007 2006
--------- --------- --------- ---------
Revenue $ 1,444 $ 96 $ 3,796 $ 156
Operating expenses:
Research and development 6,051 7,866 12,013 16,376
General and administrative 4,397 5,407 8,731 11,283
Restructuring costs - 645 - 1,374
--------- --------- --------- ---------
Operating loss (9,004) (13,822) (16,948) (28,877)
Other expense, net (848) (266) (1,601) (445)
--------- --------- --------- ---------
Net loss (9,852) (14,088) (18,549) (29,322)
Dividends on Series A
convertible preferred stock (198) (198) (395) (395)
--------- --------- --------- ---------
Net loss attributable to common
stockholders $(10,050) $(14,286) $(18,944) $(29,717)
========= ========= ========= =========
Per common share data, basic and
diluted:
Net loss attributable to common
stockholders $ (0.22) $ (0.31) $ (0.41) $ (0.65)
========= ========= ========= =========
Weighted average number of
common shares outstanding,
basic and diluted 45,982 45,858 45,972 45,801
========= ========= ========= =========
Condensed Consolidated Balance Sheet Data
(in thousands)
(unaudited)
June 30, 2007 December 31, 2006
------------- -----------------
Cash, cash equivalents, and short-term
investments $ 25,438 $ 40,095
Total assets 55,236 72,952
Total stockholders' deficit (34,507) (17,393)
CONTACT: Antigenics Inc.
Investor Relations
Robert Anstey, 800-962-2436
ir@antigenics.com
or
Corporate Communications
Sunny Uberoi, 212-994-8206
suberoi@antigenics.com