Exhibit 99.1
IMMUNOMEDICS ANNOUNCES SECOND QUARTER
FISCAL 2006 RESULTS
Morris Plains, NJ, February 14, 2006 - Immunomedics, Inc. (Nasdaq: IMMU), a
biopharmaceutical company focused on developing monoclonal antibodies, today
reported revenues of $0.5 million and a net loss of $8.8 million, or $0.16 per
share, for the second quarter of fiscal year 2006, which ended December 31,
2005. This compares to revenues of $1.0 million and a net loss of $6.4 million,
or $0.12 per share, for the same period last year. For the first half of the
2006 fiscal year, the Company reported revenues of $0.9 million and a net loss
of $17.4 million, or $0.32 per share. This compares to revenue of $2.1 million
and a net loss of $10.6 million, or $0.20 per share, for the same period last
year. The increase in net loss for the three-month period was primarily due to
increased interest expense from the Company's outstanding 5% senior convertible
notes issued in April 2005, and reduced sales revenue from diagnostic imaging
products. The increased interest expense includes the amortization of the debt
issuance costs and debt discounts, and a $1.0 million charge resulting from the
change in the market value of the derivative interest liability associated with
the make-whole interest provision relating to the 5% senior convertible notes.
The increase in the net loss for the six-month period was due to these factors
as well as higher levels of R&D spending, primarily to support the Phase III
trials evaluating epratuzumab in patients with lupus. Additionally, the 2004
results included a net litigation settlement gain of $1.2 million.
During this second quarter, the Company received $0.5 million in tax benefits
through the New Jersey Technology Tax Certificate Transfer Program. At December
31, 2005, the Company had $14.6 million in cash and marketable securities, in
addition to $3.2 million of restricted securities that collateralize the New
Jersey Economic Development Authority financing completed in May 2003 for the
construction of the Company's expanded manufacturing facilities.
"The implementation of our cost savings program during this quarter has allowed
us to maintain our operating loss at a level similar to that of the same period
last year. To further conserve capital for our research and development
programs, we have deferred certain executive's salaries, the executive bonus
program and continue to evaluate the deferral of non-essential expenditures. At
the same time we are working diligently on establishing a global corporate
partner for the further clinical development and commercialization of
epratuzumab," commented Gerard G. Gorman, Vice President, Finance, and Chief
Financial Officer.
As reported previously during the second quarter of fiscal year 2006, other
developments of note were as follows:
o The Company provided details of the ALLEVIATE trial designs, testing
epratuzumab in patients with lupus, at the Lazard Capital Markets Annual
Life Sciences Conference.
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o The Company presented updated clinical results for epratuzumab in
Sjogren's syndrome at the 2005 annual scientific meeting of American
College of Rheumatology/Association of Rheumatology Health Professionals.
o At the 47th Annual Meeting of American Society of Hematology, the Company
reported preclinical results on a new therapeutic, advances in lymphoma
therapy with a humanized anti-CD20 antibody, and results with the
combination of epratuzumab and rituximab in patients with lymphoma.
o The Company presented at the Rodman & Renshaw Techvest 7th Annual
Healthcare Conference during which a corporate overview was provided.
o The Company published an article on a new diagnostic assay for pancreatic
cancer in the Journal of Clinical Oncology.
ABOUT IMMUNOMEDICS
Immunomedics is a New Jersey-based biopharmaceutical company focused on the
development of monoclonal, antibody-based products for the targeted treatment of
cancer, autoimmune and other serious diseases. We have developed a number of
advanced proprietary technologies that allow us to create humanized antibodies
that can be used either alone in unlabeled or "naked" form, or conjugated with
radioactive isotopes, chemotherapeutics or toxins, in each case to create highly
targeted agents. Using these technologies, we have built a pipeline of
therapeutic product candidates that utilize several different mechanisms of
action. Our lead product candidate, epratuzumab, is currently in two pivotal
Phase III trials for the treatment of patients with moderate and severe lupus
(ALLEVIATE A and B). At present, there is no cure for lupus and no new lupus
drug has been approved in the U.S. in the last 40 years. We believe that our
portfolio of intellectual property, which includes approximately 90 patents
issued in the United States, and more than 250 other issued patents worldwide,
protects our product candidates and technologies. Visit our web site at
http://www.immunomedics.com.
This release, in addition to historical information, may contain forward-looking
statements made pursuant to the Private Securities Litigation Reform Act of
1995. Such statements, including statements regarding clinical trials,
out-licensing arrangements, and capital raising activities, involve significant
risks and uncertainties and actual results could differ materially from those
expressed or implied herein. Factors that could cause such differences include,
but are not limited to, risks associated with new product development (including
clinical trials outcome and regulatory requirements/actions), competitive risks
to marketed products and availability of required financing and other sources of
funds on acceptable terms, if at all, as well as the risks discussed in the
Company's filings with the Securities and Exchange Commission. The Company is
not under any obligation, and the Company expressly disclaims any obligation, to
update or alter any forward-looking statements, whether as a result of new
information, future events or otherwise.
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FOR MORE INFORMATION:
Dr. Chau Cheng
Associate Director, Investor Relations & Business Analysis
(973) 605-8200, extension 123
ccheng@immunomedics.com
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IMMUNOMEDICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
DECEMBER 31, June 30,
2005 2005
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents ............... $ 12,146,262 $ 11,937,483
Marketable securities ................... 2,416,999 3,547,507
Accounts receivable ..................... 184,444 409,458
Inventory ............................... 737,298 493,603
Other current assets .................... 1,154,508 785,677
Restricted securities ................... 1,275,200 15,575,200
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17,914,711 32,748,928
Property and equipment, net .................. 9,383,181 10,152,115
Restricted securities ........................ 1,912,800 2,550,400
Other long-term assets ....................... 2,006,956 2,471,706
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$ 31,217,648 $ 47,923,149
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LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities ..................... $ 10,089,517 $ 9,422,923
Long-term debt .......................... 35,175,562 36,743,233
Other Liabilities ....................... - 2,748,240
Minority interest ....................... 221,304 272,160
Stockholders' deficit ................... (14,268,735) (1,263,407)
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$ 31,217,648 $ 47,923,149
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Six Months Ended
December 31, December 31,
------------------------------ ------------------------------
2005 2004 2005 2004
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REVENUES:
Product sales ................. $ 262,651 796,092 542,725 1,858,785
License fee and other revenues 65,604 136,015 163,681 188,929
Research & development ........ 134,285 67,143 179,047 67,143
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Revenues ............................. $ 462,540 999,250 885,453 2,114,857
Costs and Expenses ................... 7,430,465 7,852,470 15,329,328 14,282,273
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Operating Loss ....................... (6,967,925) (6,853,220) (14,443,875) (12,167,416)
Interest and Other Income (Expense) .. (2,367,131) (84,646) (3,434,509) 1,110,978
------------- ------------- ------------- -------------
Net Loss before Income Tax Expense ... (9,335,056) (6,937,866) (17,878,384) (11,056,438)
Income Tax Benefit ................... 514,350 581,445 514,350 451,357
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Net Loss ............................. $ (8,820,706) $ (6,356,421) $ (17,364,034) $ (10,605,081)
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Net Loss per Common Share,
Basic and Diluted ................ $ (0.16) (0.12) (0.32) (0.20)
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Weighted average number of common
shares outstanding ............... 54,098,072 54,073,059 54,085,566 53,300,955
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