Exhibit 99.1
IMMUNOMEDICS ANNOUNCES THIRD QUARTER FISCAL 2006 RESULTS
MORRIS PLAINS, N.J., May 10 /PRNewswire-FirstCall/ -- Immunomedics, Inc.
(Nasdaq: IMMU), a biopharmaceutical company focused on developing monoclonal
antibodies, today reported revenues of $1.3 million and a net loss of $5.7
million, or $0.10 per share, for the third quarter of fiscal year 2006, which
ended March 31, 2006. This compares to revenues of $1.1 million and a net loss
of $6.1 million, or $0.11 per share, for the same period last year. The decrease
in net loss for the three-month period was primarily due to cost savings
initiatives instituted over the previous several months and increased product
sales, which were partially offset by increased interest expense from the 5%
senior convertible notes. In addition, the current period's results benefited
from the renegotiation for reduced maintenance fees associated the ALLEVIATE
trials for SLE.
For the first nine months of the 2006 fiscal year, the Company reported
revenues of $2.2 million and a net loss of $23.1 million, or $0.42 per share.
This compares to revenue of $3.2 million and a net loss of $16.7 million, or
$0.31 per share, for the same period last year. The increase in the net loss for
the nine-month period resulted primarily from increased interest expense
resulting from the 5% senior convertible notes and lower product sales of
LeukoScan in the earlier part of the year. In addition, the 2005 results
included a net litigation settlement gain.
"As a result of our cost savings initiatives we now have two quarters in a
row where we managed to maintain our operating losses at levels similar to those
of the same period last year despite expenditure related to the continued
enrollment for the ALLEVIATE trials. With the completion of out- licensing
epratuzumab to UCB, we anticipate our cash outflow will be reduced from our
current level. More importantly, the anticipated gross receipt of the $38
million initial cash payments will allow us to continue the research and
development of other antibodies in our pipeline portfolio that are in line with
our corporate strategy," commented Gerard G. Gorman, Vice President, Finance,
and Chief Financial Officer.
At March 31, 2006, the Company had $10.3 million in cash and marketable
securities. On May 9, 2006, the Company entered into a collaboration and license
agreement with UCB granting UCB the exclusive worldwide rights to develop,
market and sell epratuzumab for all autoimmune disease indications. As a result,
over the next ten business days the Company will receive the initial cash
payments totaling $38 million, before fees.
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, which has been licensed to UCB
for all autoimmune indications worldwide, 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 (including the timing and amount of contingent
payments), 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.
For More Information:
Dr. Chau Cheng
Associate Director, Investor Relations & Business Analysis
(973) 605-8200, extension 123
ccheng@immunomedics.com
IMMUNOMEDICS, INC.
Condensed Consolidated Balance Sheets
March 31, June 30,
2006 2005
-------------- --------------
ASSETS
Current Assets:
Cash and cash equivalents $ 8,947,085 $ 11,937,483
Marketable securities 1,373,601 3,547,507
Accounts receivable 778,747 409,458
Inventory 620,506 493,603
Other current assets 799,633 785,677
Restricted securities 1,275,200 15,575,200
13,794,772 32,748,928
Property and equipment, net 8,949,786 10,152,115
Restricted securities 1,594,000 2,550,400
Other long-term assets 1,571,672 2,471,706
$ 25,910,230 $ 47,923,149
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities $ 10,071,263 $ 9,422,923
Long-term debt 30,527,534 36,743,233
Other Liabilities - 2,748,240
Minority interest 198,944 272,160
Stockholders' deficit (14,887,511) (1,263,407)
$ 25,910,230 $ 47,923,149
Condensed Consolidated Statements of Operations
Three Months Ended Nine Months Ended
March 31, March 31,
-------------------------------- --------------------------------
2006 2005 2006 2005
-------------- -------------- -------------- --------------
Revenues:
Product sales $ 1,142,461 947,386 1,685,186 2,806,171
License fee and
other revenues 83,250 74,457 246,931 263,386
Research &
development 89,523 67,143 268,570 134,286
Revenues $ 1,315,234 1,088,986 2,200,687 3,203,843
Costs and Expenses 6,008,414 7,114,180 21,337,742 21,396,453
Operating Loss (4,693,180) (6,025,194) (19,137,055) (18,192,610)
Interest and Other
Income (Expense) (1,049,841) 69,963 (4,484,350) 1,180,941
Net Loss before
Income Tax Expense (5,743,021) (5,955,231) (23,621,405) (17,011,669)
Income Tax Benefit - (103,792) 514,350 347,565
Net Loss $ (5,743,021) $ (6,059,023) $ (23,107,055) $ (16,664,104)
Net Loss per Common
Share, Basic and
Diluted $ (0.10) (0.11) (0.42) (0.31)
Weighted average
number of common
shares outstanding 55,670,994 54,073,059 54,606,327 53,554,566
SOURCE Immunomedics, Inc.
-0- 05/10/2006
/CONTACT: Dr. Chau Cheng, Associate Director, Investor Relations &
Business Analysis of Immunomedics, Inc., +1-973-605-8200, ext. 123,
ccheng@immunomedics.com/
/Company News On-Call: http://www.prnewswire.com/comp/113121.html /
/Web site: http://www.Immunomedics.com /
(IMMU)