Exhibit 99.1
IMMUNOMEDICS ANNOUNCES FISCAL 2006 RESULTS
MORRIS PLAINS, N.J., Aug. 25 /PRNewswire-FirstCall/ -- Immunomedics, Inc.
(Nasdaq: IMMU), a biopharmaceutical company focused on developing monoclonal
antibodies, today reported revenues of $2.2 million and a net loss of $5.7
million, or $0.10 per share, for the fourth quarter of fiscal year 2006, which
ended June 30, 2006. This compares to revenues of $0.6 million and a net loss of
$10.1 million, or $0.19 per share, for the same period last year. For the fiscal
year 2006, the Company reported revenues of $4.4 million and a net loss of $28.8
million, or $0.52 per share. This compares to revenues of $3.8 million and a net
loss of $26.8 million, or $0.50 per share, for fiscal year 2005.
Revenues for the fourth quarter and the fiscal year were positively impacted
by the recognition of $1.5 million of the $38 million initial payment received
from UCB, S.A., for the licensing of epratuzumab for all autoimmune diseases
worldwide, despite lower LeukoScan(R) sales in Europe for the fiscal year. Net
loss for the fourth quarter improved due to the transfer of the SLE clinical
trials to UCB as part of the May 9, 2006 agreement. For the fiscal year, lower
R&D expense was offset by increased interest expense for the 5% convertible
notes. At June 30, 2006, the Company had $41.8 million in cash and liquid
securities.
"Our cash position was strengthened substantially with the $38 million
payment from UCB. Additionally, because UCB will be responsible for funding all
current and future clinical development of epratuzumab in autoimmune diseases,
we will be able to devote our resources to further development of our extensive
product candidate pipeline, focusing on markets with high unmet medical needs
and on those compounds that have a high probability to become commercial
successes within the shortest timeframe," commented Gerard G. Gorman, Senior
Vice President, Finance and Business Development, and Chief Financial Officer.
"We are pleased that, during this fiscal year, we have executed three
important components of our business strategy," said Cynthia L. Sullivan,
President and Chief Executive Officer of the Company. "We consummated an
out-licensing agreement with UCB for the clinical development and
commercialization of epratuzumab for all autoimmune disease indications on a
world-wide basis, we continued to progress with the evaluation of epratuzumab in
patients with lupus in the Phase III ALLEVIATE trials, and in discovery, we have
developed a novel platform technology called the Dock-and-Lock methodology," she
further remarked.
Other developments of note during the fourth quarter of fiscal year 2006
were:
* The Company published in the Proceedings of the National Academy of
Sciences of the USA (PNAS) a novel platform technology called Dock-and-
Lock that can be used to generate multifunctional agents for diverse
applications.
* At the 42nd Annual Meeting of the American Society of Clinical Oncology
(ASCO) the Company presented updated clinical results from a Phase I/II
study with the humanized anti-CD20 antibody (hA20) in non-Hodgkin's
lymphoma, and also reported the construction of two new bispecific
antibodies that bind to both CD20 and CD22 antigens on B-lymphocytes,
using the Dock-and-Lock methodology.
* The Company and its subsidiary, IBC Pharmaceuticals, Inc., presented four
studies at the 53rd Annual Meeting of the Society of Nuclear Medicine on
the Dock-and-Lock methodology, immunoPET detection of xenografts,
bispecific antibody pretargeting of neovasculature, and of renal cell
carcinoma.
* The Company presented at Rodman & Renshaw 3rd Annual Global Healthcare
Conference during which a corporate overview was provided.
* Results from the phase II study of epratuzumab in systemic lupus
erythematosus were published in Arthritis Research & Therapy.
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. We have recently licensed our lead product candidate, epratuzumab, to
UCB, S.A. for the treatment of all autoimmune disease indications worldwide. We
have retained the rights for epratuzumab in oncology indications for which UCB
has been granted a buy-in option. UCB has development, manufacture and
commercialization rights, and is responsible for the two, ongoing, pivotal Phase
III trials evaluating epratuzumab for the treatment of patients with moderate
and severe lupus. 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 108 patents
issued in the United States, and more than 250 other issued patents worldwide,
protects our product candidates and technologies. We also have a majority
ownership in IBC Pharmaceuticals, Inc., which is developing a novel dock and
lock methodology, and a new method of delivering imaging and therapeutic agents
selectively to disease, especially different solid cancers (colorectal, lung,
pancreas, etc.), by proprietary, antibody-based, pretargeting methods. 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
June 30, June 30,
2006 2005
-------------- --------------
ASSETS
Current Assets:
Cash and cash equivalents $ 40,877,766 $ 11,937,483
Marketable securities 948,820 3,547,507
Accounts receivable 498,612 409,458
Inventory 541,030 493,603
Other current assets 602,736 785,677
Restricted securities 1,275,200 15,575,200
44,744,164 32,748,928
Property and equipment, net 8,496,060 10,152,115
Restricted securities 1,275,200 2,550,400
Other long-term assets 1,362,419 2,471,706
$ 55,877,843 $ 47,923,149
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 19,035,185 $ 9,422,923
Long-term debt 29,525,377 36,743,233
Deferred revenues - long-term portion 25,810,769 -
Other liabilities - 2,748,240
Minority interest 182,000 272,160
Stockholders' deficit (18,678,488) (1,263,407)
$ 55,874,843 $ 47,923,149
Condensed Consolidated Statements of Operations
Three Months Ended Year Ended
June 30, June 30,
------------------------------- -------------------------------
2006 2005 2006 2005
-------------- -------------- -------------- --------------
Revenues:
Product sales $ 568,562 $ 543,312 2,253,748 3,349,483
License fee and
other revenues 1,583,529 66,287 1,830,460 329,674
Research &
development - - 268,570 134,285
Revenues $ 2,152,091 609,599 4,352,778 3,813,442
Costs and Expenses 7,565,360 11,117,806 28,903,102 32,514,259
Operating Loss (5,413,269) (10,508,207) (24,550,324) (28,700,817)
Interest and Other
Income (220,149) 376,822 (4,704,499) 1,557,763
Net Loss before
Income Tax Expense (5,633,418) (10,131,385) (29,254,823) (27,143,054)
Income Tax
(Expense) Benefit (23,935) 37,555 490,415 385,120
Net Loss $ (5,657,353) $ (10,093,830) $ (28,764,408) $ (26,757,934)
Net Loss per Common
Share, Basic and
Diluted $ (0.10) (0.19) (0.52) (0.50)
Weighted average
number of common
shares outstanding 57,241,618 54,073,059 55,263,365 53,683,834
SOURCE Immunomedics, Inc.
-0- 08/25/2006
/CONTACT: Dr. Chau Cheng, Associate Director, Investor Relations &
Business Analysis, +1-973-605-8200, extension 123, or ccheng@immunomedics.com/
/Company News On-Call: http://www.prnewswire.com/comp/113121.html /
/Web site: http://www.immunomedics.com /