Exhibit 99.1
IMMUNOMEDICS ANNOUNCES FIRST QUARTER FISCAL 2007 RESULTS
MORRIS PLAINS, N.J., Nov. 6 /PRNewswire-FirstCall/ -- Immunomedics, Inc.
(Nasdaq: IMMU), a leading biopharmaceutical company focused on developing
monoclonal antibody-based products, today reported revenues of $3.3 million
and a net loss of $2.5 million, or $0.04 per share, for the first quarter of
fiscal year 2007, which ended September 30, 2006. This compares to revenues
of $0.4 million and a net loss of $8.5 million, or $0.16 per share, for the
same period last year.
The increase in revenues for the first quarter was primarily due to the
recognition of $2.7 million of the $38 million initial payment received from
UCB, S.A., for the licensing of epratuzumab for all autoimmune diseases
worldwide, and increased LeukoScan(R) sales in Europe. The operating expenses
for the first quarter improved due to lower R&D expenses resulting from the
transfer of the ALLEVIATE trials to UCB as part of the May 9, 2006 agreement.
Lower interest expense and higher interest income have also contributed to the
lower net loss for the first quarter. At September 30, 2006, the Company had
$35.0 million in cash and marketable securities, excluding restricted
securities.
"Our burn rate improved this quarter as a result of our licensing agreement
with UCB. We are committed to bringing new antibodies into the clinic that have
the shortest path to commercial success in markets with unmet medical needs.
Consequently, we expect our R&D expenses to moderately increase in future
quarters as these new antibodies enter the clinic," commented Gerard G. Gorman,
Senior Vice President, Finance and Business Development, and Chief Financial
Officer. "An example of such product development is our humanized CD74 antibody,
which will begin clinical trials in patients with multiple myeloma in the near
future," he added.
"We are working closely with UCB to expedite efforts to remove the clinical
hold status instituted by the FDA and other regulatory agencies, which would
minimize any further delay in making epratuzumab available to patients," said
Cynthia L. Sullivan, President and Chief Executive Officer of the Company. "We
share UCB's enthusiasm in the continued development of epratuzumab in autoimmune
disease indications, and we look forward to resuming dosing patients with lupus
in the near future," she further remarked.
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 all clinical 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
September 30, June 30,
2006 2006
------------- -------------
ASSETS
Current Assets:
Cash and cash equivalents $ 16,990,350 $ 40,877,766
Marketable securities 17,967,550 948,820
Accounts receivable, net of
allowance for doubtful
accounts 606,492 498,612
Inventory, net of reserve for
obsolescence 476,110 541,030
Other current assets 1,396,821 602,736
Restricted securities - current
portion 1,275,200 1,275,200
38,712,523 44,744,164
Property and equipment, net 8,278,773 8,496,060
Restricted securities - long-term
portion 956,400 1,275,200
Other long-term assets 1,606,675 1,362,419
$ 49,554,371 $ 55,877,843
LIABILITIES AND STOCKHOLDERS'
DEFICIT
Current liabilities $ 17,838,417 $ 19,035,185
Long-term debt 29,486,783 29,525,377
Deferred revenues - long term 23,143,460 25,810,769
Minority interest 156,974 182,000
Stockholders' deficit (21,071,263) (18,675,488)
$ 49,554,371 $ 55,877,843
Condensed Consolidated Statements of Operations
Three Months Ended
September 30,
------------------------------
2006 2005
------------- -------------
Revenues:
Product sales 661,603 280,074
License fee and other revenues 2,668,031 98,077
Research & development -- 44,762
Total Revenues 3,329,634 422,913
Costs and Expenses 6,065,440 7,898,863
Operating Loss (2,735,806) (7,475,950)
Interest and Other Income (Expense) 272,921 (1,067,378)
Loss before Income Tax Expense (2,462,885) (8,543,328)
Income Tax Expense (19,418) --
Net Loss $ (2,482,303) $ (8,543,328)
Net Loss per Common Share,
Basic and Diluted (0.04) (0.16)
Weighted average number of common
shares outstanding 57,538,031 54,073,059
SOURCE Immunomedics, Inc.
-0- 11/06/2006
/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)