Exhibit 99.1
IMMUNOMEDICS ANNOUNCES SECOND QUARTER FISCAL 2007 RESULTS
MORRIS PLAINS, N.J., Feb. 8 /PRNewswire-FirstCall/ -- Immunomedics, Inc.
(Nasdaq: IMMU), a biopharmaceutical company focused on developing monoclonal
antibodies to treat cancer and other serious diseases, today reported revenue of
$3.4 million and a net loss of $4.5 million, or $0.08 per share, for the second
quarter of fiscal year 2007, which ended December 31, 2006. This compares to
revenue of $0.5 million and a net loss of $8.8 million, or $0.16 per share, for
the same period last year. The increase in revenue for the three-month period
was primarily due to the recognition of deferred revenue of $2.7 million from
the May 9, 2006 Development, Collaboration and License Agreement between the
Company and UCB, S.A., and increased sales of LeukoScan(R) in Europe. The
increased revenue combined with lower operating and interest expenses and higher
interest income were the primary contributors to the improved net loss position
for the three-month period ended December 31, 2006.
For the first half of fiscal year 2007, the Company reported revenue of $6.7
million and a net loss of $7.0 million, or $0.12 per share. This compares to
revenue of $0.9 million and a net loss of $17.4 million, or $0.32 per share, for
the same period last year. Recognition of portions of the initial cash payment
from UCB and increased LeukoScan(R) sales were also primarily responsible for
the improvement in revenue, as well as higher interest income and lower interest
and operational expenses for the decrease in net loss for the six-month period
ended December 31, 2006.
During the second quarter of fiscal year 2007, the Company received $0.6
million in tax benefits through the New Jersey Technology Tax Certificate
Transfer Program. As of December 31, 2006, the Company had $31.4 million in cash
and marketable securities, excluding restricted securities.
"We are pleased to report that the results for the second quarter were in
line with our expectations. We anticipate that our operations for fiscal 2007
will be at our forecasted levels, while bringing a new therapeutic into the
clinic," commented Gerard G. Gorman, Senior Vice President, Finance and Business
Development, and Chief Financial Officer. "Phase I/II clinical trials with our
humanized CD74 antibody have begun enrolling patients with multiple myeloma," he
added.
As reported previously during the second quarter of fiscal year 2007, other
developments of note were as follows:
-- The Company was awarded U.S. patent 7,151,164 covering methods for
treating B-cell disorders using the Company's humanized monoclonal
antibody that binds to the CD20 antigen present on B-lymphocytes for the
treatment of B-cell lymphomas, leukemias and autoimmune diseases.
-- The Company reported follow-up clinical results for hA20 in non-
Hodgkin's lymphoma at the 48th Annual Meeting of American Society of
Hematology.
-- Also at the 48th Annual Meeting of American Society of Hematology, the
Company presented new multivalent antibodies against the CD20 and CD22
antigens present on normal and malignant B-lymphocytes.
-- The Company presented at the 70th annual meeting of the American College
of Rheumatology and the 41st annual meeting of the Association of
Rheumatology Health Professionals results that showed that epratuzumab
and rituximab have distinct mechanisms of action.
-- The Company provided corporate overviews at the Lazard Capital Markets
3rd Annual Life Sciences Conference, the Rodman & Renshaw 8th Annual
Healthcare Conference, and the C.E. Unterberg, Towbin Life Sciences
Conference.
-- Mayo Clinic investigators, conducting a clinical trial in collaboration
with the North Central Cancer Treatment Group of the National Institute
of Health, published results in Cancer volume 107(12): pages 2826-32,
2006, showing that adding epratuzumab to rituximab and combined
cyclophosphamide, doxorubicin, vincristine, and prednisone chemotherapy
to treat patients with newly diagnosed diffuse large B-cell lymphoma
produced promising results.
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. The Company is conducting clinical trials with
hA20 in patients with non-Hodgkin's lymphoma, epratuzumab as a potential
therapeutic for patients with lymphoma and leukemia, (90)Y-epratuzumab for the
therapy of patients with lymphoma, (90)Y-hPAM4 for pancreas cancer therapy and
hCD74 as a therapy for patients with multiple myeloma. 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 (DNL) 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), forecasts of future operating results, 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.
IMMUNOMEDICS, INC.
Condensed Consolidated Balance Sheets
December 31, June 30,
2006 2006
------------- -------------
ASSETS
Current Assets:
Cash and cash equivalents $ 14,853,633 $ 40,877,766
Marketable securities 16,551,835 948,820
Accounts receivable, net of
allowance for doubtful accounts 442,263 498,612
Inventory, net of reserve for
obsolescence 411,570 541,030
Other current assets 1,233,995 602,736
Restricted cash and securities -
current portion 1,275,200 1,275,200
34,768,496 44,744,164
Property and equipment, net 8,022,109 8,496,060
Restricted securities - long-term
portion 637,600 1,275,200
Other long-term assets 1,474,901 1,362,419
$ 44,903,106 $ 55,877,843
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities $ 19,477,079 $ 19,035,185
Long-term debt 29,448,186 29,525,377
Deferred revenues - long term 20,476,154 25,810,769
Minority interest 133,752 182,000
Stockholders' deficit (24,632,065) (18,675,488)
$ 44,903,106 $ 55,877,843
Condensed Consolidated Statements of Operations
Three Months Ended Six Months Ended
December 31, December 31,
---------------------------- ----------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
Revenues:
Product
sales $ 659,105 $ 262,651 $ 1,320,708 $ 542,725
License fee
and other
revenues 2,672,835 65,604 5,340,866 163,681
Research &
development 67,140 134,285 67,140 179,047
Total Revenues $ 3,399,080 462,540 6,728,714 885,453
Costs and
Expenses 6,563,177 7,430,465 12,628,617 15,329,328
Operating Loss (3,164,097) (6,967,925) (5,899,903) (14,443,875)
Interest and
Other Income
(Expense) (1,939,755) (2,367,131) (1,666,834) (3,434,509)
Loss before
Income Tax
Expense (5,103,852) (9,335,056) (7,566,737) (17,878,384)
Income Tax
Benefit 623,162 514,350 603,744 514,350
Net Loss $ (4,480,690) $ (8,820,706) $ (6,962,993) $(17,364,034)
Net Loss per
Common Share,
Basic and Diluted $ (0.08) $ (0.16) $ (0.12) $ (0.32)
Weighted average
number of common
shares
outstanding 57,764,040 54,098,072 57,651,036 54,085,566
For More Information:
Dr. Chau Cheng
Associate Director, Investor Relations & Business Analysis
(973) 605-8200, extension 123
ccheng@immunomedics.com
SOURCE Immunomedics, Inc.
-0- 02/08/2007
/CONTACT: Dr. Chau Cheng, Associate Director, Investor Relations &
Business Analysis, +1-973-605-8200, extension 123, ccheng@immunomedics.com/
/FCMN Contact: ccheng@immunomedics.com /
/Company News On-Call: http://www.prnewswire.com/comp/113121.html /
/Web site: http://www.immunomedics.com /
(IMMU)