Abgenix Announces First Quarter 2003 Financial Results.Business Editors FREMONT Fremont (frē`mŏnt). 1 City (1990 pop. 173,339), Alameda co., W Calif., on San Francisco Bay; inc. 1956. Long an agricultural center, with champagne vineyards founded (1870) by Leland Stanford, it still ships fruits and vegetables. , Calif.--(BUSINESS WIRE)--April 23, 2003 Abgenix, Inc. (Nasdaq:ABGX) today reported financial results for the first quarter ended March 31, 2003. For the quarter ended March 31, 2003, the company reported a net loss of $33.2 million or $0.38 per share, compared to a net loss of $56.5 million or $0.65 per share for the same period in 2002. The net loss for first quarter of 2002 included impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges of $34.7 million for unrealized losses Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. on investments in common stock related to various collaborations. Contract revenues for the first quarter of 2003 were $6.2 million compared to $11.0 million for the same quarter in 2002. Including interest income, total revenues for the first quarter of 2003 were $9.4 million compared to $16.3 million for the same period in 2002. Contract revenues for the quarter primarily include license fees from customers and collaborators. Such revenues typically depend on the timing of certain events and vary from quarter to quarter. Expenses for the first quarter of 2003 were $42.4 million compared to $72.7 million for the same quarter in 2002. First quarter 2003 expenses include $11.6 million in costs of operating the company's antibody production facilities, which started up in the first quarter. These costs are expected to continue. First quarter 2002 expenses included impairment charges of $34.7 million. Net cash used in operating activities in the first quarter of 2003 was $33.8 million, including a reduction in accounts payable of $9.4 million, primarily due to the winding down of construction of the manufacturing plant. In addition, purchases of property and equipment totaled $16.4 million. Abgenix ended the first quarter with approximately $345.7 million in cash, cash equivalents and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has . In addition, Abgenix holds long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. investments, primarily equity in corporate collaborators, valued at $19.1 million. "In the first quarter, we announced important collaborations that represent our strategy to become the partner of choice in antibody-based therapeutics therapeutics Treatment and care to combat disease or alleviate pain or injury. Its tools include drugs, surgery, radiation therapy, mechanical devices, diet, and psychiatry. ," stated Raymond Raymond, town, Canada Raymond, town (1991 pop. 3,130), S Alta., Canada, SE of Lethbridge, in a sugar beet area. Sugar is refined and honey is produced there. A provincial agricultural college is in the town. Withy with·y adj. 1. Made of or as flexible as withes; tough. 2. Wiry and agile. n. pl. with·ies 1. A rope or band made of withes. 2. a. , Ph.D., president and chief executive officer of Abgenix. "We are on track to achieve our goals for this year, as we continue to advance our product development programs and prudently manage our financial resources." Upcoming Data Presentation Abgenix also announced that an abstract regarding the ongoing phase 2 study of ABX-EGF as monotherapy monotherapy /mono·ther·a·py/ (-ther´ah-pe) treatment of a condition by means of a single drug. mon·o·ther·a·py n. Treatment of a disorder with a single drug. in advanced colorectal cancer colorectal cancer Malignant tumour of the large intestine (colon) or rectum. Risk factors include age (after age 50), family history of colorectal cancer, chronic inflammatory bowel diseases, benign polyps, physical inactivity, and a diet high in fat. patients who have failed prior therapy has been accepted for presentation at the American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Society of Oncology oncology /on·col·o·gy/ (ong-kol´ah-je) the sum of knowledge regarding tumors; the study of tumors. on·col·o·gy n. annual meeting in Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. . The poster presentation will take place on Saturday Saturday: see week; Sabbath. , May 31 at 1:30 p.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT . New Website Launch In addition, Abgenix has updated its corporate website at www.abgenix.com to include new information about the company's strategy and capabilities. This resource includes details about Abgenix's antibody development expertise targeting potential partners, investors and employees. Conference Call Information Abgenix will hold a conference call today at 4:30 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT , 1:30 p.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT , to discuss financial results. To participate in the teleconference, please dial 800/299-0433 fifteen minutes before the conference begins. International callers should dial 617/801-9712. The pass code is 32945147. The call will also be webcast live at www.abgenix.com. A replay of the call will be available until May 7, 2003 on the company's website or by dialing 888/286-8010. International callers should dial 617/801-6888. The replay participant code is 4377677. About Abgenix Abgenix is a biopharmaceutical company focused on the discovery, development and manufacturing of human therapeutic antibodies. The company's antibody development platform includes a leading technology and state-of-the-art manufacturing capabilities that enable the rapid generation, selection and production of high affinity, fully human antibody product candidates to a variety of disease targets. Abgenix leverages its leadership position in human antibody technology to build a diversified diversified (di·verˑ·s product portfolio through the establishment of collaborations with multiple pharmaceutical and biotechnology companies Top 100 Biotechnology Companies The following is a list of the top 100 biotechnology companies ranked by revenue. The first nine companies qualify for the list of the top 50 pharmaceutical companies. . For more information on Abgenix, visit the company's website at www.abgenix.com. Statements made in this press release about Abgenix's technologies, product development activities, collaborative arrangements and manufacturing activities, other than statements of historical fact, and statements about its projected financial results, are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. and are subject to a number of uncertainties that could cause actual results to differ materially from the statements made, including risks associated with the success of clinical trials, the progress of research and product development programs, product manufacturing, the regulatory approval process, competitive products, future capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. and the extent and breadth of Abgenix's patent portfolio. Please see Abgenix's public filings with the Securities and Exchange Commission for information about risks that may affect Abgenix.
Three Months Ended
CONSOLIDATED STATEMENT OF March 31,
----------------------
OPERATIONS DATA 2003 2002
--------- ---------
(in thousands except per share data) (unaudited)
Revenues:
Contract revenues $6,156 $10,998
Interest and other income 3,195 5,271
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Total revenues 9,351 16,269
Costs and Expenses:
Research and development 21,187 28,979
Manufacturing start-up costs 11,583 --
General and administrative 6,850 6,707
Amortization of intangible assets 1,815 1,807
Impairment of investments -- 34,653
Interest expense 996 574
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Total costs and expenses 42,431 72,720
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Net loss before income tax ($33,080) ($56,451)
--------- ---------
Foreign income tax expense 84 --
--------- ---------
Net loss ($33,164) ($56,451)
========= =========
Basic and diluted net loss per share ($0.38) ($0.65)
========= =========
Shares used in computing basic and
diluted net loss per share 87,706 86,725
========= =========
March 31, December 31,
CONSOLIDATED BALANCE SHEET DATA 2003 2002
------------ ------------
(in thousands) (unaudited) (1)
Cash, cash equivalents
and marketable securities $345,747 $396,549
Other current assets 22,686 21,182
------------ ------------
Total current assets 368,433 417,731
Property and equipment, net 254,920 244,419
Long-term investments 19,078 20,939
Intangible assets, net 123,871 127,129
Deposits & other assets 30,549 31,779
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Total assets $796,851 $841,997
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Deferred revenue $5,840 $3,416
Other current liabilities 20,025 32,525
------------ ------------
Total current liabilities 25,865 35,941
Convertible subordinated notes 200,000 200,000
Deferred rent 4,944 4,417
Stockholders' equity 566,042 601,639
------------ ------------
Total liabilities and stockholders'
equity $796,851 $841,997
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(1) Derived from the December 31, 2002 audited financial
statements.
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