Abgenix Announces Third Quarter 2004 Financial Results.

FREMONT, Calif. -- Abgenix, Inc. (Nasdaq:ABGX) today reported financial results for the third quarter ended September 30, 2004.

For the quarter ended September 30, 2004, the company reported a net loss of $42.4 million or $0.48 per share, compared to a net loss of $43.6 million or $0.50 per share for the same period in 2003. The company ended the quarter with $230.7 million in cash, cash equivalents and marketable securities.

Revenues for the third quarter of 2004 were $3.4 million compared to $2.0 million for the same period in 2003. Contract revenues for the quarter ended September 30, 2004 primarily consisted of fees under technology licensing agreements, including a milestone payment from Amgen for advancement of AMG 162, a XenoMouse(R)-derived antibody, into pivotal clinical trials for bone loss. The company's revenues generally vary from quarter to quarter.

Operating expenses for the third quarter of 2004 were $45.4 million, compared with $45.9 million for the same period of 2003. Expenses for both 2003 and 2004 included research and development costs to advance the company's clinical and preclinical stage antibody product portfolio. The majority of third quarter 2004 research and development costs related to the company's proprietary clinical products, including its lead oncology product candidate, panitumumab, and ABX 10241, an antibody for secondary hyperparathyroidism (SHPT). Included in both periods were manufacturing start-up costs related to operating the company's antibody production facility. A portion of these manufacturing costs will continue to be classified as start-up until the facility is operating closer to full utilization. The company expects these costs to vary from quarter to quarter based on the extent of manufacturing activities for antibody product candidates, including panitumumab.

Net cash used in operating activities in the third quarter of 2004 was $36.5 million. For the nine months ending September 30, 2004, net cash used in operating activities was $112.1 million. Capital spending was $6.9 million for the nine months ended September 30. Abgenix expects net use of cash in operations and capital expenditures to be approximately $140-145 million for the full year of 2004.

"We are pleased with the progress in our product portfolio beyond panitumumab, our lead antibody product, which is currently in pivotal trials as a third line monotherapy in colorectal cancer," said Bill Ringo, president and CEO of Abgenix. "Moving forward, we intend to build our clinical pipeline and advance our antibody ABX-PTH for secondary hyperparathyroidism, while we prudently manage our operating expenses."

Third quarter 2004 and recent company highlights include:

--Appointment of Ward Wolff as Chief Financial Officer and Senior Vice President of Finance, effective September 13. Ward brings over 25 years of finance, operating and management experience to Abgenix.

--Presentation of interim results from an ongoing phase 1 clinical trial of ABX 10241, an antibody that targets parathyroid hormone (PTH), at the 26th Annual Meeting of the American Society for Bone and Mineral Research. Preliminary results of the trial showed that the antibody was well tolerated with dose related suppression of PTH and serum calcium levels in hemodialysis patients with SHPT. The company expects to launch a multiple dose phase 1 study of ABX 10241 by the first quarter of 2005.

--Receipt of a milestone payment from Amgen triggered by advancement of AMG 162, a fully human antibody created using Abgenix's proprietary XenoMouse(R) technology, into pivotal clinical trials for bone loss. Under a technology licensing agreement, Abgenix is also entitled to receive additional milestones from Amgen and royalties on any future sales of AMG 162.

--Completion of a 2004 goal to advance 12 targets into the company's oncology alliance with AstraZeneca, including acceptance of four of Abgenix's previous preclinical oncology programs. Under the collaboration agreement, the company may also receive future payments from AstraZeneca for development activities conducted to support those programs, as the product candidates advance through development.

--Three abstracts summarizing preclinical findings with panitumumab presented at 16th EORTC-NCI-AACR Symposium on Molecular Targets and Cancer Therapeutics. The findings further characterize the antitumor effect of EGFr targeting with panitumumab.

Conference call information

Abgenix will hold a conference call today at 1:30 p.m. PT, 4:30 p.m. ET, to discuss financial results. To participate in the teleconference, please dial 800-510-9691 fifteen minutes before the conference begins. International callers should dial 617-614-3453. The pass code is 56608236. The call will also be webcast live at www.abgenix.com. A replay of the call will be available until November 9, 2004 on the company's website or by dialing 888-286-8010. International callers should dial 617-801-6888. The replay participant code is 33544742.

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 product portfolio through the establishment of collaborations with multiple pharmaceutical and biotechnology companies. For more information on Abgenix, visit the company's website at www.abgenix.com.

This press release contains forward-looking statements about Abgenix's technologies, product development activities, collaborative arrangements, process science and manufacturing activities, projected financial and operating results, achievement of financial goals and achievement of milestone payments or other revenues. Such statements 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 and utilization of manufacturing capacity, regulatory approval processes, competitive products and services, capital requirements 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       Nine Months Ended
CONSOLIDATED STATEMENT     September 30,           September 30,
 OF OPERATIONS DATA      2004        2003        2004         2003
                      ----------- ----------- ----------- ------------
(in thousands except        (unaudited)             (unaudited)
 per share data)

Revenues:
  Contract revenue        $3,434      $1,957     $10,513      $10,463
  Contract
   manufacturing
   revenue                     -           -       1,325            -
                      ----------- ----------- ----------- ------------
    Total revenues         3,434       1,957      11,838       10,463

Operating expenses:
  Cost of goods
   manufactured                -           -       1,857            -
  Research and
   development            29,978      26,008      94,583       66,500
  Manufacturing start-
   up costs                6,351      10,282      16,487       63,127
  General and
   administrative          7,673       7,828      21,038       21,182
  Amortization of
   intangible assets       1,441       1,792       5,024        5,398
  Impairment of
   intangible assets           -           -      17,241        1,443
                      ----------- ----------- ----------- ------------
    Total operating
     expenses             45,443      45,910     156,230      157,650
                      ----------- ----------- ----------- ------------

Loss from operations     (42,009)    (43,953)   (144,392)    (147,187)

Other income
 (expense):
  Interest and other
   income                  1,347       2,036       4,831        8,010
  Interest expense        (1,758)     (1,652)     (5,048)      (4,133)
                      ----------- ----------- ----------- ------------
    Total other income
     (expense)              (411)        384        (217)       3,877

                      ----------- ----------- ----------- ------------
Loss before income tax
 expense                 (42,420)    (43,569)   (144,609)    (143,310)

  Foreign income tax
   expense                     -           -           -           84

                      ----------- ----------- ----------- ------------
Net loss                ($42,420)   ($43,569)  ($144,609)   ($143,394)
                      =========== =========== =========== ============
Basic and diluted net
 loss per share           ($0.48)     ($0.50)     ($1.63)      ($1.63)
                      =========== =========== =========== ============
Shares used in
 computing basic and
 diluted net loss per
 share                    88,845      87,962      88,609       87,865


                       September 30,      December 31,
CONSOLIDATED BALANCE
 SHEET DATA                2004              2003
                      ---------------- ------------------
(in thousands)          (unaudited)           (a)

Cash, cash equivalents
  and marketable
   securities                $230,668           $347,763
Other current assets           13,785             17,816
                      ---------------- ------------------
    Total current
     assets                   244,453            365,579
Property and
 equipment, net               229,914            246,277
Long-term investments          16,524             20,695
Intangible assets, net         96,231            118,496
Deposits & other
 assets                        28,268             29,146
                      ---------------- ------------------
Total assets                 $615,390           $780,193
                      ================ ==================
Deferred revenue               $7,662            $10,919
Other current
 liabilities                   28,318             50,368

                      ---------------- ------------------
Total current
 liabilities                   35,980             61,287
Convertible
 subordinated notes           249,876            200,000
Deferred rent                   7,203              6,153
Other long-term
 liabilities                    6,370                  -
Redeemable convertible
 preferred stock               49,869             99,737
Stockholders' equity          266,092            413,016
                      ---------------- ------------------
Total liabilities and
 stockholders' equity        $615,390           $780,193
                      ================ ==================

(a)  Derived from the December 31, 2003 audited financial
 statements.
Note:  Certain amounts have been reclassified to conform
 to the current year presentation.