Abgenix Reports First Quarter 2002 Results.Business Editors/Health & Medical Writers 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.--(BW HealthWire)--April 23, 2002 Abgenix, Inc. (Nasdaq:ABGX) today announced a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net loss of $21.8 million, or $0.25 per share, for the quarter ended March 31, 2002, compared to a net loss of $7.6 million, or $0.09 per share, for the quarter ended March 31, 2001. The pro forma net loss excludes a cumulative non-cash 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. charge of $34.7 million related to 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 of Curagen and Immunogen immunogen /im·mu·no·gen/ (im´un-ah-jen) any substance capable of eliciting an immune response. im·mu·no·gen n. See antigen. immunogen substance that elicits an immune response. that we made in connection with our collaborations with them. Including the impairment charge under generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , our net loss was $56.5 million, or $0.65 per share, for the first quarter of 2002. Contract revenues for the first quarter increased to $11.0 million from $4.2 million for the same quarter in 2001. Including interest income, total revenues for the first quarter were $16.3 million compared to $14.5 million for the same period in 2001. Research and development expenses for the first quarter of 2002 increased to $29.0 million from $16.0 million for the same period in 2001 due to an increase in clinical activities for the development of our existing product candidates, as well as increased pre-clinical research and development to validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data new product candidates. Headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. increased to 410 as of March 31, 2002 from 209 as of March 31, 2001. We ended the first quarter with approximately $661.0 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 . The major reductions in our balance of cash and investments in the first quarter, in addition to our net loss, includes capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. of $34.9 million and the decrease since December December: see month. 31, 2001 of $18.7 million in the market value of our equity investments in Curagen and Immunogen, the value of which will continue to be marked-to-market Marked-to-market An arrangement whereby the profits or losses on a futures contract are settled each day. each quarter. First quarter 2002 company highlights included: -- Initiating a Phase I clinical trial of an Abgenix proprietary product, ABX-MA1, a fully human monoclonal antibody generated from XenoMouse(R) technology for the treatment of metastatic melanoma. -- Initiating a Phase IIa clinical trial of ABX-IL8 in metastatic melanoma. We have filed an IND to initiate clinical trials of ABX-IL8 in other cancers as well, and continue to study ABX-IL8 in inflammatory diseases such as psoriasis and chronic obstructive pulmonary disease (COPD). -- Under our co-development alliance with Immunex Corp. for ABX-EGF, initiating two additional Phase II trials - one in prostate cancer administered by us and one in first-line colorectal cancer administered by our collaborator, for a total of five Phase II trials in our diversified clinical development program of ABX-EGF. -- Announcing senior promotions in our clinical development organization to support our commitment to developing a pipeline of proprietary products based on our fully human antibody technologies. Gisela Schwab, M.D. was promoted to Chief Medical Officer and Gregory M. Bell was promoted to Vice President, Clinical Development, Inflammation. -- Raising $200 million in a private offering of convertible subordinated notes. In addition, we recently entered a XenoMouse(R) license collaboration Working together on a project. See collaborative software. with Diabetogen. This is our second collaboration with Diabetogen to develop antibody therapies antibody therapy Clinical immunology Any therapeutic intervention in which a monoclonal or other concentrated antibody is used to manage a condition–eg, cancer or severe infection against autoimmune disease autoimmune disease, any of a number of abnormal conditions caused when the body produces antibodies to its own substances. In rheumatoid arthritis, a group of antibody molecules called collectively RF, or rheumatoid factor, is complexed to the individual's own gamma . In other news, Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and A. Sherwin, M.D., a board member and cofounder co·found tr.v. co·found·ed, co·found·ing, co·founds To establish or found in concert with another or others. co·found of Abgenix, announced his decision not to stand for re-election re-election n → reelección f re-election n → réélection f re-election n → Wiederwahl f to the Board of Directors at the company's Annual Meeting of Stockholders to be held on June 4, 2002. This decision will allow Dr. Sherwin to devote more time to his other professional activities. We are grateful to Dr. Sherwin for his crucial role in the founding of our company, and for his support and wise counsel over the years. Abgenix is a biopharmaceutical company focused on the development and commercialization of human therapeutic antibodies. The company's technology platform, which includes XenoMouse(R) and XenoMax(TM) technologies, enables the rapid generation and selection of high affinity, fully human antibody product candidates to a variety of disease targets. Abgenix leverages its leadership position in human antibody technology by building a diversified diversified (di·verˑ·s product portfolio through the development of its own internal proprietary products and through the establishment of licensing arrangements with multiple pharmaceutical, biotechnology and genomics companies. Abgenix's proprietary products are currently in clinical trials for the treatment of cancer and inflammatory diseases Noun 1. inflammatory disease - a disease characterized by inflammation disease - an impairment of health or a condition of abnormal functioning NEC, necrotizing enterocolitis - an acute inflammatory disease occurring in the intestines of premature infants; . For more information on Abgenix, visit the company's Web site at www.abgenix.com. Statements made in this press release about Abgenix's technologies, product development activities and collaborative arrangements other than statements of historical fact, are forward looking statements 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, 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 ------------------------
(in thousands except per-share data) 2002 2001
-------- --------
(unaudited)
Revenues:
Contract revenues $ 10,998 $ 4,176
Interest and other income 5,271 10,306
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Total revenues 16,269 14,482
Costs and Expenses:
Research and development 28,979 16,027
General and administrative 6,707 3,798
Amortization of intangible assets 1,807 2,046
Impairment of investments 34,653 --
Interest expense 574 255
-------- --------
Total costs and expenses 72,720 22,126
-------- --------
Net loss ($ 56,451) ($ 7,644)
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Basic and diluted net loss per share ($ 0.65) ($ 0.09)
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Shares used in computing basic and
diluted net loss per share 86,725 85,661
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March 31, December 31,
CONSOLIDATED BALANCE SHEET DATA 2002 2001
(in thousands) -------- --------
(unaudited) (a)
Cash, cash equivalents
and marketable securities $661,036 $557,813
Other current assets 25,620 21,905
-------- --------
Total current assets 686,656 579,718
Property and equipment, net 119,283 86,467
Long-term investments 15,039 15,039
Intangible assets, net 132,573 134,306
Deposits & other assets 29,718 22,346
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Total assets $983,269 $837,876
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Deferred revenue $ 3,503 $ 11,751
Other current liabilities 27,068 30,919
Acquisition liabilities 2,028 2,158
-------- --------
Total current liabilities 32,599 44,828
Convertible subordinated notes 200,000 --
Deferred rent 2,571 2,078
Stockholders' equity 748,099 790,970
-------- --------
Total liabilities and
stockholders' equity $983,269 $837,876
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(a) Derived from the December 31, 2001 audited financial statements.
Note: Certain amounts have been reclassified to conform to the current
year presentation.
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