Abgenix Reports Third Quarter 2001 Financial Results.Business Editors and 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)--Oct. 23, 2001 Abgenix, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ABGX) today reported financial results for the three and nine months ending September September: see month. 30, 2001. For the three months ended September 30, 2001, the company reported a net loss of $22.6 million or $0.26 per share, compared to a net income of $1.5 million or $0.02 per share for the same period in 2000. Contract revenues for the current quarter were $4.1 million as compared to $7.6 million for the same quarter in 2000. Including interest income, total revenues for the current quarter were $10.4 million compared to $16.8 million for the same period in 2000. Contract revenues include license fees and milestone “Milemarker” redirects here. For the American indie rock band, see Milemarker (band). A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. payments from customers and collaborators that are dependent on the timing of certain events and vary from quarter to quarter. For the nine months ended September 30, 2001, the company reported a net loss of $45.1 million compared to a net loss of $4.3 million in the same period of 2000. Contract revenues for the nine-month period in 2001 were $16.6 million compared to $13.1 million in the same period of 2000. Including interest income, total revenues for the nine-month period in 2001 increased to $40.9 million from $35.4 million for the same period in 2000. Expenses increased in the three and nine-month periods ended September 30, 2001 compared to the same periods in 2000 as the company forward integrates, ramping up target evaluation, antibody antibody, protein produced by the immune system (see immunity) in response to the presence in the body of antigens: foreign proteins or polysaccharides such as bacteria, bacterial toxins, viruses, or other cells or proteins. generation, pre-clinical and clinical studies, cell line development and antibody manufacturing with the goal of generating a large portfolio of product candidates in clinical trials, spreading risk over multiple indications and multiple molecules. Abgenix ended the third quarter with approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $540 million in cash, cash equivalents and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments. 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, totaling $67 million. Third quarter 2001 company highlights included: -- Announcing that Amgen has become the second licensee to submit an IND for an antibody product candidate generated with our XenoMouse(R) technology. There are now four fully human, XenoMouse-derived antibodies in clinical trials, including two of our own. -- Initiating a Phase II clinical trial of ABX-EGF in a second indication, non-small cell lung cancer, with our co-development partner, Immunex. Abgenix's ABX-EGF clinical program also includes a Phase II trial in renal cancer. -- Initiating a Phase IIa clinical trial of ABX-IL8 in a third indication, chronic obstructive pulmonary disease (COPD). Abgenix's ABX-IL8 clinical program also includes a Phase IIb trial in psoriasis and a Phase IIa trial in rheumatoid arthritis. -- Entering a license collaboration with Agensys to use XenoMouse technology to generate antibody therapeutics against Agensys' cancer targets. -- Expanding our senior management team with the appointments of Bruce A. Keyt, Ph.D. as vice president, Pre-Clinical Development, and H. David Miller as vice president, Information Technology. In addition, in early October October: see month. , Abgenix received a $17 million payment from Celltech for the use of our SLAM 1. (language) SLAM - Simulation Language for Alternative Modeling. 2. SLAM - A continuous simulation language. ["SLAM - A New Continuous Simulation Language", N.A. technology. This payment will be recognized as revenue over the period during which the technology is transferred to Celltech, beginning in the fourth quarter of 2001. The company expects to meet its revenue and loss projections for the full year as announced in January January: see month. 2001. The company expects contract revenues to be in a range of $30 - $35 million, and loss before amortization of goodwill and other intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. to be in a range of $50 - $60 million. "We are very pleased with our continued growth," said R. Scott Greer Greer, town (1990 pop. 10,322), Greenville and Spartanburg counties, NW S.C., in a farm region noted for its peaches. Textiles, foods, and automobiles are produced. , chairman and chief executive officer. "We now have over 30 corporate collaborations involving our human antibody technologies, seven of which were formed since the beginning of this year. Two of our partners have advanced XenoMouse-derived antibody product candidates into clinical trials. In our own pipeline, ABX-IL8 and ABX-EGF have both moved successfully into additional Phase II clinical trials Noun 1. phase II clinical trial - a clinical trial on more persons than in phase I; intended to evaluate the efficacy of a treatment for the condition it is intended to treat; possible side effects are monitored phase II addressing a total of six disease indications. Our organization has grown as well, increasing from 180 to 319 employees in 2001. We continue to attract seasoned, talented people to help meet our corporate goals." Abgenix is a biopharmaceutical company focused on the development and commercialization of human monoclonal antibody therapies Monoclonal antibody therapy is the use of monoclonal antibodies (or Mab) to specifically target cells. The main objective is stimulating the patient's immune system to attack the malignant tumor cells and the prevention of tumor growth by blocking specific cell receptors. for a variety of diseases. The company's antibody technology platform, which includes XenoMouse(R) and XenoMax(TM) technology, enables the rapid generation and selection of high affinity The relationship that a person has to the blood relatives of a spouse by virtue of the marriage. The doctrine of affinity developed from a Maxim of Canon Law that a Husband and Wife were made one by their marriage. There are three types of affinity. , fully human antibody product candidates to disease targets appropriate for antibody therapy 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 . Abgenix leverages its leadership position in human antibody technology by building a large and diversified diversified (di·verˑ·s product portfolio through the establishment of licensing arrangements with multiple pharmaceutical, biotechnology and genomics companies and through the development of its own internal proprietary products. 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 and collaborative col·lab·o·rate intr.v. col·lab·o·rat·ed, col·lab·o·rat·ing, col·lab·o·rates 1. To work together, especially in a joint intellectual effort. 2. 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 reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. 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 Nine Months Ended
CONSOLIDATED STATEMENT OF September 30, September 30,
OPERATIONS DATA 2001 2000 2001 2000
------ ------ ------ ------
(in thousands except (unaudited) (unaudited)
per share data)
Revenues:
Contract revenues $ 4,073 $ 7,634 $ 16,603 $ 13,077
Interest and other income 6,292 9,213 24,263 22,334
-------- -------- -------- --------
Total revenues 10,365 16,847 40,866 35,411
Costs and Expenses:
Research and development 26,951 12,784 69,334 31,910
General and administrative 3,934 1,762 10,134 5,152
Amortization of intangible
assets 2,120 777 6,213 2,330
Interest expense 1 17 256 317
-------- -------- -------- --------
Total costs and expenses 33,006 15,340 85,937 39,709
-------- -------- -------- --------
Net income (loss) ($22,641) $ 1,507 ($45,071) ($ 4,298)
======== ======== ======== ========
Basic net income (loss)
per share (a) ($ 0.26) $ 0.02 ($ 0.52) ($ 0.05)
======== ======== ======== ========
Shares used in computing
basic net income (loss)
per share 86,166 81,323 85,927 78,799
======== ======== ======== ========
Diluted net income
(loss) per share ( ($ 0.26) $ 0.02 ($ 0.52) ($ 0.05)
======== ======== ======== ========
Shares used in computing
diluted net income
(loss) per share 86,166 88,611 85,927 78,799
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CONSOLIDATED BALANCE SHEET September 30, December 31,
DATA 2001 2000
---------------- --------------
(in thousands) (unaudited)
Cash, cash equivalents
and marketable securities $540,482 $692,883
Other current assets 22,836 25,155
-------- --------
Total current assets 563,318 718,038
Property and equipment, net 58,884 18,374
Long-term investments 66,988 79,181
Intangible assets, net 114,014 117,997
Deposits & other assets 8,369 3,210
-------- --------
Total assets $811,573 $936,800
======== ========
Deferred revenue $ 3,494 $ 6,978
Other current liabilities 27,789 14,151
Acquisition liabilities 364 75,429
-------- --------
Total current liabilities 31,647 96,558
Deferred rent 1,614 567
Stockholders' equity 778,312 839,675
-------- --------
Total liabilities and
stockholders' equity $811,573 $936,800
======== ========
Note (a): After giving effect to both of the two-for-one stock splits effective April 6, 2000 and July July: see month. 7, 2000. |
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