Seattle Genetics Reports First Quarter 2006 Financial Results.BOTHELL, Wash. -- Management will host conference call today at 5:00 p.m. Eastern Time Seattle Genetics, Inc. (Nasdaq: SGEN SGEN Signal/System Generator ) today reported results for its first quarter ended March 31, 2006. Revenues for the first quarter of 2006 were $2.1 million, compared to $2.6 million in the first quarter of 2005. Revenues are generated from fees and milestones earned through the company's antibody-drug conjugate conjugate /con·ju·gate/ (kon´jdbobr-gat) 1. paired, or equally coupled; working in unison. 2. a conjugate diameter of the pelvic inlet; used alone usually to denote the true conjugate diameter; see (ADC (1) See A/D converter. (2) (Apple Display Connector) A peripheral connector from Apple that combines digital video display, USB and power in one cable. ) technology collaborations. Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the first quarter of 2006 were $11.6 million, compared to $10.8 million for the first quarter of 2005. The increase includes $1.0 million in noncash stock-based compensation expense, primarily driven by the company's adoption of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 123R as of January 1, 2006, as well as higher employee costs, partially offset by lower contract manufacturing expenses due to the timing of campaigns. Net loss for the first quarter of 2006 was $8.7 million, or $0.21 per share, compared to $7.6 million, or $0.18 per share, for the same period in 2005. As of March 31, 2006, Seattle Genetics had $70.4 million in cash and investments, compared to $79.2 million as of December 31, 2005. Cash and investments as of March 31, 2006 do not include net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately $37.2 million from the company's common stock offering that closed on April 3, 2006. "We have made important progress since the beginning of 2006, including advancing our ongoing clinical trials of SGN-30, SGN-40 and SGN-33, preparing an IND filing for SGN-35 in mid-2006 and reporting key preclinical preclinical /pre·clin·i·cal/ (-klin´i-k'l) before a disease becomes clinically recognizable. pre·clin·i·cal adj. 1. data on SGN-70 and our ADC technology at the AACR AACR American Association for Cancer Research AACR Anglo-American Cataloging Rules AACR Australasian Association of Cancer Registries AACR African Armed Conflicts Resolved annual meeting," said Clay B. Siegall, Ph.D., President and Chief Executive Officer of Seattle Genetics. "Our recent financing puts us in a strong position to continue executing on our business plan by generating key data from our clinical-stage programs, initiating additional clinical trials and investing in development activities and manufacturing campaigns to support future pipeline growth." Recent highlights include: --Announcing an agreement with Laureate lau·re·ate adj. 1. Worthy of the greatest honor or distinction: "The nation's pediatrician laureate is preparing to lay down his black bag" James Traub. 2. Pharma, Inc. for manufacturing of Seattle Genetics' SGN-33 and SGN-70 product candidates. Under the terms of the agreement, Laureate Pharma will perform scale-up and GMP GMP (guanosine monophosphate): see guanine. manufacturing of clinical trial materials for both programs. --Receiving a notice of allowance from the U.S. Patent and Trademark Office for a patent entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Recombinant recombinant /re·com·bi·nant/ (re-kom´bi-nant) 1. the new entity (e.g., gene, protein, cell, individual) that results from genetic recombination. 2. pertaining or relating to such an entity. See also under DNA. Anti-CD30 Antibodies and Uses Thereof." The issued claims cover methods of using certain anti-CD30 antibodies for the treatment of Hodgkin's disease Hodgkin's disease, a type of cancer of the lymphatic system. First identified in 1832 in England by Thomas Hodgkin, it is a type of malignant lymphoma. Incidence peaks in young adults and the elderly. , both as a single agent and in combination with other therapies. --Closing a public offering of 7,300,000 shares of common stock. Net proceeds to the company were approximately $37.2 million. In addition, the company has agreed to sell 1,129,015 shares of common stock to investment funds Noun 1. investment funds - money that is invested with an expectation of profit investment assets - anything of material value or usefulness that is owned by a person or company affiliated with Baker Brothers Investments at a price of $5.25 per share, subject to stockholder approval that will be sought on May 19, 2006 at the company's annual stockholders' meeting. --Reporting data on its SGN-70 program and proprietary ADC technology during the 2006 Annual Meeting of the American Association for Cancer Research Wikipedia is not the place for advertisement or self-advertising. The American Association for Cancer Research (AACR) is an organization based in Philadelphia, Pennsylvania, that focuses on all aspects of cancer research including basic, clinical and translational (AACR). SGN-70 possesses potent antitumor an·ti·tu·mor also an·ti·tu·mor·al adj. Counteracting or preventing the formation of malignant tumors; anticancer. Adj. 1. activity in preclinical models of both hematologic malignancies hematologic malignancy Hematologic cancer Hematology Any CA of blood-forming tissues, BM, or lymph nodes–eg, leukemia and lymphoma and carcinomas. The company reported on its ADC technology in multiple poster presentations, including data showing the rate of ADC internalization Internalization A decision by a brokerage to fill an order with the firm's own inventory of stock. Notes: When a brokerage receives an order they have numerous choices as to how it should be filled. , the precise chemical structures and rates of release of the drugs from internalized ADCs, the resulting high concentrations of drugs delivered inside of target cells and the enhanced stability of its advanced linker systems. The company also reported preclinical data demonstrating the high expression of CD70 on primary renal cell carcinoma renal cell carcinoma or hypernephroma Malignant tumour of the cells that cover and line the kidney. It usually affects persons over age 50 who have vascular disorders of the kidneys. It seldom causes pain, unless it is advanced. (RCC RCC - An extensible language. ) tissue, as well as the in vitro in vitro /in vi·tro/ (in ve´tro) [L.] within a glass; observable in a test tube; in an artificial environment. in vi·tro adj. In an artificial environment outside a living organism. potency of SGN-75, an ADC, against RCC. In another presentation, preclinical data were shown demonstrating that antibody fragment-drug conjugates retain the antigen binding and antitumor activity of conventional ADCs. --Appointing Daniel F. Hoth, M.D., a clinical and drug development veteran with more than 25 years of experience, to the company's Board of Directors. Conference Call Seattle Genetics' management will host a conference call and webcast to discuss the financial results and provide an update on business activities. The event will be held today at 2:00 p.m. Pacific Time (PT); 5:00 p.m. Eastern Time (ET). The live event will be available from the Seattle Genetics website at www.seattlegenetics.com, under the News and Investor Information section, or by calling 800-866-5043 (domestic) or 303-205-0044 (international). A replay of the discussion will be available beginning at approximately 4:00 p.m. PT today from the Seattle Genetics website or by calling 800-405-2236 (domestic) or 303-590-3000 (international), using passcode 11058794. The telephone replay will be available until 4:00 p.m. PT on April 27, 2006. About Seattle Genetics Seattle Genetics is a biotechnology company focused on the development of monoclonal antibody-based therapies for the treatment of cancer and immunologic immunologic, immunological emanating from or pertaining to immunology. immunologic competence see immunocompetence. immunologic domains diseases. The company is conducting multiple clinical trials of its three lead product candidates, SGN-30, SGN-40 and SGN-33, and preclinical development of several late-stage programs, including SGN-35. In addition, Seattle Genetics has developed proprietary antibody-drug conjugate (ADC) technology comprised of highly potent synthetic drugs and stable linkers for attaching the drugs to monoclonal antibodies This is a list of monoclonal antibodies, antibodies which are clones of a single parent cell. When used as medications, the generic names end in -mab (see "Nomenclature of monoclonal antibodies"). . The company currently has license agreements for its ADC technology with a number of leading biotechnology and pharmaceutical companies, including Genentech, Bayer, CuraGen and MedImmune. More information about Seattle Genetics' pipeline and technologies can be found at www.seattlegenetics.com. Certain of the statements made in this press release are forward-looking, such as those, among others, relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the company's expectations for initiation of future clinical trials, execution of its business plan, generation of clinical data and future pipeline growth. Actual results or developments may differ materially from those projected or implied in these 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. . Factors that may cause such a difference include risks related to adverse clinical results as our product candidates move into and advance in clinical trials and the risks inherent in early stage development of drug products. More information about the risks and uncertainties faced by Seattle Genetics is contained in the Company's filings with the Securities and Exchange Commission. Seattle Genetics disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Seattle Genetics, Inc.
Condensed Statements of Operations
(Unaudited)
(In thousands except per share amounts)
Three months ended
March 31
------------------
2006 2005
-------- -------
Revenues $ 2,141 $ 2,606
Expenses
Research and development 9,251 8,975
General and administrative 2,307 1,845
-------- -------
Total operating expenses 11,558 10,820
-------- -------
Loss from operations (9,417) (8,214)
Investment income, net 714 661
-------- -------
Net loss $ (8,703) $(7,553)
======== =======
Basic and diluted net loss per share $ (0.21) $ (0.18)
======== =======
Weighted-average shares used in computing
basic and diluted net loss per share 42,418 42,067
======== =======
Seattle Genetics, Inc.
Condensed Balance Sheets
(Unaudited)
(In thousands)
March 31, December 31,
2006 2005
----------- -----------
Assets
Current assets
Cash, cash equivalents and short-term
investments $ 36,239 $ 42,471
Other current assets 1,767 1,675
----------- -----------
Total current assets 38,006 44,146
Property and equipment, net 8,094 8,532
Long-term investments 34,207 36,736
Restricted investments 610 605
----------- -----------
Total assets $ 80,917 $ 90,019
=========== ===========
Liabilities and Stockholders' Equity
Accounts payable and accrued liabilities $ 5,045 $ 5,045
Deferred revenue 5,496 6,053
----------- -----------
Total current liabilities 10,541 11,098
----------- -----------
Deferred rent 519 513
Deferred revenue, net of current portion 1,884 2,950
----------- -----------
Total long-term liabilities 2,403 3,463
----------- -----------
Stockholders' equity 67,973 75,458
----------- -----------
Total liabilities and stockholders' equity $ 80,917 $ 90,019
=========== ===========
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion