PRINCETON, N.J., May 10 /PRNewswire-FirstCall/ -- Medarex, Inc. (Nasdaq: MEDX - News) announced today first quarter results for the three-month period ended March 31, 2002. During this period, Medarex reported total revenue and interest income totaling $15.7 million and a net loss of $15.8 million, or ($0.21) per share. Excluding a non-cash impairment charge of $1.6 million and a non-recurring $2.5 million technology access charge, Medarex's proforma net loss was $11.7 million, or ($0.16) per share. The first quarter 2002 results compare with total revenue and interest income of $15.7 million and net income of $3.3 million, or $0.04 per share for the first quarter of 2001. For the three-month period ended March 31, 2002, total revenues increased by $1.9 million, relating principally to higher sales revenues.
For the first quarter of 2002, total operating expenses increased $12.4 million, from $11.7 million to $24.1 million, as compared to the first quarter of 2001, relating principally to an increase in research and development (R&D) expenditures of $6.7 million. The higher costs reflect additional R&D personnel as well as other related costs to support clinical development of Medarex's product pipeline. In addition, the increase includes a non-recurring $2.5 million technology access charge incurred in connection with our collaboration with Tularik, Inc.
Other expenses included a non-cash impairment charge of $1.6 million reflecting a decline in the value of our equity investment portfolio and $3.6 million in equity in net loss of affiliate. This latter charge reflects Medarex's share of Genmab A/S net loss. General and Administrative (G&A) expenses increased $1.8 million from $3.6 million to $5.4 million as compared to the first quarter 2001. The increase in G&A is primarily attributable to an increase in personnel costs and legal expenses associated with the increasing number of partnering agreements. Medarex expects expenses to increase as it continues to develop its therapeutic products and anticipates that its equity in net loss of affiliate will increase due to Genmab's publicly stated intentions to increase its own research and development expenses.
Medarex ended the first quarter of 2002 with cash, cash equivalents and marketable securities of $428.0 million. In addition, Medarex holds equity investments in corporate partners on both an equity and cost basis. Based on then current market prices and foreign currency translations, such holdings as of March 31, 2002 totaled approximately $124 million.
Significant Medarex events during the first quarter of 2002 include:
-- Announcing Phase I/II clinical trials are underway for two potential
melanoma products - different melanoma vaccines used in conjunction
with Medarex's fully human antibody, MDX-010 - as part of Medarex's
multi-pronged tumor vaccine clinical program for the treatment of a
variety of tumors;
-- Initiating a new comprehensive and targeted approach intended to create
a variety of novel medical products for breast cancer in collaboration
with Oxford GlycoSciences and Genmab;
-- Announcing fast track designation by the FDA for HuMax(TM)-CD4, an
antibody product in Phase III trials for rheumatoid arthritis being
developed by our partner, Genmab;
-- Enhancing our manufacturing expertise with the appointment of Wen Ryan,
Ph.D., formerly with Amgen, Inc., as our Vice President of
Biopharmaceutical Development;
-- Announcing an antibody production collaboration with Sangamo
BioSciences, Inc. to increase the expression of antibodies in mammalian
cell lines;
-- Announcing a collaboration with Tularik to jointly develop and
commercialize fully human antibody therapeutics to novel oncogenes; and
-- Announcing a collaboration with ZYCOS Inc. to jointly develop and
commercialize fully human antibody therapeutic products to treat human
disease.
"Our progress in the first quarter is consistent with our goal to become the number one antibody product company in the world," said Donald L. Drakeman, President and CEO of Medarex. "Our clinical programs and manufacturing developments continue to advance as we expect our business strategy and our additional partnerships to provide more potential opportunities to develop new therapeutic products."
Medarex is a biopharmaceutical company focused on the discovery and development of therapeutics to treat life-threatening and debilitating diseases. Medarex's UltiMAb Human Antibody Development System(SM) is a unique combination of human antibody technologies that the Company believes enables the rapid creation and development of fully human antibodies to a wide range of potential disease targets for therapeutic antibody products, including products for the treatment of cancer, inflammation, autoimmune and infectious diseases. Medarex's product pipeline is based on a variety of therapeutic antibody products developed through the use of its UltiMAb technology. Medarex creates and develops fully human antibodies for itself and others, offering a full range of antibody related capabilities, including pre-clinical and clinical development supported by cGMP manufacturing services. For more information about Medarex, visit its website at www.medarex.com.
Except for the historical information presented herein, matters discussed herein may constitute forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Statements that are not historical facts, including statements preceded by, followed by, or that include the words "potential;" "believes;" "anticipates;" "intends;" "plans;" "expects;" "estimates;" or similar statements are forward-looking statements. Medarex disclaims, however, any intent or obligation to update these forward-looking statements. Risks and uncertainties include risks associated with product discovery and development as well as risks detailed from time to time in Medarex's public disclosure filings with the U.S. Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the fiscal year ended December 31, 2001 and subsequent Quarterly Reports on Form 10-Q. There can be no assurance that such development efforts will succeed, that such products will receive required regulatory clearance or that, even if such regulatory clearance were received, such products would ultimately achieve commercial success. Copies of Medarex's public disclosure filings are available from its investor relations department.
Medarex®, the Medarex logo, UltiMAb(TM) and UltiMAb Human Antibody Development System(SM) are trademarks and service marks of Medarex, Inc. All rights are reserved.
Genmab(TM) and HuMax(TM) are trademarks of Genmab A/S. All rights are reserved.
(See attached table.)
MEDAREX, INC.
Consolidated Statements of Operations
(unaudited)
(In thousands, except per share data)
Three Months Ended
March 31,
2002 2001
Sales $2,408 $66
Contract and license revenues 8,363 8,854
Total revenues 10,771 8,920
Costs and expenses:
Cost of sales 1,477 28
Research and development 14,754 8,060
Technology access rights -
Tularik, Inc. 2,500 -
General and administrative 5,418 3,602
Operating loss (13,378) (2,770)
Equity in net loss of affiliate (3,589) (577)
Interest income 4,946 6,771
Impairment loss on investments (1,600) -
Interest expense (2,218) (1)
Income (loss) before provision for
income taxes (15,839) 3,423
Provision for income taxes - 150
Net income (loss) $(15,839) $3,273
Basic net income (loss) per share $(.21) $.04
Diluted net income (loss) per share $(.21) $.04
Weighted average number of common
shares outstanding during the
year - basic 74,011 73,858
- diluted 74,011 75,828
Condensed Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2002 2001
(unaudited) (1)
Current assets, principally cash, cash
equivalents and marketable
securities $452,139 $491,812
Property, buildings and equipment, net 87,196 79,860
Investments in, and advances to
affiliate and partners 123,908 128,084
Other assets 20,474 20,671
$683,717 $720,427
Current liabilities $28,466 $44,486
Convertible subordinated notes 175,000 175,000
Other liabilities 16,877 18,379
Shareholders' equity 463,374 482,562
$683,717 $720,427
* (1) Derived from the December 31, 2001 audited financial statements. For further information, refer to the financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2001. |
