Corixa Announces Fourth Quarter and Year-End 2004 Financial Results
Monday March 14, 7:00 am ET
SEATTLE--(BUSINESS WIRE)--March 14, 2005--Corixa Corporation (Nasdaq:CRXA - News), a developer of immunotherapeutics, today announced financial results for the fourth quarter and year ended December 31, 2004.
For the fourth quarter of 2004, Corixa reported total revenue of $8.3 million compared with total revenue of $12.5 million for the fourth quarter of 2003. Net loss applicable to common stockholders for the fourth quarter of 2004 was $24.8 million, compared with net loss of $16.9 million for the fourth quarter of 2003. Diluted net loss per common share for the fourth quarter of 2004 was $0.42 compared with diluted net loss per common share of $0.31 for the fourth quarter of 2003. Excluding acquisition-related charges, such as intangible and deferred compensation amortization, a lease-related impairment charge and restructuring charges, net loss applicable to common stockholders and diluted net loss per common share for the fourth quarter of 2004 were $20.1 million and $0.34, respectively, compared with net loss applicable to common stockholders and diluted net loss per common share of $14.4 million and $0.26, respectively for the fourth quarter of 2003.
On December 31, 2004, Corixa transferred all worldwide rights and responsibilities related to the manufacturing, development and commercialization of the BEXXAR® therapeutic regimen to GlaxoSmithKline (GSK). As a result, the company has classified all of its revenues and expenses related to BEXXAR since its approval in June 2003 as a discontinued operation in Corixa's statement of operations.
For the full year 2004, Corixa's total revenue was $25.0 million compared with $35.3 million for 2003. Net loss applicable to common stockholders was $77.0 million in 2004, compared with $84.9 million for 2003. Net loss applicable to common stockholders for 2004 and 2003 includes $2.6 million and $18.5 million, respectively, in lease-related impairment charges associated with our South San Francisco facilities.
Diluted net loss per common share for 2004 was $1.36 compared with diluted net loss per common share of $1.60 for 2003. Excluding acquisition-related charges, such as intangible and deferred compensation amortization, a lease-related impairment charge and restructuring charges, net loss applicable to common stockholders and diluted net loss per common share for 2004 were $71.8 million and $1.27, respectively, compared with net loss applicable to common stockholders and diluted net loss per common share of $62.4 million and $1.18, respectively for 2003.
A reconciliation of the Generally Accepted Accounting Principles (GAAP) net loss and net loss per share to the respective non-GAAP amounts for the three months and year ended December 31, 2004 and December 31, 2003, is set forth at the end of this press release.
As of December 31, 2004, Corixa had $116.2 million in cash, cash equivalents and investments.
"In 2004 we made adjustments to our business strategy that will enable us to more aggressively pursue adjuvant commercialization and the development of our innate immunity product portfolio," said Steven Gillis, Ph.D., chairman and chief executive officer of Corixa. "We are excited about the potential of our adjuvant and TLR4 programs and we look forward to continued clinical and commercial success in the year ahead."
2004 Key Accomplishments
* Signed license and supply agreements with Aventis Pasteur for the use of Corixa's RC-529 adjuvant in the development of several potential infectious disease vaccines. The agreements grant Aventis Pasteur co-exclusive and nonexclusive worldwide rights to RC-529 for use in multiple disease fields. Aventis Pasteur will pay Corixa upfront license fees and success-based milestone and royalty payments. Aventis Pasteur has also committed to placing annual orders for supply of RC-529 based on clinical trial and commercial forecasts.
* Initiated a Phase I clinical trial to test the safety and immune response activity of CRX-675 for seasonal allergic rhinitis. CRX-675 is one of Corixa's proprietary compounds that interact with and trigger toll-like receptor 4 (TLR4).
* Entered into a new manufacturing and guaranteed supply agreement with GSK covering the production of Corixa's flagship adjuvant, monophosphoryl lipid A, or MPL®. The agreement, which runs through 2012, guarantees payment to Corixa for supplying GSK with increasing annual quantities of MPL peaking in 2008 at the current maximum output of Corixa's Hamilton, Montana, MPL manufacturing facility (approximately 2 kilograms/year).
Recent Developments (2005)
* In partnership with GSK, received European approval for Fendrix®, a novel hepatitis B vaccine that contains Corixa's MPL® adjuvant. Fendrix builds on GSK's more than 15 years of experience with the hepatitis B vaccine, Engerix B®, of which more than 1 billion doses have been distributed worldwide.
* Signed licensing agreements with Gen-Probe and DakoCytomation A/S, for the right to develop and commercialize diagnostic tests leveraging certain Corixa intellectual property covering multiple genetic sequences related to potential markers for various cancers.
* Signed licensing agreement with Genentech for the possible development of humanized antibody-based therapeutics. Under the terms of the agreement, Corixa received a $1.6 million up-front license fee, and may receive up to an additional $8.25 million in future success-based payments upon completion of certain regulatory and commercial milestones in addition to royalty payments on product sales. Genentech will be responsible for development and commercialization costs of any potential therapeutic based on Corixa's antibody target.
* As a result of increasing GSK sales projections for vaccines containing MPL Corixa has received a request from GSK to accelerate increased production of MPL in its Hamilton, Montana facility. GSK has provided Corixa with a firm forecast for MPL that approximates maximum capacity of Corixa's facility in calendar year 2006 and an extended forecast for the same amount in 2007. Previous forecasts used to drive minimum product purchase guarantees did not call for Corixa to reach maximum capacity output until 2008. Corixa is in the process of implementing a hiring plan at its Montana location that should allow it to accommodate GSK's request. This change in forecast will result in greater than previously anticipated adjuvant sales to GSK in 2006 and 2007.
Conference Call
Corixa will hold a conference call and webcast to discuss the fourth quarter and full year financial results Monday, March 14, 2004 at 8:30 a.m. ET / 5:30 a.m. PT. To access the live conference call, dial (800) 810-0924 or (913) 981-4900. Webcast participants can sign up at the Investors page of Corixa's Web site (http://www.corixa.com/default.asp?pid=invest). A recorded replay of the conference call can be accessed through the Web site, or by dialing (888) 203-1112 or (719) 457-0820 and entering code 3037493. The call will be rebroadcast from March 14, 2005 at 11:30 a.m. ET to March 25, 2005 at 11:59 p.m. ET.
About Corixa
Corixa is a biopharmaceutical company developing vaccine adjuvants and immunology based products that manage human diseases. Corixa's products are currently in multiple clinical development programs, including several that have advanced to and through late-stage clinical trials. The company partners with numerous developers and marketers of pharmaceuticals, targeting products that are Powered by Corixa(TM) technology with the goal of making its potential products available to patients around the world. Corixa was founded in 1994 and is headquartered in Seattle, with additional operations in Hamilton, Montana. For more information, please visit Corixa's Web site at www.corixa.com. |
