Maxygen Reports Fourth Quarter and Year End 2006 Financial Results
Tuesday February 6, 7:00 am ET
-Company Achieves Major Milestones in 2006 as First Two Drugs Enter Clinical Trials-
REDWOOD CITY, Calif., Feb. 6 /PRNewswire-FirstCall/ -- Maxygen, Inc. (Nasdaq: MAXY - News) today reported financial results for the fourth quarter and year ended December 31, 2006. Maxygen reported a loss applicable to common stockholders of $16.5 million, or $0.46 per share, for the year ended December 31, 2006, as compared to loss applicable to common stockholders of $18.6 million, or $0.52 per share, for the prior year. Maxygen reported a loss from continuing operations of $34.1 million, or $0.95 per share, for the year ended December 31, 2006, compared to a loss from continuing operations of $35.1 million, or $0.98 per share, in 2005.
Excluding the impact of SFAS 123® and the extraordinary gain related to the lump sum payment received by Maxygen for its equity interests in Avidia Inc., Maxygen reported a non-GAAP loss applicable to common stockholders of approximately $27.4 million, or $0.76 per basic and diluted share, in 2006. In 2005, excluding the subsidiary preferred stock accretion, the cumulative effect adjustment resulting from the change to equity accounting for its investment in Codexis, and stock compensation expense, Maxygen reported a non- GAAP loss applicable to common stockholders of approximately $34.9 million, or $0.97 per basic and diluted share.
Revenue for the year ended December 31, 2006 was $25.0 million compared to $13.0 million in 2005 (excluding $1.5 million of revenues attributable to Codexis, Inc. in 2005), an increase of 92 percent. The increase in revenue was primarily due to Maxygen's ongoing collaboration with Roche relating to the MAXY-VII development program.
As a result of the change in Maxygen's accounting for its investment in Codexis to the equity method of accounting, Maxygen has not consolidated the operating results of Codexis in its financial statements since February 28, 2005. Financial results for 2005 contained herein consolidate the operating results of Codexis through February 28, 2005.
At December 31, 2006, cash, cash equivalents and marketable securities totaled $182.9 million.
Maxygen reported income applicable to common stockholders of $8.3 million, or $0.23 per share, for the fourth quarter of 2006 compared to a loss applicable to common stockholders of $5.9 million, or $0.16 per share, in the comparable period of 2005. Fourth quarter results were substantially impacted by Maxygen's receipt of a $17.8 million lump sum payment for the company's equity interest in Avidia, which was acquired by Amgen in the fourth quarter of 2006.
2006 Highlights
-- Maxygen initiated Phase I clinical trials for MAXY-G34, Maxygen's
next-generation G-CSF to treat neutropenia.
-- Roche initiated Phase Ia clinical trials for MAXY-alpha, Maxygen's
next-generation interferon alpha to treat hepatitis C; for this
advance, Maxygen received a $2 million milestone payment from Roche.
-- Maxygen achieved a manufacturing process development milestone in its
MAXY-VII program; for this achievement, Maxygen received a $5 million
milestone payment from Roche.
-- Maxygen received a $17.8 million payment for its stake in Avidia, which
was acquired by Amgen. Maxygen spun off Avidia in 2003, retaining
exclusive rights to use Avidia technology for the development of avimer
drugs for certain therapeutic targets.
"Having two drugs enter clinical trials is a major step towards creating significant value for our stockholders," said Russell Howard, Ph.D., chief executive officer of Maxygen. "We believe that Maxygen's 'biosuperior' development strategy enhances the likelihood that these two programs will result in improved biotherapeutics for the treatment of neutropenia and Hepatitis C."
"Our cash position at year end was strong," continued Howard. "Successes in our lead development programs, which resulted in two milestone payments from Roche, plus the $17.8 million payment to Maxygen from Amgen's purchase of Avidia, helped us retain our solid financial position. In all, 2006 provided many reasons to be enthusiastic about Maxygen's future."
2007 Outlook
Maxygen plans to hold a conference call in the first half of the year to formally announce Phase I data from its MAXY-G34 program and outline plans for initiation of Phase II clinical trials. The company also expects to provide an update in the second half of the year on Roche's progress and plans for MAXY- alpha.
For 2007, Maxygen expects operating revenues to be in the range of $15-18 million, with operating cash utilization of less than $50 million.
About Maxygen
Maxygen, Inc., headquartered in Redwood City, California, is focused on creating novel products using its integrated proprietary technologies for human therapeutics. Maxygen's technologies bring together advances in molecular biology and protein modification to create novel biotechnology products. |
