Corixa Reports Second Quarter Results
SEATTLE--(BW HealthWire)--Aug. 8, 2002--Corixa Corporation (Nasdaq:CRXA - News), a developer of immunotherapeutics, today announced results for the second quarter ended June 30, 2002.
For the second quarter, Corixa reported total revenue of $13.9 million compared with total revenue of $15.6 million for the prior year period. Net income applicable to common stockholders for the second quarter was $5.2 million compared with a net loss of $32.4 million for the second quarter of 2001. Net income applicable to common stockholders for the second quarter included other income of $21.9 million from the sale of certain preclinical assets and equipment to Medarex. Diluted net income per common share for the second quarter of 2002 was $0.12 compared with diluted net loss per common share of $0.79 for the second quarter of 2001. Excluding acquisition-related charges, such as intangible and deferred compensation amortization and restructuring charges related to Corixa's South San Francisco operations, net income applicable to common stockholders and diluted net income per common share for the second quarter of 2002 were $7.8 million and $0.16, respectively compared with net loss applicable to common stockholders and diluted net loss per common share of $14.2 million and $0.35, respectively for the second quarter of 2001.
On May 23, 2002, Corixa announced the restructuring of its South San Francisco operations. Corixa also announced the sale of specific preclinical assets to Medarex, and associated transfer of approximately 30 employees to Medarex to support those programs. In total, the workforce in South San Francisco was reduced by approximately 60 percent. Corixa recorded restructuring charges of $1.9 million in the second quarter of 2002 related to the workforce reduction. Corixa also expects to incur additional charges related to its leased facilities if it enters into sublease arrangements for these facilities. The reductions implemented at Corixa's South San Francisco operations are expected to result in annual cost savings in excess of $30 million.
For the first six months of 2002, Corixa's total revenue was $29.5 million compared with $29.1 million for the prior year period. For the first six months of 2002 net loss applicable to common stockholders was $171.7 million, compared with $75 million for the first six months of 2001. Net loss applicable to common stockholders for the first six months of 2002 includes a first quarter goodwill impairment charge of $161.1 million resulting from a delay in the potential launch of BEXXAR®. Diluted net loss per common share for the first six months of 2002 was $4.12 compared to diluted net loss per common share of $1.84 for the first six months of 2001.
The decrease in revenue for the second quarter of 2002 compared with the prior year period primarily was due to a decline in milestone revenue from Corixa's collaborative agreement for BEXXAR with GlaxoSmithKline, as well as the expiration of its ex-vivo agreement with The Infectious Disease Research Institute. These decreases were partially offset by increased revenue from collaborative agreements with Beaufour Ipsen, Japan Tobacco, Organon and Wyeth Lederle. At the end of the quarter, Corixa had approximately $80.5 million in cash, cash equivalents and investments. This cash balance does not reflect approximately $18 million payable in cash or stock that is owed Corixa under the terms of its recently announced asset sale to Medarex. In addition, this cash balance does not include Corixa's $75 million equity line of credit from BNY Capital Markets that has not yet been accessed. Corixa expects its quarterly revenues to continue to vary as it enters into new agreements, reaches certain research and development milestones and receives license and research and development payments under existing and new agreements.
"The actions we took in May to restructure our operations and refocus our staff and financial resources on core immunotherapeutic development efforts have strengthened our balance sheet," said Steven Gillis, Ph.D., chairman and chief executive officer of Corixa. "We are committed more than ever to aggressively pursuing priority programs that we consider key to our success."
Program Updates
BEXXAR
Corixa announced on June 27, 2002, that the company had been granted an appeal by the U.S. Food and Drug Administration (FDA) regarding the regulatory review status of BEXXAR, an investigational radioimmunotherapy for the treatment of low-grade or transformed low-grade non-Hodgkin's lymphoma. As stated previously, Corixa currently expects to present data on BEXXAR at an Oncologic Drugs Advisory Committee meeting before the end of this year.
PVAC(TM)
Corixa announced on June 6, 2002, that it has initiated an additional U.S. clinical study designed to evaluate the potential effectiveness of PVAC treatment for patients with mild to moderate plaque psoriasis. Patients have begun enrollment at clinical sites across the United States.
MELACINE®
Effective July 31, 2002, Corixa reacquired worldwide rights to its MELACINE vaccine from Schering Plough. Schering Plough exercised its right to discontinue its commitment to sales and marketing of MELACINE if the product was not approved in the United States by June 30, 2002. Schering Plough's subsidiary, Schering Canada, has agreed to continue to distribute MELACINE on Corixa's behalf under the terms of the prior agreement until Corixa enters into a new agreement with Schering Canada or another distributor. The MELACINE agreement with Schering Plough represented a commercialization agreement established by the former Ribi Immunochem Research, Inc. acquired by Corixa in 1999, under which Schering Plough provided no funding for the manufacturing or clinical development of the product. Corixa has begun to discuss potential commercialization of MELACINE with other parties that have expressed interest.
Conference Call
Corixa's earnings conference call and web cast will take place on Thursday, Aug. 8, 2002 at 5:00 p.m. ET/2:00 p.m. PT. Participants can access the call by dialing 888/202-2422 (international use 913/981-5592). Web cast participants can sign up at the Investors page of Corixa's web site at corixa.com.
Individuals who are unable to participate in Thursday's conference call can access a recorded rebroadcast by going to the Investors page of Corixa's web site (www.corixa.com) or by dialing 888/203-1112, (international use 719/457-0820) passcode 502461. The call will be rebroadcast until 11:00 p.m. ET, Aug. 10, 2002.
About Corixa
Corixa is a developer of immunotherapeutics with a commitment to treating and preventing autoimmune diseases, cancer and infectious diseases by understanding and directing the immune system. Corixa is focused on immunotherapeutic products and has a broad technology platform enabling both fully integrated vaccine design and the use of its separate, proprietary product components on a standalone basis. Corixa currently has 18 programs in clinical development.
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, Mont., and South San Francisco. For more information, please visit Corixa's Web site at corixa.com or call the company's investor relations information line at 877/4CORIXA (426-7492) or 877/426-7492.
Corixa Forward Looking Statements
Except for the historical information presented, certain matters discussed in this press release are forward-looking statements. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. They 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. Factors that could affect Corixa's actual results include, but are not limited to the risk that Corixa does not realize the expected financial benefits of its South San Francisco restructuring, the risk that the FDA does not approve BEXXAR for commercialization in a timely fashion, if at all, the risk that, if approved, Corixa is unable to successfully commercialize BEXXAR or its other product candidates, the risk that clinical trials for PVAC are not successful and the "Important Factors That May Affect Our Business, Our Results of Operations and Our Stock Price," described in Corixa's Quarterly Report on Form 10-Q for the quarter ended March 31, 2002, copies of which are available from Corixa's investor relations department. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release.
Corixa Corporation
Consolidated Statement of Operations
(In thousands except per share data)
Three months ended Six months ended
June 30, June 30,
-------------------- ----------------------
2002 2001 2002 2001
--------- ---------- ----------- ----------
Revenue:
Collaborative agreements $ 13,110 $ 15,052 $ 28,115 $ 27,648
Government grants 776 573 1,337 1,478
--------- ---------- ----------- ----------
Total revenue 13,886 15,625 29,452 29,126
Operating expenses:
Research and development 26,382 32,423 51,067 71,219
Sales, general and
administrative 4,666 4,975 11,649 11,898
Intangible amortization 495 14,388 990 28,825
Goodwill impairment - - 161,060 -
--------- ---------- ----------- ----------
Total operating
expenses 31,543 51,786 224,766 111,942
Loss from operations (17,657) (36,161) (195,314) (82,816)
Interest income 1,054 2,491 2,249 5,569
Interest expense (587) (548) (1,137) (1,255)
Other income 22,521 2,425 22,843 4,737
--------- ---------- ----------- ----------
Net income (loss) 5,331 (31,793) (171,359) (73,765)
Preferred stock dividend (84) (625) (310) (1,250)
--------- ---------- ----------- ----------
Net income (loss)
applicable to common
stockholders $ 5,247 $ (32,418) $ (171,669) $ (75,015)
========= ========== =========== ==========
Basic net income (loss)
per common share $ 0.13 $ (0.79) $ (4.12) $ (1.84)
========= ========== =========== ==========
Shares used in computation
of basic net income
(loss) per
common share 41,737 40,875 41,667 40,740
========= ========== =========== ==========
Diluted net income (loss)
per common share $ 0.12 $ (0.79) $ (4.12) $ (1.84)
========= ========== =========== ==========
Shares used in computation
of diluted net income
(loss) per
common share 48,713 40,875 41,667 40,740
========= ========== =========== ==========
Balance Sheet Data:
Cash, cash equivalents and securities
available-for-sale $ 80,473 $ 121,064
Working capital 61,753 53,946
Total assets 183,726 367,382
Long-term obligations less current portion 29,667 27,657
Accumulated deficit (1,074,601) (903,242)
Total stockholders' equity 111,546 281,765
Three months ended
June 30,
-------------------
2002 2001
-------- ----------
Reconciliation of net income (loss) to net
income (loss) excluding acquisition related charges:
Net income (loss) applicable to common
stockholders $ 5,247 $ (32,418)
Intangible amortization 495 14,388
Deferred compensation amortization 226 3,855
Other charges 1,866 -
-------- ----------
Net income (loss) excluding acquisition related
charges $ 7,834 $ (14,175)
======== ==========
Basic net income (loss) per share excluding
acquisition
related charges $ 0.19 $ (0.35)
======== ==========
Diluted net income (loss) per share excluding
acquisition
related charges $ 0.16 $ (0.35)
======== ==========
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Contact:
Corixa Corporation
Jim DeNike, 206/754-5716 (Investor Relations)
denike@corixa.com
or
Waggener Edstrom Bioscience
Colleen Beauregard, 503/443-7000 (Media Relations)
colleenb@wagged.com |
