Abgenix Announces Third Quarter 2004 Financial Results
Tuesday October 26, 4:00 pm ET
FREMONT, Calif.--(BUSINESS WIRE)--Oct. 26, 2004--Abgenix, Inc. (Nasdaq:ABGX - News) today reported financial results for the third quarter ended September 30, 2004.
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For the quarter ended September 30, 2004, the company reported a net loss of $42.4 million or $0.48 per share, compared to a net loss of $43.6 million or $0.50 per share for the same period in 2003. The company ended the quarter with $230.7 million in cash, cash equivalents and marketable securities.
Revenues for the third quarter of 2004 were $3.4 million compared to $2.0 million for the same period in 2003. Contract revenues for the quarter ended September 30, 2004 primarily consisted of fees under technology licensing agreements, including a milestone payment from Amgen for advancement of AMG 162, a XenoMouse®-derived antibody, into pivotal clinical trials for bone loss. The company's revenues generally vary from quarter to quarter.
Operating expenses for the third quarter of 2004 were $45.4 million, compared with $45.9 million for the same period of 2003. Expenses for both 2003 and 2004 included research and development costs to advance the company's clinical and preclinical stage antibody product portfolio. The majority of third quarter 2004 research and development costs related to the company's proprietary clinical products, including its lead oncology product candidate, panitumumab, and ABX 10241, an antibody for secondary hyperparathyroidism (SHPT). Included in both periods were manufacturing start-up costs related to operating the company's antibody production facility. A portion of these manufacturing costs will continue to be classified as start-up until the facility is operating closer to full utilization. The company expects these costs to vary from quarter to quarter based on the extent of manufacturing activities for antibody product candidates, including panitumumab.
Net cash used in operating activities in the third quarter of 2004 was $36.5 million. For the nine months ending September 30, 2004, net cash used in operating activities was $112.1 million. Capital spending was $6.9 million for the nine months ended September 30. Abgenix expects net use of cash in operations and capital expenditures to be approximately $140-145 million for the full year of 2004.
"We are pleased with the progress in our product portfolio beyond panitumumab, our lead antibody product, which is currently in pivotal trials as a third line monotherapy in colorectal cancer," said Bill Ringo, president and CEO of Abgenix. "Moving forward, we intend to build our clinical pipeline and advance our antibody ABX-PTH for secondary hyperparathyroidism, while we prudently manage our operating expenses."
Third quarter 2004 and recent company highlights include:
Appointment of Ward Wolff as Chief Financial Officer and
Senior Vice President of Finance, effective September 13. Ward
brings over 25 years of finance, operating and management
experience to Abgenix.
Presentation of interim results from an ongoing phase 1
clinical trial of ABX 10241, an antibody that targets
parathyroid hormone (PTH), at the 26th Annual Meeting of the
American Society for Bone and Mineral Research. Preliminary
results of the trial showed that the antibody was well
tolerated with dose related suppression of PTH and serum
calcium levels in hemodialysis patients with SHPT. The company
expects to launch a multiple dose phase 1 study of ABX 10241
by the first quarter of 2005.
Receipt of a milestone payment from Amgen triggered by
advancement of AMG 162, a fully human antibody created using
Abgenix's proprietary XenoMouse® technology, into pivotal
clinical trials for bone loss. Under a technology licensing
agreement, Abgenix is also entitled to receive additional
milestones from Amgen and royalties on any future sales of AMG
162.
Completion of a 2004 goal to advance 12 targets into the
company's oncology alliance with AstraZeneca, including
acceptance of four of Abgenix's previous preclinical oncology
programs. Under the collaboration agreement, the company may
also receive future payments from AstraZeneca for development
activities conducted to support those programs, as the product
candidates advance through development.
Three abstracts summarizing preclinical findings with
panitumumab presented at 16th EORTC-NCI-AACR Symposium on
Molecular Targets and Cancer Therapeutics. The findings
further characterize the antitumor effect of EGFr targeting
with panitumumab.
Conference call information
Abgenix will hold a conference call today at 1:30 p.m. PT, 4:30 p.m. ET, to discuss financial results. To participate in the teleconference, please dial 800-510-9691 fifteen minutes before the conference begins. International callers should dial 617-614-3453. The pass code is 56608236. The call will also be webcast live at www.abgenix.com. A replay of the call will be available until November 9, 2004 on the company's website or by dialing 888-286-8010. International callers should dial 617-801-6888. The replay participant code is 33544742.
About Abgenix
Abgenix is a biopharmaceutical company focused on the discovery, development and manufacturing of human therapeutic antibodies. The company's antibody development platform includes a leading technology and state-of-the-art manufacturing capabilities that enable the rapid generation, selection and production of high affinity, fully human antibody product candidates to a variety of disease targets. Abgenix leverages its leadership position in human antibody technology to build a diversified product portfolio through the establishment of collaborations with multiple pharmaceutical and biotechnology companies. For more information on Abgenix, visit the company's website at www.abgenix.com. |
