excerpts
"...Revenues
Revenues for the three months ended March 31, 2006, were $5.6 million compared with $3.0 million for the three months ended March 31, 2005.
License and collaborative fee revenues were $0.7 million for the three months ended March 31, 2006, compared with $0.5 million for the three months ended March 31, 2005. These revenues include amortization of upfront payments, milestone revenues and licensing revenues related to the outlicensing of our products and technologies and other collaborative arrangements. The increase of $0.2 million resulted from three additional outlicensing agreements.
Contract revenues were $3.1 million for the three months ended March 31, 2006, compared with $1.3 million for the same period of 2005. The increase resulted primarily from an increase in contract manufacturing services performed under our contract with the National Institute of Allergy and Infectious Diseases (“NIAID”) entered into in March of 2005 to develop three anti-botulinum neurotoxin monoclonal antibody therapeutics offset by a reduction in clinical trial services performed on behalf of Genentech, Inc. (“Genentech”). The NIAID contract work is being performed over an eighteen month period and is 100% funded with federal funds from NIAID under Contract No. HHSN266200500004C. We are recognizing revenue over the life of the contract as the services are performed on a proportional performance basis and, as per the terms of the contract, a 10% retention on all revenue is being deferred and classified as a long-term receivable until completion of the contract.
Royalties were $1.9 million for the three months ended March 31, 2006, compared with $1.2 million for the three months ended March 31, 2005. The increase resulted primarily from RAPTIVA® royalties earned under our royalty arrangement with Genentech...."
"...Based on current spending levels, anticipated revenues, collaborator funding, proceeds from our convertible note offerings in February of 2005 and February of 2006 and other sources of funding we believe to be available, we estimate that we have sufficient cash resources to meet our anticipated net cash needs through at least 2008. Any significant revenue shortfalls, increases in planned spending on development programs or more rapid progress of development programs than anticipated, as well as the unavailability of anticipated sources of funding, could shorten this period. Progress or setbacks by potentially competing products may also affect our ability to raise new funding on acceptable terms...." |
