Jan. 30 /PRNewswire/ -- Abgenix, Inc. (Nasdaq: ABGX - news) today reported financial results for the fourth quarter and year ended December 31, 2000.
For the year ended December 31, 2000, the company reported a net loss of $8.8 million or $0.11 per share, compared to a net loss of $20.5 million or $0.35 per share for the year ended December 31, 1999. Contract revenues for 2000 increased 116% to $26.6 million from $12.3 million in 1999. Including interest income, total revenues for the year 2000 increased to $59.4 million from $15.3 million in 1999.
For the quarter ended December 31, 2000, the company reported a net loss of $4.5 million or $0.05 per share, compared to a net loss of $10.3 million or $0.16 per share in the same period of 1999. Contract revenues for the fourth quarter in 2000 were $13.5 million compared to $6.9 million in the same period of 1999. Including interest income, total fourth quarter revenues increased to $24.0 million from $8.0 million for the fourth quarter in 1999. These revenues did not include certain non-refundable payments received from corporate partners that were recorded as deferred revenue. Deferred revenue totaled $7.0 million as of December 31, 2000, up from $3.8 million at December 31, 1999.
Abgenix ended the year with $703 million in cash, cash equivalents and short-term investments. In addition, Abgenix holds long-term investments, primarily equity in corporate partners, totaling $79 million.
``Abgenix had a phenomenal year in 2000 as we advanced our product pipeline, expanded our access to proprietary targets, strengthened our balance sheet, added to our list of corporate collaborators and recruited high quality talent to our team,'' stated R. Scott Greer, chairman and chief executive officer of Abgenix. ``Abgenix took important steps in 2000 toward its goal of building a new biotechnology powerhouse and we plan to continue this rapid progression in 2001.''
Highlights and Accomplishments:
Fourth quarter 2000 company highlights included:
-- Proceeding with a Phase IIb clinical trial of ABX-IL8 in psoriasis,
based on meeting pre-determined safety and efficacy criteria in a Phase
IIa psoriasis study. In addition, the company started a Phase IIa
clinical trial of ABX-IL8 in a second indication, rheumatoid arthritis;
-- Being added to the NASDAQ 100 index as one of the 100 largest
non-financial companies listed on the Nasdaq stock market;
-- Expanding the collaboration with Curagen to develop up to
250 therapeutic antibody candidates;
-- Acquiring ImmGenics, a private biotechnology company with an exciting
proprietary technology for accelerating antibody product discovery;
-- Entering a new agreement with Immunex Corp. to share equally in the
development and commercialization of up to 10 antibody-based therapies
for cancer;
-- Acquiring IntraImmune, a private research company with technologies to
give antibodies access to intracellular targets;
-- Raising $284 million ($53 million for Cell Genesys) in a private
placement of 4.1 million shares of Abgenix common stock; and
-- Announcing the first licensee (Pfizer) to submit an IND for an antibody
product candidate generated with the company's XenoMouse(TM)
technology.
Other major accomplishments for the year 2000 include raising $725 million (including $203 million for Cell Genesys) in a follow-on offering of common stock in the first quarter, bringing the total capital raised in 2000 to approximately $1 billion; adding eight new XenoMouse technology partners and expanding alliances with four others; and forming two 50/50 product development alliances with Immunex Corp. (for ABX-EGF) and SangStat (for ABX-CBL).
In addition to these achievements in 2000, the company recently announced a collaboration with Dyax to develop a new technology that will combine the company's XenoMouse transgenic mouse antibody generating technology with Dyax's phage display technology to create customized libraries of high affinity, fully human antibody sequences. Also, Abgenix was issued a fourth U.S. patent relating to its XenoMouse technology. Furthermore, Abgenix recently expanded its existing agreements with Pfizer and Amgen.
Outlook:
The following statements are based on current goals. These statements are forward-looking, and actual results may differ materially from those described in these statements. For a discussion of the important risk factors that may cause such a difference, please refer to our Form S-1 registration statements filed recently with the SEC.
We expect the year 2001 to be another year of significant growth for Abgenix. We plan to expand our clinical development efforts with at least two Phase II trials involving ABX-IL8 and three Phase II trials with ABX-EGF. In addition, we plan to put one new proprietary Abgenix product into the clinic during the year. To support these clinical trials, we plan to dramatically increase our product development headcount and expenditures. We also expect the research organization to grow to align its ability to validate new product candidates with our extensive access to novel targets. Overall, Abgenix expects R&D expenditures to range between $105 - $120 million in 2001.
Recognizing the need for clinical manufacturing capacity, Abgenix also plans to invest over $100 million during 2001 and 2002 to build its own pilot plant. This facility, together with dedicated capacity at a contract manufacturer, should meet both Abgenix's and many of its partners' needs for clinical material.
Assuming that interest in XenoMouse technology deals remains strong, we expect contract revenues to rise to the $30 - $35 million level in 2001. Interest income is expected to be between $30 - $35 million. Therefore, the company's 2001 target loss, before amortization of goodwill and other intangibles, is $50 - $60 million. We plan to continue evaluating acquisition opportunities that would enhance shareholder value. Depending on the nature and size of any acquisitions completed, the preceding estimates could be altered. We undertake no obligation to update the public as our expectations change.
Specifically, Abgenix plans to achieve the following milestones in 2001:
-- Complete enrollment in a Phase IIb clinical trial of ABX-IL8 in
psoriasis and a Phase IIa clinical trial in rheumatoid arthritis;
-- Present Phase IIa clinical trial results of ABX-IL8 in psoriasis at AAD
in March;
-- Complete a Phase I clinical trial of ABX-EGF and present results at
ASCO in May;
-- Initiate Phase II clinical trials of ABX-EGF in several cancer
indications;
-- Complete enrollment in a Phase II/III clinical trial of ABX-CBL in
Graft Versus Host Disease;
-- File an IND on a new Abgenix proprietary product candidate;
-- Announce three IND filings by licensees;
-- Establish Xenomouse technology collaborations covering ten new
products; and
-- Establish additional target and technology access collaboration |
