PRINCETON, N.J., Feb. 22 /PRNewswire-FirstCall/ -- Medarex, Inc. (Nasdaq: MEDX - news) announced today fourth quarter results for the three-month period ended December 31, 2001. During this period, Medarex reported total revenues of $13.7 million, net interest, dividend and other income of $5.0 million, equity in net loss of affiliate of $3.6 million, and a net loss of $7.6 million, or ($0.10) per share. These results compare with total revenues of $11.5 million, net interest and other income of $5.8 million, equity in net loss of affiliate of $0.5 million, a benefit for income taxes of $17.4 million, and net income of $16.0 million, or $0.22 per share for the fourth quarter of 2000. For the three-month period ended December 31, 2001, total costs and operating expenses increased $4.3 million from $18.3 to $22.6 million as compared to the fourth quarter of 2000.
For the three-month period ended December 31, 2001, the total revenues and net interest income increase of $1.5 million relates principally to higher contract and license revenues; the $3.8 million increase in research and development (R&D) reflects costs associated with the increase in additional R&D personnel and related costs to support in-house clinical development of Medarex's product pipeline; the $1.5 million increase in General and Administrative (G&A) expenses primarily reflects the increase in support staff incurred in connection with the expansion of our business activities; and the $3.1 million increase in equity in net loss of affiliate reflects Medarex's share of Genmab(TM) A/S's loss from operations. Medarex expects equity in net loss of affiliate to increase due to Genmab's investments for its own research and development.
For the year ended December 31, 2001, Medarex reported total revenues of $42.3 million, net interest, dividend and other income of $21.6 million, equity in net loss of affiliate of $7.3 million, and a net loss of $2.7 million, or ($0.04) per share. These results compare with revenues totaling $22.5 million, net interest income of $21.2 million, equity in net loss of affiliate of $0.1 million, a benefit for income taxes of $13.1 million, and net income of $3.3 million, or $0.05 per share for the full year 2000. For the year ended December 31, 2001, total costs and operating expenses increased by $5.3 million from $53.3 to $58.6 million as compared to the full year 2000.
For the year ended December 31, 2001, the total revenues and net interest and other income increase of $20.2 million relates principally to higher contract and license revenues and the $4.7 million increase in R&D expenses relates primarily to costs associated with the expansion of our research and development capabilities including an increase in personnel. The $1.2 million increase in G&A expenses relates primarily to increased personnel costs incurred in connection with the expansion of our business activities. The $7.2 million increase in equity in net loss of affiliate reflects our share of Genmab's loss from operations.
Medarex ended 2001 with cash, cash equivalents and marketable securities of $467.0 million.
Significant Medarex events during the fourth quarter of 2001 include:
* Reporting positive interim Phase I/II trial results for MDX-010 in
patients with prostate cancer or advanced melanoma;
* Announcing the initiation of clinical trials by our affiliate, Genmab
A/S, for HuMax(TM)-CD4 in Phase III trials for rheumatoid arthritis and
for HuMax-IL-15 in Phase I/II trials for rheumatoid arthritis;
* Expanding our clinical team with the appointments of Thomas A. Davis,
M.D. as Director of Clinical Science; Michael J. Yellin, M.D. as
Director of Rheumatology and Immunology; and Richard S. Romasz, Ph.D.
as Director of Clinical Operations;
* Announcing a collaboration with Incyte Genomics, Inc. that is expected
to jointly develop and commercialize fully human antibody therapeutics;
* Announcing a collaboration with m-phasys GmbH that is expected to
jointly develop and commercialize fully human antibody therapeutics to
G protein-coupled receptors; and
* Announcing a collaboration with Ambit Biosciences Corporation that is
expected to jointly develop and commercialize fully human antibody
therapeutic products to treat human disease.
``Our accomplishments in the fourth quarter continue to demonstrate Medarex's execution of a solid business strategy,'' said Donald L. Drakeman, President and CEO of Medarex. ``With new clinical and development talents and additional partnerships, we believe that we are building one of the most productive pipelines of antibody therapeutics in the industry.''
In addition to fourth quarter events, year 2001 highlights include:
* Establishing 20 product development collaborations or expansions with
pharmaceutical, biopharmaceutical and genomics companies for the
development of fully human antibody therapeutics;
* Completing a $175 million 4.5% convertible subordinated note offering;
* Completing the first phase of the expanded research and development
facility in Bloomsbury, New Jersey to support Medarex's existing
manufacturing capabilities;
* Announcing the IND filing for a fully human antibody by our partner,
Centocor, Inc., a wholly owned subsidiary of Johnson & Johnson; and
* Continuing the introduction and development of products in our product
pipeline.
Medarex will hold a public conference call today at 9:00 a.m. Eastern time to discuss earnings and other business results. To access the call live, please dial 1-800-233-2795 within the U.S. or 1-785-832-1077 outside the U.S. The call will also be broadcast live via the Internet at www.medarex.com. An archived broadcast of the call will be available until midnight, March 5, 2002. The archive may be accessed by dialing 1-800-283-5758 within the U.S. or 1-402-220-0863 outside the U.S., or via the Internet at www.medarex.com.
Medarex, Inc. is a biopharmaceutical company developing monoclonal antibody-based therapeutics to fight cancer and other life-threatening and debilitating diseases. Medarex has assembled a broad platform of patented technologies for antibody discovery and development, including the UltiMAb Human Antibody Development System(SM) for the creation of high-affinity, fully human antibodies; T-12 Development(SM) offering the potential to move from target to trial in approximately 12 months; and Trans-Phage Technology(SM) combining high throughput screening with fully human antibody development. Medarex creates and develops fully human antibodies for itself and others, offering a full range of antibody related capabilities, including pre-clinical and clinical development supported by cGMP manufacturing services. For more information about Medarex, visit its website at www.medarex.com.
Except for the historical information presented herein, matters discussed herein may constitute forward-looking statements that 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. Statements that are not historical facts, including statements preceded by, followed by, or that include the words ``believes''; ``anticipates''; ``intends''; ``plans''; ``expects''; ``estimates''; or similar statements are forward-looking statements. Medarex disclaims, however, any intent or obligation to update these forward-looking statements. Risks and uncertainties include risks associated with product discovery and development as well as risks detailed from time to time in Medarex's public disclosure filings with the U.S. Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the fiscal year ended December 31, 2000 and subsequent Quarterly Reports on Form 10-Q. There can be no assurance that such development efforts will succeed, that such products will receive required regulatory clearance or that, even if such regulatory clearance were received, such products would ultimately achieve commercial success. Copies of Medarex's public disclosure filings are available from its investor relations department.
Medarex®, the Medarex logo, UltiMAb(TM), UltiMAb Human Antibody Development System(SM), T-12 Development(SM) and Trans-Phage Technology(SM) are trademarks and service marks of Medarex, Inc. All rights are reserved.
Genmab(TM) and HuMax(TM) are trademarks of Genmab A/S. All rights are reserved.
MEDAREX INC
Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
(unaudited)
2001 2000 2001 2000
Sales $253 $1,138 $1,132 $1,288
Contract and license
revenues 13,462 10,403 41,172 21,169
Total revenues 13,715 11,541 42,304 22,457
Costs and expenses:
Cost of sales 147 1,106 642 1,189
Research and development 14,912 11,162 38,626 33,942
General and administrative 7,543 6,027 19,344 18,142
Operating loss (8,887) (6,754) (16,308) (30,816)
Equity in net loss of
affiliate (3,620) (473) (7,334) (80)
Interest, dividend and
other income 7,285 5,755 26,170 21,158
Interest expense (2,239) -- (4,615) (3)
Income (loss) before
provision for income
taxes (7,461) (1,472) (2,087) (9,741)
Provision for income taxes 150 (17,440) 600 (13,075)
Net income (loss) $(7,611) $(15,968) $(2,687) $3,334
Basic not income (loss)
per share $(.10) $ .22 $(.04) $ .05
Diluted net income (loss)
per share $(.10) $ .22 $(.04) $ .05
Weighted average number of
common shares outstanding
during the year - basic 73,998 73,575 73,936 71,532
- diluted 73,998 74,936 73,936 73,232
Condensed Consolidated Balance Sheets
(In thousands)
December 31 December 31
2001 2000
Current assets, principally cash, cash
equivalents and marketable securities $491,812 $367,025
Property and equipment, net 79,860 23,431
Investments in, and advances to affiliate
and partners 128,357 133,301
Other assets 20,671 34,623
$720,700 $558,380
Current liabilities $44,486 $37,218
Convertible subordinated notes 175,000 --
Other liabilities 18,379 35,600
Shareholders' equity 482,835 485,562
$720,700 $558,380
SOURCE: Medarex, Inc. |
