Nabi Biopharmaceuticals Announces First Quarter 2008 Financial Results

Operating Expense Declines 40 Percent; Cash Used in Operating Activities Declines 62 Percent


ROCKVILLE, Md., May 8, 2008 (PRIME NEWSWIRE) -- Nabi Biopharmaceuticals (Nasdaq:NABI) today announced its first quarter financial results for the three month period ended March 29, 2008. The Company reported a net loss from continuing operations of $6.7 million, or $0.13 per share, compared to a net loss of $13.9 million, or $0.23 per share, for the period ended March 31, 2007. Including results from discontinued operations, Nabi had a net loss of $6.2 million, or $0.12 per share, for the current period compared to a net loss of $11.0 million, or $0.18 per share in the first quarter of 2007.

Net cash used in operating activities from continuing operations was $5.3 million for the first quarter, a 62% improvement compared to $13.9 million used in the first quarter of 2007. Cash, cash equivalents and marketable securities totaled $197.7 million at March 29, 2008. This balance includes $5.4 million collected by Nabi related to sales of Nabi-HB owed to Biotest Pharmaceuticals Corporation but excludes $10.1 million of restricted cash related to discontinued operations. This restricted cash is held in escrow to support any valid indemnification claims made by Biotest and the balance of this account will be released to Nabi in April 2009.

During the first quarter, the Company repurchased 4.5 million shares of common stock for a total of $16.9 million. A total of 9.5 million shares have been repurchased since the inception of the repurchase plan in December 2007. The plan has a remaining balance of $29.8 million from the originally authorized amount of $65 million.

"I am pleased to announce that our first quarter financial results are in line with our reduced operating costs and cash utilization targets for 2008," said Dr. Raafat Fahim, President and Chief Executive Officer of Nabi Biopharmaceuticals. "In addition to our financial performance, interest by several parties in Nabi and our promising developmental vaccine pipeline products remains strong. We are also making solid progress with the clinical milestones we announced earlier this year. We initiated the NicVAX Phase 2 immunogenicity study in January with initial results from the additional dose in the new schedule expected around mid-year. We also plan to initiate a Phase 3 safety and efficacy trial in the second half of the year."

Results of the Annual Meeting of Shareholders

Nabi Biopharmaceuticals held its Annual Meeting of Shareholders earlier today and is pleased to announce that the proposals put forth to stockholders by the company have been approved. Approximately 90% of total shares outstanding and eligible to vote were represented by proxy or at the annual meeting held today in Bethesda, Maryland.

Proposals approved by stockholders:



  --  Elected the company's ten Board of Director nominees for
      terms through the 2009 Annual Meeting of Stockholders
  --  Ratified the appointment of Ernst & Young LLP as the
      company's independent registered public accounting firm for
      the current fiscal year ending December 27, 2008.

Financial Results Conference Call and Webcast Information

The Company will host a live webcast at 4:30 p.m. EDT today to discuss these results.

The live webcast can be accessed at: http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=100445&eventID=1829901 (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your browser. Remove the space if one exists.) or via the Nabi Biopharmaceuticals website at http://www.nabi.com.

If you do not have Internet access, the U.S./Canada call-in number is 800-659-2037 and the international call-in number is 617-614-2713. The passcode is 16765629. An audio replay will be available for U.S./Canada callers at 888-286-8010 and for international callers at 617-801-6888. The replay passcode is 53044976. This audio replay also will be available through May 15, 2008. An archived version of the webcast will be available on the company's website at http://www.nabi.com.

About Nabi Biopharmaceuticals

Nabi Biopharmaceuticals leverages its experience and knowledge in powering the immune system to develop products that target serious medical conditions in the areas of nicotine addiction and gram-positive bacterial infections. Nabi Biopharmaceuticals is currently developing NicVAX(r) (Nicotine Conjugate Vaccine), an innovative and proprietary investigational vaccine for treatment of nicotine addiction and prevention of smoking relapse, and PentaStaph(tm) (Pentavalent S. aureus Vaccine), a vaccine designed to prevent the most dangerous and prevalent strains of S. aureus bacterial infections. The company is headquartered in Rockville, Maryland. For additional information about Nabi Biopharmaceuticals, please visit our Web site:http://www.nabi.com.

Forward-Looking Statements

Statements in this release that are not strictly historical are forward-looking statements including statements about the strategic alternatives process, development of our product candidates, and clinical trials and studies. You can identify these forward-looking statements because they involve our expectations, beliefs, projections, anticipations or other characterizations of future events or circumstances. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that may cause actual results to differ materially from those in the forward-looking statements as a result of any number of factors. These factors include, but are not limited to, risks relating to our ability to: successfully pursue strategic and other alternatives; obtain successful clinical trial results; receive PhosLo milestone and royalty proceeds; successfully partner with third parties to fund, develop, and manufacture our pipeline products, including NicVAX and our gram-positive infections products; realize anticipated cost saving; attract and maintain the human and financial resources to bring to market products in development; depend upon third parties to manufacture our products; achieve approval and market acceptance of our products; enter into and maintain arrangements with third parties to market and sell our products; comply with reporting and payment obligations under government rebate and pricing programs; raise additional capital on acceptable terms, or at all; and re-pay our outstanding convertible senior notes when due. Many of these factors are more fully discussed, as are other factors, in the company's Annual Report on Form 10-K for the fiscal year ended December 29, 2007 filed with the Securities and Exchange Commission.



                        Nabi Biopharmaceuticals
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                              (Unaudited)
                            (In thousands)

                                                 March 29,    Dec. 29,
                                                   2008         2007
                                                ----------  ----------
 ASSETS
 Current assets:
  Cash and cash equivalents                      $ 197,724   $ 217,606
  Marketable securities                                 --       1,600
  Prepaid expenses and other current
   assets                                            2,262       2,371
  Assets of discontinued operations                  2,381       4,616
                                                ----------  ----------
   Total current assets                            202,367     226,193

 Property and equipment, net                         1,717       1,971
 Other assets                                          377         379
 Restricted cash related to discontinued
  operations                                        10,082      10,027
                                                ----------  ----------
 Total assets                                    $ 214,543   $ 238,570
                                                ==========  ==========

 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
  Trade accounts payable                         $   2,637   $   3,647
  Accrued expenses and other current
   liabilities                                       6,061       7,105
  Current liabilities of discontinued
   operations                                        9,360       9,548
                                                ----------  ----------
   Total current liabilities                        18,058      20,300
 2.875% convertible senior notes, net               71,766      71,738
                                                ----------  ----------
 Total liabilities                                  89,824      92,038
 Commitments and contingencies

 Stockholders' equity:
  Convertible preferred stock                           --          --
  Common stock                                       6,216       6,212
  Capital in excess of par value                   334,844     333,527
  Treasury stock                                   (40,503)    (23,608)
  Accumulated deficit                             (175,838)   (169,599)
                                                ----------  ----------
   Total stockholders' equity                      124,719     146,532
                                                ----------  ----------
 Total liabilities and stockholders'
  equity                                         $ 214,543   $ 238,570
                                                ==========   =========


                         Nabi Biopharmaceuticals
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                              (Unaudited)
               (In thousands, except per share amounts)

                                            For the Three Months Ended
                                            --------------------------
                                              March 29,      March 31,
                                                2008           2007
                                            -----------    -----------

 Operating expenses:
  General and administrative expenses         $   5,133      $   8,300
  Research and development expenses               3,205          6,088
                                            -----------    -----------
 Operating loss                                  (8,338)       (14,388)
  Interest income                                 2,038          1,580
  Interest expense                                 (565)          (874)
  Other income (expense), net                       131             (1)
                                            -----------    -----------
 Loss from continuing operations
  before income taxes                            (6,734)       (13,683)
   Income taxes                                      --           (190)
                                            -----------    -----------
 Loss from continuing operations                 (6,734)       (13,873)
 Discontinued operations:
  Net income from discontinued
   operations                                        --          3,216
  Net gain (loss) on disposal of
   discontinued operations                          494           (372)
                                            -----------    -----------
 Income from discontinued operations                494          2,844
                                            -----------    -----------
 Net loss                                     $ (6,240)      $ (11,029)
                                            ===========    ===========

 Basic and diluted (loss) income
  per share:
   Continuing operations                      $   (0.13)     $   (0.23)
   Discontinued operations                         0.01           0.05
                                            -----------    -----------
 Basic and diluted (loss) income
  per share                                   $   (0.12)     $   (0.18)
                                            ===========    ===========

 Basic and diluted weighted average
  shares outstanding                             52,973         61,258
                                            ===========    ===========


                       Nabi Biopharmaceuticals
            CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (Unaudited)
                            (In thousands)

                                            For the Three Months Ended
                                            --------------------------
                                             March 29,      March 31,
                                               2008            2007
                                            -----------    -----------
 Cash flow from operating activities:
  Loss from continuing operations             $ (6,734)     $ (13,873)
  Adjustments to reconcile loss from
   continuing operations to net cash
   used in operating activities from
   continuing operations:
   Depreciation and amortization                    148            543
   Non-cash compensation                          1,307            449
   Other                                             66             51
  Changes in assets and liabilities:
   Prepaid expenses and other assets                109             35
   Trade accounts payable, accrued
    expenses and other                             (210)        (1,060)
                                            -----------    -----------
  Total adjustments                               1,420             18
                                            -----------    -----------
 Net cash used in operating activities
  from continuing operations                     (5,314)       (13,855)
 Net cash provided by operating
  activities from discontinued
  operations                                      2,838          3,627
                                            -----------    -----------
 Net cash used in operating
  activities                                     (2,476)       (10,228)
                                            -----------    -----------

 Cash flow from investing activities:
  Purchases of marketable securities                 --         (9,750)
  Proceeds from sales of marketable
   securities                                     1,600         15,750
  Capital expenditures                              (20)           (40)
  Proceeds from sales of assets                      91             --
                                            -----------    -----------
 Net cash provided by investing
  activities from continuing
  operations                                      1,671          5,960
 Net cash provided by investing
  activities from discontinued
  operations                                         --          2,289
                                            -----------    -----------
 Net cash provided by investing
  activities                                      1,671          8,249
                                            -----------    -----------

 Cash flow from financing activities:
  Proceeds from exercise of
   employee stock options                             3            176
  Purchase of common stock
   for treasury                                 (18,658)            --
  Other financing activities                        (82)            --
                                            -----------    -----------
 Net cash (used in) provided
  by financing activities from
  continuing operations                         (18,737)           176
 Net cash (used in) provided by
  financing activities from
  discontinued operations                          (340)           239
                                            -----------    -----------
 Net cash (used in) provided
  by financing activities                       (19,077)           415
                                            -----------    -----------

 Net decrease in cash and
  cash equivalents                              (19,882)        (1,564)
 Cash and cash equivalents
   at beginning of period                       217,606         86,227
                                            -----------    -----------
 Cash and cash equivalents
  at end of period                             $197,724       $ 84,663
                                            ===========    ===========


            

Coordonnées