ROCKVILLE, Md., Nov. 6, 2008 (GLOBE NEWSWIRE) -- Nabi Biopharmaceuticals (Nasdaq:NABI) today announced its third quarter financial results for the three month period ended September 27, 2008. The Company reported a net loss from continuing operations of $4.3 million, or $0.08 per share, compared to a net loss of $10.4 million, or $0.17 per share, for the period ended September 29, 2007. Including results from discontinued operations, Nabi had a net loss of $1.7 million, or $0.03 per share, for the current period compared to a net loss of $15.9 million, or $0.26 per share, in the third quarter of 2007.
For the nine months ended September 27, 2008, the Company's net loss from continuing operations was $14.7 million, or $0.28 cents per share, compared to $34.8 million, or $0.57 cents per share, for the nine months ended September 29, 2007. Including results from discontinued operations, the net loss was $8.3 million, or $0.16 per share, compared to a net loss of $31.7 million, or $0.52 per share, in 2007.
The significant improvement in net loss from continuing operations was due to operating expense reductions of 50% and 45%, for the quarter and nine months ended September 27, 2008 compared to 2007, respectively. These reductions reflect the effect of our efforts to reduce infrastructure costs as well as a reduced scale of operations.
Net cash used in operating activities from continuing operations was $16.0 million for the first nine months of 2008, a 50% improvement compared to $31.9 million used in the first nine months of 2007. Cash and cash equivalents totaled $152.2 million at September 27, 2008. This balance excludes $10.6 million of restricted cash related to discontinued operations. This restricted cash is held in escrow to support any valid indemnification claims made by Biotest. The balance of this account will be released to Nabi in April 2009. To date, Biotest has not asserted any indemnification claims.
During the third quarter, the Company repurchased $7.0 million, par value, of its 2.875% convertible senior notes for $6.2 million, a $0.8 million discount, resulting in a $0.6 million gain on retirement of debt. As of September 27, 2008, there are $35 million, par value, of convertible senior notes outstanding compared to $112.4 million one year ago. Nabi has repurchased this debt at an average price of 89 cents on the dollar representing a significant discount to par value. The Company subsequently repurchased an additional $18.7 million, par value, of these notes in October for 89 cents on the dollar.
Nabi held its End-of-Phase 2 meeting for NicVAX with the U.S. Food and Drug Administration (FDA). The FDA agreed with the Phase 3 trial design protocol submitted by the Company and encouraged Nabi to submit a Special Protocol Assessment (SPA) application. Nabi has submitted its application and anticipates a response from the FDA by year end. Assuming the FDA agrees with all aspects of the SPA application before year end, Nabi could initiate the planned Phase 3 clinical trial later this year.
"I am pleased with our progress from both the financial and clinical perspectives. We continued to reduce operating costs, manage our cash position and improve our balance sheet," said Dr. Raafat Fahim, President and Chief Executive Officer of Nabi Biopharmaceuticals. "We continue to work diligently toward achieving the Company's objectives with a sharp focus on the strategic alternatives process, our key corporate goal, and we are on track to accomplish our clinical milestones for 2008. As previously announced, we are collaborating with the NIAID to advance our PentaStaph vaccine and we have completed a successful NicVAX immunogenicity study necessary for initiation of a Phase 3 clinical trial."
The Company is also revising its previous guidance for 2008 operating expenses and cash utilization. General and administrative expense for 2008 is expected to decrease by 50% compared to 2007, research and development expense is expected to decrease by 25% and cash used in continuing operations to decrease by 50% compared to 2007. The original guidance for these line items was a 40% decrease in general and administrative expense, a 45% increase in research and development expense and a 15% reduction in cash utilization. The change in research and development expense and cash utilization expectations is in part due to timing of initiation of the NicVAX Phase 3.
Financial Results Conference Call and Webcast Information
The Company will host a live webcast at 4:30 p.m. ET 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=2004840 (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 800-599-9795 and the international call-in number is 617-786-2905. The passcode is 47435332. 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 64891891. This audio replay also will be available through November 13, 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 initiation of our planned Phase 3 NicVAX clinical trial, guidance on operating expenses, cash utilization and general and administrative expense, strategic alternatives process, and development of our product candidates. 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: receive timely FDA action on the SPA application; 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 and the Quarterly Report for the quarters ended March 29, 2008 and June 28, 2008 on Form 10-Q filed with the Securities and Exchange Commission
Nabi Biopharmaceuticals
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
Sept. 27, Dec. 29,
2008 2007
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 152,249 $ 217,606
Marketable securities -- 1,600
Prepaid expenses and other current assets 1,005 2,371
Restricted cash related to discontinued
operations 10,570 --
Assets of discontinued operations 2,064 4,616
--------- ---------
Total current assets 165,888 226,193
Property and equipment, net 1,404 1,971
Other assets 288 379
Restricted cash related to discontinued
operations -- 10,027
--------- ---------
Total assets $ 167,580 $ 238,570
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $ 1,097 $ 3,647
Accrued expenses and other current
liabilities 4,472 7,105
Current liabilities of discontinued
operations 3,602 9,548
--------- ---------
Total current liabilities 9,171 20,300
2.875% convertible senior notes, net 34,179 71,738
--------- ---------
Total liabilities 43,350 92,038
Commitments and contingencies
Stockholders' equity:
Convertible preferred stock -- --
Common stock 6,229 6,212
Capital in excess of par value 336,433 333,527
Treasury stock (40,503) (23,608)
Accumulated deficit (177,929) (169,599)
--------- ---------
Total stockholders' equity 124,230 146,532
--------- ---------
Total liabilities and stockholders' equity $ 167,580 $ 238,570
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Nabi Biopharmaceuticals
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
For the Three For the Nine
Months Ended Months Ended
------------------ ------------------
Sept. 27, Sept. 29, Sept. 27, Sept. 29,
2008 2007 2008 2007
-------- -------- -------- --------
Operating expenses:
General and administrative
expenses $ 2,086 $ 6,361 $ 10,146 $ 21,041
Research and development
expenses 3,356 4,476 9,905 15,249
-------- -------- -------- --------
Operating loss (5,442) (10,837) (20,051) (36,290)
Interest income 831 1,352 4,087 4,351
Interest expense (286) (907) (1,286) (2,636)
Other income (expense), net 589 10 2,536 12
-------- -------- -------- --------
Loss from continuing
operations before
income taxes (4,308) (10,382) (14,714) (34,563)
Income taxes -- -- -- (190)
-------- -------- -------- --------
Loss from continuing
operations (4,308) (10,382) (14,714) (34,753)
Discontinued operations:
Net income (loss) from
discontinued operations 2,593 (5,519) 6,383 303
Net gain on disposal of
discontinued operations -- 27 -- 2,769
-------- -------- -------- --------
Income (loss) from
discontinued operations 2,593 (5,492) 6,383 3,072
-------- -------- -------- --------
Net loss $ (1,715) $(15,874) $ (8,331) $(31,681)
======== ======== ======== ========
Basic and diluted (loss)
income per share:
Continuing operations $ (0.08) $ (0.17) $ (0.28) $ (0.57)
Discontinued operations 0.05 (0.09) 0.12 0.05
-------- -------- -------- --------
Basic and diluted (loss)
income per share $ (0.03) $ (0.26) $ (0.16) $ (0.52)
======== ======== ======== ========
Basic and diluted weighted
average shares outstanding 51,592 61,382 52,236 61,256
======== ======== ======== ========
Nabi Biopharmaceuticals
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
For the Six Months
Ended
--------------------
Sept. 27, Sept. 29,
2008 2007
--------- ---------
Cash flow from operating activities:
Loss from continuing operations $ (14,714) $ (34,753)
Adjustments to reconcile loss from
continuing operations to net cash used
in operating activities from continuing
operations:
Depreciation and amortization 464 1,454
Non-cash compensation 2,526 1,985
Gain on repurchase of convertible senior
notes (2,420) --
Other 101 143
Changes in assets and liabilities:
Prepaid expenses and other assets 1,368 (222)
Trade accounts payable, accrued expenses
and other (3,338) (548)
--------- ---------
Total adjustments (1,299) 2,812
--------- ---------
Net cash used in operating activities from
continuing operations (16,013) (31,941)
Net cash provided by operating activities
from discontinued operations 299 9,140
--------- ---------
Net cash used in operating activities (15,714) (22,801)
--------- ---------
Cash flow from investing activities:
Purchases of marketable securities -- (29,475)
Proceeds from sales of marketable securities 1,600 40,250
Capital expenditures (20) (59)
Proceeds from sales of assets 91 --
--------- ---------
Net cash provided by investing activities
from continuing operations 1,671 10,716
Net cash provided by investing activities
from discontinued operations 2,500 3,157
--------- ---------
Net cash provided by investing activities 4,171 13,873
--------- ---------
Cash flow from financing activities:
Proceeds from issuance of common stock
for employee benefit plans 69 579
Purchase of common stock for treasury (18,658) --
Repurchase of convertible senior notes (35,119) --
Other financing activities (83) --
--------- ---------
Net cash (used in) provided by financing
activities from continuing operations (53,791) 579
Net cash (used in) provided by financing
activities from discontinued operations (23) 162
--------- ---------
Net cash (used in) provided by financing
activities (53,814) 741
--------- ---------
Net decrease in cash and cash equivalents (65,357) (8,187)
Cash and cash equivalents at beginning
of period 217,606 86,227
--------- ---------
Cash and cash equivalents at end of period $ 152,249 $ 78,040
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