ROCKVILLE, Md., Nov. 8, 2012 (GLOBE NEWSWIRE) -- Nabi Biopharmaceuticals (Nasdaq:NABI) today announced its third quarter financial results for the three-month period ended September 30, 2012. The Company reported a net loss of $4.1 million, or $0.12 per share, compared to net income of $0.1 million, or zero per share, for the prior year period.
Third quarter 2012 revenue was $0.6 million related to amortization of the initial upfront payment received from GlaxoSmithKline Biologicals, S.A. (GSK) under the NicVAX® option and license agreement. Revenue in the third quarter of 2011 was $1.1 million reflecting $0.6 million of amortization of the initial upfront payments received from GSK associated with the NicVAX option and license agreement and $0.5 million for services provided to GSK under the PentaStaph and NicVAX agreements.
Research and Development (R&D) expenses were $3.1 million for the third quarter of 2012, compared to $4.4 million in the third quarter of 2011. The decrease reflects the substantial reduction in NicVAX related clinical trials and manufacturing activities. General and Administrative (G&A) expenses were $1.6 million for the third quarter of 2012 compared to $1.3 million in the prior year period. The increase reflects costs related to the merger agreement with Biota Holdings Limited (Biota), announced during the second quarter of this year, plus costs recognized for employee severance as we continue to reduce our head count and operations.
For the nine months ended September 30, 2012, the Company's net loss was $7.3 million, or $0.18 per share, compared to a net loss of $2.5 million, or $0.06 per share, for the nine months ended September 24, 2011 in the prior year. Revenue of $1.9 million was recognized for the nine months ended September 30, 2012 compared to $14.0 million for the comparable prior period. Research and development expenses were $6.0 million for the current nine-month period compared to $16.2 million for the 2011 period while general and administrative expenses for the current nine-month period were $5.1 million compared to $4.1 million during the same period in 2011.
Net cash used in operating activities was $5.6 million for the first nine months of 2012 compared to $14.1 million in the first nine months of 2011. The decrease in cash used is primarily due to a reduction in NicVAX-related clinical and manufacturing activities in 2012 as compared to 2011 and a reduction in overall operating costs. Cash, cash equivalents and marketable securities at September 30, 2012 totaled $66.3 million, compared to $96.4 million at the end of 2011. This decrease is primarily due to our net cash used in operations and payment to repurchase our common stock pursuant to our "modified Dutch auction" tender offer we completed in July 2012.
Recent and upcoming events related to the business combination (the "Merger") with Biota Holdings Limited ("Biota"):
- On October 22, 2012, we announced that our shareholders approved various resolutions necessary to effect the Merger. Biota's shareholders have also approved the Merger.
- On October 23, 2012, we announced that our board of directors (the "Board") established a ratio of one share-for-every six shares of the outstanding common stock for Nabi's proposed reverse stock split of all outstanding shares of common stock. We anticipate that the reverse stock split will be effective as of 4:59 p.m., Eastern Time, on November 8, 2012 (the "Effective Time") and will be reflected in the trading price of Nabi common stock at the opening of trading on November 9, 2012. As a result, upon completion of the Merger, each ordinary share of Biota capital stock will be transferred to Nabi in exchange for 0.124963012 of a share of Nabi common stock.
- On November 5, 2012, we announced that our Board of Directors declared a special cash dividend of $31.4 million in the aggregate, or approximately $1.108 per share of Nabi common stock. The special cash dividend is payable to stockholders of record on October 26, 2012 and will be distributed on November 8, 2012.
- The parties expect to close the Merger on November 9, 2012 subject to satisfaction of the closing conditions.
- Upon completion of the Merger, new Nabi shares issued to former Biota stockholders will represent approximately 83% of the outstanding common stock of the combined company and shares of Nabi common stock held by current Nabi stockholders will represent approximately 17% of the outstanding common stock of the combined company;
- The board of directors of Nabi following completion of the Merger will consist of six current Biota directors and two Nabi current directors.
- The name of the company will be changed to "Biota Pharmaceuticals, Inc." upon completion of the Merger.
About Nabi Biopharmaceuticals
Nabi Biopharmaceuticals, headquartered in Rockville, Maryland, is a biopharmaceutical company that has focused on the development of vaccines addressing unmet medical needs, including nicotine addiction. Its sole remaining product in development has been NicVAX® (Nicotine Conjugate Vaccine), an innovative and proprietary investigational vaccine for the treatment of nicotine addiction and prevention of smoking relapse based on patented technology. For additional information about Nabi Biopharmaceuticals, please visit www.nabi.com.
Forward-Looking Statements
Statements set forth above that are not strictly historical are forward-looking statements. You can identify these forward-looking statements because they involve our expectations, intentions, beliefs, plans, 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 that are more fully discussed in Nabi's Annual Report on Form 10-K, as amended, for fiscal year ended December 31, 2011, Quarterly Reports on Form 10-Q for the quarters ended March 31 and June 30, 2012 and definitive proxy statement for Nabi stockholders special meeting filed with the SEC on August 7, 2012, as supplemented by the supplement dated September 25, 2012, under the captions "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Statement" and elsewhere in such documents. We do not undertake to update any of these forward-looking statements or to announce the results of any revisions to these forward-looking statements except as required by law.
| Nabi Biopharmaceuticals | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (Unaudited) | ||
| (In thousands) | ||
| September 30, | December 31, | |
| 2012 | 2011 | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 66,322 | $ 94,310 |
| Marketable securities | -- | 2,079 |
| Receivables | -- | 995 |
| Prepaid expenses and other current assets | 188 | 497 |
| Total current assets | 66,510 | 97,881 |
| Property and equipment, net | -- | 84 |
| Total assets | $ 66,510 | $ 97,965 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $ 333 | $ 146 |
| Accrued expenses and other current liabilities | 2,736 | 1,918 |
| Deferred revenue | 2,526 | 2,526 |
| Liabilities of discontinued operations | -- | 1,662 |
| Total current liabilities | 5,595 | 6,252 |
| Deferred revenue | 30,948 | 32,842 |
| Total liabilities | $ 36,543 | $ 39,094 |
| Stockholders' equity: | ||
| Convertible preferred stock | -- | -- |
| Common stock | 6,357 | 6,359 |
| Capital in excess of par value | 375,995 | 373,157 |
| Treasury stock | (117,048) | (92,567) |
| Accumulated deficit | (235,337) | (228,078) |
| Total stockholders' equity | $ 29,967 | $ 58,871 |
| Total liabilities and stockholders' equity | $ 66,510 | $ 97,965 |
| Nabi Biopharmaceuticals | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (Unaudited) | ||||
| (In thousands, except per share amounts) | ||||
| For the Three Months Ended | For the Six Months Ended | |||
| September 30, | September 24, | September 30, | September 24, | |
| 2012 | 2011 | 2012 | 2011 | |
| Revenue: | ||||
| Revenue | $ 632 | $ 1,086 | $ 1,895 | $ 14,003 |
| Operating expenses: | ||||
| Cost of services | -- | 344 | -- | 1,518 |
| Research and development expenses | 3,145 | 4,388 | 5,993 | 16,179 |
| General and administrative expenses | 1,605 | 1,291 | 5,058 | 4,059 |
| Total operating costs | 4,750 | 6,023 | 11,051 | 21,756 |
| Operating loss | (4,118) | (4,937) | (9,156) | (7,753) |
| Interest income | 30 | 32 | 95 | 154 |
| Other income (expense), net | (2) | (17) | 140 | 58 |
| Loss from continuing operations before income taxes | (4,090) | (4,922) | (8,921) | (7,541) |
| Benefit from income taxes | -- | 2,018 | 671 | 2,018 |
| Loss from continuing operations | (4,090) | (2,904) | (8,250) | (5,523) |
| Income from discontinued operations, net of tax provision | -- | 2,982 | 991 | 2,982 |
| Net loss | $ (4,090) | $ 78 | $ (7,259) | $ (2,541) |
| Basic income (loss) per share: | ||||
| Continuing operations | $ (0.12) | $ (0.07) | $ (0.21) | $ (0.13) |
| Discontinued operations | $ -- | $ 0.07 | $ 0.03 | $ 0.07 |
| Diluted income (loss) per share: | ||||
| Continuing operations | $ (0.12) | $ (0.07) | $ (0.21) | $ (0.13) |
| Discontinued operations | $ -- | $ 0.07 | $ 0.03 | $ 0.07 |
| Basic weighted-average shares outstanding | 32,825 | 42,397 | 39,305 | 42,269 |
| Diluted weighted-average shares outstanding | 32,825 | 42,397 | 39,308 | 42,269 |
| Nabi Biopharmaceuticals | ||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (Unaudited) | ||
| (In thousands) | ||
| For the Six Months Ended | ||
| September 30, | September 24, | |
| 2012 | 2011 | |
| Cash flow from operating activities: | ||
| Net loss | $ (7,259) | $ (2,541) |
| Income from discontinued operations, net of tax provision | 991 | 2,982 |
| Net loss from continuing operations | (8,250) | (5,523) |
| Adjustments to reconcile net loss from continuing operations to net cash used in operating activities from continuing operations: | ||
| Depreciation and amortization | 34 | 130 |
| Non-cash intra-period tax allocation | (671) | (2,018) |
| Share-based compensation | 2,836 | 2,011 |
| Loss on sale of property and equipment | -- | 29 |
| Changes in assets and liabilities: | ||
| Receivables | 996 | 139 |
| Prepaid expenses and other assets | 309 | 704 |
| Accounts payable, accrued expenses and other liabilities | 1,055 | (2,375) |
| Deferred revenue | (1,895) | (7,165) |
| Net cash used in operating activities from continuing operations | (5,586) | (14,068) |
| Net cash used in operating activities from discontinued operations | -- | (391) |
| Net cash used in operating activities | (5,586) | (14,459) |
| Cash flow from investing activities: | ||
| Proceeds from sales and maturities of marketable securities | 2,079 | 59,680 |
| Purchases of marketable securities | -- | (11,640) |
| Proceeds from sales of property and equipment | -- | 158 |
| Capital expenditures | -- | (1) |
| Net cash provided by investing activities from continuing operations | 2,079 | 48,197 |
| Net cash provided by investing activities from discontinued operations | -- | 5,000 |
| Net cash provided by investing activities | 2,079 | 53,197 |
| Cash flow from financing activities: | ||
| Proceeds from issuances of common stock for employee benefit plans | -- | 646 |
| Purchase of common stock for treasury | (24,481) | -- |
| Net cash provided by financing activities | (24,481) | 646 |
| Net increase (decrease) in cash and cash equivalents | (27,988) | 39,384 |
| Cash and cash equivalents at beginning of period | 94,310 | 53,564 |
| Cash and cash equivalents at end of period | $ 66,322 | $ 92,948 |