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
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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
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