Seattle Genetics (ticker: SGEN, exchange: NASDAQ Global Market (.O))
News Release -
25-Apr-2006
Seattle Genetics Reports First Quarter 2006 Financial Results
Management will host conference call today at 5:00 p.m. Eastern Time
BOTHELL, Wash.--(BUSINESS WIRE)--April 25, 2006-- Seattle Genetics, Inc. (Nasdaq: SGEN) today reported results for
its first quarter ended March 31, 2006.
Revenues for the first quarter of 2006 were $2.1 million, compared
to $2.6 million in the first quarter of 2005. Revenues are generated
from fees and milestones earned through the company's antibody-drug
conjugate (ADC) technology collaborations.
Total operating expenses for the first quarter of 2006 were $11.6
million, compared to $10.8 million for the first quarter of 2005. The
increase includes $1.0 million in noncash stock-based compensation
expense, primarily driven by the company's adoption of SFAS No. 123R
as of January 1, 2006, as well as higher employee costs, partially
offset by lower contract manufacturing expenses due to the timing of
campaigns.
Net loss for the first quarter of 2006 was $8.7 million, or $0.21
per share, compared to $7.6 million, or $0.18 per share, for the same
period in 2005.
As of March 31, 2006, Seattle Genetics had $70.4 million in cash
and investments, compared to $79.2 million as of December 31, 2005.
Cash and investments as of March 31, 2006 do not include net proceeds
of approximately $37.2 million from the company's common stock
offering that closed on April 3, 2006.
"We have made important progress since the beginning of 2006,
including advancing our ongoing clinical trials of SGN-30, SGN-40 and
SGN-33, preparing an IND filing for SGN-35 in mid-2006 and reporting
key preclinical data on SGN-70 and our ADC technology at the AACR
annual meeting," said Clay B. Siegall, Ph.D., President and Chief
Executive Officer of Seattle Genetics. "Our recent financing puts us
in a strong position to continue executing on our business plan by
generating key data from our clinical-stage programs, initiating
additional clinical trials and investing in development activities and
manufacturing campaigns to support future pipeline growth."
Recent highlights include:
Announcing an agreement with Laureate Pharma, Inc. for
manufacturing of Seattle Genetics' SGN-33 and SGN-70 product
candidates. Under the terms of the agreement, Laureate Pharma
will perform scale-up and GMP manufacturing of clinical trial
materials for both programs.
Receiving a notice of allowance from the U.S. Patent and
Trademark Office for a patent entitled "Recombinant Anti-CD30
Antibodies and Uses Thereof." The issued claims cover methods
of using certain anti-CD30 antibodies for the treatment of
Hodgkin's disease, both as a single agent and in combination
with other therapies.
Closing a public offering of 7,300,000 shares of common stock.
Net proceeds to the company were approximately $37.2 million.
In addition, the company has agreed to sell 1,129,015 shares
of common stock to investment funds affiliated with Baker
Brothers Investments at a price of $5.25 per share, subject to
stockholder approval that will be sought on May 19, 2006 at
the company's annual stockholders' meeting.
Reporting data on its SGN-70 program and proprietary ADC
technology during the 2006 Annual Meeting of the American
Association for Cancer Research (AACR). SGN-70 possesses
potent antitumor activity in preclinical models of both
hematologic malignancies and carcinomas. The company reported
on its ADC technology in multiple poster presentations,
including data showing the rate of ADC internalization, the
precise chemical structures and rates of release of the drugs
from internalized ADCs, the resulting high concentrations of
drugs delivered inside of target cells and the enhanced
stability of its advanced linker systems. The company also
reported preclinical data demonstrating the high expression of
CD70 on primary renal cell carcinoma (RCC) tissue, as well as
the in vitro potency of SGN-75, an ADC, against RCC. In
another presentation, preclinical data were shown
demonstrating that antibody fragment-drug conjugates retain
the antigen binding and antitumor activity of conventional
ADCs.
Appointing Daniel F. Hoth, M.D., a clinical and drug
development veteran with more than 25 years of experience, to
the company's Board of Directors.
Conference Call
Seattle Genetics' management will host a conference call and
webcast to discuss the financial results and provide an update on
business activities. The event will be held today at 2:00 p.m. Pacific
Time (PT); 5:00 p.m. Eastern Time (ET). The live event will be
available from the Seattle Genetics website at
www.seattlegenetics.com, under the News and Investor Information
section, or by calling 800-866-5043 (domestic) or 303-205-0044
(international). A replay of the discussion will be available
beginning at approximately 4:00 p.m. PT today from the Seattle
Genetics website or by calling 800-405-2236 (domestic) or 303-590-3000
(international), using passcode 11058794. The telephone replay will be
available until 4:00 p.m. PT on April 27, 2006.
About Seattle Genetics
Seattle Genetics is a biotechnology company focused on the
development of monoclonal antibody-based therapies for the treatment
of cancer and immunologic diseases. The company is conducting multiple
clinical trials of its three lead product candidates, SGN-30, SGN-40
and SGN-33, and preclinical development of several late-stage
programs, including SGN-35. In addition, Seattle Genetics has
developed proprietary antibody-drug conjugate (ADC) technology
comprised of highly potent synthetic drugs and stable linkers for
attaching the drugs to monoclonal antibodies. The company currently
has license agreements for its ADC technology with a number of leading
biotechnology and pharmaceutical companies, including Genentech,
Bayer, CuraGen and MedImmune. More information about Seattle Genetics'
pipeline and technologies can be found at www.seattlegenetics.com.
Certain of the statements made in this press release are
forward-looking, such as those, among others, relating to the
company's expectations for initiation of future clinical trials,
execution of its business plan, generation of clinical data and future
pipeline growth. Actual results or developments may differ materially
from those projected or implied in these forward-looking statements.
Factors that may cause such a difference include risks related to
adverse clinical results as our product candidates move into and
advance in clinical trials and the risks inherent in early stage
development of drug products. More information about the risks and
uncertainties faced by Seattle Genetics is contained in the Company's
filings with the Securities and Exchange Commission. Seattle Genetics
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Seattle Genetics, Inc.
Condensed Statements of Operations
(Unaudited)
(In thousands except per share amounts)
Three months ended
March 31
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2006 2005
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Revenues $ 2,141 $ 2,606
Expenses
Research and development 9,251 8,975
General and administrative 2,307 1,845
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Total operating expenses 11,558 10,820
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Loss from operations (9,417) (8,214)
Investment income, net 714 661
-------- -------
Net loss $ (8,703) $(7,553)
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Basic and diluted net loss per share $ (0.21) $ (0.18)
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Weighted-average shares used in computing
basic and diluted net loss per share 42,418 42,067
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Seattle Genetics, Inc.
Condensed Balance Sheets
(Unaudited)
(In thousands)
March 31, December 31,
2006 2005
----------- -----------
Assets
Current assets
Cash, cash equivalents and short-term
investments $ 36,239 $ 42,471
Other current assets 1,767 1,675
----------- -----------
Total current assets 38,006 44,146
Property and equipment, net 8,094 8,532
Long-term investments 34,207 36,736
Restricted investments 610 605
----------- -----------
Total assets $ 80,917 $ 90,019
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Liabilities and Stockholders' Equity
Accounts payable and accrued liabilities $ 5,045 $ 5,045
Deferred revenue 5,496 6,053
----------- -----------
Total current liabilities 10,541 11,098
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Deferred rent 519 513
Deferred revenue, net of current portion 1,884 2,950
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Total long-term liabilities 2,403 3,463
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Stockholders' equity 67,973 75,458
----------- -----------
Total liabilities and stockholders' equity $ 80,917 $ 90,019
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CONTACT: Seattle Genetics
Peggy Pinkston, 425-527-4160
ppinkston@seagen.com
SOURCE: Seattle Genetics
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Seattle Genetics
