Advanced Magnetics, Inc. Reports Results for the Third Fiscal Quarter and Nine-Months Ended June 30, 2005
July 19 2005 - 9:01AM
PR Newswire (US)
Advanced Magnetics, Inc. Reports Results for the Third Fiscal
Quarter and Nine-Months Ended June 30, 2005 CAMBRIDGE, Mass., July
19 /PRNewswire-FirstCall/ -- Advanced Magnetics, Inc. (AMEX:AVM)
today announced operating results and revenues for the third fiscal
quarter and nine months ended June 30, 2005. Revenues for the
quarter were $402,961 as compared to revenues of $1,473,792 for the
same period in fiscal 2004. The company reported a net loss of
($3,253,132), or ($0.38) per share, for the third quarter of fiscal
2005 compared to a net loss of ($777,687), or ($0.10) per share,
for the same period in fiscal 2004. The decrease in revenue in the
quarter ended June 30, 2005 is primarily the result of a decrease
in the recognition of deferred licensee fee revenue from a
licensing and marketing agreement covering Combidex(R) and a
decrease in product sales in the quarter. The increase in expenses
in the quarter ended June 30, 2005 is primarily the result of
increased research and development expenses resulting in an
increased loss in the quarter as compared to the same fiscal
quarter in 2004. Cash, cash equivalents, and short-term
investments, consisting entirely of U.S. Treasury bonds, totaled
approximately $26.8 million at June 30, 2005. Revenues for the
nine-month period ended June 30, 2005 were $2,037,716 as compared
to revenues of $2,872,286 for the same period in fiscal 2004. The
net loss in the nine-month period was ($9,138,079), or ($1.11) per
share, as compared to a net loss of ($2,284,388), or ($0.29) per
share, for the same period in fiscal 2004. The decrease in revenues
for the nine months ended June 30, 2005 is primarily the result of
a decrease in the recognition of deferred licensee fee revenue from
a licensing and marketing agreement covering Combidex(R). The
increase in expenses in the nine-month period ended June 30, 2005
is a result of an increase in research and development expenses as
well as an increase in general and administrative expenses during
the period. "During this quarter we closed a $17.1 million
registered direct financing, which is an important event for the
future of the Company," stated Jerome Goldstein, Chairman,
President and CEO of Advanced Magnetics. "We believe this financing
will provide us with sufficient financial resources to complete our
Phase III development program for ferumoxytol in IV iron
replacement therapy." Mr. Goldstein continued: "We have important
milestones to achieve in our development efforts for ferumoxytol
and our continued regulatory efforts for Combidex(R). We look
forward to putting these resources to work toward our future
potential successes." About Advanced Magnetics Advanced Magnetics,
Inc. is a developer of superparamagnetic iron oxide nanoparticles
used in pharmaceutical products. As a leader in our field, we are
dedicated to the development and commercialization of our
proprietary nanoparticle technology for use in therapeutic iron
compounds to treat anemia, as well as novel imaging agents to aid
in the diagnosis of cardiovascular disease and cancer. For more
information about us, please visit our website at
http://www.advancedmagnetics.com/, the content of which is not part
of this press release. This document contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 and federal securities laws. Any statements
contained in this press release that do not describe historical
facts, including but not limited to, statements regarding the
sufficiency of our financial resources to complete our Phase III
development program for ferumoxytol in IV iron replacement therapy,
are forward-looking statements that involve risks and uncertainties
that could cause actual results to differ materially from those
discussed in such forward-looking statements. Such risks and
uncertainties include the following: (1) the possibility that we
may not be able to successfully complete the clinical development
of ferumoxytol, one of our two products currently under
development, or may not be able to complete the development in a
timely or cost-effective manner, due to the timing of enrollment of
patients in the Phase III studies, unexpected results from our
clinical sites, inadequate performance by third-party service
providers involved in the conduct of the clinical trials,
deficiencies in the design or oversight by us of these trials, or
any other factor causing an increase in expenses, a delay and/or a
negative effect on the results of the clinical studies for
ferumoxytol; (2) uncertainties surrounding the timing and results
of FDA interactions regarding the clinical development of
ferumoxytol and our ability to obtain regulatory approval for
ferumoxytol from the FDA; (3) the possibility that the results of
past ferumoxytol studies may not be replicated in future studies;
(4) the possibility that we may not be able to timely or
cost-effectively resolve the questions raised by the FDA and
satisfy the conditions specified for approval of Combidex,
including the provision of additional data or the conduct of
additional clinical trials to demonstrate the efficacy of Combidex;
(5) the possibility that we may not be able to raise additional
capital on terms and on a timeframe acceptable to us, if at all;
(6) our reliance on a limited number of customers and our
dependence on our collaborative relationships; (7) the timing of
recognition of deferred revenue which is affected by the
performance of our obligations under our license agreements; (8)
uncertainties relating to the cyclical nature of our product sales
cycles; (9) uneven demand for our products by end users; (10)
uncertainties relating to our ability to continue to operate at
commercial scale in compliance with FDA regulations and other
applicable manufacturing requirements when producing Combidex or
ferumoxytol; and (11) uncertainties relating to patents and
proprietary rights and other risks identified in our Securities and
Exchange Commission filings. We caution readers not to place undue
reliance on any forward-looking statements which speak only as of
the date they are made. We disclaim any obligation to publicly
update or revise any such statements to reflect any change in
expectations or in events, conditions or circumstances on which any
such statements may be based, or that may affect the likelihood
that actual results will differ from those set forth in the
forward-looking statements. Advanced Magnetics, Inc. CONDENSED
INCOME STATEMENT FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED
JUNE 30, 2005 (unaudited) Three Months Nine Months Ended June 30,
Ended June 30, 2005 2004 2005 2004 Revenues $402,961 $1,473,792 $
2,037,716 $2,872,286 Costs and expenses (3,757,062) (2,303,920)
(11,408,524) (5,269,044) Interest income 100,969 52,441 232,729
112,370 Net loss $(3,253,132) $(777,687) $(9,138,079) $(2,284,388)
Loss per share, basic and diluted $(0.38) $(0.10) $(1.11) $(0.29)
Weighted average shares outstanding, basic and diluted 8,641,460
7,816,970 8,218,302 7,792,298 BALANCE SHEET DATA 6/30/05 9/30/04
Cash, cash equivalents and short-term investments* $26,816,314
$14,334,278 Long-term investment** $ -- $4,768,159 Working capital
$24,611,723 $12,313,754 Total assets $31,418,294 $23,810,611
Shareholders' equity $25,595,028 $17,546,455 * Short-term
investment at 9/30/04 consists of a U.S. Treasury Bond with a
maturity date of January 31, 2005. Short-term investments at
6/30/05 consist of a U.S. Treasury Bond with a maturity date of
February 15, 2006 and a U.S. Treasury Bill with a maturity date of
July 28, 2005. ** Long-term investment at 9/30/04 consists of a
U.S. Treasury Bond with a maturity date of February 15, 2006.
Contact: Michael Avallone, CFO or Lisa Gordon, VP of Business
Development Advanced Magnetics, Inc. (617) 497-2070 DATASOURCE:
Advanced Magnetics, Inc. CONTACT: Michael Avallone, CFO, or Lisa
Gordon, VP of Business Development, +1-617-497-2070, both of
Advanced Magnetics, Inc. Web site:
http://www.advancedmagnetics.com/
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