RNS No 0507m
THERAPEUTIC ANTIBODIES INC
16 August 1999
THERAPEUTIC ANTIBODIES INC ANNOUNCES
SECOND QUARTER FINANCIAL RESULTS
London, 16 August 1999 - Therapeutic Antibodies Inc announces its
financial results for the quarter ended 30 June 1999. The results
will be filed on Form 10-Q with the Securities and Exchange
Commission (SEC) in the US, copies of which may be obtained from
the Company's London or Nashville offices.
HIGHLIGHTS
- Net loss of $3.38 million (1998: $3.33 million)
- Operating revenue of $309,000 (1998: $1.83 million) reflecting a
reduction in licensing revenue
- CroTAb awaiting product approval from US Food and Drug
Administration (FDA)
- Submission of DigiTAb Product License Application (PLA) and
Establishment License Application (ELA) to FDA
- Proposed merger of Proteus International plc and Therapeutic
Antibodies Inc on track
Commenting on the results, Chief Executive Andrew Heath said:
'Management has been successful in reducing costs in line with the
Company's cost cutting measures which were implemented in late
1998. Looking ahead, the merger with Proteus is on schedule, we
await FDA approval of CroTAb, our rattlesnake antivenom and
DigiTAb has now been submitted for FDA approval. In light of
these significant accomplishments, I am confident of the outlook
for the Company.'
For further information, please contact:
Andrew Heath
Therapeutic Antibodies Inc
Tel: 0171 606 8637
Saul Komisar
Therapeutic Antibodies Inc
Tel: 615-327-1027
Nick Freer/William Clutterbuck
The Maitland Consultancy
Tel: 0171 379 5151
SECOND QUARTER FINANCIAL RESULTS
In the second quarter of 1999, net losses increased slightly to
US$3.38 million, from US$3.33 million a year earlier. Although
operating revenue decreased to approximately US$309,000 from
US$1.83 million in the second quarter last year following the
cancellation of a licensing agreement, the Company was able to
reduce operating expenses in the period by US$1.3 million compared
to last year.
Reflecting the Company's focus on those products that it believes
have the greatest commercial potential, expenditures for research
and development decreased in the second quarter of 1999 to US$2.10
million, against US$2.99 million last year.
REVIEW OF OPERATIONS
THE MERGER
On 20 May 1999, the Boards of Proteus International plc and
Therapeutic Antibodies Inc announced that they had executed an
agreement providing for the merger of Proteus and Therapeutic
Antibodies, accompanied by a conditional non pre-emptive placing of
23,325,000 new Proteus ordinary shares at 40p per share to raise
approximately $7.0 million net of expenses for the enlarged group,
which at the placing price would have a market capitalisation of
approximately $63.1 million. Upon the merger becoming effective,
Therapeutic Antibodies' shareholders will receive 1.163 Proteus
ordinary shares for each share of Therapeutic Antibodies common
stock. The merger is subject to the approval of shareholders of
both Proteus and Therapeutic Antibodies. Shareholders' meetings of
both companies are expected to be held as soon as practical
following regulatory approvals.
PRODUCT NEWS
CroTAb - The Company has addressed all issues raised by the FDA's
response to its PLA submission. Full FDA approval and product
launch are anticipated later this year for CroTAb, the Company's
rattlesnake antivenom.
DigiTAb - On 9 August 1999, the Company submitted a Product License
Application (PLA) and Establishment License Application (ELA) to
the FDA, seeking approval of DigiTAb, which is designed to treat
the effects of digoxin toxicity. The FDA's acceptance of the
filing for review will trigger a milestone payment from Altana
Inc., Therapeutic Antibodies' US marketing partner for DigiTAb.
Therapeutic Antibodies developed DigiTAb for treating digoxin
intoxication. Digoxin is the most commonly prescribed form of
digitalis, which has been in use worldwide for many years to treat
a range of heart conditions. However, digoxin has a narrow
therapeutic range and can cause life-threatening toxicity as a
result of both acute overdose and chronic poisoning. It is
estimated that 7,500 cases of digoxin toxicity, requiring
immunotherapy, occur annually in the US and Europe with the
majority in the US. DigiTAb has also been shown to be effective in
the treatment of oleander poisoning. Oleander, a common plant
found throughout the US coastal states and Southeast Asia, contains
seeds and plant parts which are poisonous when ingested.
BACKGROUND ON THERAPEUTIC ANTIBODIES INC
Therapeutic Antibodies is an international biopharmaceutical
company specialising in research, development and production of
highly-purified polyclonal antibodies for treatment of diseases and
other life-threatening conditions for which satisfactory therapies
have generally not previously existed.
The Company is headquartered in Nashville, Tennessee, adjacent to
the Vanderbilt University Medical Center. The Company's research
laboratories are located at the Medical College of St.
Bartholomew's Hospital in London. Therapeutic Antibodies Inc's
products are manufactured at the Company's production facilities in
Australia and the UK for world-wide distribution. The Company's
Common Stock is listed on the London Stock Exchange.
An electronic version of this news release, as well as additional
information about Therapeutic Antibodies Inc, is available at
http://www.tab.co.uk on the Company's home page.
This release, and oral statements made from time to time by Company
representatives concerning the subject matter hereof, may contain
so-called 'forward looking statements'. These statements can be
identified by introductory words such as 'expects', 'plans',
'will', 'estimates', 'forecasts', projects', or words of similar
meaning, and by the fact that they do not relate strictly to
historical or current facts. Forward-looking statements frequently
are used in discussing the Company's growth strategy, operating and
financial goals, plans relating to regulatory submissions and
approvals and development programs. Many factors may cause actual
results to differ from the Company's forward-looking statements,
including inaccurate assumptions and a broad variety of risks and
uncertainties, some of which are known and others of which are not.
Those and other risks are described in the Company's filings with
the SEC, copies of which are available from the SEC or may be
obtained upon request from the Company. No forward-looking
statement is a guarantee of future results or events, and one
should avoid placing undue reliance on such statements.
THERAPEUTIC ANTIBODIES
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30 December 31
1999 1998
$ $
ASSETS
CURRENT ASSETS
- Cash and cash equivalents 783,313 7,760,328
- Restricted cash 63,587 419,168
- Trade receivables 264,546 67,677
- Value added tax receivable 98,620 326,849
- Inventories 291,542 287,802
- Other current assets 226,656 712,370
--------- ---------
TOTAL CURRENT ASSETS 1,728,264 9,574,194
- Property and equipment, net 10,478,007 11,074,766
- Patent and trademark costs, net 701,843 678,306
- Other assets, net 68,853 94,236
----------- -----------
TOTAL ASSETS 12,976,967 21,421,502
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
-Accounts payable and accrued 876,538 1,755,098
expenses
- Accrued interest 152,004 122,486
- Current portion of notes payable 1,843,830 2,159,428
--------- ---------
TOTAL CURRENT LIABILITIES 2,872,372 4,037,012
- Notes payable, net of current 4,707,257 4,744,216
portion
- Deferred revenue 476,345 342,363
- Other liabilities - 275,477
--------- ---------
TOTAL LIABILITIES 8,055,974 9,399,068
--------- ---------
Stockholders' equity:
- Common stock - par value $.001 52,057 52,057
per share; 59,000,000 shares
authorized, 52,057,219 issued and
outstanding
- Additional paid-in capital 87,097,993 87,074,215
- Deficit accumulated during the (82,060,345) (75,301,311)
development stage (1984-1999)
- Other comprehensive income (loss) (168,712) 197,473
---------- -----------
TOTAL STOCKHOLDERS' EQUITY 4,920,993 12,022,434
---------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' 12,976,967 21,421,502
EQUITY
========== ==========
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
(UNAUDITED)
For the Six For the Six For the For the
Months Months Three Three
Ended June Ended June Months Months
30, 1999 30, 1998 Ended June Ended June
30, 1999 30, 1998
$ $ $ $
OPERATING
REVENUES:
- Sales revenue 182,300 434,554 182,300 369,954
- Contract 179,498 55,214 114,810 30,123
revenue
- Licensing - 1,543,925 - 1,400,000
revenue
- Grant income 20,258 20,623 10,047 10,336
- Value-added tax - - - -
and insurance
recoveries
- Other 9,263 31,758 2,332 23,544
-------- --------- -------- ---------
391,319 2,086,074 309,489 1,833,957
-------- --------- -------- ---------
OPERATING
EXPENSES:
- Cost of sales 18,853 363,319 18,853 353,640
revenue
- Cost of 66,353 20,713 31,198 11,388
contract revenue
- Research and 4,479,365 5,551,426 2,104,740 2,985,756
development
- General and 1,148,360 2,022,880 830,681 1,041,751
administrative
- Marketing and 222,469 259,236 134,314 123,300
distribution
- Depreciation 887,599 801,651 471,798 427,683
and amortization
- Other - - - -
--------- --------- --------- ---------
6,822,999 9,019,225 3,591,584 4,943,518
--------- --------- --------- --------
OPERATING LOSS (6,431,680) (6,933,151) (3,282,095) (3,109,561)
- Interest income 86,874 144,295 22,560 57,446
- Interest (247,964) (470,124) (114,329) (257,240)
expense
- Foreign - 24,115 - -
currency gains
- Foreign (166,264) - (6,465) (22,361)
currency losses
- Debt conversion - - - -
expense
----------- ----------- ----------- -----------
NET LOSS (6,759,034) (7,234,865) (3,380,329) (3,331,716)
Redeemable - - - -
preferred stock
dividends
----------- ----------- ---------- -----------
Net loss (6,759,034) (7,234,865) (3,380,329) (3,331,716)
applicable to
common
shareholders
Other
comprehensive
income (loss),
before and after
tax:
Change in equity (366,185) 34,871 (126,072) (49,779)
due to foreign
currency
translation
adjustments
----------- ----------- ----------- -----------
Total (7,125,219) (7,199,994) (3,506,401) (3,381,495)
comprehensive
loss
=========== =========== =========== ===========
Basic and diluted (0.13) (0.31) (0.06) (0.14)
net loss per
share
====== ====== ====== ======
Weighted average
shares used in
computing
Basic and diluted 52,057,219 23,257,950 52,057,219 23,263,075
net loss per
share
========== ========== ========== ==========
For the Cumulative
Development Stage from
August 10, 1984
(inception) through
June 30, 1999
$
OPERATING REVENUES:
Sales revenue 1,847,168
Contract revenue 2,032,707
Licensing revenue 3,900,380
Grant income 794,265
Value-added tax and insurance 577,170
recoveries
Other 310,151
---------
9,461,841
---------
OPERATING EXPENSES:
- Cost of sales revenue 649,296
- Cost of contract revenue 421,826
- Research and development 57,885,040
- General and administrative 18,142,194
- Marketing and distribution 2,746,428
- Depreciation and amortization 7,961,220
- Other 345,310
----------
88,151,314
----------
OPERATING LOSS (78,689,473)
- Interest income 2,248,922
- Interest expense (5,284,095)
- Foreign currency gains 1,785,984
- Foreign currency losses (1,320,086)
- Debt conversion expense (801,597)
-----------
NET LOSS (82,060,345)
Redeemable preferred stock (32,877)
dividends
-----------
Net loss applicable to common (82,093,222)
shareholders
Other comprehensive income
(loss), before and after tax:
- Change in equity due to (168,712)
foreign currency translation
adjustments
-----------
Total comprehensive loss (82,261,934)
============
Basic and diluted net loss per
share
Weighted average shares used in
computing basic and diluted net
loss per share
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
For the Six For the Six For the
Months Months Ended Cumulative
Ended June June 30, 1998 Development
30, 1999 Stage From
August 10,
1984
(Inception)
through June
30, 1999
$ $ $
CASH FLOW FROM
OPERATING ACTIVITIES:
Net loss (6,759,034) (7,234,865) (82,060,345)
Adjustments to
reconcile net loss to
net cash used in
operating activities:
- Depreciation and 887,599 801,651 7,961,220
amortization
- Disposal of property _ _ 1,206,566
and equipment
- Foreign currency 166,264 (24,115) (465,898)
(gain) loss
- Warrant expense - 48,820 486,913
- Stock-based 23,778 54,372 734,306
compensation expense
-Debt conversion - - 801,597
expense
Changes in:
- Restricted cash 355,580 (1,000,000) (63,588)
- Trade receivable 17,110 483,712 (136,895)
- Inventories (3,740) 328,640 (177,369)
- Other current assets 473,193 194,587 (236,069)
- Accounts payable and (867,535) (208,910) 1,019,668
accrued expenses
- Accrued interest 23,636 65,620 886,610
- Deferred revenue 145,777 (197,711) 156,803
- Other (268,887) - (279,499)
----------- ----------- ------------
NET CASH USED IN (5,806,259) (6,688,199) (70,165,980)
OPERATING ACTIVITIES
----------- ----------- -----------
CASH FLOWS FROM
INVESTING ACTIVITIES:
- Purchase of property (467,458) (555,382) (15,740,808)
and equipment
- Patent and trademark (43,906) (41,700) (804,560)
costs
- Purchase of short- - - (13,933,294)
term investments
- Maturity of short- - 2,094,508 13,933,294
term investments
- Other - - 69,750
--------- --------- ------------
NET CASH PROVIDED BY (511,364) 1,497,425 (16,475,618)
(USED IN) INVESTING
ACTIVITIES
--------- --------- ------------
CASH FLOWS FROM
FINANCING ACTIVITIES:
- Proceeds from notes _ 3,331,412 20,450,244
payable
- Payments on notes (1,806,062) (590,331) (11,329,956)
payable
- Proceeds from line of 1,355,401 _ 4,726,679
credit
- Payments on line of _ (43,836) (3,371,278)
credit
- Proceeds from _ - 9,655,000
convertible debt, net
- Payments on _ - (4,320,325)
convertible debt
- Proceeds from _ 51,250 71,719,109
issuance of stock, net
- Proceeds from _ - 65,000
issuance of warrants
- Other (1,937) (149,467)
--------- --------- ----------
NET CASH (USED IN) (450,661) 2,746,558 87,445,006
PROVIDED BY FINANCING
ACTIVITIES
--------- --------- ----------
EFFECT OF EXCHANGE RATE (208,731) (201,948) (20,095)
CHANGES ON CASH AND
CASH EQUIVALENTS
--------- --------- -------
NET (DECREASE) INCREASE (6,977,015) (2,646,164) 783,313
IN CASH AND CASH
EQUIVALENTS
---------- ---------- -------
CASH AND CASH 7,760,328 4,915,077 -
EQUIVALENTS, BEGINNING
OF PERIOD
--------- --------- -------
CASH AND CASH 783,313 2,268,914 783,313
EQUIVALENTS, END OF
PERIOD
========= ========= =======
END
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