Immunomedics posts losses in 2008 Q4, year-end

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Immunomedics, a biopharmaceutical company focused on developing monoclonal antibodies to treat cancer and other diseases, has reported an increase in net loss for its fiscal 2008 fourth quarter, which ended June 30.

For the quarter, the Morris Plains, N.J.-based company saw revenues of $1 million and a net loss of $6.9 million, compared to revenues of $800,000 and a net loss of $4.6 million, for the same period last year. The increase in net loss for the three-month period was primarily due to impairment losses to reduce the fair market value of investments in auction rate securities (ARS), increased research and development spending and increased compensation, principally from higher headcount, the company said.

For fiscal year 2008, Immunomedics reported revenues of $3.7 million and a net loss of $22.9 million, compared to revenues of $8.5 million and a net loss of $16.7 million, for fiscal year 2007.

The company said that the current year’s results did not include any amortization of deferred revenue from the development collaboration and license agreement with UCB. Consequently, the increase in net loss was due to the $5.4 million of amortized deferred revenue recognized in the previous year, as well as the $3 million adjustment to ARS investments and increased research and development expenses related to higher headcount and related salaries, employee benefits and higher patent expenses.

As of June 30, the company had $26.2 million in cash, cash equivalents and marketable securities. Marketable securities consist of $20 million in AAA rated student loan ARS, net of the $3 million impairment losses recorded in fiscal year 2008, Immunomedics said.

On July 11, the company entered into a license and collaboration agreement with the Zurich, Switzerland-based Nycomed for the development and commercialization of veltuzumab in the subcutaneous formulation, for the treatment of all non-cancer indications. In return, the company received a non-refundable initial cash payment of $40 million on Aug. 21.

With the completion of the Nycomed agreement, the parties' obligations under the $9 million line of credit established in June, which was secured by the company's marketable securities, will be terminated, according to Immunomedics.