Immunomedics, a biopharmaceutical company, has reported widening losses for the third quarter of fiscal year 2008, which ended March 31.
The company posted $900,000 in revenues and a net loss of $8.2 million, compared to revenues of $900,000 and a net loss of $5.1 million for the same period last year.
The Morris Plains, N.J.-based Immunomedics said its increase in net loss in the current quarter was primarily the result of an adjustment of $2.2 million to reduce the market value of our investments in auction rate securities (ARS). The company said it continues to earn interest on its ARS investments in accordance with the corresponding contractual terms, and increased research and development (R &D) spending of $2 million also contributed to the increase in net loss this quarter.
“With the acceptance of the tender offer for sale of ARS, our existing cash holdings and the expected additional credit facility we believe we will have sufficient liquidity to continue funding our R &D programs for at least the next twelve months. We will continue to monitor transactions in this market for possible liquidation of our holdings on terms that are acceptable for the company. We are also committed to the out-licensing of veltuzumab and are pleased with the progress of our ongoing negotiations,” said Gerard G. Gorman, senior vice president of finance and business development and chief financial officer of Immunomedics.