ROCKVILLE, Md., Feb. 28, 2008 (PRIME NEWSWIRE) -- Nabi Biopharmaceuticals (Nasdaq:NABI) today announced fourth quarter and year-end financial results for the three and twelve month periods ended December 29, 2007.
For the full year ended December 29, 2007, the Company's net loss from continuing operations was $39.0 million, or $0.65 per share, compared to a net loss of $60.6 million, or $1.00 per share, for the year ended December 30, 2006. Including results from discontinued operations, Nabi had net income of $47.1 million, or $0.78 per share, for 2007 compared to a net loss of $58.7 million, or $0.96 per share, in 2006. A $79.7 million pre-tax gain on the sale of the biologics strategic business unit (SBU) was the primary component of total net income for 2007.
For the quarter ended December 29, 2007, the Company recorded a net loss from continuing operations of $4.2 million, or $0.07 per share, compared to a net loss of $14.9 million, or $0.24 per share, for the prior year period, a 72% improvement. During the quarter, the Company repurchased five million shares of its common stock at an average price of $3.66 per share. The Company also repurchased $38.8 million, par value, of the its 2.875% convertible senior notes for $34.1 million, a $4.7 million discount, resulting in a $3.6 million gain on retirement of debt.
Total cash used in operating activities was $26.7 million for the full year 2007, a 39% reduction compared to $43.9 million used in 2006. Excluding discontinued operations, cash used in operating activities was $42.6 million for 2007 compared to $61.7 million in 2006, a reduction of 31%. Cash, cash equivalents and marketable securities totaled $219.2 million at the end of 2007 compared to $118.7 million at the end of 2006. The increase is largely due to proceeds of $175 million from the sale of the biologics SBU, offset in part by $16.5 million to repurchase stock and $34.1 million to repurchase debt.
"It has been a momentous year for Nabi Biopharmaceuticals, culminating with the sale of our biologics business unit in December," said Dr. Raafat Fahim, President and Chief Executive Officer of Nabi Biopharmaceuticals. "We have accomplished several key milestones in addition to this significant transaction. We reported compelling, positive data from the NicVAX Phase 2b proof-of-concept clinical trial, aggressively reduced our operating costs and cash utilization rates, initiated a share repurchase program and significantly reduced our debt. We enter 2008 as a lean, financially stronger organization with a focused pipeline of high value vaccine programs and are well-positioned to pursue our recently announced strategic alternatives process, the key corporate goal for this year. During 2008, we will also work to advance the development of our NicVAX and StaphVAX programs in order to realize the full value of these assets for the benefit of our shareholders."
Financial Results Conference Call and Webcast Information
The Company will host a live webcast at 4:30 p.m. EST today to discuss these results.
The live webcast can be accessed at: http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=100445&eventID=1778268 (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your browser. Remove the space if one exists.) or via the Nabi Biopharmaceuticals website at http://www.nabi.com.
If you do not have Internet access, the U.S./Canada call-in number is 800-435-1261 and the international call-in number is 617-614-4076. The passcode is 84614235. An audio replay will be available for U.S./Canada callers at 888-286-8010 and for international callers at 617-801-6888. The replay passcode is 75615959.
The press release and an archived version of the webcast will be available on the company's website at http://www.nabi.com. The audio replay also will be available through March 6, 2008.
About Nabi Biopharmaceuticals
Nabi Biopharmaceuticals leverages its experience and knowledge in powering the immune system to develop products that target serious medical conditions in the areas of nicotine addiction and gram-positive bacterial infections. Nabi Biopharmaceuticals is currently developing NicVAX(r) (Nicotine Conjugate Vaccine), an innovative and proprietary investigational vaccine for treatment of nicotine addiction and prevention of smoking relapse, and StaphVAX(r) (Staphylococcus aureus Polysaccharide Conjugate Vaccine), a vaccine designed to prevent the most dangerous and prevalent strains of S. aureus bacterial infections. The company is headquartered in Rockville, Maryland. For additional information about Nabi Biopharmaceuticals, please visit our Web site:http://www.nabi.com.
Forward-Looking Statements
Statements in this release that are not strictly historical are forward-looking statements including statements about the strategic alternatives process, development of our product candidates, and clinical trials and studies. You can identify these forward-looking statements because they involve our expectations, beliefs, projections, anticipations or other characterizations of future events or circumstances. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that may cause actual results to differ materially from those in the forward-looking statements as a result of any number of factors. These factors include, but are not limited to, risks relating to our ability to: successfully pursue strategic and other alternatives; obtain successful clinical trial results; receive PhosLo milestone and royalty proceeds; successfully partner with third parties to fund, develop, and manufacture our pipeline products, including NicVAX and our gram-positive infections products; realize anticipated cost saving; attract and maintain the human and financial resources to bring to market products in development; depend upon third parties to manufacture our products; achieve approval and market acceptance of our products; enter into and maintain arrangements with third parties to market and sell our products; comply with reporting and payment obligations under government rebate and pricing programs; raise additional capital on acceptable terms, or at all; and re-pay our outstanding convertible senior notes when due. Many of these factors are more fully discussed, as are other factors, in the company's Annual Report on Form 10-K for the fiscal year ended December 30, 2006 and our Quarterly Report on Form 10-Q for the quarter ended September 29, 2007 filed with the Securities and Exchange Commission.
Nabi Biopharmaceuticals
CONSOLIDATED BALANCE SHEETS
(unaudited)
Dec. 29, Dec. 30,
In thousands, except share and per share data 2007 2006
--------------------------------------------- --------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 217,606 $ 86,227
Marketable securities 1,600 32,500
Prepaid expenses and other current assets 2,371 1,908
Assets of discontinued operations 4,616 142,256
--------- ---------
Total current assets 226,193 262,891
Property and equipment, net 1,971 2,441
Other assets 379 545
Restricted cash related to discontinued
operations 10,027 --
--------- ---------
Total assets $ 238,570 $ 265,877
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $ 3,647 $ 5,068
Accrued expenses and other current liabilities 7,105 8,126
Current liabilities of discontinued operations 9,548 31,982
--------- ---------
Total current liabilities 20,300 45,176
2.875% convertible senior notes, net 71,738 109,313
--------- ---------
Total liabilities 92,038 154,489
Commitments and congingencies
Stockholders' equity:
Convertible preferred stock, par value $0.10
per share: 5,000 shares authorized; no
shares outstanding -- --
Common stock, par value $0.10 per share;
125,000,000 shares authorized; 62,116,963 and
61,485,615 shares issued, respectively 6,212 6,149
Capital in excess of par value 333,527 327,228
Treasury stock, 5,807,055 and 805,769 shares,
respectively, at cost (23,608) (5,321)
Accumulated deficit (169,599) (216,668)
--------- ---------
Total stockholders' equity 146,532 111,388
--------- ---------
Total liabilities and stockholders' equity $ 238,570 $ 265,877
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Nabi Biopharmaceuticals
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
For the Years Ended
-------------------------------
Dec. 29, Dec. 30, Dec. 31,
In thousands, except per share data 2007 2006 2005
----------------------------------- --------- --------- ---------
Operating expenses:
Selling, general and administrative
expense $ 26,090 $ 32,576 $ 37,042
Research and development expense 18,841 28,745 57,788
Amortization of intangible assets -- -- 414
Impairment of vaccine manufacturing
facility -- -- 19,842
Write-off of inventory and
manufacturing right -- -- 7,554
--------- --------- ---------
Operating loss (44,931) (61,321) (122,640)
Interest income 6,026 4,148 4,094
Interest expense (3,454) (3,467) (2,460)
Other income (expense), net 3,576 (66) (478)
--------- --------- ---------
Loss from continuing operations
before income taxes (38,783) (60,706) (121,484)
(Provision) benefit for income taxes (201) 69 2,916
--------- --------- ---------
Loss from continuing operations (38,984) (60,637) (118,568)
Discontinued operations:
Income (loss) from operations, net
of tax benefit (provision) of
$0.1 million and ($2.0) million in
2006 and 2005, respectively 4,818 (64) (9,881)
Gain on disposals, net of tax
provision of $1.3 million in 2007 81,235 1,998 --
--------- --------- ---------
Income (loss) from discontinued
operations 86,053 1,934 (9,881)
--------- --------- ---------
Net income (loss) $ 47,069 $ (58,703) $(128,449)
========= ========= =========
Basic and diluted income (loss)
per share:
Continuing operations $ (0.65) $ (1.00) $ (1.98)
Discontinued operations 1.43 0.04 (0.17)
--------- --------- ---------
Basic and diluted income (loss) per
share $ 0.78 $ (0.96) $ (2.15)
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Basic and diluted weighted average
shares outstanding 60,295 60,936 59,862
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Nabi Biopharmaceuticals
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
For the Years Ended
-------------------------------
Dec. 29, Dec. 30, Dec. 31,
In thousands 2007 2006 2005
------------------------------------ --------- --------- ---------
Cash flow from operating activities:
Loss from continuing operations $ (38,984) $ (60,637) $(118,568)
Adjustments to reconcile loss from
continuing operations to net cash
used in operating activities of
continuing operations:
Depreciation and amortization 1,725 954 3,431
Write-off of inventory and
manufacturing right -- -- 7,554
Write down of vaccine plant -- -- 19,842
Accretion of discount on convertible
senior notes 168 168 117
Non-cash compensation 2,770 4,348 81
Deferred income taxes -- -- (2,916)
Gain on repurchase of convertible
senior notes (3,583) -- --
Other (5) 102 1,237
Changes in assets and liabilities:
StaphVAX inventory -- -- (3,302)
Prepaid expenses and other assets (401) (172) (356)
Trade accounts payable, accrued
expenses and other (4,287) (6,451) (5,300)
--------- --------- ---------
Total adjustments (3,613) (1,051) 20,388
--------- --------- ---------
Net cash used in operating activities
from continuing operations (42,597) (61,688) (98,180)
Net cash provided by operating
activities from discontinued
operations 15,853 17,776 8,466
--------- --------- ---------
Net cash used in operating activities (26,744) (43,912) (89,714)
--------- --------- ---------
Cash flow from investing activities:
Purchases of marketable securities (29,475) (82,325) (203,297)
Proceeds from sales of marketable
securities 60,375 54,997 206,475
Capital expenditures (110) (223) (3,937)
Other investing activities, net 80 8 (197)
--------- --------- ---------
Net cash provided by (used in)
investing activities from continuing
operations 30,870 (27,543) (956)
Net cash provided by (used in)
investing activities from
discontinued operations 176,362 56,807 (4,720)
--------- --------- ---------
Net cash provided by (used in)
investing activities 207,232 29,264 (5,676)
--------- --------- ---------
Cash flow from financing activities:
Proceeds from issuance of common
stock for employee benefit plans 728 1,564 2,577
Purchase of common stock for
treasury (16,523) -- --
Repurchase of convertible senior
notes (34,071) -- --
Proceeds from issuance of convertible
senior notes, net -- -- 108,730
Other financing activities, net 82 -- --
--------- --------- ---------
Net cash (used in) provided by
financing activities from continuing
operations (49,784) 1,564 111,307
Net cash provided by (used in)
financing activities from
discontinued operations 675 (2,451) (8,914)
--------- --------- ---------
Net cash (used in) provided by
financing activities (49,109) (887) 102,393
--------- --------- ---------
Net increase (decrease) in cash and
cash equivalents 131,379 (15,535) 7,003
Cash and cash equivalents at beginning
of year 86,227 101,762 94,759
--------- --------- ---------
Cash and cash equivalents at end of
year $ 217,606 $ 86,227 $ 101,762
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