ROCKVILLE, Md., Aug. 7, 2008 (PRIME NEWSWIRE) -- Nabi Biopharmaceuticals (Nasdaq:NABI) today announced its second quarter financial results for the three month period ended June 28, 2008. The Company reported a net loss from continuing operations of $3.7 million, or $0.07 per share, compared to a net loss of $10.5 million, or $0.17 per share, for the period ended June 30, 2007. Including results from discontinued operations, Nabi had a net loss of $0.4 million, or $0.01 per share, for the current period compared to a net loss of $4.8 million, or $0.08 per share in the second quarter of 2007.
For the six months ended June 29, 2008, the Company's net loss from continuing operations was $10.4 million, or $0.20 cents per share, compared to $24.4 million, or $0.40 cents per share, for the six months ended June 30, 2007. Including results from discontinued operations, the net loss was $6.6 million, or $0.13 per share, compared to a net loss of $15.8 million, or $0.26 per share, in 2007.
The significant improvement in net loss from continuing operations was due to operating expense reductions of 43% for both the quarter and six months ended June 28, 2008 compared to 2007. These reductions reflect the Company's efforts to reduce infrastructure costs as well as its reduced scale of operations.
Net cash used in operating activities from continuing operations was $13.1 million for the first six months of 2008, a 48% improvement compared to $25.3 million used in the first six months of 2007. Cash, cash equivalents and marketable securities totaled $160.6 million at June 28, 2008. This balance includes $1.0 million owed to Biotest Pharmaceuticals Corporation related to sales of Nabi-HB, but excludes $10.1 million of restricted cash related to discontinued operations. This restricted cash is held in escrow to support any valid indemnification claims made by Biotest and the balance of this account will be released to Nabi in April 2009. To date, Biotest has not asserted any indemnification claims.
During the second quarter, the Company repurchased $31.6 million, par value, of its 2.875% convertible senior notes for $28.9 million, a $2.7 million discount, resulting in a $1.8 million gain on retirement of debt.
"Our financial results continue to meet our forecasts for reduced operating costs and cash utilization targets for both the second quarter and the year to date and we also further strengthened the balance sheet through a significant reduction of our debt at a discount to par value," said Dr. Raafat Fahim, President and Chief Executive Officer of Nabi Biopharmaceuticals. "I am also very pleased with the recently announced positive interim results from our NicVAX Phase 2 immunogenicity study which supports our hypothesis that production of anti-nicotine antibodies can be significantly enhanced by including an additional dose to the immunization regimen. These results are essential to the design of the pivotal Phase 3 clinical trials which we plan to initiate by the end of this year. Further, our strategic alternatives process is progressing with interest from several parties. We remain focused on maximizing the value of our 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. EDT 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=1904345 (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 866-510-0676 and the international call-in number is 617-597-5361. The passcode is 88486207. 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 74880581. This audio replay also will be available through August 15, 2008. An archived version of the webcast will be available on the company's website at http://www.nabi.com.
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 PentaStaph(tm) (Pentavalent S. aureus 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 29, 2007 and the Quarterly Report for the quarter ended March 29, 2008 on Form 10-Q filed with the Securities and Exchange Commission.
Nabi Biopharmaceuticals
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
June 28, December 29,
2008 2007
--------- ------------
ASSETS
Current assets:
Cash and cash equivalents $ 160,550 $ 217,606
Marketable securities -- 1,600
Prepaid expenses and other current assets 1,769 2,371
Restricted cash related to discontinued
operations 10,123 --
Assets of discontinued operations 1,425 4,616
--------- ---------
Total current assets 173,867 226,193
Property and equipment, net 1,568 1,971
Other assets 313 379
Restricted cash related to discontinued
operations -- 10,027
--------- ---------
Total assets $ 175,748 $ 238,570
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $ 1,048 $ 3,647
Accrued expenses and other current
liabilities 4,070 7,105
Current liabilities of discontinued
operations 4,294 9,548
--------- ---------
Total current liabilities 9,412 20,300
2.875% convertible senior notes, net 40,989 71,738
--------- ---------
Total liabilities 50,401 92,038
Commitments and contingencies
Stockholders' equity:
Convertible preferred stock -- --
Common stock 6,228 6,212
Capital in excess of par value 335,836 333,527
Treasury stock (40,503) (23,608)
Accumulated deficit (176,214) (169,599)
--------- ---------
Total stockholders' equity 125,347 146,532
--------- ---------
Total liabilities and stockholders' equity $ 175,748 $ 238,570
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Nabi Biopharmaceuticals
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
For the Three For the Six
Months Ended Months Ended
June 28, June 30, June 28, June 30,
2008 2007 2008 2007
-------- -------- -------- ---------
Operating expenses:
General and
administrative
expenses $ 2,927 $ 6,380 $ 8,060 $ 14,680
Research and
development
expenses 3,344 4,685 6,549 10,773
-------- -------- -------- ---------
Operating loss (6,271) (11,065) (14,609) (25,453)
Interest income 1,217 1,419 3,255 2,999
Interest expense (434) (855) (999) (1,729)
Other income (expense),
net 1,816 3 1,947 2
-------- -------- -------- ---------
Loss from continuing
operations before
income taxes (3,672) (10,498) (10,406) (24,181)
Income taxes -- -- -- (190)
-------- -------- -------- ---------
Loss from continuing
operations (3,672) (10,498) (10,406) (24,371)
Discontinued operations:
Net income from
discontinued operations 3,296 2,606 3,790 5,822
Net gain (loss) on
disposal of discontinued
operations -- 3,114 -- 2,742
-------- -------- -------- ---------
Income from discontinued
operations 3,296 5,720 3,790 8,564
-------- -------- -------- ---------
Net loss $ (376) $(4,778) $(6,616) $(15,807)
Basic and diluted (loss)
income per share:
Continuing operations $ (0.07) $ (0.17) $ (0.20) $ (0.40)
Discontinued operations 0.06 0.09 0.07 0.14
Basic and diluted (loss)
income per share $ (0.01) $ (0.08) $ (0.13) $ (0.26)
======== ======== ======== =========
Basic and diluted weighted
average shares
outstanding 51,498 61,280 52,235 61,192
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Nabi Biopharmaceuticals
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
For the Six Months Ended
------------------------
June 28, June 30,
2008 2007
---------- ----------
Cash flow from operating activities:
Loss from continuing operations $ (10,406) $ (24,371)
Adjustments to reconcile loss from
continuing operations to net
cash used in operating activities
from continuing operations:
Depreciation and amortization 291 1,000
Non-cash compensation 1,943 1,205
Gain on repurchase of convertible senior
notes (1,817) --
Other 93 98
Changes in assets and liabilities:
Prepaid expenses and other assets 598 (821)
Trade accounts payable, accrued expenses
and other (3,789) (2,424)
--------- ---------
Total adjustments (2,681) (942)
--------- ---------
Net cash used in operating activities from
continuing operations (13,087) (25,313)
Net cash (used in) provided by operating
activities from discontinued operations (517) 6,455
--------- ---------
Net cash used in operating activities (13,604) (18,858)
--------- ---------
Cash flow from investing activities:
Purchases of marketable securities -- (28,500)
Proceeds from sales of marketable securities 1,600 25,575
Capital expenditures (20) (54)
Proceeds from sales of assets 91 --
--------- ---------
Net cash (used in) provided by investing
activities from continuing operations 1,671 (2,979)
Net cash provided by investing activities
from discontinued operations 2,500 3,368
--------- ---------
Net cash provided by investing activities 4,171 389
--------- ---------
Cash flow from financing activities:
Proceeds from issuance of common stock for
employee benefit plans 54 536
Purchase of common stock for treasury (18,658) --
Repurchase of convertible senior notes (28,914)
Other financing activities (82) --
--------- ---------
Net cash (used in) provided by financing
activities from continuing operations (47,600) 536
Net cash (used in) provided by financing
activities from discontinued operations (23) 223
--------- ---------
Net cash (used in) provided by financing
activities (47,623) 759
--------- ---------
Net decrease in cash and cash equivalents (57,056) (17,710)
Cash and cash equivalents at beginning of
period 217,606 86,227
--------- ---------
Cash and cash equivalents at end of period $ 160,550 $ 68,517
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