Immunomedics third-quarter revenues increase to $10.7 million

May 10 2010

Immunomedics, Inc. (Nasdaq:IMMU), a biopharmaceutical company focused on developing monoclonal antibodies to treat cancer and other serious diseases, today reported financial results for the third quarter ended March 31, 2010. The Company also highlighted recent key developments and planned activities for its clinical pipeline.

Third Quarter Fiscal 2010 Results

The Company reported revenues of $10.7 million and net income of $3.5 million, or $0.05 per share, for the third quarter of fiscal year 2010, which ended on March 31, 2010. This compares to revenues of $8.3 million and net income of $0.8 million, or $0.01 per share, for the same period last year. The $2.4 million increase in revenues this quarter was primarily the result of recording $8.9 million in licensing fees from Nycomed including the receipt of a $5.0 million milestone payment from Nycomed related to the study of veltuzumab in immune thrombocytopenic purpura. During the three-month period ended March 31, 2009, the Company recorded $7.3 million of licensing fee revenues from Nycomed, representing a $1.6 million increase in revenues in the third quarter of 2010. An income tax benefit of $1.0 million from the State of New Jersey and gains on sales of auction rate securities (ARS) also contributed to the improvement in net income in 2010 as compared to the third quarter of fiscal 2009. Partially offsetting these items was a $0.6 million increase in Leukoscan inventory reserve.

For the first nine months of the 2010 fiscal year, the Company reported revenues of $54.8 million and net income of $36.3 million, or $0.48 per share. This compares to revenues of $21.7 million and net income of $1.4 million, or $0.02 per share, for the same period last year. The increase in revenues in fiscal 2010 was primarily the result of recording license fee revenue of $31.1 million for the UCB agreement. There was no licensing fee revenue from the UCB agreement recorded in the same period last fiscal year. Net income for the nine-month period ended March 31, 2010 was also positively impacted by $2.4 million of reduced research and development expenses, resulting primarily from higher reimbursements from Nycomed. 

As of March 31, 2010, the Company had $24.9 million in cash and cash equivalents and $12.4 million in ARS, which consist of AAA rated student loans that currently have no liquidity.

"We are pleased that during this quarter we were able to maintain our cash utilization rate at our target level while pursuing active clinical and preclinical programs as demonstrated by presentations at recent medical and scientific conferences," remarked Gerard G. Gorman, Senior Vice President, Finance and Business Development, and Chief Financial Officer. "Next month, a number of key presentations at major medical conferences will take place beginning with the annual meeting of ASCO where we will report updated results from the ongoing Phase I/II studies of clivatuzumab tetraxetan for advanced stage pancreatic cancer therapy. UCB's clinical investigators will also present further data from the completed Phase IIb study of epratuzumab in patients with lupus at the EULAR 2010 Annual European Congress of Rheumatology and the 9^th International Congress on Systemic Lupus Erythematosus," Mr. Gorman added.

Key developments and future planned activities:

Epratuzumab

• UCB's clinical investigators will report further data from the Phase IIb study in patients with lupus at the EULAR 2010 Annual European Congress of Rheumatology and the 9^th International Congress on Systemic Lupus Erythematosus.
   
• UCB has announced they will initiate a Phase III program for epratuzumab in lupus during calendar year 2010.
   
• The Eastern Cooperative Oncology Group, funded primarily by the National Cancer Institute, is working on the design of a Phase III clinical trial randomizing patients with aggressive lymphoma to receive rituximab and chemotherapy with or without epratuzumab.

Veltuzumab

• First clinical milestone payment related to the development of veltuzumab in the immune thrombocytopenic purpura indication was received from Nycomed.
   
• Nycomed is planning to initiate a Phase II study of the subcutaneous formulation of veltuzumab in patients with rheumatoid arthritis during the second half of calendar year 2010.
   
• In calendar year 2010, if project funding has been secured, the Company plans to initiate a registration trial with veltuzumab in patients with non-Hodgkin's lymphoma.

Clivatuzumab tetraxetan

• At the 2010 American Association for Cancer Research Annual Meeting, results from a new clivatuzumab-based blood test for detecting early-stage pancreatic cancer were reported to correlate with responses to treatment with yttrium-90-labeled clivatuzumab tetraxetan and gemcitabine. (For more information, please refer to the Company's press release at www.immunomedics.com/news_pdf/2010_PDF/PR04202010.pdf).
   
• Updated results from the ongoing Phase I/II study of fractionated yttrium-90-labeled clivatuzumab tetraxetan in combination with gemcitabine for patients with inoperable, advanced pancreatic cancer will be presented at the 2010 American Society of Clinical Oncology Annual Meeting.

Milatuzumab

• The first clinical trial of the doxorubicin-conjugated milatuzumab is expected to begin patient enrollment in the fourth quarter of fiscal year 2010 for the treatment of multiple myeloma.