Nabi Biopharmaceuticals reports revenue of $4.8M for second-quarter 2010

Aug 6 2010

Nabi Biopharmaceuticals (Nasdaq:NABI) today announced its second quarter financial results for the three month period ended June 26, 2010. The Company reported a net loss from continuing operations of $3.4 million, or $0.08 per share, compared to a net loss of $5.8 million, or $0.11 per share, for the period ended June 27, 2009.

Second quarter revenue was $4.8 million reflecting revenue recognized from payments received from GlaxoSmithKline Biologicals (GSK). This includes $3.9 million related to the $21.5 million upfront payment received at the close of the PentaStaph sale in 2009 and the $40 million NicVAX upfront payment received in the first quarter of 2010 as well as $0.9 million for services provided to GSK under the PentaStaph agreement. Revenue from the PentaStaph and NicVAX upfront payments are being recognized ratably over the expected term of the Joint Steering Committees created under each of the agreements.

General and Administrative expenses were $1.2 million for the quarter ended June 26, 2010 compared to $2.4 million in the prior year period. This decrease reflects our efforts to decrease our expenses, lower legal and facilities costs as well as an allocation of a portion of these costs to Cost of Services in the 2010 period. Research and Development expenses were $6.5 million in the second quarter of 2010 compared to $3.4 million in 2009, reflecting costs of the two NicVAX Phase III trials initiated in November 2009 and March 2010 as well as manufacturing-related activities for NicVAX. We expect that Research and Development expenses will continue to increase during the balance of 2010.

For the six months ended June 26, 2010, the Company's net income from continuing operations was $2.1 million, or $0.04 cents per share, compared to a net loss of $12.9 million, or $0.25 cents per share, for the six months ended June 27, 2009. Revenue of $18.6 million was recognized for the six months ended June 26, 2010 compared to no revenue for the comparable 2009 period. General and Administrative expenses for the current six-month period were $3.0 million compared to $5.4 million in 2009 while Research and Development expense was $12.4 million for the current six-month period compared to $7.2 million for the 2009 period. 

Net cash provided by operating activities from continuing operations was $41.0 million for the first six months of 2010 compared to $12.8 million of net cash used in the first six months of 2009.  The 2010 period included $56.3 million received from GSK related to the PentaStaph and NicVAX agreements.  Cash, cash equivalents and marketable securities totaled $118.0 million at June 26, 2010 compared to $119.0 million at the end of 2009.  Cash provided by operating activities was offset by payments of $35.8 million for common stock repurchases and $6.1 million for the repurchase of the remaining balance of the 2.875% Convertible Senior Notes as well as our operating expenses.

During the second quarter of 2010, the Company repurchased 4.8 million shares of common stock for a total of $27.2 million and subsequent to the end of the second quarter, repurchased 563,194 additional shares for a total of $3.1 million through July 30, 2010. As of that date, there were approximately 43 million shares outstanding and the share repurchase program had a remaining balance available of $30.6 million. 

Recent and Upcoming Events

• Completed enrollment in first NicVAX Phase III trial, final data expected in the fourth quarter of 2011
• Expect to complete enrollment in second NicVAX Phase III trial on schedule by year end, final data expected in early 2012
• Expect to complete remaining PentaStaph milestones and collect $13 million in payments by year end   

"I am very pleased with the progress we made in advancing the Phase III trials for NicVAX," said Dr. Raafat Fahim, President and Chief Executive Officer of Nabi Biopharmaceuticals. "We have completed enrollment in the first Phase III trial and are making good progress in the second Phase III trial. In addition, our financial position remains strong while we continue to repurchase our stock to increase shareholder value."