Antigenics third quarter net loss decreases from $10.8 million to $5.9 million

Oct 28 2010

Antigenics Inc. (Nasdaq:AGEN) reported today its results for the quarter ended September 30, 2010. The company incurred a net loss attributable to common stockholders of $5.9 million, or $0.06 per share, basic and diluted, for the third quarter of 2010, compared with a net loss attributable to common stockholders of $10.8 million, or $0.13 per share, basic and diluted, in the third quarter of 2009. For the nine months ended September 30, 2010, the company incurred a net loss attributable to common stockholders of $20.1 million, or $0.21 per share, basic and diluted, compared with a net loss attributable to common stockholders of $32.8 million, or $0.43 per share, basic and diluted, for the comparable period in 2009. The company's net cash burn (cash used in operating activities plus capital expenditures and dividend payments) for the three months ended September 30, 2010 and 2009 was $4.4 million and $5.8 million, respectively. The company's net cash burn for the nine months ended September 30, 2010 and 2009 was $14.0 million and $21.3 million, respectively. The 2010 results primarily reflect the company's continuing support of Oncophage® vaccine as well as its cost containment efforts. Cash, cash equivalents, and short-term investments were $24.4 million as of September 30, 2010.

Corporate Update

• GlaxoSmithKline recently initiated a Phase 3 clinical program testing a vaccine containing Antigenics' QS-21 Stimulon® immune adjuvant for the prevention of shingles. With the initiation of this program, there are now four QS-21-containing vaccines currently being tested in Phase 3 clinical trials. The first products containing QS-21 are expected to be launched in 2013/2014. Additional Phase 3 programs include vaccines for malaria, melanoma and non-small cell lung cancer. Antigenics is entitled to milestone payments as these programs advance, as well as royalties for at least 10 years after commercial launch. The cost of developing and marketing these vaccines is assumed by the company's licensees.
• Recent Phase 1 data for AG-707, our therapeutic vaccine candidate, showed that 100% of evaluable patients receiving AG-707 with QS-21 demonstrated a statistically significant CD4+ T-cell response to HSV-2 antigens, and a majority of those patients (63%) demonstrated a CD8+ T-cell response. Eliciting both of these types of immune responses is a first of its kind achievement in herpes therapy. We are currently seeking partners for the further development of AG-707.
• Enrollment continues in two Phase 2 clinical trials testing Oncophage® vaccine in recurrent and newly diagnosed glioma, or brain cancer. The trials are being led by Dr. Andrew Parsa of the University of California, San Francisco (UCSF) and are supported with funding from American Brain Tumor Association, Accelerated Brain Cancer Cure, National Brain Tumor Society, and the National Cancer Institute Special Programs of Research Excellence. Data from the first 32 recurrent glioma patients showed median survival of 44 weeks compared with a historical median of 26 weeks. All patients tested exhibited a significant generalized innate immune response, and 92% showed an adaptive tumor-antigen specific immune response demonstrated by a significant increase in CD4+ and CD8+ T-cell responses.
• A second glioma trial has been underway in newly diagnosed patients. This trial involves the administration of Oncophage in combination with radiation and Temodar (Merck; temozolomide). Based on encouraging early results from this trial, it is now expanding to include over 9 leading brain tumor research centers in the United States.
• Antigenics is collaborating with UCSF on the design and execution of a Phase 1 trial testing Oncophage in pediatric brain tumors.
• The company continues to explore development and commercial partnerships for Oncophage on both a global and regional basis in both renal cell carcinoma (RCC; kidney cancer) and glioma.
• Antigenics is pursuing several collaborations to test Oncophage in combination with other investigational and/or commercially available therapies that may work synergistically to improve the efficacy of Oncophage in late stage cancers.