SEATTLE, Aug. 16 /PRNewswire-FirstCall/ -- Trubion Pharmaceuticals Inc. (Nasdaq: TRBN) today announced financial results for its second quarter and six months ended June 30, 2010.
Second-Quarter and First-Half 2010 Financial ResultsRevenue for the second quarter and six months ended June 30, 2010, increased to $5.7 million and $11.2 million, respectively, compared with $4.1 million and $8.3 million, respectively, in 2009. Revenue was primarily earned through the company's strategic collaborations with Pfizer, for the development of CD20-directed candidates, including SBI-087, and Abbott, for the development of CD37-directed targets, including TRU-016.
During the second quarter and first half of 2010, Trubion recognized $3.8 million in revenue from its Abbott collaboration. The $3.8 million includes recognition of $1.1 million from the $20 million upfront fee and $1.4 million equity premium received from Abbott, as well as $2.7 million earned through collaborative research.
The increase in revenue from the Abbott partnership was partially offset by lower revenue generated by Trubion's collaboration with Pfizer. The decrease in revenue was attributed to lower costs related to the retreatment studies of TRU-015 for rheumatoid arthritis (RA) as well as a decrease in the amount of reimbursable legal fees. Revenue earned from Trubion's partnership with Pfizer during the first half of the year was $7.4 million, which included $2.4 million for recognition of the $40 million upfront fee received in January 2006 and $5.0 million earned through collaborative research. This is compared with $8.3 million earned in revenue during the first half of 2009, which was composed of $2.4 million for the recognition of the $40 million upfront fee and $5.9 million in revenue earned through collaborative research.
Total operating expenses for the second quarter and first half of 2010 were $11.3 million and $22.8 million, respectively, compared with $10.7 million and $25.9 million in 2009. The increase in operating expenses during the second quarter was due to increased clinical development costs related to the initiation of the Phase 1/2 clinical trial of TRU-016 (16201) and increased TRU-016 manufacturing costs. These increases were partially offset by lower personnel costs.
Net loss for the second quarter and six months ended June 30, 2010, decreased to $5.7 million, or $0.28 per diluted common share, and $11.8 million, or $0.58 per diluted common share, respectively. This is compared with a net loss of $6.7 million, or $0.37 per diluted common share, and $17.7 million, or $0.99 per diluted common share, in 2009.
Trubion had $42.1 million in cash, cash equivalents and investments as of June 30, 2010, compared with $54.8 million as of Dec. 31, 2009.
"During the course of the past year we've trimmed expenses and have worked with our partners to prioritize product candidates that demonstrate the potential for safer, more effective and more convenient treatments," said Steve Gillis, Ph.D., executive chairman and acting president of Trubion. "In the coming months, we will work diligently with Emergent in an effort to finalize our recently announced merger in a timely manner, and we will continue to pursue our corporate objectives and product and collaboration milestones."
2010 OutlookTrubion has revised its 2010 guidance based on a change in timing of the anticipated milestone of $6 million from Abbott for the initiation of the Phase 2 portion of the TRU-016 study in chronic lymphocytic leukemia (CLL) patients, as well as changes to its CD20 partnership with Pfizer.
Achievement of the Abbott milestone is now expected during the first half of 2011 as a result of protocol modifications that are designed to optimize the dose level and regimen. The maximum tolerated dose has not been reached.
In addition, Trubion has decreased its anticipated annual operating cash requirements from $33 million–$38 million to $29 million–$34 million. The revised guidance, which does not include any additional cash receipts associated with potential new partnerships, is as follows:
Based on its current forecast, and excluding any proceeds from potential new partnerships or financings, Trubion expects that its existing capital resources will support the company's operations into the second half of 2011.
Conference Call DetailsTrubion will host a conference call and webcast to discuss its second-quarter- and six-months-ended 2010 financial results and provide an update on business activities. The call will be held Aug. 16 at 2 p.m. Pacific Time, 5 p.m. Eastern Time. The live event will be available from Trubion's website at http://investors.trubion.com, or by calling (877) 564-1186 or (973) 409-9686. A replay of the discussion will be available beginning 8 p.m. Eastern Time from Trubion's website or by calling (800) 642-1687 or (706) 645-9291 and entering 93177343. The telephone replay will be available until midnight, Aug. 30, 2010.
About TrubionTrubion is a biopharmaceutical company that is creating a pipeline of novel protein therapeutic product candidates to treat autoimmune and inflammatory diseases and cancer. The Company's mission is to develop a variety of first-in-class and best-in-class product candidates, customized for optimal safety, efficacy and convenience that it believes may offer improved patient experiences. Trubion's current product candidates are novel single-chain protein, or SMIP, therapeutics, and are designed using its custom drug assembly technology. Trubion's product pipeline includes CD20-directed SMIP therapeutics such as SBI-087 for autoimmune and inflammatory diseases, developed under the Company's Pfizer collaboration. Trubion's product pipeline also includes TRU-016, a novel CD37-targeted therapy for the treatment of B-cell malignancies developed under the Company's Abbott collaboration. In addition to Trubion's current clinical stage product pipeline, the Company is also developing its multi-specific SCORPION technology, both for targeting cell-surface molecules as well as simultaneously neutralizing soluble ligands. More information is available in the investors section of Trubion's website: http://investors.trubion.com/index.cfm.
Forward-Looking StatementsCertain statements in this release may constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. These statements include, but are not limited to, those related to the pending acquisition of Trubion by Emergent and those related to the future clinical development of the Company's programs that are the subject of the Pfizer and Abbott collaborations and Pfizer's and Abbott's intentions regarding these programs. These statements are based on current expectations and assumptions regarding future events and business performance and involve certain risks and uncertainties that could cause actual results to differ materially. These risks include, but are not limited to, the risk that the acquisition of Trubion by Emergent may not be consummated for reasons including that the conditions precedent to the completion of the acquisition may not be satisfied; the risk that one or more of the milestones that would give rise to CVR payments is not achieved; the possibility that the expected benefits from the proposed merger will not be realized, or will not be realized within the anticipated time period; the risk that Emergent and Trubion's businesses will not be integrated successfully; the possibility of disruption from the merger making it more difficult to maintain business and operational relationships; any actions taken by either of the companies, including but not limited to, restructuring or strategic initiatives (including capital investments or asset acquisitions or dispositions), risks associated with the Company's Pfizer collaboration, including Pfizer's control over development timelines and over decisions regarding the advancement of SBI-087, risks associated with the Company's Abbott collaboration, including the risk that the Abbott milestone is not achieved in the first half of 2011, the risks that data resulting from our clinical development programs are unfavorable or uncertain and such other risks as identified in the Company's report on Form 10-Q for the quarter ended June 30, 2010, and from time to time in other reports filed by Trubion with the U.S. Securities and Exchange Commission. These reports are available on the Investors page of the Company's corporate website at http://www.trubion.com. Trubion undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.
TRBN-EContact:Jim DeNikeSenior Director, Corporate and Marketing CommunicationsTrubion Pharmaceuticals Inc.(206) firstname.lastname@example.org http://www.trubion.com Waggener Edstrom Worldwide HealthcareJenny MoedeExecutive Vice President(503) email@example.com(Tables Follow)
TRUBION PHARMACEUTICALS INC.STATEMENTS OF OPERATIONS(In thousands, except per share data)(unaudited)Three months ended June 30,Six months ended June 30,2010200920102009Revenue$
8,331Operating expenses: Research and development
9,0318,09818,04720,177 General and administrative
2,2462,6214,7675,731Total operating expenses
11,27710,71922,81425,908Loss from operations(5,580)(6,600)(11,605)(17,577) Interest income153630154 Interest expense(118)(138)(237)(278) Other income20-20-Net loss$
(6,702)$ (11,792)$ (17,701)Basic and diluted net loss per share
(0.99)Shares used in computation of basic and diluted net loss per share
20,41918,02320,40317,961June 30,December 31,20102009Balance Sheet Data:Cash and cash equivalents$
22,304Investments26,52132,542Total assets51,98665,380Deferred revenue31,67935,262Total stockholders' equity4,54215,094
|SOURCE Trubion Pharmaceuticals Inc.|
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