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Antigenics ends 2006 with $40 million, reduces cash burn while growing pipeline
By Lisa Kerner
Charlotte, N.C., Feb. 21 - Antigenics Inc. addressed its financial results and its pipeline progress, including the sharing of manufacturing technology with GlaxoSmithKline plc that resulted in a $2 million milestone payment, during a conference call on Wednesday.
"With regard to our cash position, we took two important steps in 2006," Antigenics chairman and chief executive officer Garo H. Armen said during the call.
"One was raising $25 million by the sale of convertible debt. The 80% note is convertible at $3.50 a share, representing a 74% premium to our market price."
As a result, the New York-based biotechnology company ended 2006 with roughly $40 million dollars.
"The second step was the significant reduction of our burn rate while allowing for the realization of value from our pipeline and programs," Armen continued.
"We have reduced our annualized net burn rate to between $30 million and $35 million. We have been upgrading within that range for the last several months, and going forward, our goal for 2007 is to operate at the low end of this range and to continue to look for additional savings. This represents over a 50% reduction in our annualized burn rate prior to the implementation of our cost-cutting initiative."
Antigenics ended the year with a net loss of $52.7 million, or $1.15 per share, compared with a net loss of $74.9 million, or $1.64 per share, for the same period in 2005.
The company attributed the decrease in part to its 2006 restructuring efforts, the completion of activities related to a phase 3 clinical trial and its ongoing commitment to reducing cash burn.
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