Antigenics reports decrease in net loss as it reduces cash burn

By Lisa Kerner

Charlotte, N.C., Oct. 31 - Antigenics Inc. reported a net loss for the third quarter of $11.2 million, or $0.24 per share, an improvement from the $17.5 million net loss, or $0.38 per share, reported in the third quarter of 2005.

The company attributed the decreased loss to its ongoing commitment to reduce cash burn.

Cash, cash equivalents and short-term investments were $24.4 million on Sept. 30, compared with $31.9 million on June 30 and $61.7 million on Dec. 31, 2005.

Research and development costs were down by more than half at $6.3 million for the third quarter from $12.0 million for the quarter ended Sept. 30, 2005.

Prior to the end of the quarter, the company agreed to issue $25 million of convertible senior notes and received an upfront payment under an option agreement with Acambis. The notes are convertible at $3.50 per share, a 74% premium over the company's closing price on Oct. 30.

"With today's announcement of our $25 million financing and our ongoing cost containment efforts, we expect to be better positioned to explore the value of our portfolio," chairman and chief executive officer Garo H. Armen said in a company news release.

"We are committed to prudently seeking additional financing opportunities and advancing our internal pipeline, including Aroplatin, AG-707 and Oncophage for glioma and in combination with other agents in metastatic solid tumors."

Antigenics is a New York-based biotechnology company.

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