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Antigenics CEO Discusses Q3 2010 Results - Earnings Call Transcript

Antigenics CEO Discusses Q3 2010 Results - Earnings Call Transcript

Antigenics Inc, (



Q3 2010 Earnings Conference Call

October 28, 2010 11:00 am EST


Shalini Sharp - Antigenics - CFO

Garo Armen - Antigenics - Chairman, CEO


Jeff Lighter - Private Investor

Eric Warrick - Private Investor

Ren Benjamin - Rodman & Renshaw

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Good morning, my name is Shawn, and I’ll be your conference operator today. At this time I would like to welcome everyone to the Antigenics Third Quarter 2010 Earnings Conference Call. (Operator instructions)

Thank you. Ms. Sharp, you may begin your conference.

Shalini Sharp

Thank you, Shawn and good morning everyone. Welcome to Antigenics conference call to discuss the financial results for the quarter ended September 30


, 2010. With me today is Dr. Garo Armen, Chairman and CEO. We hope that all of you had a chance to review the press release that was issued this morning. During this call we will review the financial results as well as provide a corporate update. We will then have a Q&A session.

Before we continue, I would like to remind you that this conference call will contain forward-looking statements including, without limitation, statements development and commercialization efforts and timelines of the company, and/or its licensees, partnering efforts, and their potential impact on the company’s programs, timing of potential royalty streams and the potential efficacy of our product candidates.

These forward looking statements are subject to risks and uncertainty that could cause actual results to differ materially. Reference to these risks and uncertainties is made in today’s press release and they are disclosed in more detail in our most recent filings with the U.S. SEC. These statements speak only as of the date of this call, and Antigenics undertakes no obligation to update or revise the statements.

All forward-looking statements are expressly qualified in their entirety by this cautionary statement. When evaluating Antigenics business and securities, investors should give careful consideration to these risks and uncertainties.

For the purpose of this call, the phrase “net cash burn” means cash use and operating activities, plus capital expenditures, debt repayments, and dividend repayments. As a reminder, this call is being recorded for audio replay. With that I will now review our financial results for the quarter ended September 30


, 2010.

For the quarter ended in September 30


, 2010 Antigenics incurred a net loss attributable to common stock holders of $5.9 million or $0.6 per share. This is compared with a net loss of $10.8 million or $0.13 per share for the same period in 2009. For the nine months ended September 30


, 2010, the company incurred a net loss of $20.1 million or $0.21 per share compared with 32.8 million dollars or $0.43 per share for the comparable period in 2009. Antigenics recognized revenues in this quarter of $624 thousand compared with $896 thousand in the same period in 2009. This decrease is primarily due to shipments of QS-21 to our licensees.

Research and development expenses in the third quarter of 2010 were $2.8 million compared with $3.7 for the comparable period in 2009. (Inaudible) expenses in the third quarter were $2.6 million compared with $3.5 million in the third quarter of 2009. These decreases reflect among other items our cost containment efforts.

Cash, cash equivalents, and short term investments amounted to $24.4 million dollars as of September 30, 2010. Our net cash burn for Q3 2010 was $4.4 million compared with $5.8 million in 2009. This reduction primarily reflects our cost containment efforts among other items.

This concludes the financial portion of the call. I will now provide a brief corporate update.

Enrollment continues in two-phase2 clinical trials testing Oncophage vaccine, and recurrent or newly diagnosed glioma or brain cancer. The trials are being led by Dr. Andrew Parsa of the University of California in San Francisco or UCSF, and are supported by patient advocacy groups, as well as the National Cancer Institute Special Programs of Research Excellence.

The trial testing, the administration of Oncophage in combination with radiation and Temodar in newly diagnosed glioma patients is now expanding to include up to nine leading brain tumor research centers in the U.S. based on early study results.

Data from the first thirty-two patients in recurrent glioma trial showed median survival of forty-four weeks compared with a historical median of twenty-six 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 2B4+ and CD8+ T Cell responses.

Antigenics is also working with UCSF to design and execute a Phase 1 trial testing


on pediatric brain tumors. The area of glioma and other brain cancers represent a very high, unmet medical need and is a top priority for the company.

The company continues to explore development and commercial partnerships for Oncophage on both the global and regional basis in both renal cell carcinoma and glioma. A partnership in glioma could help accelerate and fund several trials in the syndication. Distribution partnership in Russia could assist in broadening commercial penetration of Oncophage as well as potential assistance seeking government reimbursement while defraying the company's cost. A partnership in Europe could also defray cost while advancing potential development, registration, and/or (inaudible) patient programs in that territory.

On a somewhat related note, Antigenics is also pursuing collaborations related to the testing of Oncophage in combination with other therapies that may work synergistically to improve the efficacy of Oncophage in late-stage cancers.

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