Immunomedics Inc. (IMMU)
F4Q12 Earnings Call
August 24, 2012, 10:00 am ET
Gerard Gorman - SVP, Finance & CFO
Cynthia Sullivan - President & CEO
David Goldenberg - Chairman, CSO & CMO
Boris Peaker - Oppenheimer
Ryan Martin - Lazard Capital Markets
Ling Wang - Summer Street
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Welcome to Immunomedics Incorporated fourth quarter and fiscal year 2012 financial results conference call. And as a reminder, this call is being recorded. Today is Friday, August 24, 2012. With us on the call this morning are Dr. David M. Goldenberg, Chairman, Chief Scientific Officer and Chief Medical Officer; Cynthia Sullivan, President and CEO; Gerard Gorman, Senior Vice President of Finance and CFO.
I would now like to turn the conference over to Gerard Gorman, Chief Financial Officer of Immunomedics. Please go ahead.
Thank you and good morning and welcome to our first earnings conference call. I am Gerard Gorman, Senior Vice President of Finance and CFO and I thank you for participating in today’s call. I will begin with a brief summary of our current financial condition. Cynthia Sullivan, our President and CEO will follow with an overview of developments in our business and some updates on clinical programs. Finally, Dr. Goldenberg will describe our major clinical programs and research plans before we open up the call for questions and answers.
Before we begin, I would like to remind everyone that during this call, we would be making forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995.
Such statements may involve significant risks and uncertainties and actual results could differ materially from those expressed or implied in the call. For factors that could cause such differences, please refer to our regulatory filings with the SEC, most recently our annual report for the year-ended June 30, 2012.
Now let me start with the financials. I hope everyone had a chance to review the financial results we released yesterday afternoon. The earnings report is available on our company website at www.immunomedics.com.
We reported total revenues of $1 million for the fourth quarter of fiscal year 2012, which ended June 30 2012 as compared to revenues of $11.1 million for the same quarter last fiscal year.
The decrease in revenues was primarily due to a $10 million milestone payment received in the fourth quarter of 2011 under the terms of the Nycomed agreement. The lower revenue in fiscal 2012 was the primary reason for the net loss attributable to our stockholders of $7.5 million or $0.10 a share for the current quarter as compared to net income attributable to our stockholders of $2.3 million or $0.03 a share for the same period last year.
For the entire 2012 fiscal year we were successful on implementing our non-dilutive financing strategies to support our robust R&D program. Total revenues for the fiscal year 2012 amounted to $32.7 million as compared to $14.7 million for fiscal year 2011. The increase of $18 million as compared to the prior fiscal year was primarily the result of $18.3 million in higher license fee revenue in 2012 fiscal year due to the $28.4 million in license fee revenue that the company received in 2012 in connection with an amendment to the licensing agreement with UCB which was partially offset by lower revenue from Nycomed in fiscal year 2012 as a result of the non-recurring $10 million Nycomed milestone payment we received in 2011.
Net income attributable to our stockholders for the fiscal year ended June 30, 2012 was $800,000 or $0.01 per share as compared to a net loss attributable to our stockholders of $15.1 million or $0.20 a share in the fiscal year 2011.
The improvement in profitability this fiscal year was primarily due to the increase in license fee revenue and reduction in operating expenses of $1.9 million offset in part by a non-recurring grant of $2.9 million from the federal government’s Qualifying Therapeutic Discovery Project program in fiscal 2011.
The company has no long-term debt and as of June 30, 2012 cash and cash equivalents totaled $32.8 million. In fiscal 2013, expenditures are expected to be $24 million to $26 million due to increased spending for research and development including the further clinical development of Clivatuzumab in patients with pancreatic cancer.
This summarizes our financial results for the fourth quarter and for the full year 2012. I will now turn the call over to Cindy.
Thank you, Gerry and good morning everyone. I am pleased to have this opportunity to give you an overview of developments in our business and provide updates on our key clinical programs during this past year. On the business side in December 2011, we announced that we amended our licensing agreement with UCB to permit the sub licensing of Epratuzumab in certain territories.
As a recap for this amendment we received from UCB a non-refundable cash payment totaling $30 million in January 2012 and we issued a five-year warrant to UCB to purchase 1 million shares of our stock at an exercise price of $8 per share. The amendment also included the return to us of UCB's right to buy-in option for Epratuzumab in oncology.
Discussions with potential sub-licensing partners continue to progress. As we previously stated we believe the addition of a sub-licensing partner could add value to the development of Epratuzumab in Lupus and in other indications. As discussed if this sub license agreement is consummated, we expect to receive a second non-refundable cash payment and will likely be eligible to receive new regulatory and sales milestones payments.