Agenus' CEO Discusses Q2 2012 Results - Earnings Call Transcript

Agenus Inc. (AGEN)

Q2 2012 Earnings Call

August 2, 2012, 11:00 am ET

Executives

Jonae Barnes - VP, IR & Corporate Communications

Garo Armen - Chairman & CEO

Christine Klaskin - VP, Finance & Principle Financial Officer

Analysts

John Sonnier - William Blair & Company

Joe Pantginis - Roth Capital

George Zavoico - MLV & Co.

Presentation

Operator

Good morning. My name is Nick and I will be your conference operator today. At this time, I would like to welcome everyone to the second quarter 2012 earnings call. All lines have been placed on-mute to prevent any background noise. After the speakers’ remarks there will be a question-and-answer session. (Operator Instructions) Thank you.

Jonae Barnes you may begin your conference.

Jonae Barnes

Thank you and good morning everyone. Welcome to Agenus’ conference call to discuss the financial results for the second quarter 2012. With me today is Dr. Garo Armen, Chairman and CEO and Christine Klaskin, Vice President of Finance.

During this call, we will review our financial results, as well as provide a corporate update. We will then open up the call to a Q&A session.

But before we continue, I would like to remind you that this conference call will contain forward-looking statements, including statements regarding the company’s cash position, timing of potential income stream and development and commercialization efforts, timelines, the availability of data and potential efficacy and market potential with respect to products and product candidates of the company and its partners.

These forward-looking statements are subject to risks and uncertainties 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. Securities and Exchange Commission.

These statements speak only as of the date of this call and Agenus 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 Agenus’ business and securities, investors should give careful consideration to these risks and uncertainties. As a remainder this call is being recorded for audio replay.

With that, I will now hand over the call to Christine who will review our financial results for the second quarter of 2012.

Christine Klaskin

Thank you, Jonae. Good morning everyone and thank you for joining us on today’s call. By now, we hope you had the opportunity to review this morning’s press release.

For the second quarter of 2012, we reported a net loss attributable to common stockholders of $7.1 million or $0.31 per share basic and diluted. This compares to a net loss attributable to common stockholders in the second quarter of 2011 of $6 million or $0.31 per share basic and diluted.

Cash used in operating activity was $3.3 million for each of the quarter’s ended June 30, 2012 and 2011. For the six months ended June 30, 2012 we incurred a net loss attributable to common stockholders of $551000 or $0.02 per share basic and diluted. This compares to a net loss attributable to common stockholders of $12.1 million or $0.64 per share basic and diluted for the comparable period in 2011.

The decrease in net loss for the six months ended June 30, 2012 compared to the same period in 2011 is due to the revenue generated of $13.4 million during the first quarter of 2012 primarily related to the one-time payments received through expanded agreement with GlaxoSmithKline or GSK and through a license of non-core technologies.

Cash provided by operating activities for the six months ended June 30, 2012 was $7.9 million compared to cash used in operations of $8.7 million for the comparable period in 2011. Cash and cash equivalents were $25.5 million as of June 30, 2012.

During the quarter, we increased our cash position by approximately $4.5 million through equity offerings. Based on our net cash burn for 2012 defined as cash used in operating activities less onetime upfront payment plus capital expenditures and dividend payments which is anticipated to be in the range of $13 million to $16 million; we expect sufficient financial resources to fund operations through 2013.

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

Garo Armen

Thank you, Jonae and Christine. I will now discuss our progress during the first half of 2012. This is an exciting year for Agenus on a number of fronts. We have seen steady progress in the advancement of our QS-21 adjuvant for both infectious disease and cancer indications through our corporate partner GSK.

In addition to our expanded QS-21 agreement with GSK which was announced during the first quarter of this year, we recently, we’ve seen a new Phase III clinical program which was initiated for the prevention of shingles in immunocompromised patients. This is a randomized placebo controlled Phase III clinical trial in approximately 1,400 patients.

GSK has four QS-21 containing Phase III programs underway which will have their read-out in the near future. They include two MAGE-A3 cancer vaccines, one for non-small cell lung cancer and the other one for melanoma patients. The other two are the RTS,S vaccine for malaria and HZ/su vaccine for shingles. In addition to QS-21, we have also made steady progress in advancing our heat shock protein platform during the first half of 2012.

During the second quarter, the National Cancer Institute approved a study of the Prophage Series G-200 vaccine in a large randomized Phase II trial in combination with Avastin in patients with surgically resectable recurrent glioblastoma. This study will be sponsored by the Alliance for Clinical Trials in Oncology, an NCI cooperative group.

Read the rest of this transcript for free on seekingalpha.com

More from Stocks

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever

Finding Stocks Right for You: Cramer's 'Mad Money' Recap (Friday 8/25/18)

Finding Stocks Right for You: Cramer's 'Mad Money' Recap (Friday 8/25/18)

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain