Immunomedics Inc. (IMMU) F4Q12 Earnings Call August 24, 2012, 10:00 am ET Executives Gerard Gorman - SVP, Finance & CFO Cynthia Sullivan - President & CEO David Goldenberg - Chairman, CSO & CMO Analysts Boris Peaker - Oppenheimer Ryan Martin - Lazard Capital Markets Ling Wang - Summer Street Presentation Operator
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. Cynthia Sullivan 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. Read the rest of this transcript for free on seekingalpha.com