Full Press Release Details
Reports Fourth Quarter and Full Year 2014 Financial Results
to host conference call at 11 a.m. ET today
LEXINGTON, Mass.--(BUSINESS WIRE)--February 26, 2015--Agenus Inc.
(NASDAQ:AGEN), an immunology company developing novel therapeutic
approaches based on checkpoint modulators (CPMs), heat shock
protein-based vaccines, and immune adjuvants, today announced its
financial results and business highlights for the fourth quarter and
year ended December 31, 2014.
"2014 was a transformative year for Agenus on many levels," said Garo H.
Armen, Ph.D., Chairman and CEO of Agenus. "We started the year with the
acquisition of privately held 4-Antibody AG, which brought us into the
critically important field of checkpoint modulators. Through this
acquisition, Agenus acquired our Retrocyte DisplayTM
technology, for the generation of antibody therapeutics, as well as a
broad portfolio of checkpoint programs. In April, we announced a
collaboration and license agreement with Merck around two undisclosed
checkpoint targets, with Agenus eligible to receive up to $100 million
in milestone payments as well as royalties on product sales. In June, we
reported positive data from a Phase 2 study of our heat shock
protein-based synthetic vaccine (HerpV) for the treatment of genital
herpes, and shortly thereafter we announced positive results from a
Phase 2 study of our heat shock-protein-based autologous vaccine
(Prophage) in patients with newly diagnosed glioblastoma multiforme
(GBM). In addition, our partner GlaxoSmithKline's application for
regulatory review of its malaria vaccine candidate, RTS,S, was accepted
by the European Medicines Agency. The application was based on positive
Phase 3 data for RTS,S, which contains Agenus' proprietary QS-21 Stimulon
adjuvant. In December, GlaxoSmithKline reported that its Phase 3 study
with shingles vaccine candidate HZ/su, which also contains Agenus'
proprietary QS-21 Stimulon adjuvant, met its primary
endpoint and reduced the risk of shingles by an unprecedented 97.2% in
adults aged 50 years and older compared to placebo. Building on our
achievements in 2014, we started 2015 with a transformative global
oncology alliance with Incyte that includes, but is not limited to, four
of our checkpoint programs. We look forward to executing on our
alliances with Incyte and Merck, and expanding our portfolio of
antibody-based therapeutics as we pursue the development of novel single
agent and combination therapies for cancer patients."
"Supporting these initiatives has required a growth in the breadth and
depth of our R&D capabilities, including the assembly of a world-class
translational biology team," said Robert Stein, M.D., Ph.D., Chief
Scientific Officer of Agenus. "We believe our partnership with Incyte
leverages their track record of success in the discovery and development
of important new cancer therapies, with our therapeutic antibody
expertise, as well as our shared objectives in immuno-oncology. Our
alliance aims to accelerate the development of novel checkpoint
modulators in oncology, as single agent and combination therapies, while
also allowing Agenus the ability to independently advance other antibody
therapies and heat shock protein-based vaccines."
Fourth Quarter 2014 and Full Year Financial Update
Cash, cash equivalents and short-term investments were $40.2 million as
of December 31, 2014. Subsequent to year-end, the company received an
additional $60 million from its global alliance with Incyte.
For the fourth quarter, Agenus reported a net loss attributable to
common stockholders of $26.0 million, including $14.3 million of
non-cash charges, or $0.41 per share, basic and diluted, compared with a
net loss attributable to common stockholders for the fourth quarter of
2013 of $5.8 million, or $0.16 per share, basic and diluted.
For the year ended December 31, 2014, the company incurred a net loss
attributable to common stockholders of $42.7 million, or $0.71 per
share, basic and diluted, compared with a net loss attributable to
common stockholders of $33.2 million, or $1.12 per share, basic and
diluted, for the comparable period in 2013.
The increase in net loss attributable to common stockholders for the
year ended December 31, 2014, compared to the net loss attributable to
common stockholders for the same period in 2013, was primarily due to
our acquisition of 4-Antibody AG in February 2014. In addition to
increased operating expenses, we recorded non-cash expense of $6.7
million due to the fair value adjustment of the contingent purchase
price consideration and non-cash income of $3.1 million related to the
results of various trials of QS-21 Stimulon containing vaccines at
During the same period of 2013, the company's preferred stock
restructuring resulted in a non-cash deemed dividend of $2.9 million,
and the retirement of its then outstanding $39 million 8.0% senior
secured convertible notes due August 2014 resulted in a non-cash expense
The increased net loss attributable to common stockholders for the
quarter ended December 31, 2014, compared to the net loss attributable
to common stockholders for the same period in 2013, was as well due to
increased expenses related to our acquisition of 4-Anitbody AG. We also
recorded non-cash expenses for the quarter ended December 31, 2014 of
$6.6 million, due to the fair value adjustment of the contingent
purchase price consideration, and $7.7 million related to the fair value
adjustment of our contingent royalty obligation.
January: Agenus signed a definitive agreement to acquire
privately held 4-Antibody AG, with its proprietary Retrocyte DisplayTM
technology and a broad preclinical portfolio of checkpoint modulators
targeting GITR, OX40, TIM-3 and LAG-3, among others. The acquisition
closed in February 2014.
February: Agenus closed a public offering that resulted in net
proceeds of approximately $56 million.
April: Agenus entered into a collaboration and license
agreement with Merck, involving generation by Agenus of fully human
antibodies against two undisclosed checkpoint targets from Merck, in
exchange for up to $100 million in potential milestones, as well as
royalties on worldwide product sales.
June: Agenus announced positive data from a randomized double
blind Phase 2 study involving its heat shock protein-based vaccine
candidate, HerpV, for the treatment of adult genital herpes. The study
showed a statistically significant reduction in viral load in the more
than half of patients who generated a robust anti-HSV cytotoxic T-cell