Full Press Release Details
Reports First Quarter 2009 Financial Results
Conference Call Tuesday, May 5, at 9:00 a.m. Eastern Time -
NEEDHAM, Mass.--(BUSINESS WIRE)--May 5, 2009--Celldex Therapeutics, Inc.
(NASDAQ: CLDX) today reported financial results for the first quarter
ended March 31, 2009. Celldex reported a net loss of $7.7 million, or
$0.49 per share, for the first quarter of 2009 compared to a net loss of
$22.1 million, or $2.19 per share, for the first quarter of 2008. On
March 7, 2008, privately-held Celldex Therapeutics, Inc. completed its
merger with a wholly-owned subsidiary of AVANT Immunotherapeutics, Inc.
and, effective October 1, 2008, AVANT changed its name to Celldex
As discussed in further detail later in this release, the decrease in
net loss between the three-month periods was primarily due to increased
revenues, gain on sale of assets in 2009 as well as a non-cash charge in
2008 of $14.8 million related to purchased in-process research and
development (R&D) recorded in connection with the merger, offset by
increased R&D expenses in 2009 as a result of the combined operations of
AVANT and Celldex. At March 31, 2009, Celldex reported cash and cash
equivalents of $39.4 million.
"In the first quarter of 2009, Celldex continued to add value to our
Precision Targeted Immunotherapy Platform by in-licensing two additional
molecules for development in cancer, inflammatory and infectious
diseases," said Anthony S. Marucci, Celldex's President and Chief
Executive Officer. "This license marks the third strategic transaction
we've closed in the past year to obtain rights to technologies and
product candidates whose therapeutic potential we believe can be fully
realized through integration with our Precision Targeted Immunotherapy
Platform. We look forward to exploring these molecules and advancing
other candidates from the Platform into clinical trials in the coming
First quarter and recent highlights:
Enhanced our Precision Targeted Immunotherapy Platform-acquired
exclusive rights to the immune-stimulatory molecules FMS-like tyrosine
kinase 3 ligand (Flt3L) and CD40 ligand (CD40L) from Amgen.
Divested non-core assets-entered into a worldwide fee- and
royalty-bearing exclusive license and development agreement with
Vaccine Technologies, Inc. (VTI) to develop and commercialize
Celldex's CholeraGarde(R) and ETEC vaccine programs and sold our
poultry vaccines assets to Lohmann Animal Health International.
The Company will be making an oral presentation on June 1st
of safety and immune activity data from its first antibody-based
dendritic cell targeted vaccine, CDX-1307, in combination with multiple
immune modulators at the annual meeting of the American Society of
Clinical Oncology (ASCO) in Orlando, Florida. Mature data from the ACT
II study, a trial testing CDX-110 in newly diagnosed Glioblastoma
Multiforme, will also be presented at ASCO.
Further Financial Highlights
The net loss of $7.7 million for the first quarter of 2009 represents an
improvement of $14.4 million when compared to the net loss for the same
period in 2008, primarily due to the non-cash charge of $14.8 million
for purchased in-process R&D recorded in 2008. R&D expense in the first
quarter of 2009 increased by $4.2 million compared to R&D expense in
2008 due primarily to the combined operations of AVANT and Celldex for
the full quarter, including increased personnel-related expenses,
royalty and license fee expenses, clinical trials costs for CDX-110 and
CDX-1307 and facility-related costs. General and administrative (G&A)
expenses increased by $0.3 million to $3.3 million in 2009 as compared
to G&A expense of $3.0 million in the first quarter of 2008.
Revenues for 2009 increased by $3.6 million compared with revenues for
2008. The increase in product development and licensing revenue in 2009
primarily reflects recognition of $1.3 million in Pfizer deferred
revenue related to CDX-110 in 2009. The increase in contracts and grants
revenue in 2009 compared to 2008 primarily reflects increased levels of
vaccine development work billable to Rockefeller University between the
two three-month periods. In 2009, Celldex also recognized $2.1 million
in product royalty revenue related to offsetting royalty expense payable
to Cincinnati Children's Hospital. There was no product royalty revenue
As of March 31, 2009, the Company had approximately 15.8 million shares
Important Information Related to Celldex's Financial Results
On March 7, 2008, the Company completed the merger of its wholly-owned
subsidiary with privately-held Celldex Therapeutics, Inc. In connection
with the merger, the Company implemented a 1-for-12 reverse stock split
of its common stock on March 7, 2008.
The merger was accounted for using the purchase method of accounting and
was treated as an acquisition by Celldex of AVANT, with Celldex being
considered the accounting acquirer even though AVANT was the issuer of
common stock and surviving legal entity in the transaction. Because
Celldex was determined to be the acquirer for accounting purposes, the
historical financial statements of Celldex became the historical
financial statements of the Company. Accordingly, the financial
statements of the Company prior to the merger reflect the financial
position, results of operations and cash flows of pre-merger,
privately-held Celldex only. The 2008 financial statements reflect the
financial position, results of operation and cash flows of
privately-held Celldex for the three-month period ended March 31, 2008
combined with the results of operations of AVANT beginning March 8, 2008.
Webcast and Conference Call
Celldex will host a conference call and live audio webcast at 9:00 AM ET
on Tuesday, May 5, 2009, to discuss Celldex's first quarter 2009
financial results. To access the conference call, dial 888-713-4213
(within the U.S.), or 617-213-4865 (if calling from outside the U.S.).
The passcode for participants is 28022020. An audio replay will be
available approximately two hours after the call for approximately one
week and can be accessed by dialing 888-286-8010 (within the U.S.), or
617-801-6888 (if calling from outside the U.S.). The passcode I.D.
number is 27922143. The replay will also be available via the Company's
website, www.celldextherapeutics.com, after the live call.
Additionally, a copy of this press release is available by contacting
Investor Relations at 781-433-0771.
About Celldex Therapeutics, Inc.
Celldex Therapeutics is an integrated biopharmaceutical company that
applies its comprehensive Precision Targeted Immunotherapy Platform to