Trubion Pharmaceuticals Inc. (TRBN)

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Trubion Pharmaceuticals Inc. Reports Second Quarter and First Half 2008 Results
Thursday August 7, 4:00 pm ET

SEATTLE, Aug. 7 /PRNewswire-FirstCall/ -- Trubion Pharmaceuticals Inc. (Nasdaq: TRBN - News) today announced financial results for its second quarter and six months ended June 30, 2008.


Second Quarter and Six Months 2008 Financial Results

Revenue for the second quarter and six months ended June 30, 2008, was $4.5 million and $8.4 million respectively, compared with $5.0 million and $9.8 million respectively in 2007. Revenue in the second quarter and first half of 2008 was earned through Trubion's strategic collaboration with Wyeth, including research and development services. The $8.4 million in revenue recognized in the six months ended June 30, 2008, is composed of $2.9 million for amortization of the $40 million up-front fee received from Wyeth and $5.5 million for collaborative research funding from the Wyeth collaboration. This is compared with revenue of $9.8 million recognized in the six months ended June 30, 2007, which was composed of $4.0 million for amortization of the $40 million up-front fee received from Wyeth and $5.8 million for collaborative research funding from the Wyeth collaboration.

On June 16, 2008, Wyeth exercised its option under the terms of its collaboration agreement with Trubion to extend the research period for an additional one-year period through Dec. 22, 2009. Under the terms of the research period extension, Wyeth will pay Trubion approximately $3.2 million in exchange for research services.

Total operating expenses for the second quarter and six months ended June 30, 2008, were $11.4 million and $21.9 million respectively, compared with $13.5 million and $24.4 million respectively in 2007. The decrease was primarily due to lower outside manufacturing costs for TRU-016, lower lab supply costs and lower contract licensing fees.

Net loss for the second quarter and six months ended June 30, 2008, was $6.6 million, or $0.37 per diluted share, and $12.6 million, or $0.71 per diluted share, respectively, compared with a net loss of $7.5 million, or $0.42 per diluted share, and $12.5 million, or $0.71 per diluted share, respectively, in 2007.

Trubion had $65.4 million in cash, cash equivalents and investments as of June 30, 2008, compared with $72.1 million as of March 31, 2008.

"We are pleased with our continued progress in the second quarter," said Peter Thompson, M.D., FACP, Trubion's president, chief executive officer and chairman. "Progress in our strategic alliance with Wyeth included its decision to extend its research contract with Trubion, initiation of additional clinical studies evaluating TRU-015 and SBI-087, and presentation of positive data at key scientific meetings. In addition, our proprietary clinical asset, TRU-016, is currently being evaluated in a Phase 1/2 study for chronic lymphocytic leukemia and we look forward to the results of this study."

Recent Milestones:

-- Trubion announced that Wyeth commenced patient dosing in the next Phase 2b clinical trial of TRU-015 in patients with rheumatoid arthritis (RA). The randomized, parallel, double-blind, placebo-controlled, dose-regimen-finding study will evaluate the safety and efficacy of two dosing regimens administered to approximately 216 patients with active, seropositive RA on a background of methotrexate.

-- Trubion announced that Wyeth initiated a Phase 1 clinical trial of SBI-087, Trubion's next-generation drug candidate for the treatment of RA.

-- Trubion presented positive TRU-016 for CLL data at the American Society of Clinical Oncologists (ASCO) 2008 Annual Meeting. Data demonstrated that TRU-016 has potent anti-tumor activity and induces significant long-term tumor eradication in a human tumor xenograft model in which rituximab failed to induce durable responses.

-- Trubion announced the presentation of positive data for TRU-015 for RA and SBI-087 for RA at the 2008 Annual European Congress of Rheumatology Meeting (EULAR). Data demonstrated that repeat administration with TRU-015, Trubion's lead candidate for RA, continues to produce responses and pharmacodynamic effects as measured by the American College of Rheumatology scores. In addition, pre-clinical data suggests that a single dose of SBI-087, Trubion's next-generation SMIP(TM) treatment for RA, resulted in more potent B-cell depletion in peripheral blood and lymphoid tissues than rituximab.

2008 Financial Guidance

As reported previously, Trubion anticipates 2008 revenues to be in the range of $15 million to $20 million earned through the company's Wyeth collaboration. Total operating expenses are expected to be approximately $53 million to $58 million for 2008. The planned increase in 2008 operating expenses is primarily attributable to clinical trial and manufacturing expenses associated with the re-treatment study being completed by Trubion for its lead product candidate, TRU-015, manufacturing and clinical costs associated with its TRU-016 product candidate, and increased personnel-related and research and development expenses. Operating cash requirements in 2008 are expected to be approximately $35 million to $40 million.

Conference Call Details

Trubion will host a conference call and webcast to discuss its second quarter and six months 2008 financial results. The call will be held today at 2 p.m. Pacific time (5 p.m. Eastern time). The live event will be available from Trubion's website at http://investors.trubion.com/events.cfm, or by calling 1 [phone] or 1 [phone]. Beginning later today, a replay of the discussion will be available from Trubion's website or by calling 1 [phone] or 1 [phone] and entering 6969493. Replay will be available at 8 p.m. EDT until midnight, Aug. 14, 2008. The webcast replay will be available in the events section of Trubion's website.