Trubion Pharmaceuticals, Inc. Reports Fourth Quarter and Year-Ended 2008 Financial Results
Thursday March 12, 4:00 pm ET
SEATTLE, March 12 /PRNewswire-FirstCall/ -- Trubion Pharmaceuticals, Inc. (Nasdaq: TRBN - News) today announced financial results for its fourth quarter and year ended Dec. 31, 2008.
Fourth Quarter and Year-Ended 2008 Financial Results
Revenue for the fourth quarter of 2008 was $4.3 million compared with $5.7 million for the fourth quarter of 2007. Revenue for the year ended Dec. 31, 2008, was $16.5 million compared with $20.1 million for the year ended Dec. 31, 2007. Revenue in 2008 was earned through the company's strategic collaboration with Wyeth Pharmaceuticals and was composed of $11.1 million for collaborative research funding and $5.4 million for amortization of the upfront fee of $40 million received in January 2006.
The three-month and 12-month decreases in revenue under Trubion's Wyeth collaboration were due to 1) a decrease in reimbursable costs related to the Phase 2b clinical trial for its lead product candidate, TRU-015, for the treatment of rheumatoid arthritis (RA), 2) an extension of the recognition of the $40 million upfront fee due to an extension in the estimated research and development period, and 3) a decrease in reimbursable legal costs.
Total operating expenses for the fourth quarter of 2008 were $10.7 million compared with $11.4 million for the fourth quarter of 2007. Total operating expenses for the year ended Dec. 31, 2008, were $43.0 million compared with $47.3 million for the year ended Dec. 31, 2007. The three-month decrease in operating expenses was primarily due to decreased legal and personnel-related costs, partially offset by an increase in manufacturing costs related to Trubion's TRU-016 product candidate. The 12-month decrease in operating costs was primarily due to 1) decreased outside manufacturing costs related to TRU-016, 2) decreased clinical costs related to the Phase 2b clinical trial for TRU-015 and 3) decreased lab expenses for TRU-016.
Net loss for the fourth quarter of 2008 was $6.4 million, or $0.36 per diluted common share, compared with a net loss of $4.9 million, or $0.28 per diluted common share, for the fourth quarter of 2007. For the year ended Dec. 31, 2008, net loss was $25.6 million, or $1.43 per diluted common share, compared with a net loss of $23.3 million, or $1.32 per diluted common share, for the year ended Dec. 31, 2007.
Trubion had $52.9 million in cash, cash equivalents and investments as of Dec. 31, 2008, compared with $78.5 million as of Dec. 31, 2007.
"We delivered on our 2008 commitments by initiating new clinical trials evaluating our lead product candidates for autoimmune and infectious diseases and cancer while augmenting our portfolio of proprietary technologies and advancing preclinical assets that we believe have the greatest opportunity for value creation," said Peter Thompson, M.D., FACP, president, chief executive officer and chairman of Trubion. "As a result, we now have three product candidates being evaluated in human clinical trials, as well as two new proprietary technologies that expand the foundation for Trubion's product development efforts -- SCORPION(TM) multi-specific protein therapeutics and TRU-ADhanCe(TM) potency enhancing technology for immunopharmaceuticals. In 2009 we expect to report data for a number of our key programs as they continue to advance in the clinic."
Work-Force Reductions
On February 25, 2009 Trubion announced a work-force reduction of approximately 25 percent and a corporate restructuring. In the face of continuing uncertainty in the capital markets and the global economy, Trubion is proactively taking steps to reduce its costs and align its current resources with its strongest near-term opportunities while positioning the company for long-term sustainability and success.
Estimated charges of approximately $0.8 million will be recorded in the first quarter of 2009 in connection with one-time work-force reduction costs, including severance and other benefits. Trubion will continue to support the programs developed under its collaboration with Wyeth and all expenses incurred will continue to be reimbursed by Wyeth.
Trubion 2009 Financial Guidance
Based on its current forecast, and excluding any proceeds from potential new partnerships or financings, the reductions announced on February 25, 2009, in combination with targeted investments in preclinical and clinical programs, are expected to support the company's operations into the second half of 2010.
Trubion anticipates 2009 revenues to be approximately $15-20 million earned through the company's Wyeth collaboration.
Operating cash requirements in 2009 are expected to be approximately $30-35 million.
This guidance does not include any additional cash receipts associated with potential new partnerships.
