Trubion Pharmaceuticals Inc. (TRBN)

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Trubion Pharmaceuticals, Inc. Reports First-Quarter 2009 Financial Results
On Thursday May 7, 2009, 4:00 pm EDT

SEATTLE, May 7 /PRNewswire-FirstCall/ -- Trubion Pharmaceuticals, Inc. (Nasdaq: TRBN - News) today announced financial results for its first quarter ended March 31, 2009.

First-Quarter 2009 Financial Results

Revenue for the first quarter of 2009 was $4.2 million compared with $4.0 million for the first quarter of 2008. Revenue in the first quarter of 2009 was earned through the company's strategic collaboration with Wyeth Pharmaceuticals, including $3.0 million for collaborative research funding and $1.2 million for amortization of the upfront fee of $40 million received in January 2006.

Total operating expenses for the first quarter of 2009 were $15.2 million compared with $10.5 million for the first quarter of 2008. The three-month increase in operating costs was primarily due to 1) an increase in outside manufacturing costs related to Trubion's proprietary product candidate, TRU-016; and 2) a charge of $0.8 million in connection with one-time work-force reduction costs, including severance and other benefits.

Net loss for the first quarter of 2009 was $11.0 million, or $0.61 per diluted common share, compared with a net loss of $6.0 million, or $0.33 per diluted common share, for the first quarter of 2008.

Trubion had $44.0 million in cash, cash equivalents and investments as of March 31, 2009, compared with $52.9 million as of Dec. 31, 2008.

"In the first quarter, we continued to advance the development of our proprietary and partnered product candidates," said Peter Thompson, M.D., FACP, president, CEO and chairman of Trubion. "In addition, we continued to take proactive steps to reduce our costs and align our current resources with the strongest near-term opportunities while positioning the company for long-term sustainability and success. We believe the actions taken in the first quarter should improve our financial standing and support operations into the second half of 2010."

Recent milestones


In April 2009, Trubion announced the presentation of preclinical data regarding its SCORPION(TM) multispecific therapeutic technology at the 100th Annual Meeting of the American Association of Cancer Research (AACR) in Denver. The data presented demonstrated the selectivity and high potency of the bispecific CD79BxDR SCORPION molecule, its differentiation from monospecific approaches, and its potential as a therapeutic for B-cell depletion, particularly in diseases refractory to CD20-targeted therapies.
Trubion announced in March 2009 that Wyeth has initiated a Phase 1 clinical trial of SBI-087 for the treatment of systemic lupus erythematosus (SLE). SBI-087 is Trubion's next-generation CD20 drug candidate; it is also being evaluated in a Phase 1 clinical trial for rheumatoid arthritis (RA).
In an effort to proactively reduce costs and extend capital, Trubion announced work-force reductions of approximately 25% and a corporate restructuring in February 2009. Based on the company's current forecast, and excluding any proceeds from potential new partnerships or financings, the work-force reductions and targeted investments in preclinical and clinical programs are expected to support the company's operations into the second half of 2010.

2009 Financial Guidance

Trubion's current 2009 financial guidance includes the following:


Anticipated 2009 revenues of approximately $15 million to $20 million earned through the company's Wyeth collaboration; and,
Anticipated 2009 operating cash requirements of approximately $30 million to $35 million.

This guidance does not include any additional cash receipts associated with potential new partnerships.

Conference Call Details

Trubion will host a conference call and webcast to discuss its first quarter 2009 financial results and provide an update on business activities. The call will be held May 7 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, or by calling [phone] or [phone]. A replay of the discussion will be available from Trubion's website or by calling [phone] or [phone] and entering 6540657. The telephone replay will be available until midnight, May 14, 2009.