Trubion Pharmaceuticals Inc. (TRBN)

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Trubion Pharmaceuticals Inc. Reports Second Quarter and First Half 2009 Financial Results
Press Release
Source: Trubion Pharmaceuticals Inc.
On Thursday August 6, 2009, 4:00 pm EDT

Companies:Trubion Pharmaceuticals Inc.
SEATTLE, Aug. 6 /PRNewswire-FirstCall/ -- Trubion Pharmaceuticals Inc. (Nasdaq: TRBN - News) today announced financial results for its second quarter and six months ended June 30, 2009.

Second Quarter and Six Months 2009 Financial Results

Revenue for the second quarter and six months ended June 30, 2009 was $4.1 million and $8.3 million, respectively, compared with $4.5 million and $8.4 million, respectively, in 2008. Revenue was earned through the company's strategic collaboration with Wyeth Pharmaceuticals.

Of the $8.3 million in revenue Trubion recognized during the first half of 2009, $5.9 million was for collaborative research funding and $2.4 million reflected amortization of the $40 million up-front fee received from Wyeth in January 2006. This is compared with revenue of $8.4 million recognized in the first half of 2008, which was composed of $5.5 million for collaborative research funding and $2.9 million for amortization of the $40 million upfront fee.

On June 22, 2009, Wyeth exercised its option to extend the research portion of its strategic collaboration for an additional one-year period. Under the terms of the extension, Wyeth will pay Trubion approximately $3.4 million in exchange for research services through Dec. 22, 2010.

Total operating expenses for the second quarter and first half of 2009 were $10.7 million and $25.9 million, respectively, compared with $11.4 million and $21.9 million in 2008.

Net loss for the second quarter and six months ended June 30, 2009 was $6.7 million, or $0.37 per diluted common share, and $17.7 million, or $0.99 per diluted common share, respectively. This is compared to a net loss of $6.6 million, or $0.37 per diluted common share, and $12.6 million, or $0.71 per diluted common share, in 2008.

Trubion had $37.5 million in cash, cash equivalents and investments as of June 30, 2009, compared with $44 million as of March 31, 2009.

"We are pleased with the advancement of our partnered and proprietary product candidates in the first half of 2009. Data from our ongoing maintenance therapy studies with TRU-015 in RA continue to demonstrate sustained and robust clinical responses with a convenient single dose regimen given every six months," said Peter Thompson, M.D., FACP, president, chief executive officer and chairman of Trubion. "We look forward to the results later this year of our second Phase 2b regimen-finding study (2203) after observation of enhanced ACR responses following the first course of re-treatment in the Phase 2b 15002 study. Wyeth's decision to extend the research portion of our collaboration agreement is further endorsement of our technology and we look forward to continuing to advance TRU-015, SBI-087 and the other novel therapeutics currently under joint development."

Dr. Thompson added, "In addition, results from a single agent study of our proprietary CD37-directed SMIP(TM) therapeutic, TRU-016, reported at ASCO showed promising activity in a heavily pre-treated patient population that included a substantial portion of patients with molecular markers known to be predictive of resistance to other therapies. We are also pleased by our continued progress in the development of our multi-specific SCORPION(TM) technology, both for targeting cell-surface molecules like CD79b and HLA-DR, as well simultaneously neutralizing soluble ligands like TNF and IL-6."

Recent milestones


Trubion announced positive preliminary data from a Phase 1 / 2 study of its proprietary candidate, TRU-016, for the treatment of chronic lymphocytic leukemia (CLL). Data shows promise that TRU-016 is safe and effective in reducing tumor lymphocyte blood counts and induced a reduction in lymph node and spleen size and/or an improvement in the production of red blood cells and platelets. Data were presented at the 2009 American Society of Clinical Oncology (ASCO) Annual Meeting.
Also at ASCO, Trubion presented preclinical data demonstrating that TRU-016 is synergistic in combination with established therapies such as rituximab, and that the product candidate has a unique mechanism of action compared to other therapies that mediates apoptosis in CLL cells.
Trubion presented data from the re-treatment portion of a Phase 2b study (15002) of TRU-015 for rheumatoid arthritis (RA) at EULAR. Data demonstrate that TRU-015 is well-tolerated and improves the signs and symptoms of RA as measured by American College of Rheumatology (ACR) rates. The Phase 2b trial is designed to evaluate the safety, tolerability, pharmacodynamics, pharmacokinetics and clinical activity of repeat doses of TRU-015. Trubion announced preliminary results from this study in Q4 2008.
Trubion discussed preliminary data regarding its SCORPION multispecific therapeutic technology at the Annual Meeting of the American Association of Cancer Research (AACR). Data show the selectivity and high potency of the CD79BxDR SCORPION molecule, including its differentiation from monospecific approaches and its potential for B-cell depletion, particularly in diseases refractory to CD20-targeted therapies.

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 second quarter and six months ended 2009 financial results and provide an update on business activities. The call will be held Aug. 6 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 877-440-5785 or 719-325-4854. A replay of the discussion will be available beginning 8 p.m. Eastern Time from Trubion's website or by calling 888-203-1112 or 719-457-0820 and entering 9291496. The telephone replay will be available until midnight, Aug. 13, 2009.