Original Source: FD (FAIR DISCLOSURE) WIRE
. Raymond Withy, Ph.D., Abgenix, President and CEO . Kurt Leutzinger, Abgenix, CFO . Ami Knoefler, Abgenix, Director, Corporate Communications
ABGX reviews 3Q03 business results, with a focus on recent key events, particularly the pro-development deal with Amgen and an oncology alliance with AstraZeneca. ABGX also intends to pursue product opportunities to advance their product portfolio outside of oncology. Q&A Focus: ABX-EGF studies, cash payments from AstraZeneca, cash burn guidance.
A. Key Data From Call 1. Financing deal for Amgen collaboration opens a $60m credit line to ABGX once $20m is spent on the ABX-EGF program next year. 2. Initial equity investment into oncology alliance with
AstraZeneca = $100m. 3. Total expected milestone payments from AstraZeneca alliance (depending on attrition rates) = over $50m for each successfully commercialized product.
S1. 3Q03 Business Review (R.W.) 1. Events have taken place to put ABGX on track to become a fully integrated biopharmaceutical company that delivers on the promise of antibodies. 2. Pro-development agreement with Amgen: 1. Now have clarity around alliance with Amgen, one of the world's leading biopharmaceutical companies.
2. Developing a cancer treatment that shows tremendous progress.
3. Have now confirmed each partner's responsibilities moving
forward so that the ABX-EGF program can advance efficiently.
4. ABGX is confident that the clinical development program will
fully maximize ABX-EGF's potential as well as monotherapy and
combination therapy. 1. With encouraging proof-of-concept data presented at last year's ASCO conference, ABGX continues to plan for next steps. 5. Four other Phase II trials are underway studying monotherapy in prostate and renal cancer, as well as front-line combination therapy in non-small cell lung and colon cancers. 6. ABGX believes that such a broad and complex program is better served in the hands of an organization that has established
late stage development and commercialization expertise. 7. Development costs: 1. ABGX has put in place a financing vehicle for the pro-development collaboration. 2. Once ABGX has spent $20m on the ABX-EGF program next year, a credit line of $60m becomes available to them. 3. This enables ABGX to substantially reduce the risk of the ABX-EGF program while maintaining their 50% share of future profits. 4. The loan is forgiven if the drug never launches and will be repaid only with future profits if it does.
5. ABGX also continues to hold an option to co-promote ABX-EGF.
8. Effects of transferred control of the ABX-EGF program to
Amgen: 1. Some in investment community had expressed concern …