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Antigenics Inc. Reports Operating Results (10-Q)

November 09, 2010 | About:
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10qk

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Antigenics Inc. (AGEN) filed Quarterly Report for the period ended 2010-09-30.

Antigenics Inc. has a market cap of $95.8 million; its shares were traded at around $0.97 with and P/S ratio of 28.7.

Highlight of Business Operations:

Revenue: We generated revenue of $624,000 and $896,000 during the quarters ended September 30, 2010 and 2009, respectively. These amounts include revenue earned on shipments of QS-21 to our QS-21 licensees, license fees, and royalties earned and in 2010, also includes modest sales revenue from shipments of Oncophage. This decreased revenue in 2010 is due primarily to a decrease in shipments of QS-21 to our QS-21 licensees in the quarter ended September 30, 2010 as compared to the same quarter in 2009. In the quarters ended September 30, 2010 and 2009, we recorded revenue of $385,000 and $387,000, respectively, from the amortization of deferred revenue.

Revenue: We generated revenue of $2.4 million and $2.8 million during the nine months ended September 30, 2010 and 2009, respectively. This decreased revenue in 2010 is due primarily to fewer shipments of QS-21 to our QS-21 licensees for the nine month period ended September 30, 2010 as compared to the same period in 2009. In the nine months ended September 30, 2010 and 2009, we recorded revenue of $1.2 and $1.1 million respectively, from the amortization of deferred revenue.

Non-Operating Income (Expense): Non-operating income of $968,000 for the nine months ended September 30, 2010 consists of the net gain of $1.1 million on the extinguishment of a portion of our 2005 Notes partially offset by the change in the fair value of our derivative liability since December 31, 2009 of $106,000. The change in our derivative liability is primarily due to an increase in our market value since December 31, 2009 partially offset by the decrease in the volatility of our stock price. Non-operating expense of $5.7 million for the nine months ended September 30, 2009 consists of the change in the fair value of our derivative liability of $8.2 million primarily due to an increase in our market value since December 31, 2008, and a loss of $318,000 from the monetization of the receivable that was received in the 2008 assignment of certain patent applications, partially offset by the net gain of $2.7 million on the extinguishment of a portion of our 2005 Notes.

Interest Expense: Interest expense decreased 11% to $3.7 million for the nine months ended September 30, 2010 from $4.1 million for the nine months ended September 30, 2009. This decrease is related to the repurchase of a portion of our 2005 Notes during 2009. Interest on our 2006 Notes is payable semi-annually on December 30 and June 30 in cash or, at our option, in additional notes or a combination thereof. During the nine months ended September 30, 2010 and 2009, interest expense included $1.3 million and $1.2 million, respectively, which was paid in the form of issuing additional 2006 Notes.

Co (the Sales Agents) under which we may sell an aggregate of up to 20 million shares of our common stock from time to time through the Sales Agents. To date we issued approximately 6.7 million shares of our common stock in at the market offerings through the Sales Agents and raised net proceeds of approximately $8.5 million after deducting offering costs of approximately $321,000. As of September 30, 2010, we had debt outstanding of $51.2 million in principal, including $33.3 million in principal of our 2006 Notes maturing August 30, 2011 and $17.7 million in principal of our 2005 Notes maturing February 20, 2025, but subject to redemption at the option of the holders or us beginning February 1, 2012.

Our cash, cash equivalents, and short-term investments at September 30, 2010 were $24.4 million, a decrease of $5.7 million from December 31, 2009. Based on our current plans and activities, we anticipate that our net cash burn (defined as cash used in operating activities plus capital expenditures and dividend payments) will be in the $16 $18 million range for the year ending December 31, 2010. In addition, we hope to generate royalties from our QS-21 product in the 2013-2014 timeframe.

Read the The complete Report

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