Immunomedics Inc. (IMMU, Financial) filed Quarterly Report for the period ended 2010-03-31.
Immunomedics Inc. has a market cap of $238.58 million; its shares were traded at around $3.17 with a P/E ratio of 7.04 and P/S ratio of 7.95.
Total costs and expenses for the three-month period ended March 31, 2010 were $8,505,000, as compared to $7,360,000 for the same period in 2009, representing an increase of $1,145,000 or 16%. Research and development expenses for the three-month period ended March 31, 2010 were $6,268,000 as compared to $5,875,000 for the same period in 2009, an increase of $393,000 or 7%. This increase in research and development expenses resulted primarily from increased spending for clinical trial expenses. Cost of goods sold was $682,000 for the three-month period ended March 31, 2010 as compared to $94,000 for the same period in 2009. During the three-month period ended March 31, 2010, cost of goods sold were increased by a $600,000 increase in the inventory reserve as Leukoscan® work-in-process inventories were deemed to be unsaleable due to a third-party manufacturers process deviation that resulted in product that did not meet our quality control standards. Excluding the impact of the inventory reserve adjustment for work-in-process, the gross profit margins were 92% and 89%, respectively, for the three-month periods ended March 31, 2010 and 2009. Sales and marketing expenses for the three-month period ended March 31, 2010 decreased $35,000 or 15% from $237,000 to $202,000 for the same period in 2009, primarily as a result of lower salaries and payroll taxes for European employees as a result of the currency fluctuation between the U.S. dollar and the Euro. General and administrative costs increased $201,000 to $1,354,000 or 17% for the three-month period ended March 31, 2010, from $1,153,000 for the same period of 2009. This increase was primarily a result of increased stock option compensation expense ($90,000) and the accrual of additional incentive compensation due to our Chairman in accordance with his employment agreement ($75,000) resulting from the expectation of the Companys profitability for the 2010 fiscal year. Such expectation is primarily the result of increased licensing fee revenue recognized under the UCB and Nycomed agreements.
A gain of $652,000 was reported for the three-month period ended March 31, 2010 on the sales of auction rate securities with a carrying value of $5.0 million (par value of $6.0 million), as compared to a $10,000 gain on the sale of auction rate securities that had a carrying value of $90,000 (par value of $100,000) for the same period in 2009. Offsetting this gain was a charge of $447,000 was recorded for the three-month period ended March 31, 2010 for an other than temporary impairment charge on marketable securities associated with our investments in auction rate securities as compared to a charge of $323,000 for the three-month period ended March 31, 2009. See discussion in Note 3 to the condensed consolidated financial statements for more information on our investments in auction rate securities and this other than temporary impairment charge.
Net income for the three-month period ended March 31, 2010 was $3,470,000 or $0.05 per share as compared to net income of $758,000 or $0.01 per share, for the same period in 2009. The improvement in net income in 2010 as compared to the comparable period in 2009 resulted primarily from the receipt of a $5.0 million milestone payment under the terms of the Nycomed Agreement and the receipt of the sale of our tax NOLs to the State of New Jersey, partially offset by lower license fee revenues resulting from the Nycomed Agreement and the increase to the inventory reserve of $600,000. In addition, the Company also benefited from a net gain of $.2 million from auction rate securities in the third quarter of 2010 versus a net loss of $.3 million in 2009.
Revenues for the nine-month period ended March 31, 2010 were $54,816,000, as compared to $21,724,000 for the same period in 2009, representing an increase of $33,092,000 or 152%. The increase for the nine-month period ended March 31, 2010 is primarily the result of recording license fee revenue of $31,145,000 for the UCB Agreement. There was no corresponding revenue for UCB in 2009. In August 2009, we received notice from UCB relieving us of our responsibilities for the manufacturing of epratuzumab, the only remaining obligation under the UCB agreement, thus allowing us to record the full amount of the remaining deferred license fee revenue. In addition, during the nine-month period ended March 31, 2010, we recognized the receipt of a $5.0 million milestone payment with the completion of our obligations under the terms of the Nycomed Agreement in connection with the ITP study. This was partially offset by $3.6 million of lower license fee revenue from the Nycomed Agreement for the same period in 2009. Product sales for the nine-month period ended March 31, 2010 were $2,648,000, as compared to $2,637,000 for the same period in 2009, representing an increase of $11,000 or 1% Research and development revenues for the nine-month period ended March 31, 2010 were $1,482,000 as compared to $850,000 for the same period of 2009 due to the timing and size of the grant programs in the current period.
Total costs and expenses for the nine-month period ended March 31, 2010 were $20,237,000, as compared to $21,686,000 for the same period in 2009, representing a decrease of $1,449,000 or 7%. Research and development expenses for the nine-month period ended March 31, 2010 were $14,710,000 as compared to $17,065,000 for the same period in 2009, representing a decrease of $2,355,000 or 14%. The reduction in research and development expenses resulted primarily from $3,855,000 of increased expense reimbursement from Nycomed and $1,177,000 of lower patent-related expenses, partially offset by $1,354,000 of higher levels of materials, supplies and testing for Nycomed related production, $557,000 of higher spending for clinical trials and as well as higher headcount and related salaries and employee benefits.
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Immunomedics Inc. has a market cap of $238.58 million; its shares were traded at around $3.17 with a P/E ratio of 7.04 and P/S ratio of 7.95.
Highlight of Business Operations:
Revenues for the three-month period ended March 31, 2010 were $10,695,000, as compared to $8,309,000 for the same period in 2009, representing an increase of $2,386,000 or 29%. The growth for the three-month period ended March 31, 2010 is primarily the result of the receipt of a $5.0 million milestone payment under the terms of the Nycomed Agreement upon completion of our obligation in connection with the ITP study. This was partially offset by the recording of $3.9 million of license fee revenue from the Nycomed Agreement for the three-month period ended March 31, 2010 as compared to $7.3 million of license fee revenue from the Nycomed Agreement for the same period in 2009. Product sales for the three-month period ended March 31, 2010 were $970,000, as compared to $829,000 for the same period in 2009, representing an increase of $141,000 or 17%. Research and development revenues for theTotal costs and expenses for the three-month period ended March 31, 2010 were $8,505,000, as compared to $7,360,000 for the same period in 2009, representing an increase of $1,145,000 or 16%. Research and development expenses for the three-month period ended March 31, 2010 were $6,268,000 as compared to $5,875,000 for the same period in 2009, an increase of $393,000 or 7%. This increase in research and development expenses resulted primarily from increased spending for clinical trial expenses. Cost of goods sold was $682,000 for the three-month period ended March 31, 2010 as compared to $94,000 for the same period in 2009. During the three-month period ended March 31, 2010, cost of goods sold were increased by a $600,000 increase in the inventory reserve as Leukoscan® work-in-process inventories were deemed to be unsaleable due to a third-party manufacturers process deviation that resulted in product that did not meet our quality control standards. Excluding the impact of the inventory reserve adjustment for work-in-process, the gross profit margins were 92% and 89%, respectively, for the three-month periods ended March 31, 2010 and 2009. Sales and marketing expenses for the three-month period ended March 31, 2010 decreased $35,000 or 15% from $237,000 to $202,000 for the same period in 2009, primarily as a result of lower salaries and payroll taxes for European employees as a result of the currency fluctuation between the U.S. dollar and the Euro. General and administrative costs increased $201,000 to $1,354,000 or 17% for the three-month period ended March 31, 2010, from $1,153,000 for the same period of 2009. This increase was primarily a result of increased stock option compensation expense ($90,000) and the accrual of additional incentive compensation due to our Chairman in accordance with his employment agreement ($75,000) resulting from the expectation of the Companys profitability for the 2010 fiscal year. Such expectation is primarily the result of increased licensing fee revenue recognized under the UCB and Nycomed agreements.
A gain of $652,000 was reported for the three-month period ended March 31, 2010 on the sales of auction rate securities with a carrying value of $5.0 million (par value of $6.0 million), as compared to a $10,000 gain on the sale of auction rate securities that had a carrying value of $90,000 (par value of $100,000) for the same period in 2009. Offsetting this gain was a charge of $447,000 was recorded for the three-month period ended March 31, 2010 for an other than temporary impairment charge on marketable securities associated with our investments in auction rate securities as compared to a charge of $323,000 for the three-month period ended March 31, 2009. See discussion in Note 3 to the condensed consolidated financial statements for more information on our investments in auction rate securities and this other than temporary impairment charge.
Net income for the three-month period ended March 31, 2010 was $3,470,000 or $0.05 per share as compared to net income of $758,000 or $0.01 per share, for the same period in 2009. The improvement in net income in 2010 as compared to the comparable period in 2009 resulted primarily from the receipt of a $5.0 million milestone payment under the terms of the Nycomed Agreement and the receipt of the sale of our tax NOLs to the State of New Jersey, partially offset by lower license fee revenues resulting from the Nycomed Agreement and the increase to the inventory reserve of $600,000. In addition, the Company also benefited from a net gain of $.2 million from auction rate securities in the third quarter of 2010 versus a net loss of $.3 million in 2009.
Revenues for the nine-month period ended March 31, 2010 were $54,816,000, as compared to $21,724,000 for the same period in 2009, representing an increase of $33,092,000 or 152%. The increase for the nine-month period ended March 31, 2010 is primarily the result of recording license fee revenue of $31,145,000 for the UCB Agreement. There was no corresponding revenue for UCB in 2009. In August 2009, we received notice from UCB relieving us of our responsibilities for the manufacturing of epratuzumab, the only remaining obligation under the UCB agreement, thus allowing us to record the full amount of the remaining deferred license fee revenue. In addition, during the nine-month period ended March 31, 2010, we recognized the receipt of a $5.0 million milestone payment with the completion of our obligations under the terms of the Nycomed Agreement in connection with the ITP study. This was partially offset by $3.6 million of lower license fee revenue from the Nycomed Agreement for the same period in 2009. Product sales for the nine-month period ended March 31, 2010 were $2,648,000, as compared to $2,637,000 for the same period in 2009, representing an increase of $11,000 or 1% Research and development revenues for the nine-month period ended March 31, 2010 were $1,482,000 as compared to $850,000 for the same period of 2009 due to the timing and size of the grant programs in the current period.
Total costs and expenses for the nine-month period ended March 31, 2010 were $20,237,000, as compared to $21,686,000 for the same period in 2009, representing a decrease of $1,449,000 or 7%. Research and development expenses for the nine-month period ended March 31, 2010 were $14,710,000 as compared to $17,065,000 for the same period in 2009, representing a decrease of $2,355,000 or 14%. The reduction in research and development expenses resulted primarily from $3,855,000 of increased expense reimbursement from Nycomed and $1,177,000 of lower patent-related expenses, partially offset by $1,354,000 of higher levels of materials, supplies and testing for Nycomed related production, $557,000 of higher spending for clinical trials and as well as higher headcount and related salaries and employee benefits.
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