Earnings Labs

Agenus Inc. (AGEN)

Q2 2013 Earnings Call· Thu, Jul 25, 2013

$3.88

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Transcript

Operator

Operator

Good day, ladies and gentlemen. And welcome to the Agenus Q2 Earnings Report Conference Call. As a reminder, today's conference is being recorded. At this time, I would like to turn the conference over to Jonae Barnes, Vice President of Investor Relations and Corporate Communications. Please go ahead, Ms. Barnes.

Jonae Barnes

President

Thank you, Tracie, and good morning, everyone. Welcome to Agenus’ conference call to discuss the financial results for the second quarter 2013. With me today is Christine Klaskin, Vice President of Finance. Dr. Garo Armen, Chairman and CEO of Agenus cannot be us today, as he is undergoing a hospital waist procedure. We expect that Dr. Armen will make a full recovery. We expect that he will back to work in early August. During this call we’ll update. We will not be hosting a Q&A session today. But before we continue, I would like to remind you that this conference call will contain forward-looking statements, including statements regarding the company’s potential income stream, development and commercialization efforts, timelines, availability of data and potential efficacy and market potential with respect to products and product candidates of the company and its partners. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Reference to these risks and uncertainties is made in today’s press release and they are disclosed in more detail in our most recent filings with the US Securities and Exchange Commission. These statements speak only as of the date of the call and Agenus undertakes no obligation to update or revise the statements. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. When evaluating Agenus’ business and securities, investors should give careful consideration to these risks and uncertainties. As a remainder, this call is being recorded for audio replay. With that, I will now turn the call over to Christine who will review our financial results for the second quarter 2013.

Christine Klaskin

President

Thank you, Jonae. Good morning, everyone, and thank you for joining us on today’s call. Some of the statements I'll be making are also contained in the press release issued this morning. The company's net loss attributable to common stockholders for the second quarter of 2013 was $11.2 million or $0.40 per share, compared to a net loss attributable to common stockholders of $7.1 million or $0.31 per share for the same period in 2012. For the six months ended June 30, 2013 our net loss attributable to common stockholders was $20 million or $0.76 per share compared to a net loss attributable to common stockholders of $551,000 or $0.02 per share for the six months ended June 30, 2012. As a result of various corporate transactions, net loss for the six months ended June 30, 2013 increased compared to the net loss for the same period in 2012, primarily due to revenue generated in 2012 from one-time payments received and to $6.2 million of non-recurring non-cash charges in 2013. In the first quarter of 2013, the company's preferred stock restructuring which reduced the dividend requirements for Series A-1 preferred securities resulted in a non-cash deemed dividend of $2.9 million. In the second quarter of 2013, the company retired its outstanding $39 million 8% senior secured convertible notes due August 2014 resulting in a non-cash loss on extinguishment of debt of $3.3 million. In the first quarter of 2012, revenue of $13.4 million was generated primarily due to one-time payments received to an extended agreement with GlaxoSmithKline and to a license of non-core technologies. Cash and cash equivalents were $13.4 million as of June 30, 2013. Based on our current plans and activities we expect sufficient financial resources to fund operations into 2014, while we continue to seek opportunistic and non-diluted financing opportunities. This concludes the financial portion of the call. Jonae will now provide a corporate update.

Jonae Barnes

President

Thank you, Christine. During the first half of 2013 we made significant progress and I’m pleased to report the following highlight. Enrolments began for the 222 patients randomized Phase 2 study of Prophage Series G-200 vaccine in combination with Avastin to treat glioblastoma multiforme or GBM in adult patients. The study is sponsored by a cooperative group of the NCI. We completed enrollment for the Phase 2 randomized, double-blind, multicenter study for HerpV, a recombinant therapeutic vaccine candidate for the treatment of genital herpes in HSV-2 positive subjects. The study is testing the biological efficacy of the HerpV vaccine as measured by effect on genital viral shedding. Positive Phase 2 data for the Prophage Series G-100 trial, a newly diagnosed GBM were presented at the American Association of Neurological Surgeons Annual Scientific Meeting. I’m pleased to report that Prophage Series G-100 plus the standard of care showed a 146% increase in progression free survival and a 60% increase in overall survival as compared to historical control of standard of care alone. Our debt level has been significantly reduced. We eliminated our outstanding $39 million, 8% senior secured convertible notes due August 2014. These notes were exchanged for cash, series of common stock and a revenue interest in QS-21 Stimulon partnered program. In addition, we entered into two separate $5 million debt transaction. Our total debt obligation outstanding has been reduced to $10 million, which is easier to manage and is much more attractive for this company. As we turn our attention to the second half of the year and into 2014, we anticipate that we will see continued progress and momentum. During this period the two Phase 3 GlaxoSmithKline MAGE-A3 cancer vaccine program, the treatment of melanoma and non-small cell lung cancer are expected to deliver Phase 3 readout, while…

Operator

Operator

Thank you. Ladies and gentlemen, this concludes the conference call for today. We thank you for your participation. You may now disconnect your lines and have a great day.