Cytogen Reports First Quarter 2001 Results; Product Sales Advance 25% Over the Prior Year's Quarter

Apr 26, 2001, 01:00 ET from Cytogen Corporation

    PRINCETON, N.J., April 26 /PRNewswire/ --
 Cytogen Corporation (Nasdaq:   CYTO) today reported its consolidated financial
 results for the first quarter period ended March 31, 2001.  The Company
 reported a net loss of $2.65 million or $0.03 per share, compared to a net
 loss of $6.06 million or $0.08 per share for the first quarter of 2000.  The
 loss for the first quarter of 2000 includes a one-time charge related to the
 adoption of the SEC's Staff Accounting Bulletin No. 101 ("SAB 101") of
 $4.31 million or $0.06 per share.
     Product sales increased from $1.87 million in the first quarter of 2000 to
 $2.34 million in the first quarter of 2001, an increase of 25%.  Quadramet(R)
 royalty revenue for the first quarter of 2001 was $441,000, slightly below the
 $498,000 achieved in the first quarter of 2000.  This decrease was partially
 due to a temporary, weather-related disruption in the supply of Quadramet from
 the manufacturer of the product during 2001, which has been resolved.
     Commenting on the results, H. Joseph Reiser, Ph.D., Cytogen's president
 and chief executive officer, said, "We continue to be encouraged by the growth
 in product sales over the prior year's quarter, reflecting our evolution into
 a biopharmaceutical company with multiple product opportunities and the
 establishment of an in-house oncology sales force to promote our products to
 urologists, radiation oncologists and nuclear medicine physicians.
     "ProstaScint(R), our prostate cancer imaging agent, recorded its highest
 level of quarterly unit sales since the product was launched in 1997.  We are
 building on this momentum by capitalizing on the synergies inherent between
 ProstaScint and BrachySeed(TM), a second-generation radioactive seed implant
 used to treat prostate cancer that is currently in its launch phase.  In
 addition, we are working to expand the applications and markets for
 ProstaScint, such as performing image-guided therapy and obtaining more
 accurate prostate biopsies.
     "Our marketing partner, Berlex Laboratories, Inc., continues to explore
 expanded uses for Quadramet in combination with other therapies commonly used
 to treat bone metastases, including chemotherapies, bisphosphonates and
 external beam radiation therapy.  Future clinical trials, if successful, may
 significantly expand the market for Quadramet.
     "As communicated previously, the market for OncoScint CR/OV(R) as a
 colorectal cancer diagnostic has been negatively affected by positron emission
 tomography or `PET' scans, which may produce the same or higher sensitivity
 than OncoScint.  The decline in OncoScint revenue, however, was partially
 offset by early sales of BrachySeed from its initial launch phase.
     "During the quarter, our proteomics subsidiary AxCell Biosciences,
 announced that it has successfully mapped the first protein domain family, the
 WW domain, believed to affect health problems including hypertension, muscular
 dystrophy and immunodeficiency.  In addition, AxCell introduced the
 ProChart(TM) database of protein interactions in the human body using
 InforMax's Protein-Protein Interaction Analysis (PPI) module, which will be
 available in the next release of the GenoMax(TM) enterprise bioinformatics
 platform, the proprietary advanced bioinformatics software from InforMax, Inc.
     "Finally, during the quarter we strengthened our cash resources through a
 draw down on an Equity Financing Facility with Acqua Wellington North American
 Equities Fund, Ltd., for aggregate proceeds of $6.5 million," Dr. Reiser
 concluded.
     Cytogen's cash and cash equivalents at the end of the first quarter 2001
 were $14.27 million compared to $11.99 million as of December 31, 2000.
     Operating expenses in the first quarter of 2001 increased 29% to
 $5.82 million compared to $4.50 million in the first quarter of 2000,
 reflecting research and development efforts for AxCell's proteomics program
 and increased selling and marketing expenses due to the Company's efforts to
 expand its in-house sales force including costs associated with the January
 2001 launch of BrachySeeds, radioactive implants used to treat prostate
 cancer.
     Effective January 1, 2000, Cytogen adopted SAB 101, which requires
 up-front, non-refundable license fees to be deferred and recognized over
 future periods.  As a result of the adoption of SAB 101, certain up-front,
 non-refundable license fees recognized in prior periods have been deferred and
 are being recognized over the terms of the relevant agreements.  In the first
 quarter of 2000, Cytogen recorded a one-time, non-cash charge of $4.31 million
 representing the cumulative effect of this accounting change.  Previously
 reported results for the first quarter of 2000 have been restated to reflect
 the adoption of SAB 101.
 
     About Cytogen
     Cytogen Corporation is a biopharmaceutical company based in Princeton, NJ.
 The Company has two principal lines of business: a product-based oncology
 focus and a proteomics drug discovery platform.  Cytogen's expertise in
 monoclonal antibodies and molecular recognition are directed principally to
 the development of novel products for the diagnosis, imaging, staging and
 treatment of prostate cancer and a proteomics-driven drug discovery platform.
 The Company's cancer management franchise currently comprises four FDA-
 approved products: ProstaScint(R), used to image the extent and spread of
 prostate cancer; BrachySeed(TM) implants for prostate cancer therapy,
 OncoScint CR/OV(R), a diagnostic imaging agent for colorectal and ovarian
 cancer; and Quadramet(R), for the relief of cancer-related bone pain.  The
 Company has established a pipeline of product candidates based on its
 proprietary antibody and prostate specific membrane antigen, or PSMA,
 technologies, and holds a worldwide exclusive license to PSMA.  Cytogen and
 its joint venture partner, Progenics Pharmaceuticals, are developing in-vivo
 immunotherapies for prostate cancer based on PSMA.  The Company also has U.S.
 marketing rights to the late-stage product candidate Combidex(R), a magnetic
 resonance imaging agent being developed by Advanced Magnetics for the
 detection of lymph node metastases.
 
     About AxCell Biosciences
     AxCell Biosciences, a subsidiary of Cytogen Corporation, is a leader in
 the effort to chart protein-signaling pathways in the human proteome as a
 means of discovering new drug targets.  AxCell is developing a proprietary
 protein-pathway database, the ProChart(TM) database as a discovery and
 development tool for subscribers in the pharmaceutical, biotechnology and
 agricultural industries.  For additional information on Cytogen, visit the
 Company's web sites at http://www.cytogen.com and http://www.axcellbio.com.
 
     This press release contains certain "forward-looking" statements within
 the meaning of the Private Securities Litigation Reform Act of 1995.
 Information in this press release, which is not historical, is forward looking
 and involves a number of risks and uncertainties.  Investors are cautioned not
 to put any undue reliance on any forward-looking statement.  The Company's
 actual results may differ materially from the Company's historical results of
 operations and those discussed in the forward-looking statements for various
 reasons, including, but not limited to the Company's ability to carry out its
 business plan, to successfully develop and commercialize acceptance of its
 products such as ProChart(TM), ability to fund development necessary for
 existing products and for the pursuit of new product opportunities, the risk
 of whether products result from development activities, protection of its
 intellectual property portfolio, ability to integrate in-licensed products
 such as BrachySeed(TM), ability to establish and successfully complete
 clinical trials where required for product approval, the risk associated with
 obtaining the necessary regulatory approvals, dependence on its partners for
 development of certain projects, the ability to obtain foreign regulatory
 approvals for products and to establish marketing arrangements in countries
 where approval is obtained, and other factors discussed in the Company's 2000
 Form 10-K and from time-to-time the Company's other filings with the
 Securities and Exchange Commission.
 
 
                      CYTOGEN CORPORATION AND SUBSIDIARIES
                (All amounts in thousands except per share data)
                                  (Unaudited)
 
      CONDENSED CONSOLIDATED BALANCE SHEETS
 
                                                    MARCH 31,    DECEMBER 31,
                                                       2001          2000
                                                   ___________   ____________
     Assets
       Cash and Cash Equivalents                      $14,271       $11,993
       Receivable on Income Tax Benefit Sold                -         1,625
       Accounts Receivable, net                         2,155         1,841
       Inventories                                        997           883
       Property and Equipment, net                      1,986         2,193
       Other Assets                                     2,709         1,881
                                                       ------        ------
          Total Assets                                $22,118       $20,416
                                                    =========     =========
 
     Liabilities & Stockholders' Equity
       Accounts Payable & Accrued Liabilities          $5,167        $7,218
       Other Current Liabilities                          993         1,010
       Long - Term Liabilities                          4,762         4,970
       Stockholders' Equity                            11,196         7,218
                                                       ------        ------
          Total Liabilities & Stockholders' Equity    $22,118       $20,416
                                                    =========     =========
 
 
      CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
                                                        THREE MONTHS ENDED
                                                             MARCH 31
                                                        2001          2000
                                                      ________      ________
     Revenues
       Product Sales                                   $2,335        $1,872
       Royalty Revenue                                    441           498
       License and Contract                               215           273
                                                     --------      --------
          Total Revenues                                2,991         2,643
                                                     --------      --------
 
     Operating Expenses                                 5,817         4,500
     Interest Income, net                                (172)         (111)
                                                     --------      --------
 
     Loss before cumulative Effect of
      Accounting Change                                (2,654)       (1,746)
     Cumulative Effect of Accounting Change*                -        (4,314)
                                                     --------      --------
 
     Net Loss                                         $(2,654)      $(6,060)
                                                    =========     =========
 
 
     Net Loss Per Share:
       Basic and Diluted Net Loss before Cumulative
        Effect of Accounting Change                    $(0.03)       $(0.02)
       Cumulative Effect of Accounting Change*              -         (0.06)
                                                     --------      --------
 
       Basic and Diluted Net Loss                      $(0.03)       $(0.08)
                                                    =========     =========
 
     Weighted Average Common Shares Outstanding        76,244        71,630
                                                    =========     =========
 
      * In 2000, the Company recorded a non-cash charge for the cumulative
        effect related to the adoption of SEC Staff Accounting Bulletin No.
        101.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X39605712
 
 

SOURCE Cytogen Corporation
    PRINCETON, N.J., April 26 /PRNewswire/ --
 Cytogen Corporation (Nasdaq:   CYTO) today reported its consolidated financial
 results for the first quarter period ended March 31, 2001.  The Company
 reported a net loss of $2.65 million or $0.03 per share, compared to a net
 loss of $6.06 million or $0.08 per share for the first quarter of 2000.  The
 loss for the first quarter of 2000 includes a one-time charge related to the
 adoption of the SEC's Staff Accounting Bulletin No. 101 ("SAB 101") of
 $4.31 million or $0.06 per share.
     Product sales increased from $1.87 million in the first quarter of 2000 to
 $2.34 million in the first quarter of 2001, an increase of 25%.  Quadramet(R)
 royalty revenue for the first quarter of 2001 was $441,000, slightly below the
 $498,000 achieved in the first quarter of 2000.  This decrease was partially
 due to a temporary, weather-related disruption in the supply of Quadramet from
 the manufacturer of the product during 2001, which has been resolved.
     Commenting on the results, H. Joseph Reiser, Ph.D., Cytogen's president
 and chief executive officer, said, "We continue to be encouraged by the growth
 in product sales over the prior year's quarter, reflecting our evolution into
 a biopharmaceutical company with multiple product opportunities and the
 establishment of an in-house oncology sales force to promote our products to
 urologists, radiation oncologists and nuclear medicine physicians.
     "ProstaScint(R), our prostate cancer imaging agent, recorded its highest
 level of quarterly unit sales since the product was launched in 1997.  We are
 building on this momentum by capitalizing on the synergies inherent between
 ProstaScint and BrachySeed(TM), a second-generation radioactive seed implant
 used to treat prostate cancer that is currently in its launch phase.  In
 addition, we are working to expand the applications and markets for
 ProstaScint, such as performing image-guided therapy and obtaining more
 accurate prostate biopsies.
     "Our marketing partner, Berlex Laboratories, Inc., continues to explore
 expanded uses for Quadramet in combination with other therapies commonly used
 to treat bone metastases, including chemotherapies, bisphosphonates and
 external beam radiation therapy.  Future clinical trials, if successful, may
 significantly expand the market for Quadramet.
     "As communicated previously, the market for OncoScint CR/OV(R) as a
 colorectal cancer diagnostic has been negatively affected by positron emission
 tomography or `PET' scans, which may produce the same or higher sensitivity
 than OncoScint.  The decline in OncoScint revenue, however, was partially
 offset by early sales of BrachySeed from its initial launch phase.
     "During the quarter, our proteomics subsidiary AxCell Biosciences,
 announced that it has successfully mapped the first protein domain family, the
 WW domain, believed to affect health problems including hypertension, muscular
 dystrophy and immunodeficiency.  In addition, AxCell introduced the
 ProChart(TM) database of protein interactions in the human body using
 InforMax's Protein-Protein Interaction Analysis (PPI) module, which will be
 available in the next release of the GenoMax(TM) enterprise bioinformatics
 platform, the proprietary advanced bioinformatics software from InforMax, Inc.
     "Finally, during the quarter we strengthened our cash resources through a
 draw down on an Equity Financing Facility with Acqua Wellington North American
 Equities Fund, Ltd., for aggregate proceeds of $6.5 million," Dr. Reiser
 concluded.
     Cytogen's cash and cash equivalents at the end of the first quarter 2001
 were $14.27 million compared to $11.99 million as of December 31, 2000.
     Operating expenses in the first quarter of 2001 increased 29% to
 $5.82 million compared to $4.50 million in the first quarter of 2000,
 reflecting research and development efforts for AxCell's proteomics program
 and increased selling and marketing expenses due to the Company's efforts to
 expand its in-house sales force including costs associated with the January
 2001 launch of BrachySeeds, radioactive implants used to treat prostate
 cancer.
     Effective January 1, 2000, Cytogen adopted SAB 101, which requires
 up-front, non-refundable license fees to be deferred and recognized over
 future periods.  As a result of the adoption of SAB 101, certain up-front,
 non-refundable license fees recognized in prior periods have been deferred and
 are being recognized over the terms of the relevant agreements.  In the first
 quarter of 2000, Cytogen recorded a one-time, non-cash charge of $4.31 million
 representing the cumulative effect of this accounting change.  Previously
 reported results for the first quarter of 2000 have been restated to reflect
 the adoption of SAB 101.
 
     About Cytogen
     Cytogen Corporation is a biopharmaceutical company based in Princeton, NJ.
 The Company has two principal lines of business: a product-based oncology
 focus and a proteomics drug discovery platform.  Cytogen's expertise in
 monoclonal antibodies and molecular recognition are directed principally to
 the development of novel products for the diagnosis, imaging, staging and
 treatment of prostate cancer and a proteomics-driven drug discovery platform.
 The Company's cancer management franchise currently comprises four FDA-
 approved products: ProstaScint(R), used to image the extent and spread of
 prostate cancer; BrachySeed(TM) implants for prostate cancer therapy,
 OncoScint CR/OV(R), a diagnostic imaging agent for colorectal and ovarian
 cancer; and Quadramet(R), for the relief of cancer-related bone pain.  The
 Company has established a pipeline of product candidates based on its
 proprietary antibody and prostate specific membrane antigen, or PSMA,
 technologies, and holds a worldwide exclusive license to PSMA.  Cytogen and
 its joint venture partner, Progenics Pharmaceuticals, are developing in-vivo
 immunotherapies for prostate cancer based on PSMA.  The Company also has U.S.
 marketing rights to the late-stage product candidate Combidex(R), a magnetic
 resonance imaging agent being developed by Advanced Magnetics for the
 detection of lymph node metastases.
 
     About AxCell Biosciences
     AxCell Biosciences, a subsidiary of Cytogen Corporation, is a leader in
 the effort to chart protein-signaling pathways in the human proteome as a
 means of discovering new drug targets.  AxCell is developing a proprietary
 protein-pathway database, the ProChart(TM) database as a discovery and
 development tool for subscribers in the pharmaceutical, biotechnology and
 agricultural industries.  For additional information on Cytogen, visit the
 Company's web sites at http://www.cytogen.com and http://www.axcellbio.com.
 
     This press release contains certain "forward-looking" statements within
 the meaning of the Private Securities Litigation Reform Act of 1995.
 Information in this press release, which is not historical, is forward looking
 and involves a number of risks and uncertainties.  Investors are cautioned not
 to put any undue reliance on any forward-looking statement.  The Company's
 actual results may differ materially from the Company's historical results of
 operations and those discussed in the forward-looking statements for various
 reasons, including, but not limited to the Company's ability to carry out its
 business plan, to successfully develop and commercialize acceptance of its
 products such as ProChart(TM), ability to fund development necessary for
 existing products and for the pursuit of new product opportunities, the risk
 of whether products result from development activities, protection of its
 intellectual property portfolio, ability to integrate in-licensed products
 such as BrachySeed(TM), ability to establish and successfully complete
 clinical trials where required for product approval, the risk associated with
 obtaining the necessary regulatory approvals, dependence on its partners for
 development of certain projects, the ability to obtain foreign regulatory
 approvals for products and to establish marketing arrangements in countries
 where approval is obtained, and other factors discussed in the Company's 2000
 Form 10-K and from time-to-time the Company's other filings with the
 Securities and Exchange Commission.
 
 
                      CYTOGEN CORPORATION AND SUBSIDIARIES
                (All amounts in thousands except per share data)
                                  (Unaudited)
 
      CONDENSED CONSOLIDATED BALANCE SHEETS
 
                                                    MARCH 31,    DECEMBER 31,
                                                       2001          2000
                                                   ___________   ____________
     Assets
       Cash and Cash Equivalents                      $14,271       $11,993
       Receivable on Income Tax Benefit Sold                -         1,625
       Accounts Receivable, net                         2,155         1,841
       Inventories                                        997           883
       Property and Equipment, net                      1,986         2,193
       Other Assets                                     2,709         1,881
                                                       ------        ------
          Total Assets                                $22,118       $20,416
                                                    =========     =========
 
     Liabilities & Stockholders' Equity
       Accounts Payable & Accrued Liabilities          $5,167        $7,218
       Other Current Liabilities                          993         1,010
       Long - Term Liabilities                          4,762         4,970
       Stockholders' Equity                            11,196         7,218
                                                       ------        ------
          Total Liabilities & Stockholders' Equity    $22,118       $20,416
                                                    =========     =========
 
 
      CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
                                                        THREE MONTHS ENDED
                                                             MARCH 31
                                                        2001          2000
                                                      ________      ________
     Revenues
       Product Sales                                   $2,335        $1,872
       Royalty Revenue                                    441           498
       License and Contract                               215           273
                                                     --------      --------
          Total Revenues                                2,991         2,643
                                                     --------      --------
 
     Operating Expenses                                 5,817         4,500
     Interest Income, net                                (172)         (111)
                                                     --------      --------
 
     Loss before cumulative Effect of
      Accounting Change                                (2,654)       (1,746)
     Cumulative Effect of Accounting Change*                -        (4,314)
                                                     --------      --------
 
     Net Loss                                         $(2,654)      $(6,060)
                                                    =========     =========
 
 
     Net Loss Per Share:
       Basic and Diluted Net Loss before Cumulative
        Effect of Accounting Change                    $(0.03)       $(0.02)
       Cumulative Effect of Accounting Change*              -         (0.06)
                                                     --------      --------
 
       Basic and Diluted Net Loss                      $(0.03)       $(0.08)
                                                    =========     =========
 
     Weighted Average Common Shares Outstanding        76,244        71,630
                                                    =========     =========
 
      * In 2000, the Company recorded a non-cash charge for the cumulative
        effect related to the adoption of SEC Staff Accounting Bulletin No.
        101.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X39605712
 
 SOURCE  Cytogen Corporation

RELATED LINKS

http://www.cytogen.com