Including a gain of $151.8 million, or $1.19 per share, from Medarex'ssale of 2.5 million shares of Genmab A/S stock in February 2008, Medarex's netincome for the quarter ended March 31, 2008, was $103.3 million, or $0.81 pershare, as compared to a net income of $110.3 million, or $0.88 per share forthe same period in 2007. In addition to the gain on the sale of Genmab A/Sstock, Medarex's net income for the quarter ended March 31, 2008 included aloss of $2.9 million, or ($0.02) per share, representing Medarex's share ofthe 2008 net loss of Celldex Therapeutics, Inc. (a subsidiary of Medarex)prior to its merger with AVANT Immunotherapeutics, Inc., and a non-cash chargeof $5.3 million, or ($0.04) per share, for stock-based compensation recordedin accordance with FAS 123(R). Excluding the impact of these items, Medarex'snet loss on a non-GAAP basis for the first quarter of 2008 was $38.5 million,or ($0.30) per share.
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Total revenues for the quarter ended March 31, 2008, were $12.0 million ascompared to $11.5 million in 2007.
Research and development (R&D) expenses for the quarter ended March 31,2008, increased by $2.3 million, from $47.0 million in 2007 to $49.3 millionin 2008. General and administrative expenses increased by $1.1 million for thequarter ended March 31, 2008, from $11.3 million in 2007 to $12.4 million in2008.
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Medarex ended the first quarter of 2008 with approximately $464.5 millionin cash, cash equivalents and marketable securities. In addition, the fairmarket value of Medarex's equity interest in Genmab was approximately $115.6million as of March 31, 2008.
Non-GAAP Financial Measurements
This press release and the accompanying tables include non-GAAP financialmeasures. Please see the section of the accompanying tables titled"Reconciliation of GAAP Net Income to Non-GAAP Net Loss" for a description ofthese non-GAAP financial measures, including reasons for Medarex management'sdecision to use each measure, and reconciliations of these non-GAAP financialmeasures to the most directly comparable financial measures prepared inaccordance with Generally Accepted Accounting Principles.
Medarex's product development and business activities during the firstquarter of 2008 include the following:
"This is an exciting time for Medarex, and we begin the year withcontinued focus on laying the groundwork for sustained growth and value byinvesting in and making positive advances with products in our pipeline," saidHoward H. Pien, President and CEO of Medarex.
As previously announced, 17 presentations for ipilimumab and antibodiestargeting PD-1 and CD70 are expected at the upcoming annual meeting of theAmerican Society of Clinical Oncology (ASCO) in May.
About Medarex
Medarex is a biopharmaceutical company focused on the discovery,development and potential commercialization of fully human antibody-basedtherapeutics to treat life-threatening and debilitating diseases, includingcancer, inflammation, autoimmune disorders and infectious diseases. Medarexapplies its UltiMAb(R) technology and product development and clinicalmanufacturing experience to generate, support and potentially commercialize abroad range of fully human antibody product candidates for itself and itspartners. Over forty of these therapeutic product candidates derived fromMedarex technology are in human clinical testing or have had INDs submittedfor such trials, with seven of the most advanced product candidates currentlyin Phase 3 clinical trials or the subject of regulatory applications formarketing authorization. Medarex is committed to building value by developinga diverse pipeline of antibody products to address the world's unmethealthcare needs. For more information about Medarex,
