Medarex's net loss for the quarter ended June 30, 2008 was $53.1 million,or ($0.42) per share as compared to a net loss of $41.0 million, or ($0.32)per share for the second quarter of 2007. Included in the 2008 results was anon-cash charge of $6.0 million, or ($0.05) per share for stock basedcompensation recorded in accordance with FAS 123(R) and a non-cash equity innet loss of affiliate charge of $3.5 million or ($0.03) per share related toour share of the net loss of AVANT Immunotherapeutics, Inc. ("AVANT").Excluding the impact of these items, Medarex's net loss on a non-GAAP basisfor the quarter ended June 30, 2008 was $43.6 million, or ($0.34) per share.
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Total revenues for the quarter ended June 30, 2008 were $10.0 million, ascompared to $11.8 million for the second quarter of 2007. Research anddevelopment (R&D) expenses for the quarter ended June 30, 2008 increased by$7.3 million, from $45.3 million in the second quarter of 2007 to $52.6million in the second quarter of 2008. General and administrative expensesincreased by $1.8 million for the quarter ended June 30, 2008, from $10.6million in the second quarter of 2007 to $12.4 million in the second quarterof 2008.
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Medarex ended the second quarter of 2008 with approximately $426.7 millionin cash, cash equivalents and marketable securities. In addition, as of June30, 2008, the fair market value of Medarex's equity interests in Genmab A/Sand AVANT were approximately $87.1 million and approximately $72.2 million,respectively.
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 (Loss) to Non-GAAP Net Loss" for adescription of these non-GAAP financial measures, including reasons forMedarex management's decision to use each measure, and reconciliations ofthese non-GAAP financial measures to the most directly comparable financialmeasures prepared in accordance with Generally Accepted Accounting Principles.
"Our clinical development achievements this quarter speak to our steadfastcommitment to execute on our business strategy, which is focused on providinglong-term value through the development and advancement of medicallymeaningful products in our portfolio," said Howard H. Pien, President and CEOof Medarex. "We are also pleased with the recent regulatory progress announcedby our licensing partner, Centocor, Inc., regarding the development ofustekinumab and golimumab for multiple inflammatory diseases. These twoantibodies represent some of the first UltiMAbs generated from Medarex'stechnology that have the potential to become significant royalty-generatingassets for Medarex."
Medarex's 2008 Second Quarter Highlights:
-- At the 2008 American Society of Clinical Oncology (ASCO) annual meetingin May/June 2008, preliminary results indicating long-term survival and anti-tumor activity of ipilimumab in advanced melanoma were presented in multiplepresentations studying ipilimumab treatment as a monotherapy and incombination with chemotherapy. Ipilimumab is an investigational oncologyimmunotherapy designed to sustain an active immune response in its attack oncancer cells. Interim data from a Phase 1/2 trial which demonstrated safetyand preliminary efficacy of ipilimumab in combination with radiotherapy formetastatic castration resistant prostate cancer were also presented at ASCO.
-- Positive preliminary anti-tumor activity data from an ongoing oncologyPhase 1 trial of MDX-1106 were also presented at the 2008 ASCO annual meeting.MDX-1106 is a fully human antibody that targets the PD-1 signaling pathway, animportant path in activating T-cell responses and promoting an immune re
