SEATTLE, March 13 Trubion Pharmaceuticals Inc.(Nasdaq: TRBN) today announced financial results for its fourth quarter andyear ended Dec. 31, 2007, as well as 2008 financial guidance.
Fourth Quarter and Year 2007 Financial Results
Revenue for the fourth quarter of 2007 was $5.7 million compared with$6.4 million for the fourth quarter of 2006. Revenue for the year endedDec. 31, 2007, was $20.1 million compared with $36.5 million for the yearended Dec. 31, 2006. Revenue in 2007 was earned through the company'sstrategic collaboration with Wyeth Pharmaceuticals and consisted ofcollaborative research funding and amortization of the upfront fee of$40 million received in January 2006. The three-month and 12-month decreaseswere due to reduced reimbursement revenue from the Wyeth collaboration as aresult of the successful transfer of manufacturing activities for TRU-015 fromTrubion to Wyeth during 2007, and decreased revenue from the recognition ofthe $40 million upfront fee from Wyeth due to a change in the estimatedresearch and development period. These decreases were partially offset by anincrease in reimbursable clinical costs related to Trubion's Phase IIbclinical trial for TRU-015 completed in July 2007. The 12-month decrease wasalso due to decreased milestone revenue in 2007 compared with 2006.
Total operating expenses for the fourth quarter of 2007 were $11.4 millioncompared with $12.2 million for the fourth quarter of 2006. Total operatingexpenses for the year ended Dec. 31, 2007, were $47.3 million compared with$42.8 million for the year ended Dec. 31, 2006. The three-month decrease wasprimarily due to a decrease in outside manufacturing costs for TRU-015 due tothe successful transfer of manufacturing activities to Wyeth during 2007. Thisdecrease was partially offset by increased clinical costs related to thecompany's Phase IIb clinical trial for TRU-015 and increased personnel-relatedexpenses due to increased headcount.
The 12-month increase was primarily due to increased clinical costsrelated to the company's Phase IIb clinical trial for TRU-015, increasedpersonnel-related expenses due to increased headcount, and increased outsidemanufacturing costs related to Trubion's TRU-016 product candidate. Theseincreases were partially offset by lower outside manufacturing costs forTRU-015 due to the successful transfer of manufacturing activities to Wyethduring 2007 and lower non-cash stock-based compensation charges.
Net loss for the fourth quarter of 2007 was $4.9 million, or $0.28 perdiluted common share, compared with a net loss of $4.8 million, or $0.33 perdiluted common share, for the fourth quarter of 2006. For the year endedDec. 31, 2007, net loss was $23.3 million, or $1.32 per diluted common share,compared with a net loss of $3.9 million, or $0.83 per diluted common share,for the year ended Dec. 31, 2006.
Trubion had $78.5 million in cash, cash equivalents and investments as ofDec. 31, 2007, compared with $105.8 million as of Dec. 31, 2006.
"In 2007 we continued our mission to develop a family of first-in-classand best-in-class product candidates, customized for optimal safety, efficacyand convenience, that could offer improved patient experiences," said PeterThompson, M.D., FACP, president, chief executive officer and chairman ofTrubion. "We and our partner continued to advance the clinical development ofour lead product candidate, TRU-015, for the treatment of rheumatoidarthritis, began clinical evaluation of TRU-015 in non-Hodgkin's lymphoma(NHL) and expect to do the same in systemic lupus erythematosus (SLE) laterthis year. In 2008, we expect our research and clinical advancements tocontinue with Phase 1 clinical study of our proprietary product, TRU-016, aswell as other product candidates."
2008 Financial Guidance
Trubion anticipates 2008 revenues to be in the range of $15 million to