Antigenics Reports Second Quarter 2009 Financial Results

Conference Call to Follow
LEXINGTON, Mass.--(Business Wire)--
Antigenics Inc. (NASDAQ:AGEN) reported results today for the quarter ended June
30, 2009. The company incurred a net loss attributable to common stockholders of
$12.3 million, or $0.17 per share, basic and diluted, for the second quarter of
2009, compared with a net loss attributable to common stockholders of $12.5
million, or $0.19 per share, basic and diluted, in the second quarter of 2008.
For the six months ended June 30, 2009, the company incurred a net loss
attributable to common stockholders of $22.0 million, or $0.31 per share, basic
and diluted, compared with a net loss attributable to common stockholders of
$24.0 million, or $0.40 per share, basic and diluted, for the comparable period
in 2008. The company`s net cash burn (cash used in operating activities plus
capital expenditures and dividend payments) for the three months ended June 30,
2009 and 2008 was $5.7 million and $6.9 million, respectively. The company`s net
cash burn for the six months ended June 30, 2009 and 2008 was $15.5 million and
$16.3 million, respectively. The 2009 results reflect the company`s efforts to
support Oncophage in Russia, Europe, and other territories, while also executing
cost containment efforts. Cash, cash equivalents, and short-term investments
were $21.1 million as of June 30, 2009.

Company Update

* Approximately 15 vaccines containing QS-21 are under development by our
collaborative partners and are currently in clinical trials. Phase 3 clinical
trials are ongoing for QS-21-containing vaccines in non-small cell lung cancer,
melanoma, malaria and an undisclosed infectious disease.
* GlaxoSmithKline Biologicals (GSK Bio) recently launched its Phase 3 study of
RTS,S, a malaria vaccine, which contains QS-21. Phase 2 studies showed that
RTS,S reduced clinical episodes of malaria by 53 percent over an eight month
follow-up period. RTS,S could be submitted for initial regulatory review as
early as 2011.
* Johnson & Johnson (J&J) and Elan Corporation (Elan) entered into a definitive
agreement for J&J to acquire substantially all of Elan`s rights and assets
related to its Alzheimer`s immunotherapy program. ACC-001 is a vaccine in
development for Alzheimer's disease by Elan and Wyeth and contains QS-21 in one
arm of the ongoing Phase 2 clinical study. J&J has committed up to $500 million
in initial funds for the development and launch of Elan`s Alzheimer`s
immunotherapy compounds. This transaction has not yet closed.
* Updated overall survival results from Antigenics` Phase 3 study of Oncophage®
(vitespen) cancer vaccine in nonmetastatic renal cell carcinoma (RCC, the most
common type of kidney cancer) were presented at the American Society of Clinical
Oncology (ASCO) Annual Meeting in May/June 2009.

* Patients with RCC at intermediate risk of disease recurrence demonstrated an
approximately 46 percent lower risk of death when treated with Oncophage after
surgery, compared with observation (n = 362; P = 0.036; hazard ratio [HR] =
0.54).
* The results showed a survival advantage in earlier-stage patients (AJCC stages
I/II high grade) receiving Oncophage, with a reduction in the risk of death by
approximately 37 percent (n = 240; HR = 0.63).
* In addition, there was a promising trend for overall survival in patients
treated with Oncophage in the total population eligible for the study, which
included intermediate and high-risk patients (n = 604; HR = 0.81).
* Median survival has yet to be reached in the above patient populations.

* The company continues to support its application for conditional marketing
authorization for Oncophage in earlier-stage RCC. The application was submitted
to the European Medicines Agency (EMEA) in the fourth quarter of 2008, and
Antigenics anticipates a decision from the EMEA toward the end of 2009.
* Antigenics continues preparations to support named patient programs for
Oncophage in territories including Australia, Thailand, and several countries in
Europe. Such programs would potentially allow Antigenics to be compensated for
providing Oncophage to physicians who request treatment for their patients even
in the absence of full regulatory approval.
* Pre-launch activities for Oncophage in intermediate-risk RCC in Russia
continue to gain traction. The Russian Ministry of Industry and Trade has now
granted Antigenics an import/export license for Oncophage, and the company is
still exploring potential government reimbursement.
* The Brain Tumor Research Center at the University of California, San
Francisco, expanded its Phase 2 clinical trial of Oncophage in glioma, or brain
cancer, to include New York-Presbyterian Hospital/Columbia University Medical
Center. The Phase 2 trial is designed to enroll approximately 30 patients with
first recurrence of high-grade glioma.
* Immunological testing in the Phase 1 clinical study of AG-707 in genital
herpes has been completed, and final study data analysis is now in process.
Results will be reported in the coming months.
* In the second quarter of 2009 Antigenics reduced its debt balance through the
exchange of approximately $255,000 in cash and 5.2 million common shares for
approximately $16.9 million in face value of its 2005 convertible notes. This
resulted in a gain of $2.5 million for the quarter ended June 30, 2009. Expected
annualized savings of $1.5 million in cash interest are anticipated on the total
amount of debt extinguished to date.
* Tim Rothwell, recently retired chairman of sanofi-aventis U.S., has joined
Antigenics` Board of Directors.

Conference Call Information

Antigenics executives will host a conference call at 11:00 a.m. Eastern Time
today. To access the live call, dial 877.762.5772 (domestic) or 706.643.6986
(international); the access code is 19055786. The call will also be webcast and
will be accessible from the company`s website at www.antigenics.com/webcast/. A
replay will be available approximately two hours after the call through midnight
Eastern Time on August 13, 2009. The replay number is 800.642.1687 (domestic) or
706.645.9291 (international), and the access code is 19055786. The replay will
also be available on the company`s website approximately two hours after the
live call.

About Antigenics

Antigenics is a biotechnology company working to develop treatments for cancers
and infectious diseases. The company`s investigational product portfolio
includes Oncophage (vitespen), a patient-specific therapeutic cancer vaccine
being evaluated in several indications, and QS-21 Stimulon, an adjuvant being
evaluated by Antigenics` collaborative partners in approximately 15 clinical
stage vaccines. For more information, please visit www.antigenics.com.

This press release contains forward-looking statements, including statements
regarding products in development using QS-21, the company's application for
marketing authorization for Oncophage in the EU, the company's efforts to market
Oncophage in Russia and to pursue named patient programs, the expanded Phase 2
trial of Oncophage in glioma, and data from the Phase 1 trial of AG-707 in
genital herpes. These forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially. These risks
and uncertainties include, among others, decisions by our licensees and
partners, regulatory authorities, physicians, and patients; the possibility that
results from future clinical trials will not be as favorable as past trials by
Antigenics or its licensees and partners; the ability to raise capital and
finance future activities; and the factors described under the Risk Factors
section of our Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission for the period ended March 31, 2009. Antigenics cautions
investors that vaccines containing QS-21 may not achieve commercialization in
the near-term, if ever. Antigenics cautions investors that we do not expect to
generate significant revenue from sales of Oncophage in Russia for several
months, if ever. Antigenics cautions investors that Oncophage may not achieve
conditional approval in Europe in 2009, if ever, including because we may not
successfully address issues associated with post-hoc analysis, subgroup
analysis, lack of immunological data, product characterization, or other issues
that may be of concern to the EMEA. Antigenics cautions investors that named
patient programs may not be launched in the near-term, if ever, and if launched
may not generate significant revenue, if any. Antigenics also cautions investors
not to place considerable reliance on the forward-looking statements contained
in this press release. These statements speak only as of the date of this
document, and Antigenics undertakes no obligation to update or revise the
statements. All forward-looking statements are expressly qualified in their
entirety by this cautionary statement. Antigenics` business is subject to
substantial risks and uncertainties, including those identified above. When
evaluating Antigenics` business and securities, investors should give careful
consideration to these risks and uncertainties.

Note - The results for the three and six months ended June 30, 2008 have been
retrospectively adjusted to reflect the company`s adoption on January 1, 2009 of
FASB Staff Position APB 14-1, "Accounting for Convertible Debt Instruments That
May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)"
("FSP APB 14-1") resulting in additional non-cash interest expense of $306,000
and $606,000 respectively.During the three and six months ended June 30, 2009
the company recognized non-cash interest expense of $178,000 and $377,000
respectively, related to FSP APB 14-1.On January 1, 2009 the company also
adopted the provisions of EITF 07-5 "Determining Whether an Instrument (or
Embedded Feature) is Indexed to an Entity`s Own Stock" ("EITF
07-5").Accordingly, the company reclassified $2,713,000 from long-term debt to
derivative liabilities and the cumulative effect of the change in accounting
principle in the amount of $716,000 was recognized as an adjustment to the
opening balance of stockholders` deficit.

Summary Consolidated Financial Information

Condensed Consolidated Statements of Operations Data
(in thousands, except per share data)
(unaudited)

Three months ended June 30, Six months ended June 30,
2009 2008 2009 2008
(as adjusted) (as adjusted)

Revenue $ 1,270 $ 595 $ 1,891 $ 1,445

Operating expenses:
Research and development 5,028 5,839 9,933 11,570
General and administrative 4,170 5,737 8,073 11,009

Operating loss (7,928 ) (10,981 ) (16,115 ) (21,134 )

Other expense, net 4,159 1,279 5,449 2,497

Net loss (12,087 ) (12,260 ) (21,564 ) (23,631 )

Dividends on Series A convertible preferred stock (198 ) (198 ) (395 ) (395 )

Net loss attributable to common stockholders $ (12,285 ) $ (12,458 ) $ (21,959 ) $ (24,026 )

Per common share data, basic and diluted:
Net loss attributable to common stockholders $ (0.17 ) $ (0.19 ) $ (0.31 ) $ (0.40 )
Weighted average number of common shares outstanding, basic and diluted 73,122 64,586 70,014 60,166

Condensed Consolidated Balance Sheet Data
(in thousands)
(unaudited)

June 30, 2009 December 31, 2008
(as adjusted)
Cash, cash equivalents, and short-term investments $ 21,057 $ 34,463
Total assets 39,687 56,822
Total stockholders' deficit (28,582 ) (20,330 )

Antigenics Inc.
Shalini Sharp, 800.962.2436
Investor Relations
ir@antigenics.com
or
Sunny Uberoi, 212-994-8206
Corporate Communications
suberoi@antigenics.com

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