Antigenics Reports Third Quarter 2009 Financial Results

http://www.businesswire.com/news/home/20091029005282/en

Conference Call Scheduled for Today at 11:00 a.m. Eastern Time
LEXINGTON, Mass.--(Business Wire)--
Antigenics Inc. (NASDAQ: AGEN) reported today its results for the quarter ended
September 30, 2009. The company incurred a net loss attributable to common
stockholders of $10.8 million, or $0.13 per share, basic and diluted, for the
third quarter of 2009, compared with a net loss attributable to common
stockholders in the third quarter of 2008 of $11.4 million, or $0.17 per share,
basic and diluted. For the nine months ended September 30, 2009, the company
incurred a net loss attributable to common stockholders of $32.8 million, or
$0.43 per share, basic and diluted, compared with a net loss attributable to
common stockholders of $35.5 million, or $0.57 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 September 30, 2009 and 2008 was $5.8 million and $8.2
million, respectively. The company`s net cash burn for the nine months ended
September 30, 2009 and 2008 was $21.3 million and $24.4 million, respectively.
The 2009 net cash burn primarily reflects 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 amounted
to $34.0 million as of September 30, 2009.

Third Quarter 2009 Corporate Update

* The Committee for Medicinal Products for Human Use (CHMP) of the European
Medicines Agency advised the company at an oral meeting to anticipate a negative
opinion on the marketing authorization application for Oncophage® (vitespen) in
early-stage, localized renal cell carcinoma (RCC), or kidney cancer. Antigenics
is currently evaluating its options to determine the best path forward.
* The Brain Tumor Research Center at the University of California, San Francisco
(UCSF), initiated a new Phase 2 clinical trial of Oncophage in combination with
the standard of care - radiation therapy plus Temodar® (temozolomide) - for
newly diagnosed glioma patients. The investigator-sponsored study will evaluate
median overall survival, progression-free survival and immunologic response.
* Data from an ongoing Phase 2 clinical trial that is testing Oncophage in
recurrent glioma patients was recently presented at the Society of
Neuro-Oncology meeting. Results reported in the first 20 patients treated with
Oncophage show a median survival of 10.1 months, and to date six patients (30
percent) have survived at or beyond 12 months. These early data show an
improvement in overall survival over the previous long-standing historical
median survival of 6.5 months, which is also slightly favorable to the recently
reported median survival of 9.2 months1 with Avastin® (bevacizumab) in patients
with recurrent high-grade glioma.
* Pre-launch activities for Oncophage in intermediate-risk RCC in Russia
continue, as the company explores potential government reimbursement. Antigenics
is also exploring the possibility of making Oncophage available to patients in
various territories through named patient and similar programs.
* Antigenics signed an amended and restated license agreement for use of the
QS-21 adjuvant in ACC-001, a Phase 2 vaccine under development by JANSSEN
Alzheimer Immunotherapy, which recently acquired Elan`s Alzheimer's
Immunotherapy Program. They will now have the right to manufacture QS-21 for
this indication, and the agreement calls for upfront and milestone payments to
Antigenics, as well as royalties for at least 10 years after first commercial
sale.
* Four vaccines containing QS-21 under development by partners such as
GlaxoSmithKline are currently being tested in Phase 3 clinical trials, with
eight in Phase 2, three in Phase 1, and several in preclinical development.
Antigenics is generally entitled to receive milestones as products advance in
development as well as royalties for at least 10 years after commercial launch
with minimal associated expense.
* In August, Antigenics raised $20 million through two separate private
placements of common stock and warrants to various institutional investors. Net
proceeds to the company were nearly $18.6 million. At the company`s current net
cash burn rate, it has sufficient funds to sustain operations into 2011.
* In the third quarter of 2009, Antigenics further reduced its debt balance
through the exchange of 424,330 common shares for approximately $1.3 million in
face value of its 2005 convertible notes. This resulted in a net gain of
approximately $167,000 for the quarter ended September 30, 2009. The total
amount of debt extinguished to date is expected to result in annualized savings
of $1.6 million in cash interest.

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 37318218. 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 November 12, 2009. The replay number is (800) 642-1687
(domestic) or (706) 645-9291 (international), and the access code is 37318218.
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. For more information, please visit www.antigenics.com.

This earnings release contains forward-looking statements, including statements
regarding anticipated regulatory decisions and strategies; development and
commercialization efforts and clinical trial activities of the company and its
licensees and collaborators;and the cash position of the company. 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 regulatory authorities, physicians patients,
and our licensees and collaborators; the possibility that clinical trial results
will not be as favorable; the inability to secure local distributors and payment
mechanisms in Russia or any other jurisdiction in which Antigenics may obtain
product approval; the ability to raise capital and finance future activities;
Antigenics` dependence on its collaborative partners to successfully develop and
commercialize products; 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 June 30, 2009. Antigenics cautions investors not
to place considerable reliance on the forward-looking statements contained in
this 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.

1 Friedman HS, Prados MD, Wen PY, et al. Bevacizumab alone and in combination
with irinotecan in recurrent glioblastoma. Journal of Clinical Oncology 2009;
27:4733-4740.

Summary Consolidated Financial Information

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

Three months ended September 30, Nine months ended September 30,
2009 2008 2009 2008
(as adjusted) (as adjusted)

Revenue $ 896 $ 685 $ 2,787 $ 2,130

Operating expenses:
Research and development 3,747 5,396 13,680 16,965
General and administrative 3,515 5,132 11,589 16,142

Operating loss (6,366 ) (9,843 ) (22,482 ) (30,977 )

Other expense, net 4,246 1,401 9,695 3,899

Net loss (10,612 ) (11,244 ) (32,177 ) (34,876 )

Dividends on Series A convertible preferred (198 ) (198 ) (593 ) (593 )
stock

Net loss attributable to common $ (10,810 ) $ (11,442 ) $ (32,770 ) $ (35,469 )
stockholders

Per common share data, basic and diluted:
Net loss attributable to common $ (0.13 ) $ (0.17 ) $ (0.43 ) $ (0.57 )
stockholders

Weighted average number of common 85,802 66,209 75,335 62,195
shares outstanding, basic and diluted

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

September 30, 2009 December 31, 2008
(as adjusted)
Cash, cash equivalents, and short-term $ 34,008 $ 34,463
investments
Total assets 51,350 56,822
Total stockholders' deficit (18,910 ) (20,330 )

Note - The results for the three and nine months ended September 30, 2008 have been retrospectively adjusted to reflect
the company`s adoption on January 1, 2009 of FASB ASC 470-20, Debt, Debt with Conversion and Other Options, resulting in
additional non-cash interest expense of $313,000 and $919,000 respectively. During the three and nine months ended
September 30, 2009, the company recognized non-cash interest expenses of $117,000 and $502,000 respectively related to
FASB ASC 470-20. On January 1, 2009, the company also adopted the provisions of FASB ASC 815-40, Derivatives and
Hedging, Contracts in an Entity's Own Equity. 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.

Antigenics Inc.
Media:
Brad Miles, 212-477-9007 x17
or
Investors:
Shalini Sharp, 800-962-2436

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