Micromet’s (MITI) first quarter fiscal 2010 loss per share came in at 23 cents, greater than the year-ago quarter’s loss of a penny. However, after adjusting for the change in fair value of warrants, the company reported a loss per share of 15 cents, better than the Zacks Consensus Estimate of a loss of 17 cents. Post adjustment, the year-ago quarter posted a loss of 9 cents.
Micromet reported revenues of $6.3 million compared with $7.5 million in the first quarter of 2009. The company records revenues primarily in the form of reimbursement of expenses incurred by it under different collaborative agreements.
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Operating expenses during the reported quarter increased 40% year over year to $17.4 million. Research and development ($12.2 million) and general and administrative ($5.22 million) expenses increased 43.5% and 33.3%, respectively. The increase in research and development expenses was due to the development of various pipeline candidates.
Micromet exited the first quarter of 2010 with $136.6 million in cash and cash equivalents, up from $113.4 million at the end of December 2009. The company raised $75.4 million of funds during the quarter by issuing 11.5 million shares. Subsequent to the equity offering, Micromet has the requisite funds to carry out the planned European pivotal trial of blinatumomab.
Many significant developments have taken place in the recent past, the most important being the company’s collaboration agreement with Boehringer Ingelheim for the development of a new BiTE antibody to treat multiple myeloma. Under the agreement, Micromet will receive an upfront payment of €5 million (approximately $6.6 million). In addition, the company is also eligible to receive about €50 million (approximately $66 million) on achievement of certain milestones. Micromet will also receive royalties on global sales of the product.
In another development, Micromet achieved a pre-clinical proof of concept for a BiTE antibody, which is being developed in collaboration with Bayer (BAYRY), which fetched the company a milestone payment.
We are encouraged to see the development of the product portfolio at Micromet. However, we remain concerned since the pipeline is yet to deliver. The company is heavily dependent on blinatumomab – any hiccup in its clinical development programs will weigh heavily on the stock
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