Trubion Pharmaceuticals, Inc.’s (TRBN) fourth quarter fiscal 2009 net loss per share came in at 29 cents, wider than the Zacks Consensus Estimate by 10 cents. The year-ago loss was 36 cents. The year-over-year decline in loss for the reported quarter was attributable to higher revenues.
Revenue for the reported quarter came in at $5.2 million as against $4.3 million in the year-ago quarter, up 20.9%. Total operating expenses for the reported quarter decreased marginally to $10.4 million from $10.7 million in the year-ago quarter. The decrease was primarily attributable to lower outside manufacturing and laboratory expense.
Research and development expenses for the reported quarter fell approximately 18.1% to $6.81 million. General and administrative costs for the reported quarter climbed approximately 52.1% year-over-year to $3.56 million.
For full year 2009, the company suffered a loss $1.55 per share as opposed to a loss $1.43 in 2008.
For 2009, total revenue stood at $18 million as against $16.5 million in 2008. The increase in the annual revenue was primarily attributable to Trubion’s strategic collaboration with Facet Biotech (FACT) entered in 2009 for the joint worldwide development and commercialization of TRU-016, the company’s candidate for the treatment of B-cell malignancies.
In March 2010, Abbott Laboratories (ABT) announced a definitive agreement to purchase Facet. However, Abbott intends to proceed with the development of TRU-016 following the close of the transaction.
The increase in revenue related to the Facet Biotech collaboration was partially offset by a fall in revenue recognized from Trubion’s collaboration with Pfizer (PFE). Revenue from the Pfizer collaboration for 2009, included $11 million related to collaborative research funding and $4.9 million for recognition of the $40 million upfront fee.
The original agreement was with Wyeth for the development and global commercialization of Trubion’s lead candidate TRU-015 for the treatment of rheumatoid arthritis and other therapeutics directed to CD20, including SBI-087. However, the agreement is unaffected by Pfizer’s acquisition of Wyeth in 2009.
Total operating expenses for 2009 came in at $46.8 million as opposed to $43 million in 2008. The annual increase in operating expenses was primarily attributable to higher outside manufacturing and clinical development costs related to TRU-016. The increase was partially offset by lower laboratory expense and personnel costs arising out of the 25 % reduction in work force in Feb 2009.
Trubion ended the year with $54.8 million in cash, cash equivalents and investments as against $52.9 million in 2008.
Trubion expects its current capital resources will be sufficient to support the company’s operations for at least the next 18 months. The projection does not include proceeds from potential new partnerships or financings. However, the expectation is inclusive of an anticipated milestone of $6 million from Facet Biotech.
The company expects to end 2010 with revenues between $25 million-$30 million. The operating cash requirements in 2010 are projected between $27 million-$32 million.
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