Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): February 28, 2008

 

 

Nabi Biopharmaceuticals

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   000-04829   59-1212264

State or other jurisdiction

of incorporation

  Commission File Number  

IRS Employer

Identification No.

12276 Wilkins Avenue, Rockville, Maryland 20852

(Address of principal executive offices) (Zip code)

(301) 770-3099

(Registrant’s telephone number, including area code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


 

Nabi Biopharmaceuticals

 

 

Item 2.02. Results of Operations and Financial Condition

On February 28, 2008, Nabi Biopharmaceuticals (the “Company”) issued a press release announcing its results of operations for the three and twelve months ended December 29, 2007. A copy of the press release announcing these results is furnished as Exhibit 99.1 to this report.

The information in this Item 2.02 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liability of that section, and it shall not be incorporated by reference into any filing under the Securities Act of 1933 (the “Securities Act”) or the Exchange Act, regardless of any general incorporation language in such filing.

Item 9.01. Financial Statements and Exhibits

 

Exhibit

number

  

Description

99.1    Earnings Press Release


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    Nabi Biopharmaceuticals
Date: February 28, 2008     By:   /s/    Jordan I. Siegel        
     

Jordan I. Siegel

Senior Vice President, Finance and Administration

Chief Financial Officer and Treasurer


 

Index of Exhibits

 

Exhibit

number

  

Description

99.1    Earnings Press Release
Press Release

Exhibit 99.1

 

LOGO    NEWS RELEASE

Investor Relations

301-770-3099 | www.nabi.com

  

FOR IMMEDIATE RELEASE

Nabi Biopharmaceuticals Announces Fourth Quarter and Full-Year 2007 Financial Results

Full-Year Net Loss from Continuing Operations Declines 36%; Cash Used in Operating Activities Declines 39%

Rockville, Maryland, February 28, 2008 – Nabi Biopharmaceuticals (NASDAQ: NABI) today announced fourth quarter and year-end financial results for the three and twelve month periods ended December 29, 2007.

For the full year ended December 29, 2007, the Company’s net loss from continuing operations was $39.0 million, or $0.65 per share, compared to a net loss of $60.6 million, or $1.00 per share, for the year ended December 30, 2006. Including results from discontinued operations, Nabi had net income of $47.1 million, or $0.78 per share, for 2007 compared to a net loss of $58.7 million, or $0.96 per share, in 2006. A $79.7 million pre-tax gain on the sale of the biologics strategic business unit (SBU) was the primary component of total net income for 2007.

For the quarter ended December 29, 2007, the Company recorded a net loss from continuing operations of $4.2 million, or $0.07 per share, compared to a net loss of $14.9 million, or $0.24 per share, for the prior year period, a 72% improvement. During the quarter, the Company repurchased five million shares of its common stock at an average price of $3.66 per share. The Company also repurchased $38.8 million, par value, of the its 2.875% convertible senior notes for $34.1 million, a $4.7 million discount, resulting in a $3.6 million gain on retirement of debt.

Total cash used in operating activities was $26.7 million for the full year 2007, a 39% reduction compared to $43.9 million used in 2006. Excluding discontinued operations, cash used in operating activities was $42.6 million for 2007 compared to $61.7 million in 2006, a reduction of 31%. Cash, cash equivalents and marketable securities totaled $219.2 million at the end of 2007 compared to $118.7 million at the end of 2006. The increase is largely due to proceeds of $175 million from the sale of the biologics SBU, offset in part by $16.5 million to repurchase stock and $34.1 million to repurchase debt.

“It has been a momentous year for Nabi Biopharmaceuticals, culminating with the sale of our biologics business unit in December,” said Dr. Raafat Fahim, President and Chief Executive Officer of Nabi Biopharmaceuticals. “We have accomplished several key milestones in addition to this significant transaction. We reported compelling, positive data from the NicVAX Phase 2b proof-of–concept clinical trial, aggressively reduced our operating costs and cash utilization rates, initiated a share repurchase program and significantly reduced our debt. We enter 2008 as a lean, financially stronger organization with a focused pipeline of high value vaccine programs and are well-positioned to pursue our recently announced strategic alternatives process, the key corporate goal for this year. During 2008, we will also work to advance the development of our NicVAX and StaphVAX programs in order to realize the full value of these assets for the benefit of our shareholders.”

(More)

 


Financial Results Conference Call and Webcast Information

The Company will host a live webcast at 4:30 p.m. EST today to discuss these results.

The live webcast can be accessed at: http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=100445&eventID=1778268

(Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your browser. Remove the space if one exists.) or via the Nabi Biopharmaceuticals website at http://www.nabi.com.

If you do not have Internet access, the U.S./Canada call-in number is 800-435-1261 and the international call-in number is 617-614-4076. The passcode is 84614235. An audio replay will be available for U.S./Canada callers at 888-286-8010 and for international callers at 617-801-6888. The replay passcode is 75615959.

The press release and an archived version of the webcast will be available on the company’s website at http://www.nabi.com. The audio replay also will be available through March 6, 2008.

About Nabi Biopharmaceuticals

Nabi Biopharmaceuticals leverages its experience and knowledge in powering the immune system to develop products that target serious medical conditions in the areas of nicotine addiction and gram-positive bacterial infections. Nabi Biopharmaceuticals is currently developing NicVAX® (Nicotine Conjugate Vaccine), an innovative and proprietary investigational vaccine for treatment of nicotine addiction and prevention of smoking relapse, and StaphVAX® (Staphylococcus aureus Polysaccharide Conjugate Vaccine), a vaccine designed to prevent the most dangerous and prevalent strains of S. aureus bacterial infections. The company is headquartered in Rockville, Maryland. For additional information about Nabi Biopharmaceuticals, please visit our Web site: http://www.nabi.com.

Forward-Looking Statements

Statements in this release that are not strictly historical are forward-looking statements including statements about the strategic alternatives process, development of our product candidates, and clinical trials and studies. You can identify these forward-looking statements because they involve our expectations, beliefs, projections, anticipations or other characterizations of future events or circumstances. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that may cause actual results to differ materially from those in the forward-looking statements as a result of any number of factors. These factors include, but are not limited to, risks relating to our ability to: successfully pursue strategic and other alternatives; obtain successful clinical trial results; receive PhosLo milestone and royalty proceeds; successfully partner with third parties to fund, develop, and manufacture our pipeline products, including NicVAX and our gram-positive infections products; realize anticipated cost saving; attract and maintain the human and financial resources to bring to market products in development; depend upon third parties to manufacture our products; achieve approval and market acceptance of our products; enter into and maintain arrangements with third parties to market and sell our products; comply with reporting and payment obligations under government rebate and pricing programs; raise additional capital on acceptable terms, or at all; and re-pay our outstanding convertible senior notes when due. Many of these factors are more fully discussed, as are other factors, in the company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2006 and our Quarterly Report on Form 10-Q for the quarter ended September 29, 2007 filed with the Securities and Exchange Commission.

(More)


Nabi Biopharmaceuticals

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

In thousands, except share and per share data

   December 29,
2007
    December 30,
2006
 

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 217,606     $ 86,227  

Marketable securities

     1,600       32,500  

Prepaid expenses and other current assets

     2,371       1,908  

Assets of discontinued operations

     4,616       142,256  
                

Total current assets

     226,193       262,891  

Property and equipment, net

     1,971       2,441  

Other assets

     379       545  

Restricted cash related to discontinued operations

     10,027       —    
                

Total assets

   $ 238,570     $ 265,877  
                

LIABILITIES AND STOCKHOLDERS' EQUITY

    

Current liabilities:

    

Trade accounts payable

   $ 3,647     $ 5,068  

Accrued expenses and other current liabilities

     7,105       8,126  

Current liabilities of discontinued operations

     9,548       31,982  
                

Total current liabilities

     20,300       45,176  

2.875% convertible senior notes, net

     71,738       109,313  
                

Total liabilities

     92,038       154,489  

Commitments and contingencies

    

Stockholders' equity:

    

Convertible preferred stock, par value $0.10 per share: 5,000 shares authorized; no shares outstanding

     —         —    

Common stock, par value $0.10 per share; 125,000,000 shares authorized; 62,116,963 and 61,485,615 shares issued, respectively

     6,212       6,149  

Capital in excess of par value

     333,527       327,228  

Treasury stock, 5,807,055 and 805,769 shares, respectively, at cost

     (23,608 )     (5,321 )

Accumulated deficit

     (169,599 )     (216,668 )
                

Total stockholders' equity

     146,532       111,388  
                

Total liabilities and stockholders' equity

   $ 238,570     $ 265,877  
                

(More)


Nabi Biopharmaceuticals

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

     For the Years Ended  

In thousands, except per share data

   December 29,
2007
    December 30,
2006
    December 31,
2005
 

Operating expenses:

      

Selling, general and administrative expense

   $ 26,090     $ 32,576     $ 37,042  

Research and development expense

     18,841       28,745       57,788  

Amortization of intangible assets

     —         —         414  

Impairment of vaccine manufacturing facility

     —         —         19,842  

Write-off of inventory and manufacturing right

     —         —         7,554  
                        

Operating loss

     (44,931 )     (61,321 )     (122,640 )

Interest income

     6,026       4,148       4,094  

Interest expense

     (3,454 )     (3,467 )     (2,460 )

Other income (expense), net

     3,576       (66 )     (478 )
                        

Loss from continuing operations before income taxes

     (38,783 )     (60,706 )     (121,484 )

(Provision) benefit for income taxes

     (201 )     69       2,916  
                        

Loss from continuing operations

     (38,984 )     (60,637 )     (118,568 )

Discontinued operations:

      

Income (loss) from operations, net of tax benefit (provision) of $0.1 million and ($2.0) million in 2006 and 2005, respectively

     4,818       (64 )     (9,881 )

Gain on disposals, net of tax provision of $1.3 million in 2007

     81,235       1,998       —    
                        

Income (loss) from discontinued operations

     86,053       1,934       (9,881 )
                        

Net income (loss)

   $ 47,069     $ (58,703 )   $ (128,449 )
                        

Basic and diluted income (loss) per share:

      

Continuing operations

   $ (0.65 )   $ (1.00 )   $ (1.98 )

Discontinued operations

     1.43       0.04       (0.17 )
                        

Basic and diluted income (loss) per share

   $ 0.78     $ (0.96 )   $ (2.15 )
                        

Basic and diluted weighted average shares outstanding

     60,295       60,936       59,862  
                        

(More)


Nabi Biopharmaceuticals

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

     For the Years Ended  

In thousands

   December 29,
2007
    December 30,
2006
    December 31,
2005
 

Cash flow from operating activities:

      

Loss from continuing operations

   $ (38,984 )   $ (60,637 )   $ (118,568 )

Adjustments to reconcile loss from continuing operations to net cash used in operating activities of continuing operations:

      

Depreciation and amortization

     1,725       954       3,431  

Write-off of inventory and manufacturing right

     —         —         7,554  

Write down of vaccine plant

     —         —         19,842  

Accretion of discount on convertible senior notes

     168       168       117  

Non-cash compensation

     2,770       4,348       81  

Deferred income taxes

     —         —         (2,916 )

Gain on repurchase of convertible senior notes

     (3,583 )     —         —    

Other

     (5 )     102       1,237  

Changes in assets and liabilities:

      

StaphVAX inventory

     —         —         (3,302 )

Prepaid expenses and other assets

     (401 )     (172 )     (356 )

Trade accounts payable, accrued expenses and other

     (4,287 )     (6,451 )     (5,300 )
                        

Total adjustments

     (3,613 )     (1,051 )     20,388  
                        

Net cash used in operating activities from continuing operations

     (42,597 )     (61,688 )     (98,180 )

Net cash provided by operating activities from discontinued operations

     15,853       17,776       8,466  
                        

Net cash used in operating activities

     (26,744 )     (43,912 )     (89,714 )
                        

Cash flow from investing activities:

      

Purchases of marketable securities

     (29,475 )     (82,325 )     (203,297 )

Proceeds from sales of marketable securities

     60,375       54,997       206,475  

Capital expenditures

     (110 )     (223 )     (3,937 )

Other investing activities, net

     80       8       (197 )
                        

Net cash provided by (used in) investing activities from continuing operations

     30,870       (27,543 )     (956 )

Net cash provided by (used in) investing activities from discontinued operations

     176,362       56,807       (4,720 )
                        

Net cash provided by (used in) investing activities

     207,232       29,264       (5,676 )
                        

Cash flow from financing activities:

      

Proceeds from issuance of common stock for employee benefit plans

     728       1,564       2,577  

Purchase of common stock for treasury

     (16,523 )     —         —    

Repurchase of convertible senior notes

     (34,071 )     —         —    

Proceeds from issuance of convertible senior notes, net

     —         —         108,730  

Other financing activities, net

     82       —         —    
                        

Net cash (used in) provided by financing activities from continuing operations

     (49,784 )     1,564       111,307  

Net cash provided by (used in) financing activities from discontinued operations

     675       (2,451 )     (8,914 )
                        

Net cash (used in) provided by financing activities

     (49,109 )     (887 )     102,393  
                        

Net increase (decrease) in cash and cash equivalents

     131,379       (15,535 )     7,003  

Cash and cash equivalents at beginning of year

     86,227       101,762       94,759  
                        

Cash and cash equivalents at end of year

   $ 217,606     $ 86,227     $ 101,762  
                        

# # #