Nabi Biopharmaceuticals Announces Third Quarter 2012 Financial Results

Nabi Biopharmaceuticals Announces Third Quarter 2012 Financial Results

ROCKVILLE, Md., Nov. 8, 2012 (GLOBE NEWSWIRE) -- Nabi Biopharmaceuticals
(Nasdaq:NABI) today announced its third quarter financial results for the
three-month period ended September 30, 2012. The Company reported a net loss
of $4.1 million, or $0.12 per share, compared to net income of $0.1 million,
or zero per share, for the prior year period.

Third quarter 2012 revenue was $0.6 million related to amortization of the
initial upfront payment received from GlaxoSmithKline Biologicals, S.A. (GSK)
under the NicVAX® option and license agreement. Revenue in the third quarter
of 2011 was $1.1 million reflecting $0.6 million of amortization of the
initial upfront payments received from GSK associated with the NicVAX option
and license agreement and $0.5 million for services provided to GSK under the
PentaStaph and NicVAX agreements.

Research and Development (R&D) expenses were $3.1 million for the third
quarter of 2012, compared to $4.4 million in the third quarter of 2011. The
decrease reflects the substantial reduction in NicVAX related clinical trials
and manufacturing activities. General and Administrative (G&A) expenses were
$1.6 million for the third quarter of 2012 compared to $1.3 million in the
prior year period. The increase reflects costs related to the merger agreement
with Biota Holdings Limited (Biota), announced during the second quarter of
this year, plus costs recognized for employee severance as we continue to
reduce our head count and operations.

For the nine months ended September 30, 2012, the Company's net loss was $7.3
million, or $0.18 per share, compared to a net loss of $2.5 million, or $0.06
per share, for the nine months ended September 24, 2011 in the prior year.
Revenue of $1.9 million was recognized for the nine months ended September 30,
2012 compared to $14.0 million for the comparable prior period. Research and
development expenses were $6.0 million for the current nine-month period
compared to $16.2 million for the 2011 period while general and administrative
expenses for the current nine-month period were $5.1 million compared to $4.1
million during the same period in 2011.

Net cash used in operating activities was $5.6 million for the first nine
months of 2012 compared to $14.1 million in the first nine months of 2011. The
decrease in cash used is primarily due to a reduction in NicVAX-related
clinical and manufacturing activities in 2012 as compared to 2011 and a
reduction in overall operating costs. Cash, cash equivalents and marketable
securities at September 30, 2012 totaled $66.3 million, compared to $96.4
million at the end of 2011. This decrease is primarily due to our net cash
used in operations and payment to repurchase our common stock pursuant to our
"modified Dutch auction" tender offer we completed in July 2012.

Recent and upcoming events related to the business combination (the "Merger")
with Biota Holdings Limited ("Biota"):

  *On October 22, 2012, we announced that our shareholders approved various
    resolutions necessary to effect the Merger.Biota's shareholders have also
    approved the Merger.
  *On October 23, 2012, we announced that our board of directors (the
    "Board") established a ratio of one share-for-every six shares of the
    outstanding common stock for Nabi's proposed reverse stock split of all
    outstanding shares of common stock. We anticipate that the reverse stock
    split will be effective as of 4:59p.m., Eastern Time, on November 8, 2012
    (the "Effective Time") and will be reflected in the trading price of Nabi
    common stock at the opening of trading on November 9, 2012.As a result,
    upon completion of the Merger, each ordinary share of Biota capital stock
    will be transferred to Nabi in exchange for 0.124963012 of a share of Nabi
    common stock.
  *On November 5, 2012, we announced that our Board of Directors declared a
    special cash dividend of $31.4 million in the aggregate, or approximately
    $1.108 per share of Nabi common stock. The special cash dividend is
    payable to stockholders of record on October 26, 2012 and will be
    distributed on November8, 2012.
  *The parties expect to close the Merger on November 9, 2012 subject to
    satisfaction of the closing conditions.
  *Upon completion of the Merger, new Nabi shares issued to former Biota
    stockholders will represent approximately 83% of the outstanding common
    stock of the combined company and shares of Nabi common stock held by
    current Nabi stockholders will represent approximately 17% of the
    outstanding common stock of the combined company;
  *The board of directors of Nabi following completion of the Merger will
    consist of six current Biota directors and two Nabi current directors.
  *The name of the company will be changed to "Biota Pharmaceuticals, Inc."
    upon completion of the Merger.

About Nabi Biopharmaceuticals

Nabi Biopharmaceuticals, headquartered in Rockville, Maryland, is a
biopharmaceutical company that has focused on the development of vaccines
addressing unmet medical needs, including nicotine addiction. Its sole
remaining product in development has been NicVAX® (Nicotine Conjugate
Vaccine), an innovative and proprietary investigational vaccine for the
treatment of nicotine addiction and prevention of smoking relapse based on
patented technology. For additional information about Nabi Biopharmaceuticals,
please visit www.nabi.com.

Forward-Looking Statements

Statements set forth above that are not strictly historical are
forward-looking statements. You can identify these forward-looking statements
because they involve our expectations, intentions, beliefs, plans,
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 that are more fully discussed in Nabi's Annual Report on Form 10-K,
as amended, for fiscal year ended December31, 2011, Quarterly Reports on Form
10-Q for the quarters ended March31 and June30, 2012 and definitive proxy
statement for Nabi stockholders special meeting filed with the SEC on
August7, 2012, as supplemented by the supplement dated September25, 2012,
under the captions "Risk Factors" and "Cautionary Statement Regarding
Forward-Looking Statement" and elsewhere in such documents. We do not
undertake to update any of these forward-looking statements or to announce the
results of any revisions to these forward-looking statements except as
required by law.

                                                           
Nabi Biopharmaceuticals
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
                                                           
                                              September 30, December 31,
                                              2012          2011
ASSETS                                                      
Current assets:                                             
Cash and cash equivalents                      $ 66,322      $ 94,310
Marketable securities                          --            2,079
Receivables                                    --            995
Prepaid expenses and other current assets      188           497
Total current assets                           66,510        97,881
Property and equipment, net                    --            84
Total assets                                   $ 66,510      $ 97,965
                                                           
LIABILITIES AND STOCKHOLDERS' EQUITY                        
Current liabilities:                                        
Accounts payable                               $ 333         $ 146
Accrued expenses and other current liabilities 2,736         1,918
Deferred revenue                               2,526         2,526
Liabilities of discontinued operations         --            1,662
Total current liabilities                      5,595         6,252
Deferred revenue                               30,948        32,842
Total liabilities                              $ 36,543      $ 39,094
                                                           
                                                           
Stockholders' equity:                                       
Convertible preferred stock                    --            --
Common stock                                   6,357         6,359
Capital in excess of par value                 375,995       373,157
Treasury stock                                 (117,048)     (92,567)
Accumulated deficit                            (235,337)     (228,078)
Total stockholders' equity                     $ 29,967      $ 58,871
Total liabilities and stockholders' equity     $ 66,510      $ 97,965

                                                             
Nabi Biopharmaceuticals
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
                                                             
                          For the Three Months    For the Six Months Ended
                           Ended
                          September 30, September September 30, September 24,
                                         24,
                          2012          2011      2012          2011
                                                             
Revenue:                                                      
Revenue                    $632        $1,086  $1,895      $14,003
Operating expenses:                                           
Cost of services           --           344      --           1,518
Research and development   3,145        4,388    5,993        16,179
expenses
General and administrative 1,605        1,291    5,058        4,059
expenses
Total operating costs      4,750        6,023    11,051       21,756
Operating loss             (4,118)      (4,937)  (9,156)      (7,753)
Interest income            30           32       95           154
Other income (expense),    (2)          (17)     140          58
net
Loss from continuing
operations before income   (4,090)      (4,922)  (8,921)      (7,541)
taxes
Benefit from income taxes  --           2,018    671          2,018
Loss from continuing       (4,090)      (2,904)  (8,250)      (5,523)
operations
Income from discontinued
operations, net of tax     --           2,982    991          2,982
provision
Net loss                   $(4,090)    $78     $(7,259)    $(2,541)
                                                             
Basic income (loss) per                                       
share:
Continuing operations      $(0.12)     $(0.07) $(0.21)     $(0.13)
Discontinued operations    $--        $0.07   $0.03       $0.07
                                                             
Diluted income (loss) per                                     
share:
Continuing operations      $(0.12)     $(0.07) $(0.21)     $(0.13)
Discontinued operations    $--        $0.07   $0.03       $0.07
                                                             
Basic weighted-average     32,825       42,397   39,305       42,269
shares outstanding
Diluted weighted-average   32,825       42,397   39,308       42,269
shares outstanding

                                                               
Nabi Biopharmaceuticals
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
                                                               
                                                  For the Six Months Ended
                                                  September 30, September 24,
                                                  2012          2011
                                                               
Cash flow from operating activities:                            
Net loss                                           $(7,259)    $(2,541)
Income from discontinued operations, net of tax    991          2,982
provision
                                                               
Net loss from continuing operations                (8,250)      (5,523)
Adjustments to reconcile net loss from continuing
operations to net cash used in operating
activities from continuing operations:
Depreciation and amortization                      34           130
Non-cash intra-period tax allocation               (671)        (2,018)
Share-based compensation                           2,836        2,011
Loss on sale of property and equipment             --           29
Changes in assets and liabilities:                              
Receivables                                        996          139
Prepaid expenses and other assets                  309          704
Accounts payable, accrued expenses and other       1,055        (2,375)
liabilities
Deferred revenue                                   (1,895)      (7,165)
Net cash used in operating activities from         (5,586)      (14,068)
continuing operations
Net cash used in operating activities from         --          (391)
discontinued operations
Net cash used in operating activities             (5,586)      (14,459)
                                                               
Cash flow from investing activities:                            
Proceeds from sales and maturities of marketable   2,079        59,680
securities
Purchases of marketable securities                 --           (11,640)
Proceeds from sales of property and equipment      --           158
Capital expenditures                               --           (1)
Net cash provided by investing activities from     2,079        48,197
continuing operations
Net cash provided by investing activities from     --          5,000
discontinued operations
Net cash provided by investing activities          2,079        53,197
                                                               
Cash flow from financing activities:                            
Proceeds from issuances of common stock for        --           646
employee benefit plans
Purchase of common stock for treasury              (24,481)     --
Net cash provided by financing activities          (24,481)     646
                                                               
Net increase (decrease) in cash and cash           (27,988)     39,384
equivalents
Cash and cash equivalents at beginning of period   94,310       53,564
Cash and cash equivalents at end of period         $66,322     $92,948

CONTACT: Investor Relations
         301-770-3099 | www.nabi.com
 
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