Immunomedics Announces Third Quarter Fiscal 2014 Results and Clinical Program Developments

Immunomedics Announces Third Quarter Fiscal 2014 Results and Clinical Program
Developments

MORRIS PLAINS, N.J., May 7, 2014 (GLOBE NEWSWIRE) -- Immunomedics, Inc.,
(Nasdaq:IMMU) today reported financial results for the third quarter ended
March 31, 2014. The Company also highlighted recent key developments and
planned activities for its clinical pipeline.

Third Quarter Fiscal 2014 Results

Total revenues for the third quarter of fiscal year 2014, which ended on March
31, 2014, were $1.2 million as compared to total revenues of $1.7 million for
the same quarter last fiscal year. The decrease of $0.5 million in total
revenues this quarter was primarily due to a $0.7 million reduction in
research and development revenue due to the timing of research activities from
research grants, which is partially offset by a $0.2 million increase in
LeukoScan sales volume in Europe.

Total costs and expenses for the three-month period ended March 31, 2014 were
$10.7 million, as compared to $9.9 million for the same period in 2013,
representing an increase of $0.8 million or 8%. This increase was driven
primarily by $0.7 million higher general and administrative expenses due
primarily to increased legal and professional fees ($0.5 million) and
increased employee-related costs ($0.2 million).

Net loss attributable to our stockholders this quarter was $9.5 million, or
$0.11 per basic share. This compares to net income attributable to our
stockholders of $8.6 million, or $0.11 per basic share for the same quarter in
fiscal 2013, representing a decrease of $18.1 million, or 210%. The decrease
in net income this quarter resulted mainly from the non-recurring $16.7
million arbitration settlement in the comparable period in the previous year.
Also, operating losses increased by $1.3 million in the third quarter of
fiscal 2014 when compared to the comparable quarter in fiscal 2013.

Nine Months Fiscal 2014 Results

For the nine-month period ended March 31, 2014, total revenues were $7.9
million as compared to total revenues of $3.6 million for the same period last
fiscal year. The $4.3 million increase in total revenues this period was
primarily due to $4.6 million in license fee revenue earned upon fulfilling
the Company's obligations under the Algeta Service Agreement, as amended.

Total costs and expenses for the nine-month period ended March 31, 2014 were
$31.5 million, as compared to $26.7 million for the same period in 2013,
representing an increase of $4.8 million, or 18%. This increase was driven
primarily by $1.9 million higher research and development expenses mostly from
increased manufacturing costs for materials used for the antibody-drug
conjugates' clinical trials and the initiation of the clivatuzumab tetraxetan
Phase III clinical trial for the treatment of patients with pancreatic cancer.
An increase in general and administrative expenses of $1.5 million, primarily
due to higher legal costs ($0.7 million) and employee-related costs ($0.4
million), and the costs of licensing fees and other revenue of $1.2 million
related to the Algeta service agreement also contributed to the higher total
costs and expenses.

Net loss attributable to our stockholders for the first nine months of fiscal
year 2014 was $23.6 million or $0.28 per basic share. This compares to net
loss attributable to our stockholders of $3.7 million or $0.05 per basic
share, for the same period last fiscal year. The increase in net loss of $19.9
million this period resulted primarily from the $16.7 million arbitration
settlement and $2.6 million insurance proceeds both received during the
previous year.

The Company has no long-term debt and as of March 31, 2014, cash, cash
equivalents and marketable securities totaled $20.9 million. In May 2014, the
Company sold 9 million shares of its common stock at an offering price of
$3.35 per share resulted in gross proceeds to the Company of approximately $30
million. The Company has granted the underwriters a 30-day option to purchase
up to an additional 1.35 million shares of common stock. Any proceeds from the
exercise of the underwriters' option to purchase additional shares will be
incremental to the initial offering proceeds.

"The net proceeds from the sale of our common stock will be used primarily for
Phase III trial for ^90Y-clivatuzumab tetraxetan and ongoing Phase II
expansion trials for IMMU-132 and IMMU-130, and for working capital and
general corporate purposes," commented Peter P. Pfreundschuh, Vice President
Finance and Chief Financial Officer. "As detailed in our recent R&D day
presentation, we believe we have a robust and exciting clinical pipeline that
is in mid- to late-stage development and we look forward to advancing them in
diseases that are underserved," added Mr. Pfreundschuh.

The Company's key clinical developments and future planned activities:

Clivatuzumab tetraxetan

  *Outside clinical investigator will present results from the randomized
    Phase Ib study of fractionated yttrium-90-labeled clivatuzumab tetraxetan
    in patients with pancreatic cancer having 2 or more prior therapies at the
    American Association for Cancer Research (AACR) Special Conference on
    Pancreatic Cancer: Innovations in Research and Treatment on Tuesday, May
    20, 2014, and at the 2014 Annual Meeting of the American Society of
    Clinical Oncology (ASCO) on Sunday, June 1, 2014, in a Poster Highlights
    Session.

IMMU-132 (anti-TROP-2-SN-38)

  *Multiple partial responses, including 2 patients with small-cell lung
    cancer, 2 with triple-negative breast cancer and 1 with colorectal cancer,
    from the ongoing Phase I/II study of IMMU-132 in patients with solid
    cancers were reported at the 2014 Annual Meeting of AACR. More information
    on the results can be obtained from the Company's press release at
    http://www.immunomedics.com/pdfs/news/2014/pr04072014a.pdf. 
    
  *Results of 13 pancreatic cancer patients with CT-assessments from the
    Phase I/II trial of IMMU-132 will be presented at the AACR Special
    Conference on Pancreatic Cancer: Innovations in Research and Treatment on
    Tuesday, May 20, 2014.
    
  *Additional Phase II data from the IMMU-132 trial will be provided at the
    2014 Annual Meeting of ASCO on Monday, June 2, 2014, in a Poster
    Highlights Session.

IMMU-130 (anti-CEACAM5-SN-38)

  *Two partial responders with durable responses were reported at the 2014
    AACR Annual Meeting from the 3 Phase I studies using 3 different IMMU-130
    dosing schedules in patients with metastatic colorectal cancer. For more
    information, please refer to the Company's press release at
    http://www.immunomedics.com/pdfs/news/2014/pr04072014b.pdf.
    
  *Results from the more frequent dosing schedules of IMMU-130 once or
    twice-weekly for 2 weeks followed by one week of rest in a 3-week cycle
    will be updated at the 2014 ASCO Annual Meeting on Sunday, June 1, 2014.

Conference Call

The Company will host a conference call and live audio webcast on Thursday,
May 8, 2014 at 10:00 a.m. Eastern Time to discuss financial results for the
third quarter of fiscal year 2014, and review key clinical developments and
future planned activities. To access the conference call, please dial (877)
303-2523 or (253) 237-1755 using the Conference ID 27884533. The conference
call will be webcast via the Investors page on the Company's website at
www.immunomedics.com. Approximately two hours following the live event, a
webcast replay of the conference call will be available on the Company's
website for 30 days through June 7, 2014.

About Immunomedics

Immunomedics is a clinical-stage biopharmaceutical company developing
monoclonal antibody-based products for the targeted treatment of cancer,
autoimmune disorders and other serious diseases. Immunomedics' advanced
proprietary technologies allow the Company to create humanized antibodies that
can be used either alone in unlabeled or "naked" form, or conjugated with
radioactive isotopes, chemotherapeutics, cytokines or toxins. Using these
technologies, Immunomedics has built a pipeline of nine clinical-stage product
candidates. Immunomedics has an ongoing collaboration with UCB, S.A. (UCB),
who has worldwide rights in non-cancer indications to Immunomedics' Phase III
product candidate, epratuzumab. UCB expects Phase III data in systemic lupus
erythematosus (SLE) in the first quarter of 2015. Immunomedics is exploring
epratuzumab in oncology in collaboration with outside cancer study groups.
Immunomedics' most advanced wholly owned candidate is ^90Y-clivatuzumab
tetraxetan, which is in an ongoing Phase III registration trial in patients
with pancreatic cancer. Immunomedics' portfolio of wholly owned product
candidates also includes antibody-drug conjugates (ADCs) that are designed to
deliver a specific payload of a chemotherapeutic directly to the tumor while
reducing overall toxicity effects that typically occur when these
chemotherapeutic agents are dosed alone.Immunomedics' most advanced ADCs are
IMMU-132 and IMMU-130, which are in Phase I/II trials for a number of solid
tumors and metastatic colorectal cancer (mCRC), respectively. Immunomedics
also has a number of other product candidates that target solid tumors and
hematologic malignancies, as well as other diseases, in various stages of
clinical and pre-clinical development. These include bispecific antibodies
which have application as T-cell redirecting immunotherapies targeting cancers
and infectious diseases as well as next-generation therapies in cancer and
autoimmune disease. Immunomedics creates these bispecific antibodies using its
patented DOCK-AND-LOCK™ (DNL™) protein conjugation technology. The Company
believes that its portfolio of intellectual property, which includes
approximately 247 active patents in the United States and more than 400
foreign patents, protects its product candidates and
technologies.Immunomedics' strength in intellectual property has resulted in
the top-4 ranking in the January 2014 Patent Board scorecard in the
Biotechnology industry. For additional information on the Company, please
visit its website at www.immunomedics.com. The information on its website does
not, however, form a part of this press release.

This release, in addition to historical information, may contain
forward-looking statements made pursuant to the Private Securities Litigation
Reform Act of 1995. Such statements, including statements regarding clinical
trials (including the funding therefor, outcomes, timing or associated costs),
out-licensing arrangements (including the timing and amount of contingent
payments), forecasts of future operating results, potential collaborations,
and capital raising activities, involve significant risks and uncertainties
and actual results could differ materially from those expressed or implied
herein. Factors that could cause such differences include, but are not limited
to, new product development (including clinical trials outcome and regulatory
requirements/actions), our dependence on UCB for the further development of
epratuzumab for non-cancer indications, risks associated with the outcome of
pending litigation, competitive risks to marketed products and availability of
required financing and other sources of funds on acceptable terms, if at all,
as well as the risks discussed in the Company's filings with the Securities
and Exchange Commission.The Company is not under any obligation, and the
Company expressly disclaims any obligation, to update or alter any
forward-looking statements, whether as a result of new information, future
events or otherwise.

                                                            
IMMUNOMEDICS, INC.
Condensed Consolidated Balance Sheets

                                              March 31,      June 30,
                                              2014           2013
ASSETS                                                         
Current Assets:                                                
Cash and cash equivalents                       $4,989,639   $41,326,000
Marketable securities                           15,941,541    --
Accounts receivable, net of allowance for       714,327       622,830
doubtful accounts
Inventory                                       823,234       1,030,480
Other receivables                               77,368        172,468
Prepaid expenses                                1,060,595     432,660
Other current assets                            74,011        1,631,172
                                              23,680,715    45,215,610
                                                            
Property and equipment, net                      1,980,398     2,086,911
Value of life insurance policies                 562,010       594,832
Other long-term assets                           30,000        30,000
                                                            
                                              $ 26,253,123  $47,927,353
                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                           
Accounts payable and accrued expenses           $4,477,862   $3,950,866
Deferred revenues                               248,293       2,780,309
Other liabilities                               1,475,365     1,400,728
Stockholders' equity                            20,051,603    39,795,450
                                                            
                                              $ 26,253,123  $47,927,353
                                                            
                                                            
Condensed Consolidated Statements of Operations

                                                            
                      Three Months Ended        Nine Months Ended
                      March 31,               March 31,
                      2014       2013       2014         2013
Revenues:                                                    
License fee and other $--        $126,667   $4,623,333   $126,667
revenues
Product sales        925,235     751,617     2,434,159     2,218,797
Research &            229,106     858,182     797,120       1,254,571
development
Total Revenues         $1,154,341 1,736,466   7,854,612     3,600,035
Costs and Expenses     10,676,215  9,929,958   31,542,856    26,715,070
Operating Loss         (9,521,874) (8,193,492) (23,688,244)  (23,115,035)
Interest and Other     (10,715)    16,754,433  31,793        19,358,892
(Expense) Income
(Loss) Income before
Income Tax (Expense)   (9,532,589) 8,560,941   (23,656,451)  (3,756,143)
Benefit
Income Tax (Expense)   (1,372)     19,879      (1,372)       (19,496)
Benefit
Net (Loss) Income      (9,533,961) 8,580,820   (23,657,823)  (3,775,639)
Less Net (Loss) Income
attributable on        (28,359)    (27,783)    (78,778)      (77,045)
noncontrolling
interest
Net (Loss)
Incomeattributable to $           $8,608,603 $(23,579,045) $(3,698,594)
Immunomedics, Inc.     (9,505,602)
stockholders
                                                            
Net (Loss) Income per
Common Share
attributable to                                              
Immunomedics, Inc.
stockholders:
Basic                 $(0.11)    $0.11      $(0.28)      $(0.05)
Diluted              $(0.11)    $0.11      $(0.28)      $(0.05)
                                                            
Weighted average
number of common                                             
shares outstanding:
Basic                 83,340,329  78,195,891   83,127,073    76,479,971
Diluted              83,340,329  78,447,065   83,127,073    76,479,971

CONTACT: Dr. Chau Cheng
         Senior Director, Investor Relations & Grant Management
         (973) 605-8200, extension 123
         ccheng@immunomedics.com
 
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