Agenus Reports First Quarter 2014 Financial Results

  Agenus Reports First Quarter 2014 Financial Results

         Agenus to host conference call beginning at 11 a.m. ET today

Business Wire

LEXINGTON, Mass. -- May 8, 2014

Agenus Inc. (NASDAQ:AGEN), an immuno-oncology company developing a portfolio
of checkpoint modulators (CPMs), heat shock protein vaccines and adjuvants,
today announced its financial results and business highlights for the first
quarter ended March 31, 2014.

“I am very pleased to report that shortly following the announcement of the
4-Antibody AG acquisition, we selected our first checkpoint modulator antibody
candidates to advance into investigational new drug-enabling studies and
raised funding to advance our programs to important value inflection points,”
said Garo H. Armen, PhD, chairman and CEO of Agenus. “In addition, we
consummated our first major corporate collaboration in the checkpoint antibody
field with Merck, a leader in immuno-oncology.”

First Quarter and Recent 2014 Highlights

  *Completed the acquisition of 4-Antibody AG, a private European-based
    biopharmaceutical company.
  *Entered into a collaboration and license agreement with Merck for the
    discovery of fully human antibodies against two undisclosed Merck
    checkpoint targets using the Retrocyte Display^® platform. Agenus is
    eligible to receive approximately $100 million in potential milestone
    payments as well as worldwide royalties on product sales.
  *Identified three check point modulator (CPM) candidates to advance into
    investigational new drug-enabling development. These include two GITR
    agonists and a CTLA-4 antagonist which are the result of a research
    collaboration with Ludwig Cancer Research.
  *Completed an underwritten registered public offering resulting in net
    proceeds of approximately $56 million.
  *Announced initiation of a randomized Phase 2 trial with Prophage and
    Yervoy^® (ipilimumab) for the treatment of Stage III and IV metastatic
    melanoma.
  *Announced GlaxoSmithKline’s (GSK) Phase 3 MAGE-A3 cancer immunotherapeutic
    trial for non-small cell lung cancer (NSCLC) did not show benefit in the
    overall study population.
  *Appointed Robert B. Stein, MD, PhD, to the newly-created position of Chief
    Scientific Officer (CSO).

First Quarter Results

The company reported a net loss attributable to common stockholders of
$409,000, or $0.01 per share, basic and diluted, for the first quarter of
2014, compared with a net loss attributable to common stockholders in the
first quarter of 2013 of $8.8 million, or $0.35 per share, basic and diluted.
In the first quarter of 2014, the company recorded other non-cash income of
$9.9 million related to the impact of the termination of GSK’s Phase 3 MAGE-A3
trial in NSCLC. In the first quarter of 2013, the company’s preferred stock
restructuring, which reduced the dividend requirements for its Series A-1
preferred securities, resulted in a non-cash deemed dividend of $2.9 million.

Cash and cash equivalents were $73.5 million as of March 31, 2014.

Checkpoint Antibody Platform

Through the company’s 4-Antibody subsidiary, Agenus has developed a powerful
fully-human antibody drug discovery and optimization technology platform which
it is utilizing to generate a novel pipeline of antibody therapeutic drug
candidates. The Retrocyte Display^® platform uses a high-throughput approach
incorporating IgG format human antibody libraries expressed in mammalian
B-lineage cells.

Saponin Platform: QS-21 Stimulon^®  Adjuvant

Agenus’ QS-21 Stimulon adjuvant is one of the most widely tested vaccine
adjuvants in clinical development. QS-21 Stimulon is designed to strengthen
the body's immune response to a vaccine's antigen, thus making it more
effective. QS-21 Stimulon is a key component in the development of
investigational preventive vaccine formulations across a wide variety of
infectious diseases, and appears to play an important role in several
investigational therapeutic vaccines intended to treat cancer and degenerative
disorders. Licensees of QS-21 Stimulon include GSK and Janssen Alzheimer
Immunotherapy. Agenus is generally entitled to receive milestone payments as
QS-21Stimulon-containing programs advance, as well as royalties for 10 years
after commercial launch, with some exceptions.

Heat Shock Protein Platform( HSP): Prophage Series Cancer Vaccines

Derived from each individual’s tumor, Prophage Series vaccines contain the
‘antigenic fingerprint’ of the patient’s particular cancer and are designed to
reprogram the body’s immune system to target only cancer cells bearing this
fingerprint. Prophage Series vaccines, based on our HSP platform technology,
are intended to leave healthy tissue unaffected and limit the debilitating
side effects typically associated with traditional cancer treatments such as
chemotherapy and radiation therapy. The Prophage Series vaccines are currently
being studied in both newly diagnosed and recurrent glioblastoma.

Heat Shock Protein Platform (HSP): Recombinant Series HerpV

HerpV is a recombinant therapeutic vaccine candidate for the treatment of
genital herpes, which is caused by the herpes simplex virus-2 (HSV-2). HerpV
consists of recombinant human heat shock protein-70 complexed with 32 distinct
35-mer synthetic peptides from the HSV-2 proteome. It is one of the most
clinically advanced HSV-2 therapeutic vaccines and is in a Phase 2 study.
Initial Phase 2 data were reported during the fourth quarter of 2013 with
post-booster viral shedding results, along with immune response data,
anticipated in the second quarter of 2014. The vaccine is based on Agenus' HSP
platform technology, and contains Agenus’ proprietary QS-21 Stimulon adjuvant.

Conference Call and Web Cast Information

Agenus executives will host a conference call at 11:00 a.m. Eastern Time
today. To access the live call, dial 647-426-1845. The call will also be
webcast and will be accessible from the company’s website at
www.agenusbio.com/webcast/. A replay will be available approximately two hours
after the call through midnight Eastern Time on July 8, 2014. The replay
number is 416-915-1035, and the access code is 571716. The replay will also be
available on the company’s website approximately two hours after the live
call.

About Agenus

Agenus is an immuno-oncology company developing a portfolio of checkpoint
modulators (CPMs), heat shock protein vaccines and adjuvants. Agenus’
checkpoint modulator programs target GITR, OX40, CTLA-4, LAG-3, TIM-3 and
PD-1. The company’s proprietary discovery engine Retrocyte Display^® is used
to generate fully human therapeutic antibody drug candidates. The Retrocyte
Display platform uses a high-throughput approach incorporating IgG format
human antibody libraries expressed in mammalian B-lineage cells. Agenus’ heat
shock protein vaccines for cancer and infectious disease are in Phase 2
studies. The company’s QS-21 Stimulon^® adjuvant platform is extensively
partnered with GlaxoSmithKline and Janssen and includes several candidates in
Phase 3 trials. Among Agenus and its partners, 22 programs are in clinical
development. For more information, please visit www.agenusbio.com, or connect
with the company on Facebook, LinkedIn, Twitter and Google+. For more
information, please visit www.agenusbio.com.

Forward-Looking Statement

This press release contains forward-looking statements, including statements
regarding our research and development and clinical trial activities, the
publication of data, and the potential application of the Company’s
technologies and product candidates in the prevention and treatment of
diseases. These forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially. These
risks and uncertainties include, among others, the factors described under the
Risk Factors section of our Annual Report on Form 10-K filed with the
Securities and Exchange Commission for the year ended December 31, 2013.
Agenus cautions investors not to place considerable reliance on the
forward-looking statements contained in this release. These statements speak
only as of the date of this document, and Agenus undertakes no obligation to
update or revise the statements. All forward-looking statements are expressly
qualified in their entirety by this cautionary statement. Agenus’ business is
subject to substantial risks and uncertainties, including those identified
above. When evaluating Agenus’ business and securities, investors should give
careful consideration to these risks and uncertainties.

Yervoy is a registered trademark of Bristol-Myers Squibb. Retrocyte Display
and Stimulon are registered trademarks of Agenus Inc. and its subsidiaries.


Summary Consolidated Financial Information

Condensed Consolidated Statements of Operations Data
(in thousands, except per share data)
(unaudited)

                                           Three months ended March 31,
                                            2014            2013
                                                             
Revenue                                     $  721           $    1,109
                                                             
Operating expenses:
Cost of sales                                  -                  273
Research and development                       4,473              2,554
General and administrative                     5,163              2,891
Non-cash contingent consideration fair        909              -        
value adjustment
                                                             
Operating loss                                 (9,824   )         (4,609   )
                                                             
Other income (expense), net                   9,466            (1,226   )
                                                             
Net loss                                       (358     )         (5,835   )
                                                             
Dividends on Series A-1 convertible           (51      )        (3,007   )
preferred stock
                                                             
Net loss attributable to common             $  (409     )    $    (8,842   )
stockholders
                                                             
Per common share data, basic and diluted:
                                                             
Net loss attributable to common             $  (0.01    )    $    (0.35    )
stockholders
Weighted average number of common shares       50,557             25,072
outstanding, basic and diluted


Condensed Consolidated Balance Sheet Data
(in thousands)
(unaudited)

                                            March 31, 2014   December 31, 2013
                                                             
Cash and cash equivalents                   $  73,491        $    27,352
Total assets                                   108,304            34,835
Total stockholders' equity (deficit)           63,285             (4,481   )




Contact:

Media and Investor:
Agenus
Jonae R. Barnes 781-674-4538 Office | 617-818-2985 Cell
Vice President Investor Relations and Corporate Communications
jonae.barnes@agenusbio.com
 
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