AVAN Avant Immunotherapeutics (MM)

AVANT Immunotherapeutics, Inc. (NASDAQ: AVAN) today reported financial results for the first quarter ended March 31, 2008. AVANT reported a net loss of $22.1 million, or $2.19 per share, for the first quarter of 2008 compared to a net loss of $4.0 million, or $0.49 per share, for the first quarter of 2007. As discussed in further detail later in this release, the increase in net loss between the three-month periods was primarily due to non-cash operating expenses, which includes a one-time non-cash charge of $14.8 million, or $1.46 per share, for purchased in-process research and development and a non-cash charge of $1.6 million, or $0.16 per share, for stock-based compensation expense, and decreased investment and other income, offset partially by increased revenues. At March 31, 2008, AVANT reported cash and cash equivalents of $11.4 million. This figure does not include upfront payments and an equity investment totaling $50 million which would occur upon the effective date of AVANT�s recently announced license and development agreement with Pfizer for CDX-110 or a $10 million milestone payment from Paul Royalty Fund upon the U.S. launch of Rotarix� expected in the second half of 2008. �AVANT recently completed one of the largest partnership agreements in cancer immunotherapy in our CDX-110 transaction with Pfizer. Additionally, this transformative deal followed the presentation of additional positive data on CDX-110 at AACR,� said Anthony S. Marucci, AVANT�s Interim President and Chief Executive Officer. �We also recently completed the AVANT Celldex merger and look forward to continuing the momentum we have created in all aspects of our business.� Key 2008 events recently announced: Entered into an exclusive worldwide licensing agreement with Pfizer for our therapeutic cancer vaccine candidate, CDX-110, which is in Phase 2/3 development for the treatment of glioblastoma multiforme (GBM). This agreement also gives Pfizer exclusive rights to the development of EGFRvIII vaccines in other potential indications. Under the licensing and development agreement, upon the effective date, Pfizer will make an upfront payment to AVANT of $40 million and will make a $10 million equity investment in AVANT, and thereafter Pfizer will fund all development costs for these programs. AVANT is also eligible to receive milestone payments exceeding $390 million for the successful development and commercialization of CDX-110 and additional EGFRvIII vaccine products, as well as double-digit royalties on any product sales. The agreement is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (as amended) and is expected to close in the second quarter of 2008. Completed the merger of AVANT Immunotherapeutics and Celldex Therapeutics. Reported results that the double-blind, placebo-controlled multi-center Phase 2 clinical trial of Ty800 met all primary endpoints. Importantly, immunogenic response was dose-dependent. Positive immune response or seroconversion (prospectively defined as a 4-fold increase in anti-LPS titers over pre-dose level) rates were 65% (36/55) and 80% (44/55) in the low and high dose groups, respectively, and was significantly (p