UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from____________to____________
Commission file number 0-19612
IMCLONE SYSTEMS INCORPORATED
(Exact name of registrant as specified in its charter)
DELAWARE 04-2834797
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
180 VARICK STREET, NEW YORK, NY 10014
(Address of principal executive offices) (Zip Code)
(212) 645-1405
Registrant's telephone number, including area code
Not Applicable
Former name, former address and former fiscal year, if changed since last report
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes _X_ No ___
Applicable only to corporate issuers:
Indicate the number of shares outstanding of each of the registrant's classes of
common stock, as of the latest practicable date.
Class Outstanding as of May 12, 1998
----- ------------------------------
Common Stock, par value $.001 24,351,160 Shares
<PAGE>
IMCLONE SYSTEMS INCORPORATED
INDEX
Page No.
--------
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets - March 31, 1998 (unaudited)
and December 31, 1997 1
Unaudited Statements of Operations - Three
months ended March 31, 1998 and 1997 2
Unaudited Statements of Cash Flows - Three
months ended March 31, 1998 and 1997 3
Notes to Financial Statements 4
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 5
Item 3. Quantitative and Qualitative Disclosures About
Market Risk 9
PART II - OTHER INFORMATION
Item 5. Other Information 10
Item 6. Exhibits and Reports on Form 8-K 11
<PAGE>
Part 1 - FINANCIAL INFORMATION
Item 1 - Financial Statements
IMCLONE SYSTEMS INCORPORATED
Balance Sheets
(in thousands, except share data)
March 31, December 31,
Assets 1998 1997
----------- ------------
(unaudited)
Current assets:
Cash and cash equivalents ........................ $ 3,754 $ 2,558
Securities available for sale .................... 51,636 57,052
Prepaid expenses ................................. 506 596
Other current assets ............................. 679 589
--------- ---------
Total current assets ............... 56,575 60,795
--------- ---------
Property and equipment:
Land ............................................. 340 340
Building and building improvements ............... 10,471 8,969
Leasehold improvements ........................... 4,832 4,832
Machinery and equipment .......................... 7,353 6,315
Furniture and fixtures ........................... 597 550
Construction in progress- ........................ -- 2,159
--------- ---------
Total cost ......................... 23,593 23,165
Less accumulated depreciation and amortization ... (11,706) (11,294)
--------- ---------
Property and equipment, net ........ 11,887 11,871
--------- ---------
Patent costs, net .................................. 942 944
Deferred financing costs, net ...................... 53 55
Other assets ....................................... 2,115 2,115
--------- ---------
$ 71,572 $ 75,780
========= =========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable ................................. $ 1,261 $ 1,731
Accrued expenses and other ....................... 715 1,440
Interest payable ................................. 104 68
Deferred revenue ................................. 358 208
Current portion of long-term liabilities ......... 405 677
--------- ---------
Total current liabilities .......... 2,843 4,124
--------- ---------
Long-term debt ..................................... 2,200 2,200
Other long-term liabilities, less
current portion .................................. 998 1,118
Preferred stock dividends payable .................. 704 112
--------- ---------
Total liabilities .................. 6,745 7,554
--------- ---------
Commitments and contingencies
Stockholders' equity :
Preferred stock, $1.00 par value;
authorized 4,000,000 shares; issued and
outstanding Series A Convertible: 400,000
at March 31, 1998 and December 31, 1997
(preference in liquidation $40,704
and $40,112, respectively) ..................... 400 400
Common stock, $.001 par value; authorized
45,000,000 shares; issued 24,378,502
and 24,265,072 at March 31, 1998 and
December 31, 1997, respectively;
outstanding 24,327,685 and 24,214,255
at March 31, 1998 and December 31, 1997,
respectively ................................... 24 24
Additional paid-in capital ....................... 185,364 185,706
Accumulated deficit .............................. (120,457) (117,464)
Treasury stock, at cost; 50,817 shares
at March 31, 1998 and December 31, 1997 ........ (492) (492)
Common stock subscription receivable ............. (133) --
Accumulated other comprehensive income:
Unrealized gain on securities
available for sale .......................... 121 52
--------- ---------
Total stockholders' equity ......... 64,827 68,226
--------- ---------
$ 71,572 $ 75,780
========= =========
See accompanying notes to financial statements.
Page 1
<PAGE>
IMCLONE SYSTEMS INCORPORATED
Statements of Operations and Comprehensive Income
(in thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
----------------------
1998 1997
------ ------
Revenues:
License fees from third parties .................. $ 1,000 $ --
Research and development
funding from third
parties and other ............................. 850 75
-------- --------
Total revenues ..................... 1,850 75
-------- --------
Operating expenses:
Research and development ......................... 4,171 5,395
General and administrative ....................... 1,413 1,083
-------- --------
Total operating expenses ........... 5,584 6,478
-------- --------
Operating loss ..................................... (3,734) (6,403)
-------- --------
Other:
Interest and other income ........................ (831) (245)
Interest expense ................................. 90 195
-------- --------
Net interest and other income ...... (741) (50)
-------- --------
Net loss ........................................... (2,993) (6,353)
Preferred dividends (including
incremental yield of $266) ....................... 858 --
-------- --------
Net loss to common stockholders .................... (3,851) (6,353)
-------- --------
Other comprehensive income (loss):
Unrealized gain (loss) on
securities available for sale:
Unrealized holding gain (loss)
arising during the period .................... 69 (72)
Less: Reclassification adjustment
for realized gain (loss)
included in net income ....................... 1 (3)
-------- --------
Total other comprehensive
income (loss) .................... 68 (69)
-------- --------
Comprehensive loss ................................. $ (3,783) $ (6,422)
======== ========
Basic and diluted net loss
per common share ................................. $ (0.16) $ (0.30)
======== ========
Weighted average shares outstanding ................ 24,228 21,231
======== ========
See accompanying notes to financial statements.
Page 2
<PAGE>
IMCLONE SYSTEMS INCORPORATED
Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended
March 31,
------------------
1998 1997
------ ------
Cash flows from operating activities:
Net loss .......................................... $ (2,993) $ (6,353)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization .................. 440 433
Expense associated with issuance
of options and warrants .................... 80 2,423
(Gain) loss on sale of investments ............. (1) 3
Changes in:
Prepaid expenses ............................ 90 (65)
Other current assets ........................ (90) 330
Due from officer ............................ -- (12)
Interest payable ............................ 36 104
Accounts payable ............................ (470) (190)
Accrued expenses and other .................. (725) (589)
Deferred revenue ............................ 150 --
-------- --------
Net cash used in
operating activities ............... (3,483) (3,916)
-------- --------
Cash flows from investing activities:
Acquisitions of property and equipment ......... (428) (336)
Purchases of securities available for sale ..... (23,461) (30,103)
Sales of securities available for sale ......... 28,947 10,069
Additions to patents ........................... (24) (23)
-------- --------
Net cash provided by (used in)
investing activities ............... 5,034 (20,393)
-------- --------
Cash flows from financing activities:
Net proceeds from issuance of common stock ..... -- 23,196
Proceeds from exercise of stock
options and warrants ......................... 37 593
Purchase of treasury stock ..................... -- (173)
Payments of other liabilities .................. (392) (461)
-------- --------
Net cash (used in) provided
by financing activities ............ (355) 23,155
-------- --------
Net increase (decrease) in cash
and cash equivalents ............................... 1,196 (1,154)
Cash and cash equivalents at
beginning of period ................................ 2,558 2,734
-------- --------
Cash and cash equivalents at
end of period ...................................... $ 3,754 $ 1,580
======== ========
See accompanying notes to financial statements.
Page 3
<PAGE>
IMCLONE SYSTEMS INCORPORATED
NOTES TO FINANCIAL STATEMENTS
(unaudited)
(1) Basis of Presentation
The financial statements of ImClone Systems Incorporated ("ImClone" or the
"Company") as of March 31, 1998 and for the three months ended March 31, 1998
and 1997 are unaudited. In the opinion of management, these unaudited financial
statements include all adjustments, consisting only of normal recurring
adjustments, necessary for a fair presentation. These financial statements
should be read in conjunction with the audited financial statements and notes
thereto included in the Company's Annual Report on Form 10-K for the year ended
December 31, 1997, as filed with the Securities and Exchange Commission (the
"Commission").
Results for the interim periods are not necessarily indicative of results
for the full years.
(2) Related Party Transactions
In January 1998, the Company accepted a promissory note totaling
approximately $131,000 from its President and CEO in connection with the
exercise of a warrant to purchase 87,305 shares of the Company's common stock,
$.001 par value (the "Common Stock"). The note is due no later than two years
from issuance, bears annual interest at the rate of 8.5% and is full recourse.
At March 31, 1998, the total amount due the Company, including interest, is
approximately $133,000 and is classified in the stockholders' equity section of
the balance sheet as common stock subscription receivable.
(3) Earnings Per Share
Basic and diluted Earnings Per Share ("EPS") are computed based on the
weighted average number of shares outstanding. Potentially dilutive securities,
including convertible preferred stock, options and warrants, have not been
included in the diluted EPS computation because they are anti-dilutive.
(4) Comprehensive Income
On January 1, 1998, the Company adopted Statement of Financial Accounting
Standards No. 130, "Reporting Comprehensive Income" ("SFAS 130"), which
establishes standards for reporting and display of comprehensive income and its
components. In accordance with SFAS 130, the Company has displayed the
components of "Other comprehensive income (loss)" and "Comprehensive loss" in
the accompanying Financial Statements. All prior-period data has been
reclassified to conform with the provisions of SFAS 130.
(5) Reclassification
Certain amounts previously reported have been reclassified to conform to
current year presentation.
Page 4
<PAGE>
Item 2 - Management's Discussion and Analysis of Financial Condition and Results
of Operations
The following discussion and analysis by management is provided to
identify certain significant factors which affected the Company's financial
position and operating results during the periods included in the accompanying
financial statements.
RESULTS OF OPERATIONS
Three Months Ended March 31, 1998 and 1997
Revenues
Revenues for the three-months ended March 31, 1998 and 1997 were
$1,850,000 and $75,000 respectively, an increase of $1,775,000. Revenues for the
three-months ended March 31, 1998 consisted of (i) $75,000 in research support
from the Company's partnership with the Wyeth/Lederle Vaccine and Pediatrics
Division of American Home Products Corporation ("American Home") in infectious
diseases, (ii) $1,000,000 in milestone payments and $625,000 in research and
support payments from the Company's research and license agreement with Merck
KGaA ("Merck") with respect to the Company's BEC2 product candidate, (iii)
$52,000 in royalty revenue from the Company's strategic alliance with Abbott
Laboratories ("Abbott") in diagnostics, and (iv) $98,000 from a Phase I Small
Business Innovation Research ("SBIR") grant from the National Cancer Institute
(the "NCI") for a program in cancer-related angiogenesis. Revenues for the
three-months ended March 31, 1997 consisted of $75,000 in research support from
the Company's partnership with American Home.
Operating; Research and Development Expenses
Total operating expenses for the three-months ended March 31, 1998 and
1997 were $5,584,000 and $6,478,000, respectively, a decrease of $894,000 or
14%. Research and development expenses for the three-months ended March 31, 1998
and 1997 were $4,171,000 and $5,395,000, respectively, a decrease of $1,224,000
or 23%. Such amounts for the three-months ended March 31, 1998 and 1997
represented 75% and 83%, respectively, of total operating expenses. The decrease
in research and development expenses for the three-months ended March 31, 1998
was attributable to the one-time $2,233,000 non-cash compensation expense
recorded for the three-months ended March 31, 1997 in connection with the
extension of the term of an officer's warrant to purchase 397,000 shares of
Common Stock. This decrease is partially offset by increased costs in the
three-months ended March 31, 1998 associated with additional staffing in the
area of discovery research, the initiation of new supported research programs
with academic institutions and the establishment of corporate in-licensing
arrangements, and expenditures in the functional areas of product development,
manufacturing and clinical and regulatory affairs to support the Company's lead
therapeutic product candidate, C225, for human clinical trials.
General and Administrative Expenses
General and administrative expenses include administrative personnel
costs, costs incurred in connection with pursuing arrangements with corporate
partners and technology licensors, and expenses associated with applying for
patent protection for the Company's technology and products. Such expenses for
the three-months ended March 31, 1998 and 1997 were $1,413,000 and $1,083,000,
respectively, an increase of $330,000 or 30%. The increase in general and
administrative expenses primarily reflects (i) additional support staffing for
the expanding research, clinical, development and manufacturing efforts of the
Company, particularly with respect to C225 and (ii) expenses associated with the
pursuit of strategic corporate alliances and other corporate development
expenses. The Company expects general and administrative expenses to increase in
future periods to support planned increases in research, clinical, development
and manufacturing efforts of the Company.
Page 5
<PAGE>
Interest and Other Income and Interest Expense
Interest and other income was $831,000 for the three-months ended March
31, 1998 compared to $245,000 for the three-months ended March 31, 1997, an
increase of $586,000. The increase was primarily attributable to the increased
interest income earned from higher cash balances in the Company's investment
portfolio resulting from a public offering of Common Stock completed in March
1997 and a private placement of Series A Convertible Preferred Stock (the
"Series A Preferred Shares" or "Series A Preferred Stock") completed in December
1997. Interest expense was $90,000 and $195,000 for the three-months ended March
31, 1998 and 1997, respectively, a decrease of $105,000 or 54%. Interest expense
for both periods primarily included interest on an outstanding Industrial
Development Revenue Bond issued in 1990 (the "1990 IDA Bond") with a principal
amount of $2,200,000, interest recorded on capital lease obligations, and
interest recorded on a liability to Pharmacia and UpJohn Inc. ("Pharmacia"), for
the reacquisition of the worldwide rights to a recombinant mutein form of
Interleukin-6 ("IL-6m") as well as clinical material manufactured and supplied
by Pharmacia to the Company. The decrease was primarily attributable to the
December 1997 repayment of an IDA Bond issued in 1986 (the "1986 IDA Bond") with
a principal amount of $2,113,000 and the February 1998 repayment of the
remaining liability to Pharmacia.
Net Losses
The Company had net losses to common stockholders of $3,851,000 or $0.16
per share for the three-months ended March 31, 1998, compared with $6,353,000 or
$0.30 per share for the three-months ended March 31, 1997. The decrease in the
net losses and per share net loss to common stockholders is due to the factors
mentioned in the preceding paragraphs as well as the increased number of shares
of Common Stock outstanding primarily as a result of the March 1997 public
offering of Common Stock.
LIQUIDITY AND CAPITAL RESOURCES
At March 31, 1998, the Company's principal sources of liquidity consisted
of cash and cash equivalents and securities available for sale of approximately
$55,390,000. The Company has financed its operations since inception primarily
through the public and private sales of equity securities, the sale of three
issues of IDA Bonds through the New York City Industrial Development Agency (the
"NYIDA"), license fees and contract research and development fees and royalties
received under agreements with collaborative partners and interest earned on
these funds. Since inception, public and private sales of equity securities in
financing transactions have raised approximately $163,799,000 in net proceeds.
The sale of the IDA Bonds in each of 1985, 1986 and 1990 raised an aggregate of
$6,313,000, the proceeds of which have been used for the acquisition,
construction and installation of the Company's research and development facility
in New York City, and of which $2,200,000 is currently outstanding. Since
inception, the Company has earned approximately $30,512,000 from license fees,
contract research and development fees and royalties from collaborative
partners, including approximately $1,850,000 earned during the three-months
ended March 31, 1998. Since inception the Company has earned approximately
$6,277,000 in interest income, including approximately $830,000 earned during
the three-months ended March 31, 1998.
Page 6
<PAGE>
The Company has obligations under various capital leases for certain
laboratory, office and computer equipment and also certain building improvements
primarily under a December 1996 financing agreement (the "1996 Financing
Agreement") with Finova Technology Finance, Inc. ("Finova"). The 1996 Financing
Agreement allows the Company to finance the lease of equipment and make certain
building and leasehold improvements to existing facilities involving amounts
aggregating approximately $2,500,000. As of March 31, 1998, the Company had
entered into six individual leases aggregating a total cost of $1,745,000. Each
lease has a fair market value purchase option at the expiration of a 42-month
term. Pursuant to the 1996 Financing Agreement, the Company issued to Finova a
warrant expiring December 31, 1999 to purchase 23,220 shares of Common stock at
an exercise price of $9.69 per share. The Company recorded a non-cash debt
discount of approximately $125,000 in connection with this financing, which
discount is being amortized over the 42-month term of the first lease. The 1996
Financing Agreement with Finova expired in December 1997 and the Company did not
utilize the full $2,500,000 under the agreement. In April 1998, the Company
entered into a new financing agreement (the "1998 Financing Agreement") with
Finova aggregating approximately $2,000,000. The terms of the 1998 Financing
Agreement are substantially similar to the now expired 1996 Financing Agreement
except that each lease has a 48-month term.
The Company has expended and will continue to expend in the future
substantial funds to continue the research and development of its products,
conduct pre-clinical and clinical trials, establish clinical-scale and
commercial-scale manufacturing in its own facilities or in the facilities of
others, and market its products. The Company has entered into preliminary
discussions with several major pharmaceutical companies regarding various
alternatives concerning the funding of research and development for certain of
its products. No assurance can be given that the Company will be successful in
consummating any such alternatives. These discussions have included potential
significant strategic alliances for the development and commercialization of the
Company's lead product candidate, C225. Such strategic alliances could include
up-front license fees plus milestone fees and revenue sharing. There can be no
assurance that the Company will be successful in achieving such alliances, nor
can the Company predict the amount of funds which might be available to it if it
entered into such alliances or the time at which such funds would be made
available.
In January 1998, the Company completed the construction and commissioning
of a new 1,750 square foot process development center at its Somerville, New
Jersey facility at a cost of approximately $1,650,000. The Company has also
taken steps to complete a formal design concept for large scale manufacturing at
this facility. If the Company adapts this facility to large scale manufacturing
or does so at another location, it will incur substantial additional costs. The
lease on the Company's New York City facility expires in March 1999. The Company
is currently in discussions regarding the extension of the lease and is
considering other alternatives, such as relocating its executive offices and
laboratories to a new facility. Were the Company to relocate its executive
offices and laboratories, it would incur substantial additional costs.
The IDA Bond issued in 1990 (the "1990 IDA Bond") in the outstanding
principal amount of $2,200,000 becomes due in 2004. If the lease on the
Company's New York City facility is terminated, the 1990 IDA Bond provides that
it will become due 60 days prior to such termination. The Company will incur
interest on the 1990 IDA Bond aggregating approximately $250,000 during 1998.
The Company has granted the NYIDA a security interest in substantially all
facility equipment located in the New York facility to secure the obligations of
the Company to the NYIDA under the 1990 IDA Bond.
The holders of the Series A Preferred Shares are entitled to receive
cumulative dividends at an annual rate of $6.00 per share. Dividends accrue as
of the issuance date of the Series A Preferred Shares and are payable on the
outstanding Series A Preferred Shares in cash on December 31 of each year
beginning December 31, 1999 or at the time of conversion or redemption of the
Series A Preferred Shares on which the dividend is to be paid, whichever is
sooner. Accrued dividends were $704,000 at March 31, 1998.
Page 7
<PAGE>
Total capital expenditures made during the three-months ended March 31,
1998 were $428,000. Of the total capital expenditures made during the
three-months ended March 31, 1998, $365,000 related to improving and equipping
the Company's manufacturing facility in New Jersey. The balance of capital
additions was for equipment and computer-related purchases for the corporate
office and research laboratories in New York.
The Company anticipates that its existing capital resources, including the
on-going research support of its corporate partners, should enable it to
maintain its current and planned operations through the end of the year 2000.
However, the receipt of such ongoing research support is subject to attaining
research and development milestones, certain of which have not yet been
achieved. There can be no assurance that the Company will achieve these
milestones. The Company's future working capital and capital requirements will
depend upon numerous factors, including the progress of the Company's research
and development programs, pre-clinical testing and clinical trials, the
Company's corporate partners fulfilling their obligations to the Company, the
timing and cost of seeking regulatory approvals, the cost of manufacturing
scale-up and effective commercialization activities and arrangements, the level
of resources that the Company devotes to the development of marketing and sales
capabilities, the costs involved in filing, prosecuting and enforcing patent
claims, technological advances, the status of competitors and the ability of the
Company to maintain existing and establish new collaborative arrangements with
other companies to provide funding to the Company to support these activities.
In order to fund its capital needs after the end of the year 2000, the Company
will require significant levels of additional capital and intends to raise the
capital through additional arrangements with corporate partners, equity or debt
financings or from other sources. There is no assurance the Company will be
successful in consummating any such arrangements. If adequate funds are not
available, the Company may be required to significantly curtail its planned
operations.
Uncertainties associated with the length and expense of pre-clinical and
clinical testing of any of the Company's products could greatly increase the
cost of development of such product and affect the timing of any anticipated
revenues from product sales, and failure by the Company to obtain regulatory
approval for any product will preclude its commercialization. In addition, the
failure by the Company to obtain patent protection for its products may make
certain of its products commercially unattractive.
At December 31, 1997, the Company had net operating loss carryforwards for
federal income tax purposes of approximately $115,000,000 which expire at
various dates from 2000 through 2012. At December 31, 1997 the Company had
research credit carryforwards of approximately $2,303,000 which expire at
various dates between years 2001 and 2012. Pursuant to Section 382 of the
Internal Revenue Code of 1986, as amended, the annual utilization of the
Company's net operating loss and research credit carryforwards may be limited if
the Company experiences a change in ownership of more than 50 percentage points
within a three-year period. Since 1986, the Company experienced two ownership
changes. Accordingly, the Company is significantly limited in utilizing its tax
net operating loss carryforwards arising before such ownership changes to offset
future federal taxable income. Similarly, the Company is significantly
restricted in using its research credit carryforwards arising before such
ownership changes to offset future federal income tax expense.
Page 8
<PAGE>
Certain Factors Affecting Forward-Looking Statements--Safe Harbor Statement
Those statements contained herein that do not relate to historical
information are forward-looking statements. There can be no assurance that the
future results covered by such forward-looking statements will be achieved.
Actual results may differ materially due to the risks and uncertainties inherent
in the Company's business, including without limitation, the risks and
uncertainties associated with completing pre-clinical and clinical trials of the
Company's compounds that demonstrate such compounds' safety and effectiveness;
obtaining additional financing to support the Company's operations; obtaining
and maintaining regulatory approval for such compounds and complying with other
governmental regulations applicable to the Company's business; obtaining the raw
materials necessary in the development of such compounds; consummating
collaborative arrangements with corporate partners for product development;
achieving milestones under collaborative arrangements with corporate partners;
developing the capacity to manufacture, market and sell the Company's products,
either directly or with collaborative partners; developing market demand for and
acceptance of such products; competing effectively with other pharmaceutical and
biotechnological products; obtaining adequate reimbursement from third party
payors; attracting and retaining key personnel; protecting proprietary rights;
and those other factors set forth in "Management's Discussion and Analysis of
Financial Condition and Results of Operations--Overview and Risk Factors," in
the Company's most recent Annual Report on Form 10-K.
Item 3 - Quantitative and Qualitative Disclosures About Market
Not applicable.
Page 9
<PAGE>
PART II - OTHER INFORMATION
Item 5 - Other Information
On May 12, 1998 the Company announced that the U.S. Patent and Trademark
Office has issued Patent No. 5,747,651 to the Company for antibodies against the
extracellular portion of the tyrosine kinase receptor KDR/FLK-1. This receptor,
known as the KDR/FLK-1 receptor, is expressed on tumor associated capillary
blood vessels and plays a major role in the vascularization of tumors and their
malignant growth. On March 30, 1998 at the annual meeting of the American
Association for Cancer Research, ImClone's researchers presented data
demonstrating the development of a monoclonal antibody that blocks in vitro
binding of VEGF to the human KDR receptor and inhibits VEGF stimulated growth of
endothelial cells. Primary data suggests that the antibody also inhibits the
growth of human tumor-associated blood vessels.
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits (numbered in accordance with Item 601 of Regulation S-K)
Exhibit No. Exhibit No.
----------- -----------
27.1 Financial Data Schedule
(b) Reports on Form 8-K
On February 10, 1998, the Company filed with the Commission a Current
Report on Form 8-K dated January 21, 1998 (i) relating to the election to the
Board of Directors of John Mendelsohn, and (ii) filing as an Exhibit thereto the
Company's Amended and Restated By-laws.
Page 10
<PAGE>
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 thereunto duly authorized.
IMCLONE SYSTEMS INCORPORATED
(Registrant)
Date: May 14, 1998 By /s/ Samuel D. Waksal
-------------------------------------
Samuel D. Waksal
President and Chief Executive Officer
Date: May 14, 1998 By /s/ Carl S. Goldfischer
-------------------------------------
Carl S. Goldfischer
Vice President, Finance and Chief
Financial Officer
Page 11
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Information taken from the March 31, 1998 Form 10-Q.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 3,754
<SECURITIES> 51,636
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 56,575
<PP&E> 23,593
<DEPRECIATION> (11,706)
<TOTAL-ASSETS> 71,572
<CURRENT-LIABILITIES> 2,843
<BONDS> 2,200
0
400
<COMMON> 24
<OTHER-SE> 64,403
<TOTAL-LIABILITY-AND-EQUITY> 71,572
<SALES> 0
<TOTAL-REVENUES> 1,850
<CGS> 0
<TOTAL-COSTS> 5,584
<OTHER-EXPENSES> (831)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 90
<INCOME-PRETAX> (2,993)
<INCOME-TAX> 0
<INCOME-CONTINUING> (2,993)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,993)
<EPS-PRIMARY> (0.16)
<EPS-DILUTED> (0.16)
</TABLE>
