Maxygen first quarter net loss increases to $2.6 million

Maxygen, Inc. (Nasdaq:MAXY), a biopharmaceutical company, today announced financial and business results for the quarter ended March 31, 2012.

First Quarter 2012 Financial Results

Maxygen reported a net loss attributable to Maxygen, Inc. of $2.6 million, or $0.09 per basic and diluted share, for the first quarter of 2012, compared to net income attributable to Maxygen, Inc. of $1.5 million, or $0.05 per basic and diluted share, for the same period in 2011.

Total operating expenses from continuing operations were $2.8 million in the first quarter of 2012, compared to $3.7 million in the first quarter of 2011. The decrease in operating expenses was primarily due to a reduction in research and development expenses, as well as reductions in stock compensation expense and fees for consulting and other professional services.

At March 31, 2012, Maxygen held approximately $155.3 million in cash, cash equivalents and short-term investments and remains eligible for a contingent payment of up to $30.0 million from Bayer HealthCare LLC related to the sale of Maxygen's hematology assets to Bayer in July 2008. In addition, Maxygen continues to retain all rights to its MAXY-G34 product candidate, a next-generation pegylated, granulocyte colony stimulating factor.

Business Results

The acquisition of Perseid Therapeutics LLC, a former majority-owned subsidiary, by Astellas in May 2011 for $76.0 million in cash largely completed a multi-year strategic process to maximize stockholder value through sales, distributions and other arrangements involving the company's various assets. Maxygen retains all rights to its MAXY-G34 program for development of all therapeutic areas, including the chemotherapy-induced neutropenia and Acute Radiation Syndrome (ARS) indications, and the company's current focus is to create value from this program for its stockholders, either through the potential further development of the product candidate for one or both indications, or through a sale, licensing, partnering or other transaction involving the program. Maxygen also continues to evaluate potential strategic options for the company as a whole, including a strategic business combination or other transaction.

In January 2012, Maxygen announced a new stock repurchase program under which the company may purchase up to $10.0 million of its common stock through December 31, 2012. From December 2009 through March 31, 2012, Maxygen has repurchased approximately 12.5 million shares of its common stock at an aggregate cost of approximately $67.9 million.

Source: Maxygen