Medarex losses increase 28% in 2006

New Jersey, USA-based biopharmaceutical company Medarex reported a loss of $181.7 million, or $1.50 per share, for the full year 2006, which represents an increase of 28% on the $148.0 million deficit it recorded for 2005.

The firm explained that the result included a $10.6 million net loss posted by Celldex Therapeutics, in which it has a 60% stake, as well as a non-cash charge of $19.2 million in stock-based compensation in accordance with its adoption of FAS 123 accounting standards. In addition, the Princeton-headquartered company said that its revenue for the year declined 5.6% to $48.6 million.

Medarex' R&D expenditure for the year was $194.5 million, $6.8 million of which was due to Celldex. The firm went on to say that its general, selling and administrative expenses increased 78.9% to $51.9 million, which it attributed to legal and professional fees relating to an internal investigation of its stock grant practices, as well as to various compensation pay-outs it made during the year.