Micromet, Inc. Reports Fourth Quarter and Full Year 2006 Financial Results (1)

CARLSBAD, California, March 16 /PRNewswire/ --

Micromet, Inc. (Nasdaq: MITI) ("Micromet" or the "Company"), a biopharmaceutical company focusing on the development of novel, proprietary antibody-based products for cancer, inflammatory and autoimmune diseases, today announced its financial results for the fourth quarter and the full year ended December 31, 2006. As a result of the reverse merger between Micromet AG and CancerVax Corporation that was completed on May 5, 2006, the financial information included below for the fiscal year 2005 and through May 5, 2006 is based solely on Micromet AG's historical financial statements without the inclusion of the financial results of CancerVax.

    
    Recent Highlights:
    -- Micromet received a US$10 million milestone payment from Merck Serono
       following the completion of phase 2 clinical trials of adecatumumab
       (MT201) and amended their collaboration agreement to continue
       development of adecatumumab.
    -- Micromet presented clinical results from a phase 2a trial of
       adecatumumab in metastatic breast cancer at the annual Breast Cancer
       Meeting in San Antonio, Texas.
    -- Micromet presented encouraging interim data from an ongoing phase 1
       clinical trial of MT103 during an oral presentation session at the
       48th Annual Meeting of the American Society of Hematology (ASH) in
       Orlando. MT103 is being developed for the treatment of patients with
       B cell-derived lymphomas and leukemias.
    -- Micromet published preclinical results for its humanized antibody D93
       in the International Journal of Cancer.
    -- Morphotek obtained an exclusive worldwide license from Micromet for an
       antibody targeting an antigen with potential for the treatment of
       certain cancers, including melanoma.
    -- Micromet granted TRACON Pharmaceuticals exclusive worldwide rights to
       develop and commercialize Micromet's D93 antibody with a novel mode of
       action for the treatment of cancer. Under the terms of the agreement,
       TRACON will pay Micromet an upfront license fee and milestone payments
       of more than US$100 million, if D93 is successfully developed and
       commercialized.

Financial Results:

Quarter Ended December 31, 2006

For the three months ended December 31, 2006, Micromet recognized revenues of US$13.8 million, compared to US$8.7 million for the same period in 2005. Included in 2006 revenues was the receipt of a US$10.0 million milestone payment from Merck Serono following the completion of two phase 2 clinical trials for adecatumumab. Total operating expenses were US$10.9 million for the three months ended December 31, 2006, compared to US$9.4 million for the same period in 2005. For the three months ended December 31, 2006, Micromet reported net income of US$3.4 million, or US$0.11 per basic and diluted share, compared to a net loss of US$6.7 million, or US$0.42 per basic and diluted share, for the same period in 2005. The positive net income is due primarily to the milestone payment received from Merck Serono.

Year Ended December 31, 2006

Revenues for the year ended December 31, 2006 were US$27.6 million, compared to US$25.7 million for 2005. For the year ended December 31, 2006, Micromet reported operating expenses of US$61.2 million, compared to US$35.4 million for the same period in 2005. In connection with the merger with CancerVax, Micromet recorded a non-recurring, non-cash charge of US$20.9 million in the second quarter due to the immediate write-off of CancerVax's in-process research and development programs. For the year ended December 31, 2006, net loss was US$34.0 million, or US$1.29 per basic and diluted share, compared to US$19.1 million, or US$3.70 per basic and diluted share, for 2005.

Micromet's cash and cash equivalents were US$24.3 million as of December 31, 2006. Based on the status of our development programs, we believe this cash balance is sufficient to fund our operations into the second quarter of 2008.

Summary of Recent Events:

Interim Data from an Ongoing Phase 1 Clinical Trial of MT103

On December 12, 2006, Micromet presented interim data from an ongoing phase 1 European clinical trial of MT103 (also known as MEDI-538) during an oral presentation session on "Targeted Therapy of Non-Hodgkin-Lymphoma (NHL)" at ASH. MT103, which is being co-developed with MedImmune, is a drug being developed for the treatment of patients with B cell-derived lymphomas and leukemias. The interim data indicated that MT103 is well tolerated overall at the dose levels administered, and Micromet cited the observation of clinical responses in heavily pre-treated, advanced-stage NHL patients.

Phase 2a Data in Metastatic Breast Cancer with Adecatumumab Presented at San Antonio Breast Cancer Meeting

On December 15, 2006, Micromet and its collaborative partner Merck Serono reported at the San Antonio Breast Cancer Meeting, San Antonio, Texas, on the outcome of a phase 2a trial testing the activity of adecatumumab in metastatic breast cancer. Adecatumumab, a fully human monoclonal antibody targeting tumor cells overexpressing the epithelial cell adhesion molecule (EpCAM), was assessed as a single agent for efficacy and safety in patients with EpCAM-positive metastatic breast cancer (N=109). This clinical trial evaluated adecatumumab at two dose levels in patients with high and low EpCAM expression. While the primary endpoint was not met, the results indicated dose dependent activity of adecatumumab, as well as a trend towards longer time to progression for patients expressing high levels of EpCAM on their primary tumor. Adecatumumab was generally well tolerated with the observation of a dose-dependent increase in the incidence of Grade 1-2 adverse events (AEs). Adecatumumab is also being evaluated in combination with docetaxel in an ongoing phase 1b clinical trial in Europe. The information from the current trials will be used to further refine the targeted patient population and dosing regimens, as well as to explore other solid tumor settings.

US$10 million Milestone Payment from Merck Serono

On December 4, 2006, Micromet announced that it had received a US$10 million milestone payment from Merck Serono. The milestone payment was made in connection with the completion of two phase 2 clinical trials with adecatumumab evaluated as a single agent for the treatment of patients with metastatic breast cancer and prostate cancer, respectively.

Merck Serono Collaboration Amendment

On December 5, 2006, Micromet announced that Merck Serono and Micromet had agreed to amend their collaboration agreement under which the two companies are developing adecatumumab. The companies are planning additional exploratory and clinical activities to identify the optimal dosing regimen, as well as explore additional indications for adecatumumab and initiate a new phase 1 monotherapy study for the treatment of patients with solid tumors which we plan to begin in 2007. Merck Serono will reimburse Micromet for its costs incurred in connection with the development program.

First International EpCAM Symposium

(CONTINUA)