CytoRad dispute lowers Cytogen revenues

March 1, 1995

Monoclonal antibody developer Cytogen reported a sharp drop in its 1994 revenues as a resultof its dispute last year with sister company CytoRad. Cytogen,of Princeton, NJ, had total revenues for 1994 (end-December) of$2.5 million, down from $10.4 million

Monoclonal antibody developer Cytogen reported a sharp drop in its 1994 revenues as a resultof its dispute last year with sister company CytoRad. Cytogen,of Princeton, NJ, had total revenues for 1994 (end-December) of$2.5 million, down from $10.4 million in 1993. Cytogen's net lossfor the year was $32.8 million, compared to a net loss of $29.2million a year ago.

The revenue shortfall was caused by the absence of contractrevenue from CytoRad, which had contributed $7.9 million to Cytogen'sbalance sheet in 1993. CytoRad, formed to fund R&D at Cytogen,cut off its contributions last year after a dispute over theirbusiness relationship (SCAN 6/29/94 and 4/20/94).

Cytogen is hoping to put the CytoRad affair behind it by acquiringthat company, and Cytogen reported that its stockholders approvedthe acquisition at a special meeting held on Feb. 23.

Outside of the CytoRad shortfall, Cytogen's 1994 numbers painteda picture of a company that is cutting operating expenses andexperiencing increased sales of its OncoScint CR/OV monoclonalantibody imaging agent. OncoScint product sales for the fourthquarter of 1994 were $480,000 compared to $259,000 in the sameperiod a year ago. Cytogen cut operating expenses 16% comparedto the year before. The company recorded a charge of $4.1 millionin the fourth quarter in connection with the CytoRad acquisitionas well as its reacquisition of OncoScint marketing rights fromKnoll Pharmaceutical.