Nabi Biopharmaceuticals reduces cash burn rate by 81% from first quarter

By Lisa Kerner

Charlotte, N.C., Oct. 25 - Nabi Biopharmaceuticals said it had cash, cash equivalents and marketable securities of $64.9 million at the end of the third quarter of 2006 and used $4.3 million for operating activities, compared with $18.4 million used during the comparable 2005 quarter.

The company improved its cash burn rate by 63% from the second-quarter 2006 and 81% from the first-quarter 2006.

"During the third quarter we have continued to significantly reduce our cash burn rate," chairman, chief executive officer and president Thomas H. McLain said in a company news release.

"The sale of PhosLo will allow us to make further reductions in selling, general and administration expenses."

The company will report revenues of $26.4 million from PhosLo (calcium acetate) as discontinued operations beginning the third-quarter 2006, compared with $30.5 million in the third-quarter 2005.

Nabi said it started a voluntary review of its equity grant programs in response to shareholders' questions. The governance review has been completed and no fraud, back dating or spring loading issues identified.

The company is working with Banc of America Securities LLC to explore strategic alternatives to enhance shareholder value.

Nabi is a biotechnology company based in Boca Raton, Fla.

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