Therapeutic Antibodi - 2nd Quarter & Interim Results

RNS No 6997r
THERAPEUTIC ANTIBODIES INC
14th August 1997

THERAPEUTIC ANTIBODIES INC
ANNOUNCES SECOND QUARTER RESULTS

LONDON, 14 AUGUST, 1997 - Therapeutic Antibodies Inc (TAb)
today announced its second quarter results and product
development progress.  The unaudited financial results will be
filed as Form 10-Q with the Securities and Exchange Commission
in the United States.

SECOND QUARTER FINANCIAL RESULTS:

TAb's revenues for the first six months of 1997 increased by
111% to $823,000 from $391,000 for the same period of 1996.
This increase is attributed to increases in interest income
and licensing fees.  Interest income increased to $488,000 in
the first six months of 1997 from $33,000 in the first six
months of 1996.  TAb received a licensing fee of $62,000 in
the first six months of 1997 for the execution of a
collaboration agreement for BrownTAb(TM), the Company's
Australian Brown snake antivenom.  Product sales and contract
revenue of $219,000 for the six months ended June 30, 1997
remained about even with the amount in the first six months of
1996 of $223,000.

Expenses for the first half of 1997 increased by 27% to
$9,459,000 from $7,456,000 for the same period of 1996.
Research and development expenses during the same periods
increased by 39% to $5,475,000 from $3,947,000 as a result of
increased development activities primarily associated with the
Company's CroTAb(R), CytoTAb(TM), and DigiTAb(TM).  These
costs are related to manufacturing TAb's products for clinical
trials, conducting clinical trials and ensuring that the
necessary quality control and assurance procedures are in
place.  Costs associated with regulatory compliance, a
component of research and development expenses, have also
increased as more of the Company's products enter advanced
stages of development and as CroTAb(R) progresses through the
FDA licensing process.

The Company's net loss for the six months ended 30 June 1997
was $8.6 million compared to a net loss of $7.1 million for
the same period in 1996.  These financial results meet the
Company's expectations for the period.

PRODUCT DEVELOPMENT PROGRESS:

CytoTAb(TM) - Anti-Tumor Necrosis Factor (TNF):

In light of recent developments in the sepsis field, the
Company has undertaken and completed a strategic review of its
CytoTAb(TM) program.  As a result of this strategic review,
the Company is extending CytoTAb(TM)'s development to a
growing number of important indications in which the patient
populations are quite homogeneous and the onset of high levels
of TNF can be readily predicted.  Furthermore, the sepsis
study is being adjusted in entry criteria and in subgroup
evaluation.

CytoTAb(TM) is a polyclonal antibody which binds to multiple
sites on the TNF target, demonstrating strong affinity and
avidity; and the Company believes that this results in more
complete neutralization.  CytoTAb(TM) is distinguished from
monoclonal antibody products which bind to single sites.

CytoTAb(TM)'s ability to neutralize TNF was clearly
demonstrated in a study reported in the New England Journal of
Medicine (August 1996) where CytoTAb(TM) bound TNF associated
with Jarisch Herxheimer Reaction (JHR) with significant
mitigation of symptoms.

The status for CytoTAb(TM) indications is as follows:

*    Sepsis:  Very strict enrollment criteria is being
     instituted for TAb's 300 patient Phase IIb sepsis study.
     Its objective will be to identify a population that will
     have the greatest likelihood of benefiting from
     CytoTAb(TM) therapy.  The patients enrolled in the study
     will have severe sepsis and multi-organ failure.  The
     Company is seeking to test the hypothesis that treatment
     with CytoTAb(TM) for five days will protect patients from
     further multiple organ dysfunction caused by TNF, will
     allow organ function recovery and will prolong life.

*    Organ Transplant Rejection:  An Investigational New Drug
     (IND) application with the Food and Drug Administration
     (FDA) is being submitted in order to begin clinical
     evaluation of CytoTAb(TM) in OKT3 treatment in transplant
     rejection patients.

*    Malaria:  A Phase II study of CytoTAb(TM) is being
     launched this month in 100 patients with cerebral malaria
     in Southeast Asia.

*    Jarisch-Herxheimer Reaction:  An IND application is being
     prepared for the use of CytoTAb(TM) in the therapy of
     this serious complication associated with the treatment
     of syphilis in the United States.  Proof of principle of
     this application was clearly established in the above
     mentioned study in the New England Journal of Medicine.

*    Acute Graft vs. Host Disease:  CytoTAb(TM) will be given
     to stem cell and bone marrow transplant recipients to
     prevent the severe TNF related complications associated
     with Acute Graft vs. Host Disease.

*    Other indications:  TAb is actively evaluating a variety
     of indications such as acute congestive heart failure
     (CHF) and coronary artery bypass graft surgery (CABG).
     The Company believes that trials aimed at these
     indications will require relatively few patients and can
     be conducted rapidly.

The Company, in employing clearly defined patient populations
such as those in organ transplant rejection associated with
induced cytokine release syndrome, seizes unique opportunities
to treat TNF associated side effects.  In some of these
conditions the timing and effects of cytokine release closely
resemble those of Jarisch-Herxheimer Reaction.

Antivenoms:

In its July 1997 issue, the Annals of Emergency Medicine
reported favorably on the Company's antivenom clinical trials
in the United States with its product CroTAb(R).  The
publication, noted: "the antivenom produced remarkable results
... proving to be 5.2 times more potent that the current
antivenom."  TAb is finalizing the applications for regulatory
approval of CroTAb(R).

Following a successful PhaseI/II trial, the Company initiated
during the second quarter a Phase III study of its
PulchellaTAb(TM) antivenom product for use in Southeast Asia.

Anti-Drugs:

TAb is completing the analysis of a clinical study with the
Company's digoxin-immune Fab antibodies.  The study, conducted
in Sri Lanka, determined the clinical utility of these
antibodies in reversing certain cardiac toxicity.  These
results, along with additional laboratory investigations, will
serve as a basis for expanded indications for this product.

MANUFACTURING AGREEMENT:

The Company is negotiating a new agreement with F.H. Faulding
& Co., Ltd., Australia's largest pharmaceutical company.
Under the agreement, F.H. Faulding & Co. will fill and finish
certain TAb products for commercial distribution at their FDA
approved manufacturing facilities.

Faulding and TAb are also collaborating in the development of
several of TAb's emergency room products in Australia and
Southeast Asia, as well as CytoTAb(TM) research efforts in
malaria.

TAb is an international biopharmaceutical group specializing
in research, development and production of highly purified
polyclonal antibodies for the treatment of diseases and other
life-threatening conditions for which satisfactory therapies
have generally not previously existed.

CONTACTS:

Therapeutic Antibodies Inc
001 615-327-1027                   Martin Brown
0171 982 6058                      John Landon

Brunswick
0171 404-5959                      Stephen Breslin
                                   Frank De Maria

Copies of this announcement and Form 10-Q can be obtained
from:

Mr. Michael Hamblin
TAb London Ltd
14-15 Newbury Street
London, EC1 7HA
0171 606-8637

THERAPEUTIC ANTIBODIES INC. AND SUBSIDIARIES
(A Development Stage Company)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

                                                            For the
                                                           Cumulative
                                                          Development
                                                             Stage
                      For the six        For the Three       from
                        Months             Months       August 10,
                     Ended June 30       Ended June 30       1984
                                                          (inception)
                                                            Through
                                                        June 30, 1997
                     1997      1996     1997    1996
                  ________  _______ _________ ________ ________
Revenues:
 Sales and contract
 revenue         $219,195    222,995   131,780   186,235  2,617,424
 Licensing revenue 62,305          -         -         -    305,805
 Interest income  488,230     32,908   204,372    13,913  1,524,405
 Grant income      20,432     97,853    10,226    88,281    547,382
 Value-added tax
 and insurance
 recoveries             -          -         -         -    577,170
 Foreign currency
 gains                  -          -    28,297         -  1,785,984
 Other             32,636     37,104    17,479    22,747    173,442
                 ________   ________  ________  ________   ________
                  822,798    390,860   392,154   311,176  7,531,612
                 ________   ________  ________  ________   ________

Expenses:
 Cost of sales and
 contract revenue  73,453     56,182    20,793    46,511    507,870
 Research and
 development    5,474,934  3,947,420 2,884,248 2,222,349 36,679,996
 General and
 administrative 1,630,240  1,171,726   988,568   611,934 10,386,909
 Marketing and
 distribution     246,935    169,333   159,281   107,271  1,608,890
 Depreciation and
 amortization     771,414    701,784   403,662   368,584  4,639,162
 Interest         535,359    607,539   252,992   292,734  3,263,983
 Debt conversion
 expense                -    801,597         -         -    801,597
 Foreign currency
 losses           715,691          -         -         -    715,691
 Other             10,496          -    10,496         -    127,903
                 ________   ________  ________  ________   ________
                9,458,522  7,455,581 4,720,040 3,649,383 58,732,001
                 ________   ________ ________   ________   ________
    Net loss $(8,635,724)(7,064,721)(4,327,886)(3,338,207)(51,200,389)
                ========   ========   ========  ========    ========

Net loss per
share             $(0.38)   $(0.42)   $(0.19)   $(0.19)   $(5.43)
                  ========   ======== ======== ========   ========
Weighted average
shares used in
computing net
loss per share 22,569,850 17,001,819 22,776,008 17,154,294  9,424,029
                 ========   ======== ========   ========   ========

THERAPEUTIC ANTIBODIES INC. AND SUBSIDIARIES
(A Development Stage Company)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

ASSETS                            June 30,      December 31,
                                   1997          1996
                                   
Current assets:                                  
 Cash and cash equivalents         $5,698,092    $20,502,536
 Short-term investments            8,848,193     2,002,266
 Trade receivables                  128,830        101,281
 Value added tax receivable         211,478        251,186
 Inventories                        485,829        400,167
 Other current assets               573,478        474,412
                                   ___________   ____________
                                                 
       Total current assets      15,945,900    23,731,848
                                                 
Property and equipment, net        11,950,117    12,682,680
Patent costs, net                   629,180        529,228
Other assets, net                   199,036        236,234
                                   ___________   ____________
       Total assets                $28,724,233   $37,179,990
                                   ===========   ============
                                                 
         LIABILITIES AND STOCKHOLDERS' EQUITY
                                                 
Current liabilities:
 Accounts payable and accrued      $950,311      $ 936,591
expenses
 Accrued interest                   259,912        161,367
 Current portion of notes payable  1,266,555     1,446,327
                                   ___________   ____________
       Total current liabilities   2,476,778     2,544,285
                                                 
Notes payable, net of current      8,042,461     8,592,755
portion
Deferred revenue                    582,671        656,170
Other liabilities                   166,450        171,250
                                   ___________   ____________
       Total liabilities           11,268,360    11,964,460
                                   ___________   ____________
                                                 
Stockholders' equity:                            
 Common stock - par value $.001                  
per share; 30,000,000 shares
authorized; 23,178,323 -
June 30, 1997 and 22,353,692 -       23,178         22,354
December 31, 1996 issued and
outstanding
Additional paid-in capital         68,231,598    67,082,048
Deficit accumulated during the     (51,200,389)  (42,564,665)
development stage (1984-1997)
Cumulative translation adjustment   401,486        675,793
                                   ___________   ____________
     Total stockholders' equity    17,455,873    25,215,530
                                   ___________   ____________
     Total liabilities and         $28,724,233   $37,179,990
     stockholders' equity          ==========    ============

THERAPEUTIC ANTIBODIES INC. AND SUBSIDIARIES
(A Development Stage Company)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)                  For the Six Months     For the
                             Ended                  Cumulative
                             June 30,               Development
                             ____________________   Stage from
                                                    August 10,
                                                    1984
                                                    (inception)
                                                    Through June
                                                    30 1997
                             1997        1996       _____________
                                                    
Cash flows from operating                           
activities:
 Net loss                  $(8,635,724) (7,064,721) (51,200,389)

 Adjustments to reconcile net
 loss to net cash used in
 operating activities:
 Depreciation and             771,414     701,784    4,639,162
amortisation
 Foreign currency (gain)      715,691           -   (1,070,293)
loss
 Warrant expense                    -           -      193,994
 Compensation expense           5,001           -       67,432
 Debt conversion expense            -     801,597      801,597
 Changes in:                                        
  Trade receivable              2,737    (129,710)    (72,355)
  Inventories                (85,663)     (5,656)    (371,656)
  Other current assets       (102,348)     57,509    (571,071)
  Accounts payable and         22,883    (81,875)      929,715
  accrued expenses
  Accrued interest            105,405     128,786      882,407
  Deferred revenue           (47,179)           -      266,491
  Other                             -           -     (43,489)
                             __________  __________ _____________
                 
Net cash used in operating   (7,247,783) (5,592,286) (45,548,455)
activities                 _____________ __________  __________

Cash flows from investing                           
activities:
  Purchase of property and   (544,758)   (796,320)  (12,531,201)
  equipment
  Patent costs               (107,802)    (80,331)     (659,090)
  Purchase of short term    (8,155,045)         -   (10,157,311)
  investments                
  Maturity of short term     1,000,000          -     1,000,000
  investments
  Other                             -     (31,908)       69,750
                             __________  __________ _____________
 
Net cash used in investing   (7,807,605) (908,559)  (22,277,852)
activities                    __________ __________ ___________

Cash flows from financing                           
activities:
 Proceeds from notes           42,200    5,538,772   15,833,600
payable
 Payments on notes payable   (556,461)   (946,326)   (5,434,721)
 Proceeds from line of          8,143           -     3,317,524
credit
 Payments on line of credit  (100,296)   (1,012,076) (3,309,233)
                                        
 Proceeds from convertible          -     1,081,732   9,655,000
 debt,
 net
 Payments on convertible            -           -   (4,320,325)
debt
 Proceeds from issuance of   1,145,373    610,022   56,798,867
stock,
 net
 Proceeds from issuance of          -           -       65,000
 warrants
 Other                              -           -    (186,782)
                             __________  __________ _____________

Net cash provided by          538,959    5,272,124  72,418,930
financing activities         __________  __________ _____________

Effect of exchange rate      (288,015)      (426)    1,105,469
changes on cash and cash     __________  __________ _____________
equivalents
                                                    
Net increase (decrease) in (14,804,444) (1,229,147)  5,698,092
cash and cash equivalents
                                                    
Cash and cash equivalents    20,502,536  3,397,082           -
at beginning of period       __________  __________ _____________
 
Cash and cash equivalents    $5,698,092  $2,167,935 $5,698,092
at end of period             ==========  ========== =============


END