(BSNS WIRE) Geron Corporation Reports 1999 Third Quarter Financial Resul
Geron Corporation Reports 1999 Third Quarter Financial Results
Business Editor & Health/Medical Writers
MENLO PARK, Calif.--(BW HealthWire)--Nov. 15, 1999--Geron Corp.
(Nasdaq:GERN) today reported financial results for the three and nine
months ended September 30, 1999.
For the three months ended September 30, 1999, the company
reported operating revenue of $1.3 million and operating expenses of
$8.2 million compared to $1.5 million and $4.8 million, respectively,
for the comparable 1998 period. Net loss for the third quarter was
$6.9 million or $(0.42) per share compared to $2.8 million or $(0.25)
per share in 1998.
Revenues recognized in the third quarter of 1999 include research
support payments under the company's collaboration agreement with
Pharmacia & Upjohn S.p.A. and royalties received under various
diagnostic licensing agreements. Operating expenses increased in the
three months ended September 30, 1999, as a result of continued
development of the company's research programs and the addition of
research funding at the Roslin Institute in Scotland.
For the nine months ended September 30, 1999, the company
reported operating revenue of $4.1 million and operating expenses of
$42.9 million compared to $5.3 million and $14.1 million,
respectively, for the comparable 1998 period. Net loss for the period
was $38.4 million or $(2.55) per share compared to $7.1 million or
$(0.63) per share in 1998.
Net loss and operating expenses for the nine months ended
September 30, 1999 reflect the acquisition of Roslin Bio-Med in the
second quarter of 1999. The acquisition was accounted for using the
purchase method of accounting with the purchase price being allocated
among the acquired basic research, the research agreement with the
Roslin Institute and the net tangible assets acquired.
The value of the research technology of $23.4 million has been
reflected as acquired research expense and the value of the research
agreement of $17.2 million has been capitalized as an intangible
asset.
In September 1999, the company sold $12.5 million in aggregate
principal amount of series C convertible debentures to an
institutional investor. The debentures are convertible by the holder
at a fixed price of $10.25 per share. In addition, the company issued
warrants to purchase 1,000,000 shares of common stock at $12.50 per
share and 100,000 shares of common stock at $12.75 per share. The
company's consolidated cash and investments were $46.5 million as of
September 30, 1999.
Geron Corp. is a biopharmaceutical company focusing on
discovering, developing and commercializing therapeutic and diagnostic
products to treat cancer and other age-related chronic degenerative
diseases.
Geron's technology platform includes the discovery of small
molecule inhibitors of telomerase for cancer therapy; telomere and
telomerase-based research and diagnostic tools; telomerase activation
to extend the replicative lifespan of normal cells; and complementary
stem cell, gene therapy and nuclear transfer approaches to restore the
function of degenerating organs.
To receive an index and copies of recent press releases, call
Geron's News on Demand toll-free fax service, 1-800-782-3279.
Additional information about the company can be obtained at
geron.com
The company desires to take advantage of the "safe harbor"
provision of the Private Securities Litigation Reform Act of 1995.
Specifically, the company wishes to alert readers that the matters
discussed in this press release may constitute forward-looking
statements that are subject to certain risks and uncertainties,
including risks inherent in research and development efforts, reliance
on collaborative partners, enforcement of patents and proprietary
rights, need for future capital, potential competition and uncertainty
of regulatory approvals or clearances. Actual results may differ
materially from the results anticipated in these forward-looking
statements. Additional information on potential factors that could
affect the company's financial results is included in the company's
Quarterly Report on Form 10-Q for the quarter ended September 30,
1999.
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GERON CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
(In thousands,
except share and
per share amounts) 1999 1998 1999 1998
---- ---- ---- ----
Revenues from
collaborative
agreements $ 1,250 $ 1,494 $ 3,994 $ 5,212
License fees
and royalties 26 34 123 76
-------- -------- -------- --------
Total revenues 1,276 1,528 4,117 5,288
Operating expenses:
Research and
development 7,028 3,839 15,973 11,272
Acquired research
technology -- -- 23,403 --
General and
administrative 1,210 994 3,572 2,814
-------- -------- -------- --------
Total operating
expenses 8,238 4,833 42,948 14,086
-------- -------- -------- --------
Loss from operations (6,962) (3,305) (38,831) (8,798)
Interest and other
income 782 627 2,435 1,994
Interest and other
expense (760) (83) (1,887) (249)
-------- -------- -------- --------
Net loss $ (6,940) $ (2,761) $(38,283) $ (7,053)
Accretion of redemption
redeemable
preferred stock -- -- (73) --
-------- -------- -------- --------
Net loss applicable
to common
stockholders $ (6,940) $ (2,761) $(38,356) $ (7,053)
======== ======== ======== ========
Basic and diluted net
loss per share: $ (0.42) $ (0.25) $ (2.55) $ (0.63)
======== ======== ======== ========
Shares used in
calculation of
basic and diluted
net loss per
share: 16,499,403 11,236,561 15,043,967 11,125,258
========== ========== ========== ==========
CONDENSED CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, DECEMBER 31,
(In thousands) 1999 1998
(UNAUDITED)
Current assets:
Cash and cash equivalents $ 27,794 $ 16,360
Short-term investments 13,904 8,109
Interest and other
receivables 599 661
Other current assets 601 685
-------- --------
Total current assets 42,898 25,815
Long-term investments 4,759 15,954
Property and equipment, net 3,948 2,336
Intangible assets 15,993 --
Deposits and other assets 625 351
-------- --------
$ 68,223 $ 44,456
======== ========
Current liabilities 6,752 3,554
Noncurrent liabilities 36,153 8,101
Redeemable convertible
preferred stock -- 3,610
Stockholders' equity 25,318 29,191
-------- --------
$ 68,223 $ 44,456
======== ========
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CONTACT: Geron Corp.
David L. Greenwood, 650/473-7700
Chief Financial Officer
Nancy Robinson, 650/473-7700
Investor and Media Relations
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: MEDICAL PHARMACEUTICAL BIOTECHNOLOGY EARNINGS
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