Genta Receives $72 Million in Equity Purchase From Aventis Pursuant ...
BERKELEY HEIGHTS, N.J., Jun 3, 2002 /PRNewswire-FirstCall via COMTEX/ -- Genta Incorporated (NASDAQ: GNTA) announced today that Genta has received $72 million in gross proceeds from Aventis pursuant to a purchase of common stock, according to terms of the recently concluded collaboration for Genasense(TM), Genta's lead anticancer compound. Genasense is a targeted inhibitor of Bcl-2, a protein that is overexpressed in many solid and hematologic tumors. The drug is currently in multiple Phase 3 clinical trials for use in combination with chemotherapy for both hematologic cancers and solid tumors.
The equity purchase was concluded following Genta's achievement of a clinical research milestone. In this transaction, Aventis has purchased 6,665,498 shares at $10.79 per share or 9.99% of outstanding voting shares. The stock purchase is subject to a minimum 2-year holding period, certain other transfer restrictions, and a standstill agreement.
"This investment marks the final installment of upfront payments to Genta, pursuant to our recent collaboration agreement with Aventis," said Dr. Raymond P. Warrell, Jr., Chairman and CEO of Genta. "Although Genta had an option to sell an additional $3 million of common stock to Aventis, the additional amount would have required a separate review pursuant to Hart-Scott-Rodino regulations. Following the investment, Genta's cash position has increased to approximately $166 million. We also anticipate a substantial decrease in Genasense-related expenditures, attendant to cost reimbursements from Aventis after the signing date. Reimbursements set forth in the agreement will occur 60 days after the close of the quarter in which the expense was incurred. Therefore, the first payments will occur late in the third quarter. In aggregate, these funds will enable us to accelerate completion of preclinical programs for our other pipeline products. We are highly enthusiastic about this partnership, having rolled out the early stages of our collaborative programs at the ASCO meeting earlier this month."
The Company will also be hosting a conference call to discuss important financial and clinical updates on Monday, June 3 at 8:30 a.m. EDT. The conference call can be accessed as follows:
U.S./Canada: Dial (888) 529-1867, reference Genta Incorporated. International: Dial (706) 643-1282, reference Genta Incorporated.
A replay will be available two hours after the completion of the conference call and archived for 30 days, accessible as follows:
U.S./Canada: Dial (800) 642-1687, enter 4382561 for conference ID. International: Dial (706) 645-9291, enter 4382561 for conference ID.
Genta Incorporated is a biopharmaceutical company with a diversified product portfolio that is focused on anticancer therapy. The Company's research platform is anchored by DNA Medicines, particularly applications of antisense and decoy aptamers. Genasense(TM), the Company's lead compound, is currently in Phase 3 trials for melanoma, multiple myeloma, chronic lymphocytic leukemia, and non-small cell lung cancer. The drug is also being studied in Phase 2 trials for leukemia, lymphoma, and prostate and small cell lung cancers. Genta's drug pipeline also comprises a portfolio of small molecules, including Gallium Products for treatment of cancer and accelerated bone loss, and Androgenics Compounds for treatment of prostate cancer. Genta aims to become a direct marketer of its pharmaceutical products in North America. For more information about Genta, please visit our website at: www.genta.com.
The statements contained in this press release and the conference call to follow that are not historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the expectations, beliefs, intentions or strategies regarding the future. Without limiting the foregoing, the words "anticipates," "believes," "expects," "intends," "may" and "plans" and similar expressions are intended to identify forward-looking statements. The Company intends that all forward-looking statements be subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company's views as of the date they are made with respect to future events, but are subject to many risks and uncertainties, which could cause the actual results of the Company's to differ materially from any future results expressed or implied by such forward-looking statements. For example, the results obtained in pre-clinical or clinical studies may not be indicative of results that will be obtained in future clinical trials, delays in the initiation or completion of clinical trials may occur as a result of many factors, and clinical trials may not yield results that are suitable for regulatory approvals. Further examples of such risks and uncertainties also include, but are not limited to: the obtaining of sufficient financing to maintain the Company's planned operations; timely development, receipt of necessary regulatory approvals, and acceptance of new products; the successful application of the Company's technology to produce new products; the obtaining of proprietary protection for any such technology and products; the impact of competitive products and pricing and reimbursement policies; governmental approvals of the agreements; and changing market conditions. The Company does not undertake to update forward-looking statements. Although the Company believes that the forward-looking statements contained herein are reasonable, they can give no assurances that the Company's expectations are correct. All forward looking statements are expressly qualified in their entirety by this cautionary statement and other factors detailed in both Company reports as filed with the Securities and Exchange Commission.
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SOURCE Genta Incorporated
CONTACT: Tara Spiess, Director of Investor Relations and Corporate Communications of Genta Incorporated, +1-908-286-3980; or Hala Bashir, media, of Noonan-Russo Communications, +1-212-696-4455, ext., 356, or Brian Korb, I.R. of Trout Group, +1-212-477-9007, ext. 23, both for Genta Incorporated
URL: genta.com prnewswire.com
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