Genta Incorporated Announces Second Quarter 1999 Results
Highlights
-- Genta completes the sale of its wholly-owned specialty chemicals
subsidiary for approximately $5 million in cash.
-- Three of Genta's research collaborators present their clinical findings
with the Company's lead compound, G3139, at ASCO's annual meeting in
mid-May.
-- Genta and the National Cancer Institute enter into a Cooperative
Research & Development Agreement.
-- A phase 1/2a study is initiated at Georgetown University Medical
Center's Lombardi Cancer Center.
-- Genta receives a notice of allowance of several important claims for a
patent from the United States Patent and Trademark Office.
LEXINGTON, Mass., Aug. 4 /PRNewswire/ -- Genta Incorporated (Nasdaq: GNTA)
today announced its operating results for the second quarter ended
June 30, 1999. The Company reported a net loss applicable to common
shareholders totaling $0.7 million, or $(0.04) per common share on
16.4 million shares for the three months ended June 30, 1999, compared to a
net loss of $1.5 million, or $(0.26) per common share on 5.7 million shares,
for the same period in 1998. For the six months ended June 30, 1999, the
Company's net loss applicable to common shareholders was $1.3 million, or
$(0.09) per share, compared to a loss of $3.3 million, or $(0.57) per share
for the same period in 1998.
The Company's total operating expenses for the three months ended
June 30, 1999 increased approximately $0.6 million over the same period last
year due primarily to $0.1 million additional material for clinical trials,
$0.1 million for accounting fees and non-cash charges of $0.1 million for
certain abandoned patents and $0.2 million related to stock options for
employees and professional services. The net loss includes a $1.6 million
gain from discontinued operations related to the sale of substantially all the
assets of its wholly-owned specialty chemicals subsidiary, JBL Scientific,
Inc. and $0.4 million in accrued dividends payable in the Company's common
stock to preferred stockholders.
"We had several significant achievements during the second quarter 1999,"
said Kenneth G. Kasses, Ph.D., Chairman, President and CEO of Genta. "In May,
we completed the sale of substantially all the assets of our wholly-owned
specialty chemicals subsidiary to Promega Corporation for approximately
$5 million in cash including $0.25 million that may be withheld by Promega
while the closing balance sheet of JBL is evaluated, a promissory note for
$1.2 million and pharmaceutical development services supporting Genta's
development of its lead cancer therapeutic candidate, G3139."
"Also in May, three of our collaborators presented their clinical findings
with our lead compound, G3139, at the American Society of Clinical Oncology's
annual meeting. Additionally, we entered into a Cooperative Research and
Development Agreement (CRADA) with the National Cancer Institute to expand the
development program for G3139 into three additional cancers, small cell lung,
colorectal and leukemia. We also initiated a Phase 1/2a study at Georgetown
University Medical Center's Lombardi Cancer Center."
"More recently, we received a notice of allowance of several important
claims for a patent from the United States Patent and Trademark Office. We
believe these allowed claims will offer broad protection for the use of
antisense, including Genta's lead drug candidate G3139, targeted to the bcl-2
gene to sensitize cancer cells or to kill cancer cells either with bcl-2
antisense alone or in combination with chemotherapy agents."
Genta Incorporated is a biopharmaceutical company whose strategy consists
of building a product and technology portfolio concentrating on its
Anticode(TM) (antisense) products intended to treat cancer at its genetic
source. Please visit our newly revised web site at genta.com for
more detailed information on Genta and our G3139 development program.
To receive Genta Incorporated's latest news release and other corporate
announcements via fax, at no cost, dial 1-800-PRO-INFO; use the Company's
symbol GNTA. Or visit The Financial Relations Board's web site at
www.frbinc.com .
The statements contained in this press release 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 expectations 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 to differ materially from any future results expressed or
implied by such forward-looking statements. For example, the results obtained
in pre-clinical studies may not be indicative of results that will be obtained
in clinical trials; Genta has not successfully completed human clinical trials
of a product based on antisense technology; and delays in the completion of
clinical trials as a result of delays in patient enrollment or other factors
may occur. 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; the 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; and the changing of market
conditions. The Company does not undertake to update forward-looking
statements.
Genta Incorporated
Selected Condensed Consolidated Financial Data (Unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Revenues:
Collaborative research
and development $-- $17 $-- $35
Cost and expenses:
Research and development 753 572 1,843 1,386
General and administrative 1,202 750 2,314 1,745
Total cost and expenses 1,955 1,322 4,157 3,131
Loss from operations (1,955) (1,305) (4,157) (3,096)
Equity in net loss
of joint venture 0 71 2,284 (85)
Other income (expense), net 32 95 (67) 176
Loss from continuing
operations (1,923) (1,139) (1,940) (3,005)
Loss from discontinued
operations 0 (376) (189) (273)
Gain on sale of discontinued
operations 1,607 0 1,607 0
Net loss (316) (1,515) (522) (3,278)
Dividends accrued on
preferred stock (400) 0 (742) 0
Net loss applicable to
common shareholders (716) (1,515) (1,264) (3,278)
Net (Loss) income per share
Continuing operations ($0.14) ($0.19) ($0.19) ($0.52)
Discontinued operations $0.10 ($0.07) $0.10 ($0.05)
Net loss applicable
to common shares ($0.04) ($0.26) ($0.09) ($0.57)
Shares used in computing net
loss per share 16,393 5,745 14,657 5,736
Condensed Consolidated Balance Sheet Data
June 30, 1999 December 31, 1998
Cash, cash equivalents and
short-term investments $3,726 $2,458
Working capital $2,767 $3,629
Total assets $6,540 $7,551
Total stockholders' equity $3,946 $2,959
SOURCE Genta Incorporated
CO: Genta Incorporated
ST: Massachusetts
IN: MTC
SU: ERN
08/04/99 07:59 EDT prnewswire.com |
