Genta Incorporated Announces Third Quarter 1999 Results
Genta completes acquisition of Androgenics Technologies, Inc.
Genta's research collaborator reports prolonged survival expected in Phase
1/2a trial
Genta's G3139 is granted fast-track designation in malignant melanoma by the
FDA.
LEXINGTON, Mass., Nov. 12 /PRNewswire/ -- Genta Incorporated
(Nasdaq: GNTA) today announced its operating results for the third quarter
ended September 30, 1999. The Company reported a net loss applicable to
common shareholders totaling $2.6 million, or $0.13 per common share on
19.3 million shares for the three months ended September 30, 1999, compared to
a net loss of $1.0 million, or $0.14 per common share on 7.1 million shares,
for the same period in 1998. For the nine months ended September 30, 1999,
the Company's net loss applicable to common shareholders was $3.9 million, or
$0.24 per share, compared to a loss of $4.3 million, or $0.69 per share for
the same period in 1998.
The Company's total operating expenses for the three months ended
September 30, 1999 increased approximately $0.9 million over the same period
last year due primarily to $0.4 million additional material for clinical
trials, non-cash charges of $0.4 million for certain abandoned patents,
$0.3 million related to stock option grants to employees and for professional
services. This was partially offset by a $0.2 million reduction in the final
cost on a settlement with John Hopkins University. The net loss includes
$0.7 million in accrued dividends payable in the Company's common stock to
preferred stockholders.
"We had several significant achievements during the third quarter 1999,"
said Kenneth G. Kasses, Ph.D., Chairman, President and CEO of Genta. "In
August, we completed the acquisition of Androgenics Technologies, Inc. which
has a proprietary series of novel compounds that inhibit the growth of
prostate cancer cells in animal models. One of the activities of these
compounds is that they block both native and mutant androgen receptors.
"In September, Dr. Burkhard Jansen of the University of Vienna presented
an update on the Phase 1/2a clinical trial of G3139 in combination with DTIC
(Dacarbazine) on patients with Stage IV malignant melanoma. Dr. Jansen
reported that patients are experiencing a strong trend toward prolonged
survival while on this therapeutic regimen. Based on these results,
Dr. Jansen and his colleagues have proposed that this regimen should proceed
to a more definitive, Phase 3 trial comparing this combination regimen to DTIC
alone.
"More recently, the FDA granted fast-track designation to the Company's
bcl-2 antisense compound, G3139, for use in combination with DTIC for
treatment of advanced malignant melanoma. FDA's fast-track designation is
intended to expedite review of new drug applications for products that have
the potential to address unmet medical needs for serious, life threatening
diseases."
Genta Incorporated is a biopharmaceutical company whose strategy consists
of building a product and technology portfolio concentrating on cancer therapy
including its Anticode(TM) (antisense) products intended to treat cancer at
its genetic source. For more detailed information about Genta, please visit
our web site at www.genta.com .
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 Nine Months Ended
Sept. 30, Sept. 30,
1999 1998 1999 1998
Revenues:
Collaborative research
and development $-- $17 $-- $52
Operating expenses:
Research and development 924 321 2,767 1,707
General and administrative 1,080 829 3,394 2,574
Total cost and expenses 2,004 1,150 6,161 4,281
Loss from operations (2,004) (1,133) (6,161) (4,229)
Equity in net income
of joint venture 0 (29) 2,284 (114)
Other income (expense), net 55 88 (11) 265
Loss from continuing operations (1,949) (1,074) (3,888) (4,078)
Income (loss) from
discontinued operations -- 51 (189) (223)
Gain on sale of
discontinued operations -- -- 1,607 --
Net loss (1,949) (1,023) (2,470) (4,301)
Dividends accrued on
preferred stock (657) -- (1,400) --
Net loss applicable
to common shareholders $(2,606) $(1,023) $(3,870) $(4,301)
Net (loss) income per share
Continuing operations $(0.13) $(0.15) $(0.33) $(0.65)
Discontinued operations -- 0.01 0.09 (0.04)
Net loss applicable
to common shares $(0.13) $(0.14) $(0.24) $(0.69)
Shares used in computing
net loss per share 19,319 7,129 16,228 6,239
Condensed Consolidated Balance Sheet Data
Sept. 30, Dec. 31,
1999 1998
Cash, cash equivalents and
short-term investments $1,489 $2,458
Working capital 1,886 3,629
Total assets 4,615 7,551
Total stockholders' equity 2,580 2,959
SOURCE Genta Incorporated
CO: Genta Incorporated; Androgenics Technologies, Inc.
ST: Massachusetts
IN: MTC BIO
SU: ERN TNM
11/12/1999 08:06 EST prnewswire.com |
