Tuesday July 25, 7:31 am Eastern Time
Company Press Release
SOURCE: Cell Genesys, Inc.
Cell Genesys Reports Second Quarter Results
Ends Quarter With $238 Million in Cash
FOSTER CITY, Calif., July 25 /PRNewswire/ -- Cell Genesys,
Inc. (Nasdaq: CEGE - news) reported a net loss of $0.4
million or $.01 per share for the quarter ended June 30,
2000. This compares with a net loss of $0.6 million or $0.02
per share in the same quarter of 1999. Cell Genesys ended
the quarter with approximately $238 million in cash, cash
equivalents and short-term investments, up 376 percent from
$50 million at the end of 1999.
Revenues for the quarter ended June 30, 2000 were $5.0
million, compared with $7.2 million for the comparable
period in 1999, a decrease reflecting variations in the
timing of payments in the company's gene therapy and gene
activation collaborations and licensing agreements. The
company's research and development costs for the quarter
were $7.7 million compared with $6.3 million for the second
quarter of 1999. These increased research and development
expenses were due primarily to the company's advancing and
expanding clinical stage programs.
As previously reported, Cell Genesys ended the first quarter
of 2000 with $250 million in cash, cash equivalents and
short term investments derived primarily from the February
2000 sale of a portion of the company's holdings in Abgenix,
Inc., a former subsidiary. The decrease in cash in the
second quarter of 2000 was due principally to an estimated
tax payment relating to the sale of Abgenix stock. Following
the sale, Cell Genesys retains an approximately 12 percent
interest or 9.7 million shares of Abgenix common stock.
``Cell Genesys' exceptionally strong financial condition has
enabled us to expand our investment in our current product
programs with a continued emphasis on our GVAX® cancer
vaccine clinical programs and hemophilia gene therapy. GVAX®
cancer vaccine clinical trials are currently under way in
prostate cancer and lung cancer, and additional trials are
planned during the next year for pancreatic cancer, multiple
myeloma and leukemia,'' stated Stephen A. Sherwin, M.D.,
chairman and chief executive officer of Cell Genesys. ``In
addition, we are continuing to evaluate opportunities to use
our financial resources to acquire a late-stage cancer
product candidate to add to our growing product portfolio.''
Cell Genesys Highlights for the Second Quarter of 2000:
-- Progress in GVAX® clinical trials including a report
at the American Society of Clinical Oncology Meeting
describing a prolongation of disease-free survival in three
of eight patients at the highest dose levels in a Phase I
trial of GVAX® pancreatic cancer vaccine. A Phase II trial
in 60 patients with pancreatic cancer is expected to begin
this year.
-- A scientific publication in Blood, the journal of the
American Society of Hematology, describing positive
preclinical studies of GVAX® vaccine in combination with
bone marrow transplantation for leukemia. These results have
prompted the company to plan Phase I trials of GVAX® vaccine
in patients with multiple myeloma and leukemia during the
coming year.
-- A report at the American Society of Gene Therapy
Meeting that therapeutic levels of factor IX blood clotting
protein in non-human primate models of hemophilia B could be
detected following gene therapy with Cell Genesys'
proprietary adeno-associated viral (AAV) gene delivery
technology.
-- A publication in the Journal of Neuroscience that
behavioral recovery and nerve cell regeneration as well as
significant reinnervation of an affected area of the brain
could be achieved with AAV gene therapy in preclinical
studies in Parkinson's disease.
-- Issuance of additional gene therapy patents including
a U.S. patent for the company's AAV gene delivery
technology. Cell Genesys' patent estate is now comprised of
more than 235 issued or granted patents and more than 330
patents pending
Cell Genesys is focused on the development and
commercialization of cancer vaccines and gene therapies
to treat major, life-threatening diseases. The company is
conducting two multicenter Phase II human clinical
trials for its GVAX® cancer vaccine in prostate cancer, a
multicenter Phase I/II trial of GVAX® vaccine in lung cancer
and expects to initiate additional GVAX® vaccine trials in
pancreatic cancer, myeloma and leukemia during the coming
year. Preclinical stage programs include gene therapy for
hemophilia, cancer, cardiovascular disorders and Parkinson's
disease. Cell Genesys' assets outside gene therapy include
its approximately 12 percent ownership of Abgenix, Inc. and
the company's licensing program in gene activation
technology. For additional information, please visit the
company's web site at www.cellgenesys.com.
Cell Genesys is initiating quarterly conference calls
beginning with today's conference call which is scheduled
for 11:30 a.m. EDT. Investors may listen to the webcast of
the conference call live on Cell Genesys' web site. A replay
of the webcast will be available for one week following the
call. Alternatively, investors may listen to a replay of the
call by dialing 800-633-8284 from locations in the U.S. and
858-812-6440 from outside the U.S. The call-in replay will
be available through July 27, 2000, and please refer to
reservation number 15889818.
Statements made herein, other than statements of historical
fact, including statements about the application of the
company's financial assets, the value of its equity interest
in Abgenix, progress reports and plans for GVAX® clinical
trials, the future of the collaboration with Japan Tobacco
(JT), including the timing and amount of payments to Cell
Genesys, the company's progress and results and timing of
clinical trials and preclinical programs in cancer and
hemophilia gene therapy and others, marketability of
potential products and therapies and the nature of product
pipelines are forward-looking statements and are subject to
a number of uncertainties that could cause actual results to
differ materially from the statements made, including risks
associated with the success of research and development
programs, clinical trials, the regulatory approval process
for clinical trials, competitive technologies and products,
patents, continuation of corporate partnerships with JT and
others and the need for additional financings. For
information about these and other risks which may affect
Cell Genesys, please see the company's Annual Report on Form
10-K dated March 30, 2000 as well as Cell Genesys' reports
on Form 10-Q and 8-K and other reports filed from time to
time with the Securities and Exchange Commission.
CONTACT: Jennifer Cook Williams, Manager, Corporate
Communications of Cell Genesys, Inc., 650-425-4542.
SELECTED FINANCIAL INFORMATION
(unaudited)
STATEMENTS OF OPERATIONS
(in thousands Three months ended Six months ended
except per share data) June 30, June 30,
2000 1999 2000 1999
Revenue $4,985 $7,223 $9,585 $13,297
Operating expenses:
Research and development 7,747 6,277 14,151 11,814
General and administrative 1,574 1,253 3,230 2,349
Total operating expenses 9,321 7,530 17,381 14,163
Equity in loss of Abgenix -- 780 -- 1,982
Gain on sale of Abgenix
stock -- 190,236 --
Non-operating income 47 29 57 329
Interest income, net 3,701 468 5,660 827
Net income (loss) before
income tax (588) (590) 188,156 (1,692)
Provision for income tax 154 -- (47,786) --
Net income (loss) before
cumulative accounting
change (434) (590) 140,370 (1,692)
Cumulative effect of change
in accounting -- -- (10,767) --
Net income (loss) $(434) $(590) $129,603 $(1,692)
Basic income (loss) per
common share before
cumulative effect of
accounting change $(0.01) $ (0.02) 4.23 $ (0.05)
Accounting change -- -- (0.32) --
Basic income (loss)
per common share $(0.01) $ (0.02) 3.90 $ (0.05)
Diluted income (loss)
per common share before
cumulative effect of
accounting change $(0.01) $(0.02) $3.81 $(0.05)
Accounting change -- -- (0.29) --
Diluted income (loss)
per common share $(0.01) $(0.02) $3.51 $(0.05)
Weighted average shares
of common stock
outstanding - basic 33,267 31,253 33,209 31,109
Weighted average shares
of common stock
outstanding - diluted 33,267 31,253 36,880 31,109
CONDENSED BALANCE SHEETS
(in thousands)
June 30, December 31,
1999 1999
Cash, cash equivalents and
short-term investments $237,754 $50,287
Investment in Abgenix common stock 581,559 433,324
Other current assets 1,263 1,465
Property and equipment, net 3,730 4,198
Other assets 340 409
Total assets $824,646 $489,683
Current liabilities $53,453 $13,430
Long-term obligations 1,898 3,198
Series B preferred stock 16,429 7,679
Stockholders' equity 752,866 465,376
Total liabilities and stockholders' equity $824,646 $489,683
SOURCE: Cell Genesys, Inc. |
