CEGE earnings, not sure if this has been posted.
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. |
