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Genta Incorporated Announces First Quarter 2001 Results and Year-to-Date Highlights
BERKELEY HEIGHTS, N.J., May 3, 2001 /PRNewswire via COMTEX/ -- Genta Incorporated (Nasdaq: GNTA chart, msgs) announced today its operating results for the first quarter ended March 31, 2001. The Company reported a net loss applicable to common shareholders totaling $7.5 million, or $(0.15) per common share, for the three months ended March 31, 2001, compared to a net loss of $12.2 million, or $(0.44) per common share, for the same period in 2000.
The net loss for the three months ended March 31, 2001 includes a $1.0 million charge (against an outstanding note receivable) for settlement of a dispute with Promega Corporation regarding the May 1999 sale of Genta's wholly-owned specialty chemical subsidiary, JBL Scientific, Inc. The increase in research and development expense was primarily due to expanded clinical trials activity. The Company ended the first quarter with $43.6 million in cash and marketable securities.
Genta's Chief Executive Officer, Dr. Raymond P. Warrell, Jr., provided additional comments regarding year-to-date highlights, as follows:
Positive Market Response
"After an early decrease, our common stock price at the end of April was ahead for the year by approximately 8% during a very challenging time for the overall market. By comparison, during this same period the Nasdaq Composite Index decreased by approximately 15%. After initiating coverage on the Company in December 2000, Needham and Co. reiterated their positive recommendation last week. Analyst coverage was also initiated in the first quarter by Gruntal and Co.
Important Clinical Achievements
"In the first quarter, the Company launched additional "registration quality" trials of its lead antisense compound, Genasense(TM), in multiple myeloma, chronic lymphocytic leukemia (CLL), and acute myeloid leukemia. A separate single-agent study was started in CLL, and a new randomized study of Genasense(TM) is now planned in non-small cell lung cancer.
Significant Progress in Drug Pipeline
"Dr. Jack Jiang, Senior Director for Research & Development, has spearheaded the Company's progress in pulling additional products through our pipeline. Genta entered into contracts for manufacturing of drug substance and final filling for Ganite(R). This drug is the Company's first commercially approved product, which has an expected market launch in early 2002. Plans have also been developed to seek supplemental New Drug Applications (sNDAs) for Ganite(R) as an antitumor agent in patients with two different types of cancer. Contract manufacturing has been scaled up in the Androgenics program that involves novel small molecules for the treatment of patients with prostate cancer. Assuming continued progress, Genta should have lead compounds from each of its major research programs (Antisense, Gallium Products, and Androgenics) in clinical trials within 12 months.
Recruitment of Senior Leadership
"Two senior pharmaceutical industry executives, Bruce A. Williams and Loretta M. Itri, M.D., were recruited as Senior Vice President, Sales & Marketing, and Executive Vice-President, Clinical Research & Development, respectively. Genta now has a group of truly world-class senior managers whose collective experience in my judgment is unequaled by any other management team in the biotechnology sector.
Active Partnership Discussions
"Partnership discussions on the Genasense(TM) compound have accelerated. The Company is particularly focused on arrangements in Europe and Japan, while currently reserving all marketing rights in North America solely to Genta."
Genta Incorporated is a biopharmaceutical company with a diversified product portfolio that is focused on anticancer therapy. Genasense(TM), the Company's lead antisense compound, is currently in several Phase 3 clinical trials. Genta's product pipeline also comprises a portfolio of small molecules, including gallium-containing compounds for treatment of diseases associated with accelerated bone loss, Androgenics compounds for prostate cancer, and oligonucleotide decoy aptamers. Genta aims to become a direct marketer of its pharmaceutical products in the United States. For more detailed information about Genta, please visit our website at genta.com.
The statements contained in this press release that are not historical may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company's current views with respect to future events, but are subject to many risks and uncertainties, which could cause the actual results to differ materially. These risks and uncertainties include: the Company's ability to commercialize its pharmaceutical products; the Company's ability to obtain additional funding; uncertainties related to clinical and pre-clinical studies; the Company's ability to obtain regulatory approvals for its products; and the Company's ability to protect its proprietary rights. More information about these and other risks and uncertainties can be found in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2000. The Company does not undertake to update forward-looking statements. |
