Cell Genesys Reports First Quarter Results
Ends Quarter with $230.3 Million in Cash
FOSTER CITY, Calif., April 22 /PRNewswire-FirstCall/ -- Cell Genesys, Inc. (Nasdaq: CEGE - news) reported a net loss of $8.8 million or $0.25 per share for the quarter ended March 31, 2002. This compares with a net loss of $203,000 or $0.01 per fully diluted share in the same quarter of 2001. The increase in net loss is due primarily to increased research and development expenses to support the company's expanded portfolio of clinical programs. Cell Genesys ended the quarter with approximately $230.3 million in cash, cash equivalents and short-term investments.
Revenues for the quarter ended March 31, 2002 were $4.6 million compared with $6.0 million for the comparable period in 2001. The company's research and development costs for the quarter were $16.6 million, compared with $10.7 million for the first quarter of 2001. The increase can be attributed primarily to the company's expanding clinical trials for both its GVAX® cancer vaccines and oncolytic virus therapies. Capital expenditures for the quarter, relating primarily to the construction of the company's manufacturing facilities for Phase III trials and market launch, were $15.3 million.
``Cell Genesys remains on track with respect to its expense targets for 2002 as the company continues to advance seven clinical stage programs and take the steps necessary to ensure that the infrastructure is in place for Phase III clinical trials beginning in late 2002,'' stated Stephen A. Sherwin, M.D., chairman and chief executive officer of Cell Genesys. ``We are pleased with the progress in our clinical trials and look forward to presenting clinical updates on our GVAX® cancer vaccine programs in prostate cancer and lung cancer at the American Society of Clinical Oncology (ASCO) meeting in mid May, as well as initiating additional clinical trials in the coming months with product candidates from both our GVAX® cancer vaccine and oncolytic virus therapy product platforms.''
First Quarter 2002 and Other Recent Highlights:
* Reported preclinical data at the American Association for Cancer
Research (AACR) annual meeting that CG8840, an oncolytic virus therapy
engineered to target and destroy bladder cancer cells, demonstrated
significant antitumor activity in a mouse model when used alone and in
combination with taxotere (docetaxel), a chemotherapeutic agent
commonly used in the treatment of bladder cancer.
* Announced that the company leased a 35,000 square-foot facility in
Memphis, TN for manufacturing the company's patient-specific GVAX(R)
lung cancer vaccines for both Phase III clinical trials and potential
market launch. Memphis, one of the world's major shipping hubs, was
chosen to facilitate the efficient transport and distribution of
patient vaccines to treatment centers across the United States.
* Announced that the company had terminated its research collaboration
and license agreement with GPC Biotech AG for p27/p16 gene therapy for
cancer and cardiovascular disease. The decision to discontinue the
agreement reflects Cell Genesys' decision to prioritize its other
cancer gene therapy programs based on the results of ongoing
preclinical studies as well as a determination that p27/p16 gene
therapy for cardiovascular disorders such as restenosis is a less
compelling business opportunity in light of the success of other new
treatment strategies for restenosis.
Cell Genesys is focused on the development and commercialization of innovative therapeutic products for cancer based on gene therapy technologies. The company is pursuing three cancer product platforms -- GVAX® cancer vaccines, oncolytic virus therapies and in vivo cancer gene therapies. Clinical trials of GVAX® vaccines are under way in lung cancer, prostate cancer, pancreatic cancer, leukemia and myeloma. Clinical trials of oncolytic virus therapies include CG7060 and CG7870 in prostate cancer. Preclinical stage programs include oncolytic virus therapies and gene therapies for multiple types of cancer. Cell Genesys' majority-owned subsidiary, Ceregene, is focused on gene therapies for neurologic disorders. Cell Genesys also continues to hold approximately nine million shares of common stock in its former subsidiary, Abgenix, an antibody products company. Cell Genesys is headquartered in Foster City, CA and has manufacturing operations in San Diego, CA, Hayward, CA and Memphis, TN. For additional information, please visit the company's website at cellgenesys.com.
Cell Genesys will host its quarterly conference call to discuss events that occurred during the first quarter of 2002 at 11:30 a.m. EDT on Tuesday, April 23, 2002. Investors may listen to the webcast of the conference call live on Cell Genesys' website. A replay of the webcast will be available for two weeks following the call. Alternatively, investors may listen to a replay of the call by dialing 800-475-6701 from locations in the U.S. and 320-365-3844 from outside the U.S. The call-in replay will be available for 48 hours following the call. Please refer to access number 635886.
Statements made herein about the company and its subsidiaries, other than statements of historical fact, including statements about the application of the company's financial assets, progress reports and plans for clinical trials, the company's progress and results and timing of clinical trials and preclinical programs, progress and capabilities of manufacturing facility sites 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 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 April 1, 2002 as well as Cell Genesys' reports on Forms 10-Q and 8-K and other reports filed from time to time with the Securities and Exchange Commission. The company assumes no obligation to update the forward-looking information in this press release.
Contact: Jennifer Cook Williams
Associate Director
Corporate Communications
650-425-4542
SELECTED FINANCIAL INFORMATION
(unaudited)
Consolidated Statements Of Operations
(in thousands except per share data) Three months ended March 31
2002 2001
Revenue $4,595 $5,973
Operating expenses:
Research and development 16,563 10,726
General and administrative 3,658 2,700
Total operating expenses 20,221 13,426
Non-operating income - 93
Interest income, net 2,008 7,108
Income (loss) before minority
interest and income tax (13,618) (253)
Income (loss) attributed to minority
interest 271 (37)
Income (loss) before income tax (13,347) (290)
Benefit (provision) for income tax 4,529 87
Net income (loss) $(8,818) $(203)
Basic income (loss) per common share $(0.25) $(0.01)
Diluted income (loss) per common
share $(0.25) $(0.01)
Weighted average shares of common
stock outstanding - basic 35,625 34,232
Weighted average shares of common
stock outstanding - diluted 35,625 34,232
Condensed Consolidated Balance Sheets
(in thousands) March 31, December 31,
2002 2001
Cash, cash equivalents and
short-term investments $230,256 $258,649
Investment in Abgenix common stock 169,144 301,217
Other current assets 5,449 10,603
Property and equipment, net 54,762 43,217
Other assets 1,476 1,624
Total assets $461,087 $615,310
Current liabilities $87,330 $149,690
Long-term obligations 57,000 60,000
Minority interest in equity of
subsidiary (173) 96
Series B preferred stock 17,970 17,970
Stockholders' equity 298,960 387,554
Total liabilities and stockholders'
equity $461,087 $615,310
SOURCE: Cell Genesys, Inc. |
