Genta Incorporated Announces First Quarter 1999 Results
LEXINGTON, Mass., May 20 /PRNewswire/ -- Genta Incorporated (Nasdaq: GNTA)
announced today its operating results for the first quarter ended March 31,
1999. The Company reported a net loss applicable to common shareholders
totaling $0.5 million, or a loss of $(0.04) per common share on 12.9 million
shares for the three months ended March 31, 1999, compared to a net loss of
$1.8 million, or a loss of $(0.31) per common share on 5.7 million shares, for
the same period in 1998.
The net loss for the three months ended March 31, 1999 includes a
one-time, non-recurring gain related to Genta's equity interest in the net
income of its joint venture with SkyePharma PLC. The $2.3 million gain
resulted from an agreement on March 4, 1999 in which Genta and SkyePharma
agreed to release each other from all liability relating to unpaid development
cost and funding obligations. The net loss in the first quarter 1999 also
includes $0.3 million in accrued dividends payable in the Company's common
stock to preferred stockholders. The net loss from discontinued operations
(the Company's wholly owned specialty chemicals subsidiary, JBL Scientific,
Inc.) was approximately $0.2 million in the first quarter 1999, compared with
an income of $0.1 million in the same period of 1998 as a result of lower
product sales at JBL in 1999. JBL is reported as discontinued operations as a
result of the sale of its business, which was previously announced on May 10,
1999.
"We had several significant achievements in 1999," said Kenneth G. Kasses,
Ph.D., President and CEO of Genta. "In March we entered into an Asset
Purchase Agreement with Promega Corporation to sell substantially all of the
assets and certain liabilities of JBL Scientific, Inc. This transaction was
completed on May 10, 1999. Based on the current rate of spending and current
activities, Genta should have sufficient cash to fund its operations into the
first quarter of 2000. A Phase I/IIa study was initiated at Georgetown
University's Lombardi Cancer Center along with a Cooperative Research and
Development Agreement (CRADA) with the National Cancer Institute."
"In addition, three of our collaborators recently presented their
findings with our lead development compound, G3139, at the American Society of
Clinical Oncology annual meeting. I believe these data were well-received by
those in attendance and that they demonstrated that we are able to
consistently produce the expected biological response in lowering the target
protein. Even more encouraging is that while being early or preliminary
reports, they did note clinical findings in the patients' diseases, findings
which will help us move more expeditiously into definitive trials. In fact,
based on the data presented at ASCO, we believe that G3139 now is in the
forefront of antisense-based, cancer therapy development," said Dr. Kasses.
Genta Incorporated is a biopharmaceutical company whose strategy consists
of building a product and technology portfolio concentrating on its
Anticode(TM) (antisense) products intended to treat cancer at its
genetic source.
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.
Consolidated Statement of Operations Data
(in thousands, except per share data)
Three Months ended
March 31,
1999 1998
Revenues:
Collaborative research and development $- $17
Cost and expenses:
Research and development 1,090 813
General and administrative 1,112 996
Total cost and expenses 2,202 1,809
Loss from operations (2,202) (1,792)
Equity in net loss of joint venture 2,284 (156)
Other income (expense), net (98) 83
Loss from continuing operations (16) (1,865)
(Loss) income from discontinued operations (189) 103
Dividends accrued on preferred stock (343) 0
Net loss applicable to common shareholders (548) (1,762)
Net loss applicable to common shares $(0.04) $(0.31)
Shares used in computing net loss per share 12,902 5,727
Consolidated Balance Sheet Data
March 31, December 31,
1999 1998
Cash, cash equivalents and short-term
investments $ 639 $2,459
Working capital 1,565 3,629
Total assets 5,447 7,551
Total stockholders' equity 2,960 2,959
SOURCE Genta Incorporated
CO: Genta Incorporated
ST: Massachusetts
IN: MTC
SU: ERN
05/20/99 19:27 EDT prnewswire.com |
