SOUTH SAN FRANCISCO, Calif., Feb. 21 /PRNewswire-FirstCall/ -- Cell
Genesys, Inc. (Nasdaq: CEGE) today reported financial results for the fourth
quarter and full year ended December 31, 2005.
For the fourth quarter of 2005, the company reported net income of $19.1
million, or $0.33 per fully diluted share, compared with a net loss of $26.4
million or $0.59 per share for the same period in 2004. During the fourth
quarter of 2005, the company received $51.6 million in proceeds from the sale
of 3.0 million shares of common stock of Abgenix, its former subsidiary. The
net income for the 2005 fourth quarter can be primarily attributed to a gain
of $48.8 million associated with the sale of Abgenix common stock. For the
year ended December 31, 2005, the company had a net loss of $64.9 million, or
$1.43 per share, compared with a net loss of $97.4 million or $2.23 per share
in 2004. The decrease in net loss in 2005 is primarily related to the
aforementioned gain on the sale of Abgenix common stock.
Cell Genesys ended 2005 with $129.6 million in cash, cash equivalents and
short-term investments, and held approximately 3.0 million shares of common
stock of Abgenix. Subsequent to year end, Cell Genesys sold its remaining
shares of Abgenix common stock, resulting in proceeds of $65.5 million,
pursuant to a strategy for optimizing the disposition of this asset.
Revenues for the fourth quarter and year ended December 31, 2005 were less
than $0.1 million and were $4.6 million, respectively, compared with revenues
of $3.2 million and $11.4 million for the comparable periods in 2004. The
timing of revenue payments from licensing arrangements varies from quarter to
quarter. The company's research and development costs were $21.0 million and
$92.4 million in the fourth quarter and year ended December 31, 2005,
respectively, compared with $23.7 million and $92.1 million for the comparable
periods of 2004.
"We are pleased with our product development progress during 2005, most
notably the advancement of our lead program, GVAX(R) immunotherapy for
prostate cancer, in phase 3 development," stated Stephen A. Sherwin, M.D.,
chairman and chief executive officer of Cell Genesys. "In addition, during
2005, we reported positive Phase 2 data in each of our GVAX immunotherapy
programs in prostate cancer, pancreatic cancer and leukemia, and we have
entered 2006 with the financial resources we need to move these programs
forward in development. We remain fully committed to our goal of bringing
novel biological therapies to patients with cancer."
Fourth Quarter 2005 and Other Recent Highlights:
-- Reported at the AACR-NCI-EORTC International Conference on Molecular
Targets and Cancer Therapeutics in November encouraging two-year
survival data from a Phase 2 clinical trial of GVAX immunotherapy for
pancreatic cancer. Interim findings in 60 patients with operable
pancreatic cancer who received GVAX immunotherapy after surgical
resection of their tumor and adjuvant radiation and chemotherapy
indicated that one-year survival was 88% and the two-year survival was
76%, with a mean follow-up of approximately 24 months. These results
compare favorably with historical data from multiple studies in
patients undergoing pancreatic cancer surgery and adjuvant therapy, for
whom the two-year survival has been reported to be in the range of 40
to 50%, as recently published in the July 2005 issue of the Journal of
Clinical Oncology.
-- Reported at the American Society of Hematology meeting in December
encouraging clinical data from a Phase 2 trial of GVAX immunotherapy
for chronic myelogenous leukemia (CML). Nineteen CML patients with
molecular evidence of persistent leukemia despite more than one year of
Gleevec(R) (imatinib mesylate) therapy were treated with GVAX
immunotherapy while continuing to receive Gleevec. The initial
findings of this trial indicate that the addition of the immunotherapy
to Gleevec therapy has reduced persistent leukemic disease in 9 of 19
patients to date as demonstrated by reductions in bcr-abl -- a
clinically relevant genetic marker found on the leukemic cells. Of the
remaining 10 patients, only one patient has progressed on therapy with
GVAX while the other 9 continue to be monitored for reductions in
bcr-abl. Reductions of bcr-abl have been previously shown to be
strongly associated with improved progression-free survival in patients
with CML.
-- Announced the sale of the company's manufacturing operations in San
Diego, CA to Genzyme Corporation. Genzyme paid Cell Genesys $3.2
million in cash for the assets contained in the 47,000 square-foot
leased facilities. The company's San Diego manufacturing operations
had been used to produce viral-based products, which now comprise a
minor portion of the company's product development programs.
-- Announced at the JPMorgan Healthcare Conference last month that
abstracts have been accepted by the 2006 American Society of Clinical
Oncology Prostate Cancer Symposium to provide an update on the
company's second Phase 2 clinical trial of GVAX immunotherapy for
prostate cancer, and by the American Urological Association to provide
initial Phase 1 clinical data for its lead oncolytic virus therapy,
CG0070 in bladder cancer.
Cell Genesys is focused on the development and commercialization of novel
biological therapies for patients with cancer. The company is currently
pursuing two clinical stage product platforms -- GVAX(R) cancer
immunotherapies and oncolytic virus therapies. Ongoing clinical trials
include Phase 3 trials of GVAX immunotherapy for prostate cancer, Phase 2
trials of GVAX immunotherapy for pancreatic cancer and leukemia, and a Phase 1
trial of CG0070 oncolytic virus therapy for bladder cancer. Cell Genesys
continues to hold an equity interest in its former subsidiary, Ceregene, Inc.,
which is developing gene therapies for neurodegenerative disorders. Cell
Genesys is headquartered in South San Francisco, CA and has its principal
manufacturing operation in Hayward, CA. For additional information, please
visit the company's website at http://www.cellgenesys.com.
Cell Genesys will host its quarterly and year-end conference call to
discuss events that occurred during the fourth quarter 2005 and to provide
financial guidance for 2006 at 8:30 a.m. PST on Wednesday, February 22, 2006.
Investors may listen to the webcast of the conference call live on Cell
Genesys' website. 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 72 hours following
the call. Please refer to reservation number 819024.
Statements made herein about the company, other than statements of
historical fact, including statements about the company's progress, results
and timing of clinical trials and preclinical programs 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 clinical
trials and research and development programs, 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 for the year ended
December 31, 2004 filed on March 14, 2005 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. The company assumes no obligation to
update the forward-looking information in this press release.
Contact: Ina Cu
Investor Relations
650-266-3200
SELECTED CONSOLIDATED FINANCIAL INFORMATION
CONSOLIDATED STATEMENT OF OPERATIONS DATA
(unaudited, in thousands Three months ended Twelve months ended
except per share data) December 31, December 31,
2005 2004 2005 2004
Revenue $85 $3,184 $4,584 $11,458
Operating expenses:
Research and development 21,030 23,706 92,405 92,133
General and administrative 4,986 3,492 16,342 17,928
Restructuring charges 753 -- 2,350 --
Total operating expenses 26,769 27,198 111,097 110,061
Loss from operations (26,684) (24,014) (106,513) (98,603)
Other income (expense)
Gain on sale of Abgenix, Inc.
common stock 48,830 -- 55,123 12,160
Interest and other income 748 771 3,058 2,662
Interest expense (2,635) (3,181) (10,679) (9,885)
Income (loss) before income
taxes 20,259 (26,424) (59,011) (93,666)
Income tax provision (1,203) -- (5,928) (3,745)
Net income (loss) 19,056 (26,424) (64,939) (97,411)
Dividend in kind to preferred
stockholders -- 100 4 100
Net income (loss) attributed to
common stockholders $19,056 $(26,524) $(64,943) $(97,511)
Basic net income (loss) per
common share $0.42 $(0.59) $(1.43) $(2.23)
Diluted net income (loss) per
common share $0.33 $(0.59) $(1.43) $(2.23)
Weighted average shares of
common stock outstanding -
basic 45,547 44,960 45,434 43,682
Weighted average shares of
common stock outstanding -
diluted 61,616 44,960 45,434 43,682
CONSOLIDATED BALANCE SHEET DATA
(in thousands) December 31, December 31,
2005 2004
(unaudited) (note 1)
Cash, cash equivalents and short-term
investments, including restricted cash $129,598 $174,971
Investment in Abgenix, Inc. common
stock 63,824 68,503
Prepaid expenses and other current
assets 2,104 1,184
Property and equipment, net 142,225 159,663
Noncurrent deferred tax assets 24,430 25,177
Unamortized debt issuance costs and
other assets 4,794 5,641
Total assets $366,975 $435,139
Deferred revenue $-- $2,031
Other current liabilities 12,343 20,761
Accrued income taxes 32,612 29,954
Deferred tax liabilities 24,430 25,177
Other liabilities 2,174 --
Capital lease obligation, less current
portion 49,919 51,013
Convertible senior notes 145,000 145,000
Redeemable convertible preferred stock -- 1,897
Stockholders' equity 100,497 159,306
Total liabilities and stockholders'
equity $366,975 $435,139
Note 1. Derived from audited financial statements.
SOURCE Cell Genesys, Inc.
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Related links:
http://www.cellgenesys.com
CONTACT:
Ina Cu, Investor Relations of Cell Genesys,
Inc., +1-650-266-3200
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