Conference Call Scheduled for 5:00 p.m. ET Today
SOUTH SAN FRANCISCO, Calif., Feb. 28 /PRNewswire-FirstCall/ -- Cell
Genesys, Inc. (Nasdaq: CEGE) today reported financial results for the
fourth quarter and full year ended December 31, 2007. The company reported
a net loss of $33.4 million ($0.43 per fully diluted share), for the fourth
quarter of 2007, compared to a net loss of $30.3 million ($0.54 per fully
diluted share) for the corresponding period in 2006. The net loss for the
year ended December 31, 2007 was $99.3 million ($1.39 per fully diluted
share), compared to a net loss of $82.9 million ($1.67 per fully diluted
share) for the year ended December 31, 2006.
The increase in net loss in the fourth quarter of 2007 is attributed
primarily to an increase in research and development costs. The increase in
net loss for the 12 months ending December 31, 2007 is primarily due to a
$9.8 million increase in research and development expenses as well as the
net gain of $35.9 million realized in 2006 from the sale of the company's
remaining shares of stock in its former subsidiary, Abgenix, Inc., which
was partly offset in 2007 by $26.4 million from a favorable settlement with
the Internal Revenue Service relating to the company's 2000 tax return.
The company's research and development costs were $28.5 million and
$106.1 million in the fourth quarter and year ended December 31, 2007,
respectively, compared to $24.6 million and $96.3 million for the
comparable periods of 2006. The increase in research and development
spending in the fourth quarter and the year ended December 31, 2007 is
primarily due to expenses related to the ongoing Phase 3 clinical trials of
GVAX immunotherapy for prostate cancer, the company's lead product
development program.
As of December 31, 2007, Cell Genesys had $147.3 million in cash, cash
equivalents and short-term investments. Total 2007 spending was $105
million, which includes net cash used in operating activities of $89.7
million and net capital expenditures of $2.3 million offset by cash
received in December of $12.0 million from the sale of the company's
lentiviral gene delivery technology and $1.0 million from an agreement
related to the company's gene activation technology. During 2007, Cell
Genesys raised approximately $90 million in gross proceeds from equity
financing.
"We believe we made substantial progress across our entire business
during 2007 particularly with respect to our lead product program, GVAX
immunotherapy for prostate cancer, which is now in advanced Phase 3
development," stated Stephen A. Sherwin, M.D., chairman and chief executive
officer of Cell Genesys. "In the years ahead, we remain committed to doing
everything we can to achieve our key product development goals and build
shareholder value."
Recent Highlights
-- Announced in February 2008 results of an analysis examining the
potential association between immune responses to GVAX immunotherapy
for prostate cancer and increased patient survival in a Phase 2 trial
(G-0010) in patients with metastatic, hormone refractory prostate
cancer. An ongoing analysis of GVAX-induced antibody responses has
shown that at least two of the identified antibody responses are
associated with patient survival. These results were presented at the
American Society of Clinical Oncology's Genitourinary Cancer Symposium
held in mid-February.
-- Announced in January 2008 that the Independent Data Monitoring
Committee (IDMC) for VITAL-1, the first of two ongoing Phase 3 clinical
trials of GVAX immunotherapy for prostate cancer, completed a
pre-planned interim analysis in the timeframe originally estimated and
has recommended that the study continue. As is customary to preserve
study blinding, the IDMC provided no information to the company other
than the recommendation to continue the trial. The company expects to
have enough events needed to trigger the final analysis of VITAL-1 in
the second half of 2009.
-- Announced in December 2007 the sale of Cell Genesys' lentiviral gene
delivery technology to GBP IP, LLC, an affiliate of GBP Capital, the
majority shareholder in privately held Lentigen Corporation, for $12.0
million.
Presentations at Upcoming Investor Conferences
Members of the Cell Genesys management team plan to present at the
following upcoming investor conferences:
-- Cowen & Co.'s 28th Annual Health Care Conference scheduled to occur
March 18 - 20 in Boston, Massachusetts;
-- 11th Annual Lehman Brothers Global Healthcare Conference scheduled to
occur March 18 in Miami, Florida; and
-- BioCentury's Future Leaders in the Biotech Industry Conference
scheduled to occur March 27 in New York City, New York.
Interested parties may access a live audio webcast of the presentation
via the investor section of the Cell Genesys website,
http://www.cellgenesys.com. A replay of the presentation will be archived
on the site for at least 72 hours following the presentation.
Conference Call and Webcast
Members of the Cell Genesys management team will host a conference call
today, Thursday, February 28 at 5:00 p.m. ET to discuss today's
announcement. Investors may listen to the webcast of the conference call
live on the investor section of the Cell Genesys website,
http://www.cellgenesys.com. Alternatively, investors may listen to a replay
of the call by dialing (800) 475-6701 from locations in the United States
and (320) 365-3844 from outside of the United States. The call-in replay
and webcast will be available for at least 72 hours following the call.
Please refer to reservation number 910549.
About Cell Genesys
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(TM) cancer
immunotherapies and oncolytic virus therapies. Ongoing clinical trials
include Phase 3 trials of GVAX immunotherapy for prostate cancer, Phase 2
trials of GVAX immunotherapies for pancreatic cancer and for 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.
Statements made in this press release about the company, other than
statements of historical fact, including statements about the company's
progress, results, analysis, and timing of our GVAX immunotherapy and
oncolytic virus therapy 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 from
the statements made, including but not limited to risks associated with the
success of clinical trials and research and development programs,
regulatory requirements and the regulatory approval process for clinical
trials, manufacture and commercialization of the company's products,
competing technologies and products, our ability to protect our
intellectual property, litigation or other claims, the need for and
reliance on collaborative business relationships and strategic partnerships
with third parties, and the need for additional financings. For information
about these and other risks which may affect Cell Genesys, please see the
company's reports on Form 10-Q, 10-K, 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:
Susan Ferris
Investor Relations
650-266-3200
-- FINANCIAL CHARTS TO FOLLOW --
SELECTED CONSOLIDATED FINANCIAL INFORMATION
CONSOLIDATED STATEMENTS OF OPERATIONS DATA
(unaudited, in thousands, except per share data)
Three months ended Twelve months ended
December 31, December 31,
2007 2006 2007 2006
Revenue $102 $90 $1,380 $1,364
Operating expenses:
Research and development 28,457 24,633 106,131 96,346
General and administrative 5,260 4,435 20,401 18,123
Restructuring charges - (25) - (82)
Total operating expenses 33,717 29,043 126,532 114,387
Loss from operations (33,615) (28,953) (125,152) (113,023)
Other income (expense):
Gain on sale of Abgenix,
Inc. common stock - - - 62,677
Gain (loss) on sale of
property and equipment (3) - 1,306 (2)
Interest and other income 2,919 2,088 9,021 7,497
Interest expense (2,570) (2,607) (10,331) (10,465)
Income (loss) before
income taxes (33,269) (29,472) (125,156) (53,316)
Income tax benefit (provision) (127) (778) 25,882 (29,613)
Net loss $(33,396) $(30,250) $(99,274) $(82,929)
Basic and diluted net loss
per common share $(0.43) $(0.54) $(1.39) $(1.67)
Weighted average shares
of common stock outstanding
- basic and diluted 78,297 55,522 71,255 49,728
CONSOLIDATED BALANCE SHEET DATA
(in thousands) December 31, December 31,
2007 2006
(unaudited) Note 1
Cash, cash equivalents and
short-term investments, including
restricted cash $147,306 $154,074
Prepaid expenses and other current assets 3,932 3,481
Property and equipment, net 119,011 129,643
Unamortized debt issuance costs and other assets 3,143 3,969
Total assets $273,392 $291,167
Other current liabilities $34,561 $15,904
Current portion of accrued income taxes 4 35,410
Other liabilities 3,451 2,851
Non-current portion of accrued income taxes 6,192 -
Non-current portion of capital lease obligation 46,635 48,475
Convertible senior notes 145,000 145,000
Stockholders' equity 37,549 43,527
Total liabilities and stockholders' equity $273,392 $291,167
Note 1. Derived from audited financial statements.
SOURCE Cell Genesys, Inc.
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Related links:
http://www.cellgenesys.com
CONTACT:
Susan Ferris, Investor Relations of Cell
Genesys, Inc., +1-650-266-3200
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