SOUTH SAN FRANCISCO, Calif., May 8 /PRNewswire-FirstCall/ -- Cell
Genesys, Inc. (Nasdaq: CEGE) announced today financial results for the
quarter ended March 31, 2006.
The company reported a net income of $4.0 million, or $0.08 per fully
diluted share, for the first quarter of 2006, compared with a net loss of
$29.3 million, or $0.65 per share, in the same quarter of 2005. During the
first quarter of 2006, Cell Genesys sold all remaining 3.0 million shares
of common stock of Abgenix, Inc., its former subsidiary, resulting in gross
proceeds of $65.5 million. The net income for the first quarter of 2006 can
be attributed to a gain of $62.7 million associated with the sale of
Abgenix stock.
Cell Genesys ended the quarter with approximately $170 million in cash,
cash equivalents and short-term investments.
Research and development expenses for the first quarter of 2006 were
$25.3 million, compared to $24.8 million for the first quarter of 2005. R&D
expenses for the first quarter of 2006 were higher primarily due to the
expansion of Phase 3 clinical trials of the company's lead product
development program, GVAX(R) immunotherapy for prostate cancer, to Europe.
General and administrative expenses were $5.0 million, compared to $3.8
million in the first quarter of 2005, an increase primarily due to the
implementation of procedures related to Section 404 of the Sarbanes-Oxley
Act. As a result of implementation of the Statement of Financial Accounting
Standards No. 123 revised 2004 (SFAS 123R), the company incurred a non-cash
share-based compensation expense of $1.4 million during the first quarter
of 2006.
"We continue to strategically manage our financial resources to achieve
our mission of developing and commercializing novel biological therapies
for patients with cancer," stated Stephen A. Sherwin, M.D., chairman and
chief executive officer of Cell Genesys. "We are pleased with the progress
to date in our lead product development program, GVAX(R) immunotherapy for
prostate cancer, including the expansion of our Phase 3 trials beyond the
U.S. to Canada and Europe."
First Quarter 2006 and Other Recent Highlights:
-- Reported at the American Society of Clinical Oncology (ASCO)
Prostate Cancer Symposium in February updated survival results from the
company's second multi-center Phase 2 trial of GVAX immunotherapy for
prostate cancer in patients with metastatic hormone-refractory prostate
cancer (HRPC). With this update, the company has reported median survival
results from two, independent, multi-center Phase 2 clinical trials in
approximately 115 patients that are not only consistent with each other,
but also compare favorably to the previously published median survival of
18.9 months for metastatic HRPC patients treated with Taxotere(R)
(docetaxel) chemotherapy plus prednisone, the current standard of care.
-- Announced upcoming clinical data reports from two GVAX cancer
immunotherapy programs to be presented as oral presentations at the 2006
American Society of Clinical Oncology (ASCO) Annual Meeting to take place
in Atlanta, GA on June 2-6, 2006. These presentations include the first
report of our Phase 1 trial combining of GVAX immunotherapy for prostate
cancer and MDX-010, a human monoclonal antibody to CTLA-4, and an update
report of a phase 2 trial of GVAX immunotherapy for leukemia in chronic
myelogenous leukemia.
-- Entered into a Committed Equity Financing Facility, or CEFF, with
Kingsbridge Capital Limited, an institutional investor, pursuant to which
Kingsbridge committed to purchase, subject to certain conditions, up to $75
million of our common stock. In conjunction with our CEFF, we issued
Kingsbridge a warrant to purchase 375,000 shares of our common stock at a
price of $9.12 per share.
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 conference call to discuss events
that occurred during the first quarter of 2006 at 8:30 a.m. PDT on Tuesday,
May 9, 2006. Investors may listen to the webcast of the conference call
live on Cell Genesys' website. A replay of the webcast will be available
for at least 48 hours 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
827088.
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, 2005 filed on March 13, 2006 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 STATEMENTS OF OPERATIONS DATA
(unaudited, in thousands except per Three months ended
share data) March 31,
2006 2005
Revenue $176 $1,646
Operating expenses:
Research and development 25,314 24,843
General and administrative 5,028 3,763
Total operating expenses 30,342 28,606
Loss from operations (30,166) (26,960)
Other income (expense):
Gain on sale of Abgenix, Inc. common
stock 62,677 -
Interest and other income 1,560 728
Interest expense (2,622) (2,759)
Income (loss) before income taxes 31,449 (28,991)
Income tax provision (27,435) (320)
Net income (loss) $4,014 $(29,311)
Net income (loss) per share:
Basic $0.09 $(0.65)
Diluted $0.08 $(0.65)
Shares used in per share calculation:
Basic 45,619 45,273
Diluted 61,930 45,273
CONSOLIDATED BALANCE SHEET DATA
(in thousands) March 31, December 31,
2006 2005
(unaudited) Note 1
Cash, cash equivalents and short-term
investments, including restricted cash $169,591 $129,598
Investment in Abgenix, Inc. common stock - 63,824
Prepaid expenses and other current assets 2,645 2,104
Property and equipment, net 139,235 142,225
Noncurrent deferred tax assets - 24,430
Unamortized debt issuance costs and
other assets 4,590 4,794
Total assets $316,061 $366,975
Other current liabilities $13,788 $12,343
Accrued income taxes 33,239 32,612
Deferred income tax liabilities - 24,430
Other liabilities 2,348 2,174
Capital lease obligation, less current
portion 49,586 49,919
Convertible senior note 145,000 145,000
Stockholders' equity 72,100 100,497
Total liabilities and stockholders'
equity $316,061 $366,975
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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