SOUTH SAN FRANCISCO, Calif., Nov. 2 /PRNewswire-FirstCall/ -- Cell
Genesys, Inc. (Nasdaq: CEGE) announced today financial results for the
third quarter ended September 30, 2006. The company reported a net loss of
$28.8 million, or $0.57 per share, for the third quarter of 2006, compared
with a net loss of $27.3 million, or $0.60 per share, in the same quarter
of 2005. The net loss in the third quarter of 2006 was greater than in 2005
primarily because the losses in the third quarter of 2005 were reduced by a
net gain from the sale of marketable securities during that quarter.
Research and development expenses for the third quarter of 2006 were
$23.2 million, compared with $23.3 million for the same quarter in 2005.
These expenses included $1.2 million in non-cash stock-based compensation
expense recorded under Statement of Financial Accounting Standards No. 123
revised 2004 (FAS 123R), which offset decreases in research and development
expenses in other areas. General and administrative expenses were $4.3
million, compared to $3.6 million in the third quarter of 2005, an increase
due primarily to procedures related to Section 404 of the Sarbanes-Oxley
Act and non-cash expenses associated with FAS 123R.
As of September 30, 2006, Cell Genesys had approximately $170.2 million
in cash, cash equivalents and short-term investments compared to $129.6
million at December 31, 2005.
"We continue to make good progress in our clinical programs,
particularly that for our lead product, GVAX(R) immunotherapy for prostate
cancer, and continue to focus our financial resources on these important
efforts," stated Stephen A. Sherwin, M.D., chairman and chief executive
officer of Cell Genesys. "Our commitment to our mission of developing and
commercializing novel biological therapies for patients with cancer has
never been stronger."
Third Quarter 2006 and Other Recent Highlights:
-- Raised $25.3 million in an underwritten public offering of 5.75
million shares of our common stock.
-- Confirmed that the company is currently evaluating non-patient
specific formats of its GVAX cancer immunotherapy platform in additional
cancer indications, such as non-small cell lung cancer and breast cancer.
-- Announced that Joseph J. Vallner, Ph.D., the company's president and
chief operating officer, has resigned to become the chief executive officer
of an early-stage, private biotechnology company. Dr. Vallner's
responsibilities will be assumed immediately by Stephen A. Sherwin, M.D.,
the company's chairman and chief executive officer, and other members of
the company's executive management team. There are no immediate plans to
hire a replacement for Dr. Vallner.
-- Ceregene, Inc., the company's former subsidiary, announced promising
initial clinical results of CERE-120, its lead program for Parkinson's
disease. Ceregene is a private biotechnology company developing gene
therapies for neurodegenerative disorders in which Cell Genesys holds an
equity interest of approximately 25 percent. Initial results of the Phase 1
trial in 12 patients with advanced Parkinson's disease showed that CERE-120
was well tolerated and appeared to reduce symptoms by approximately 40%
(p<0.001), as measured by the Unified Parkinson's Disease Rating Scale
(UPDRS) motor "off" score. Based on these initial results, the Michael J.
Fox Foundation for Parkinson's Research is granting $1.9 million to
Ceregene to partially fund a Phase 2 study.
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 third quarter of 2006 at 2:00 p.m. PST today, Nov.
2, 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 845546.
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, +1-650-266-3200.
SELECTED CONSOLIDATED FINANCIAL INFORMATION
CONSOLIDATED STATEMENTS OF OPERATIONS DATA
(unaudited, in thousands except
per share data) Three months ended Nine months ended
September 30, September 30,
2006 2005 2006 2005
Revenue $52 $71 $1,274 $4,499
Operating expenses:
Research and development 23,196 23,333 71,713 71,375
General and administrative 4,335 3,648 13,494 11,356
Impairment of long-lived asset - - 194 -
Restructuring charges - 744 (57) 1,597
Total operating expenses 27,531 27,725 85,344 84,328
Loss from operations (27,479) (27,654) (84,070) (79,829)
Other income (expense):
Gain on sale of Abgenix, Inc.
common stock - 6,293 62,677 6,293
Interest and other income 2,082 778 5,407 2,310
Interest expense (2,614) (2,634) (7,858) (8,044)
Loss before income taxes (28,011) (23,217) (23,844) (79,270)
Income tax provision (790) (4,051) (28,835) (4,725)
Net loss $(28,801) $(27,268) $(52,679) $(83,995)
Basic and diluted net loss per
share $(0.57) $(0.60) $(1.10) $(1.85)
Weighted average shares of common
stock outstanding-basic and
diluted 50,782 45,499 47,695 45,395
CONSOLIDATED BALANCE SHEET DATA
(in thousands) September 30, December 31,
2006 2005
(unaudited) Note 1
Cash, cash equivalents and short-term
investments,
including restricted cash $170,206 $129,598
Investment in Abgenix, Inc. common
stock - 63,824
Prepaid expenses and other current
assets 3,271 2,104
Asset held for sale 137 -
Property and equipment, net 132,446 142,225
Noncurrent deferred tax assets - 24,430
Unamortized debt issuance costs and
other assets 4,173 4,794
Total assets $310,233 $366,975
Other current liabilities $14,517 $12,343
Accrued income taxes 34,639 32,612
Deferred income tax liabilities - 24,430
Other liabilities 2,690 2,174
Capital lease obligation, less current
portion 48,854 49,919
Convertible senior note 145,000 145,000
Stockholders' equity 64,533 100,497
Total liabilities and stockholders'
equity $310,233 $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, +1-650-266-3200
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