SAN DIEGO, Nov. 15 /PRNewswire-FirstCall/ -- Genetronics Biomedical Corporation today reported financial results for the quarter and nine months ended September 30, 2004.
Revenue in the third quarter of 2004 was $455,157, compared to revenue of $22,311 for the third quarter of 2003. Revenue for the nine months ended September 30, 2004 was $624,361, compared to $42,452 for the nine months ended September 30, 2003.
Genetronics reported a net loss of $3.7 million, or $0.21 per share, for the third quarter compared to a net loss of $7.9 million, or $0.61 per share, for the third quarter of 2003. The net loss was $7.7 million, or $0.44 per share, for the nine months ended September 30, 2004, compared to a net loss of $9.1 million, or $0.72 per share, for the nine months ended September 30, 2003.
Operating expenses totaled $3.9 million in the third quarter of 2004, compared to $1.7 million for the third quarter of 2003. Operating expenses were $8.1 million for the nine months ended September 30, 2004, compared to $4.9 million for the nine months ended September 30, 2003. Research and development expenses totaled $2.4 million in the third quarter of 2004, compared to $0.6 million in the third quarter of 2003. Research and development expenses totaled $4.0 million in the first nine months of 2004, compared to $1.5 million in the first nine months of 2003. General and administrative expenses totaled $1.6 million in the third quarter of 2004, compared to $1.1 million in the third quarter of 2003. General and administrative expenses totaled $4.3 million in the first nine months of 2004, compared to $3.3 million in the first nine months of 2003.
Cash, cash equivalents and short-term investments totaled $19.7 million at September 30, 2004.
"With pivotal accomplishments and resources established in the first half of the year, in the third quarter we invested significantly in advancing our head and neck cancer trials and preparing the launch of our European skin cancer study," said Avtar Dhillon, MD, president and CEO. "During the next year, we aim to launch studies in additional indications and present ongoing clinical trial data at suitable venues, and we anticipate the launch of the first gene therapy/DNA vaccine clinical trials using electroporation."
Genetronics' Third Quarter Highlights
* Appointed Riaz Bandali to the Board of Directors.
* Hired Dr. Walter Singleton as VP Clinical & Regulatory Affairs. Dr.
Singleton has over 25 years experience managing preclinical and
clinical drug development programs.
* Shareholders approved and the Company implemented a 1:4 reverse split
of Genetronics' common stock.
* Directors and senior management acquired approximately $150,000 of
Genetronics stock through the purchase of Series C preferred shares and
common shares in the open market.
* Presented results from a study of clinical utility of
electroporation-mediated DNA delivery without anesthesia showing that
this method is safe and tolerable.
About Genetronics Biomedical Corporation
Genetronics Biomedical Corporation is a late stage biomedical company focused on building an oncology franchise based on its proprietary electroporation therapy. The therapy targets a significant unmet clinical need: the selective killing of cancer cells and local ablation of solid tumors while preserving healthy tissue. The company is moving its lead product, the MedPulser(R) Electroporation Therapy System, through pre-sales studies for head and neck as well as skin cancers in Europe, where it has CE Mark accreditation, and a U.S. Phase III pivotal study for recurrent head and neck cancer. Merck, Vical, Chiron, the US Navy and other partners are also employing Genetronics' electroporation technology, which facilitates local delivery of drugs and nucleic acids, in their development of novel DNA vaccines and gene therapies. Genetronics is a leader in the application of electroporation for human therapies, with over 240 patents worldwide that are issued, allowed or pending. More information can be obtained at http://www.genetronics.com/.
This press release contains certain forward-looking statements relating to Genetronics' plans to develop its electroporation drug and gene delivery technology and to maximize shareholder value. Actual events or results may differ from Genetronics' expectations as a result of a number of factors, including the uncertainties inherent in clinical trials and product development programs, evaluation of potential opportunities, the level of corporate expenditures, the assessment of Genetronics' technology by potential corporate partners, and capital market conditions, and others set forth in the Genetronics Annual Report on Form 10-K for the 12-month period ended December 31, 2003, and the Form 10-Q for the 3-month period ended September 30, 2004, and other regulatory filings. There can be no assurance that any product in the Genetronics product pipeline will be successfully developed or manufactured, or that final results of human pilot studies or clinical studies will be supportive of regulatory approvals required to market licensed products. The American Stock Exchange has not reviewed and do not accept responsibility for the adequacy or accuracy of this release.
Genetronics Biomedical Corporation
Condensed Consolidated Balance Sheets
September 30, December 31,
Cash and cash equivalents $19,740,332 $13,460,446
Receivables, net 351,210 175,000
Prepaid expenses and other 111,942 116,526
Total current assets 20,203,484 13,751,972
Fixed assets, net 169,826 175,902
Patents and other assets, net 2,253,477 2,301,116
Total assets $22,626,787 $16,228,990
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $377,525 $293,630
Accrued expenses 1,824,354 534,025
Deferred revenue 1,071,697 331,164
Total current liabilities 3,273,576 1,158,819
Deferred rent 4,097 22,536
Total liabilities 3,277,673 1,181,355
Preferred stock 2 1
Common stock 17,974 63,682
Additional paid in capital 103,225,610 91,185,936
Accumulated deficit (83,894,472) (76,201,984)
Total stockholders' equity 19,349,114 15,047,635
Total liabilities and stockholders'
equity $22,626,787 $16,228,990
Genetronics Biomedical Corporation
Condensed Consolidated Statements Of Operations
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
License fee and
milestone payments $84,804 $1,471 $125,380 $4,412
arrangements 370,353 20,840 498,981 38,040
Total revenue 455,157 22,311 624,361 42,452
development 2,387,291 643,433 3,962,593 1,548,401
administrative 1,609,828 1,076,320 4,285,587 3,319,345
net (76,865) (17,129) (155,097) (2,452)
Total expenses 3,920,254 1,702,624 8,093,083 4,865,294
operations (3,465,097) (1,680,313) (7,468,722) (4,822,842)
Gain on disposal
other, net 33,347 -- 290,209 2,034,078
operations -- -- -- (110,740)
Net loss (3,431,750) (1,680,313) (7,178,513) (2,899,504)
preferred stock (238,911) (6,248,261) (513,975) (6,248,261)
stockholders $(3,670,661) $(7,928,574) $(7,692,488) $(9,147,765)
common share -
operations $(0.20) $(0.13) $(0.43) $(0.38)
operations -- -- 0.02 0.15
Imputed and declared
preferred stock (0.01) (0.48) (0.03) (0.49)
Net loss per common
share $(0.21) $(0.61) $(0.44) $(0.72)
number of common
diluted 17,813,659 12,895,325 17,382,656 12,708,215
Genetronics Biomedical Corporation