Genelabs Technologies, Inc. Reports Financial Results For The Third Quarter And First Nine Months Of 2005
REDWOOD CITY, Calif., Nov. 9 /PRNewswire-FirstCall/ -- Genelabs Technologies, Inc. today reported revenues of $1.7 million and a net loss of $2.8 million, or $0.03 per share, for the third quarter of 2005. This compares to revenues of $0.4 million and a net loss of $4.4 million, or $0.05 per share, for the third quarter of 2004. Revenues for the nine month period ended September 30, 2005 were $5.1 million and the net loss was $8.6 million, or $0.10 per share, compared to revenues of $1.8 million and a net loss of $12.0 million, or $0.14 per share, for the same period in 2004.
At September 30, 2005, Genelabs had $14.4 million in cash, cash equivalents and restricted cash.
"The lower net loss for the first three quarters of 2005 is a result of higher revenues from our Hepatitis C virus drug discovery collaboration with Gilead Sciences, Inc. and lower costs due to a significant reduction in resources devoted to the development of Prestara(TM) for lupus," stated James A.D. Smith, President and Chief Executive Officer. "In the first three quarters of 2005 we also increased our investments in our unpartnered hepatitis C virus drug discovery programs, the most advanced of which targets the HCV polymerase with non-nucleoside compounds. Based on the progress recently made with our preclinical candidates in this field, we are preparing for scale-up of the manufacturing process to be able to initiate IND-enabling studies in the first part of next year. If this is successful and we are able to successfully complete the studies as currently planned, our target is to be able to file an IND in early 2007."
Genelabs Technologies, Inc. is a biopharmaceutical company focused on the discovery and development of pharmaceutical products to improve human health. We have built drug discovery capabilities that can support various research and development projects. Genelabs is currently concentrating these capabilities on discovering novel compounds that selectively inhibit replication of the hepatitis C virus and advancing preclinical development of compounds from this hepatitis C virus drug discovery program, while also developing a late-stage product for lupus. We believe that these high-risk, potentially high reward programs focus our research and development expertise in areas where we have the opportunity to generate either first-in-class or best-in-class products that will address diseases for which current therapies are inadequate. For more information, please visit www.genelabs.com.
NOTE: Genelabs(R) and the Genelabs logo are registered trademarks and Prestara(TM) is a trademark of Genelabs Technologies, Inc.
NOTE ON FORWARD LOOKING STATEMENTS AND RISKS: This press release contains forward-looking statements including statements regarding the initiation of manufacturing and IND-enabling studies, the filing of an IND with the FDA and the status of our HCV drug discovery programs. These forward-looking statements are based on Genelabs' current expectations and are subject to uncertainties and risks that could cause actual results to differ materially from the statements made. Uncertainties and risks include, without limitation, fluctuations in Genelabs' stock price; events which reduce Genelabs' future prospects, problems in initiating manufacturing or IND-enabling studies; failures or setbacks in our HCV research programs or in our collaboration with Gilead; progress and announcements by competitors regarding their HCV programs; regulatory problems or delays regarding Prestara(TM), including an adverse response from the FDA or a determination to discontinue development of Prestara; increases in expenses and Genelabs' capital requirements and history of operating losses. Please see the information appearing in Genelabs' filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, under the captions "Risk Factors" and "Forward-Looking Statements" for more discussion regarding these uncertainties and risks and others associated with the company's research programs, early stage of development and other risks which may affect the company or cause actual results to differ from those included in the forward-looking statements. Genelabs does not undertake any obligation to update these forward-looking statements or risks to reflect events or circumstances after the date of this release.
Contact: Matthew M. Loar Chief Financial Officer Phone: 650-562-1424 GENELABS TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) September 30, December 31, 2005 2004 (Unaudited) Note 1 ASSETS Cash, cash equivalents and restricted cash $14,421 $26,508 Other current assets 622 824 Property and equipment, net 1,002 1,091 Long-term investment 960 960 $17,005 $29,383 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable, accrued compensation and other accrued liabilities $2,944 $4,958 Unearned contract revenue 9,513 11,478 Total liabilities 12,457 16,436 Shareholders' equity 4,548 12,947 $17,005 $29,383 Note 1: Derived from audited financial statements GENELABS TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (Unaudited) For the three months ended For the nine months ended September 30, September 30, 2005 2004 2005 2004 Revenue: Contract $1,556 $222 $4,664 $1,281 Royalty 142 177 466 474 Total revenue 1,698 399 5,130 1,755 Operating expenses: Research and development 2,944 3,284 9,425 11,411 General and administrative 1,720 1,545 4,640 4,797 Total operating expenses 4,664 4,829 14,065 16,208 Operating loss (2,966) (4,430) (8,935) (14,453) Interest income, net 121 59 364 163 Loss from continuing operations (2,845) (4,371) (8,571) (14,290) Discontinued operations: Income from diagnostics business -- -- -- 262 Gain on sale of diagnostics business -- -- -- 2,020 Net loss $(2,845) $(4,371) $(8,571) $(12,008) Loss per common share from continuing operations - basic and diluted $(0.03) $(0.05) $(0.10) $(0.16) Net loss per common share - basic and diluted $(0.03) $(0.05) $(0.10) $(0.14) Weighted average shares outstanding to calculate basic and diluted net loss per common share 88,869 88,313 88,626 88,007Genelabs Technologies, Inc.
CONTACT: Matthew M. Loar, Chief Financial Officer of GenelabsTechnologies, Inc., +1-650-562-1424
Web site: http://www.genelabs.com/