SOUTH SAN FRANCISCO, Calif., Nov. 1 /PRNewswire-FirstCall/ -- Cell Genesys, Inc. today reported financial results for the third quarter ended September 30, 2007. The company reported a net loss of $34.5 million, or $0.46 per fully diluted share, for the third quarter of 2007, compared with a net loss of $28.8 million, or $0.57 per fully diluted share, in the corresponding period of 2006.
The company's research and development costs were $28.6 million for the third quarter of 2007 compared to $23.2 million for the corresponding period in 2006. The increase 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. General and administrative expenses were $5.1 million for the third quarter of 2007 compared to $4.3 million for the corresponding period in 2006. This increase is primarily attributed to an increase in infrastructure costs associated with product development and other business activities.
As of September 30, 2007, Cell Genesys had $161.9 million in cash, cash equivalents and short-term investments compared to $154.1 million at December 31, 2006. The ending third quarter balance reflects gross proceeds raised since the beginning of 2007, including $29.2 million raised from the company's Committed Equity Financing Facilities (CEFF) with Kingsbridge Capital Limited, and $60.0 million raised from a registered direct offering in the second quarter.
"During the third quarter we continued to make progress in our GVAX immunotherapy for prostate cancer program both with respect to preparing for the interim analysis of our now fully enrolled VITAL-1 Phase 3 clinical trial and our continuing recruitment into our ongoing VITAL-2 Phase 3 clinical trial," stated Stephen A. Sherwin, M.D., chairman and chief executive officer of Cell Genesys. "At the same time we continue to maintain balance sheet strength to allow us to advance our product development programs."
Please visit the investor section of the Cell Genesys website for a list of upcoming investor conferences.
Cell Genesys will host its quarterly conference call at 2:00 p.m. PT on Thursday, November 1, to discuss events that occurred during the third quarter of 2007. Investors may listen to the webcast of the conference call live on Cell Genesys' website. 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 at least 72 hours following the call. Please refer to reservation number 883863.
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 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, regulatory requirements and the regulatory approval process for clinical trials, manufacture and commercialization of the company's products, competitive technologies and products, patents, the need for and reliance on 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 Annual Report on Form 10-K for the year ended December 31, 2006 filed on March 1, 2007 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: Susan Ferris, Investor Relations of Cell Genesys, Inc.,
+1-650-266-3200
Web site: http://www.cellgenesys.com/
