REDWOOD CITY, Calif., Nov. 8 /PRNewswire-FirstCall/ -- Genitope Corporation announced today financial results for the third quarter and nine months ended September 30, 2005.
Financial Results
For the third quarter of 2005, Genitope Corporation reported total operating expenses of $9.3 million and a net loss of $8.5 million, or $0.30 per share. This compares to total operating expenses of $7.0 million and a net loss of $6.7 million, or $0.28 per share, for the third quarter of 2004. For the nine months ended September 30, 2005, the Company reported total operating expenses of $25.9 million and a net loss of $23.8 million, or $0.84 per share. This compares to total operating expenses of $20.5 million and a net loss of $20.2 million, or $1.03 per share, for the nine months ended September 30, 2004. The increase in operating expenses reflects increased staffing levels, increased expenses related to additional corporate infrastructure and other operating costs required to support the Company’s growth and increased rent expense associated with new lease agreements for the Company’s new manufacturing facility and corporate headquarters. These increases were partially offset by higher interest income in the third quarter of 2005 compared to the same period in 2004.
As of September 30, 2005, Genitope Corporation had cash, cash equivalents and marketable securities of $93.2 million.
Recent Corporate Progress and Outlook
“We are very excited to be days away from beginning construction on the build-out of our new manufacturing facility and corporate headquarters,” said Dan W. Denney Jr., Ph.D., chairman and chief executive officer of Genitope Corporation. “We anticipate the build-out will be completed in the third quarter of 2006. In addition, our pivotal Phase 3 clinical trial to evaluate the safety and efficacy of our lead product candidate, MyVax(R) Personalized Immunotherapy, in patients with previously untreated follicular non-Hodgkin’s lymphoma, is progressing as planned, and we look forward to our second interim analysis, which is anticipated to be completed in mid-2006.”
“Operating expenses of $9.3 million and cash consumption of $8.1 million for the third quarter were well within our range of expectations,” said John Vuko, Genitope Corporation’s chief financial officer. “We anticipate that cash consumption and expenses will increase in the fourth quarter of 2005 and in 2006 as we begin the build-out of our new manufacturing facility and corporate headquarters and continue our development of MyVax(R) Personalized Immunotherapy.”
About Genitope Corporation
Genitope Corporation is a biotechnology company focused on the research and development of novel immunotherapies for the treatment of cancer. Genitope Corporation’s lead product candidate, MyVax(R) Personalized Immunotherapy, is a patient-specific active immunotherapy based on the unique genetic makeup of a patient’s tumor and is designed to activate the patient’s immune system to identify and attack cancer cells. Genitope Corporation is conducting a pivotal phase 3 clinical trial using MyVax(R) Personalized Immunotherapy in previously untreated follicular non-Hodgkin’s lymphoma patients. Genitope Corporation is based in Redwood City, California.
Forward-Looking Statements
This news release contains “forward-looking statements.” For this purpose, any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements, including statements related to the timing of the completion of the second interim analysis of data in Genitope Corporation’s Phase 3 clinical trial, the build- out of its new manufacturing facility and the anticipated increase in cash consumption. Words such as “believes,” “anticipates,” “plans,” “expects,” “will,” “intends” and similar expressions are intended to identify forward- looking statements. There are a number of important factors that could cause Genitope Corporation’s results to differ materially from those expressed in or implied by these forward-looking statements, including, without limitation, risks related to the progress, timing and results of Genitope Corporation’s clinical trials, potential difficulties in the commencement and completion of construction of its new facility, the risks of growth and dependence on key personnel, risks relating to the manufacturing of MyVax(R) Personalized Immunotherapy and other risks detailed in Genitope Corporation’s filings with the Securities and Exchange Commission, including our Quarterly Report for the fiscal quarter ended June 30, 2005. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Genitope Corporation undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.
GENITOPE CORPORATION (A DEVELOPMENT STAGE ENTERPRISE) UNAUDITED CONDENSED STATEMENTS OF OPERATIONS (in thousands, except per share data) Cumulative Period from August 15, 1996 Three Months Nine Months (date of Ended Ended inception) to September 30, September 30, September 30, 2005 2004 2005 2004 2005 Operating expenses: Research and development $7,422 $5,642 $20,392 $16,802 $95,458 Sales and marketing 629 376 1,693 1,309 6,416 General and administrative 1,277 932 3,834 2,427 16,418 Total operating expenses 9,328 6,950 25,919 20,538 118,292 Loss from operations (9,328) (6,950) (25,919) (20,538) (118,292) Loss on extinguishment of convertible notes and cancellation of Series E convertible preferred stock warrants - - - - (3,509) Interest expense (1) (1) (2) (3) (2,984) Interest and other income 791 207 2,153 364 4,635 Net loss (8,538) (6,744) (23,768) (20,177) (120,150) Dividend related to issuance of convertible preferred shares and the beneficial conversion feature of preferred stock - - - - (18,407) Net loss attributable to common stockholders $(8,538) $(6,744) $(23,768) $(20,177) $(138,557) Basic and diluted net loss per share attributable to common stockholders $(0.30) $(0.28) $(0.84) $(1.03) Shares used in computing basic and diluted net loss per share attributable to common stockholders 28,250 23,852 28,223 19,609 GENITOPE CORPORATION (A DEVELOPMENT STAGE ENTERPRISE) UNAUDITED CONDENSED BALANCE SHEETS (in thousands, except per share and share data) September 30, December 31, 2005 2004 ASSETS Current assets: Cash and marketable securities $93,193 $116,509 Prepaid expenses and other current assets 1,187 1,101 Total current assets 94,380 117,610 Property and equipment, net 6,167 2,196 Other assets 1,080 59 Total assets $101,627 $119,865 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $3,014 $2,073 Accrued and other current liabilities 2,888 1,502 Current lease obligations 26 46 Total current liabilities 5,928 3,621 Noncurrent lease obligations 30 48 Deferred rent 2,786 - Total liabilities 8,744 3,669 Stockholders’ equity: Common stock, $0.001 par value, 65,000,000 shares authorized; Issued and outstanding: 28,272,481 shares at September 30, 2005 and 28,191,145 shares at December 31, 2004 28 28 Additional paid-in capital 231,943 231,784 Deferred stock compensation (235) (733) Accumulated other comprehensive loss (296) (94) Deficit accumulated during the development stage (138,557) (114,789) Total stockholders’ equity 92,883 116,196 Total liabilities and stockholders’ equity $101,627 $119,865
Genitope Corporation
CONTACT: John Vuko of Genitope Corporation, +1-650-482-2000,IR@genitope.com; or Ritu S. Baral of The Trout Group LLC for GenitopeCorporation, +1-212-477-9007
