Full Press Release Details
Genetics Corporation
GENETICS REPORTS THIRD QUARTER 2007 FINANCIAL RESULTS
Conference Call Today at 10:30 a.m. ET --
October 31, 2007 - Targeted Genetics Corporation (NASDAQ: TGEN) today announced
its financial results for the third quarter of 2007.
third quarter of 2007, the Company reported a net loss of $3.0 million, or
per common share, compared to a net loss of $3.2 million, or $0.32 per common
share, for the third quarter of 2006. For the nine months ended September 30,
2007, the Company reported a net loss of $11.1 million, or $0.72 per common
share, compared to a net loss of $34.8 million, or $3.64 per common share for
same period in 2006. Per share results for 2007 reflect the issuance of 2.2
million shares in January 2007 and 6.7 million shares in June 2007.
for the third quarter of 2007 was $2.4 million, compared to $2.0 million for
same quarter in the prior year and was $7.1 million for the nine months ended
September 30, 2007 compared to $5.9 million for the same period in 2006. The
increase was due to increased research and development activities under the
Company's NIAID-funded
subcontract to develop adeno-associated viral (AAV)-based HIV/AIDS vaccines
licensing revenue from a milestone payment received during the third
and development expenses for the third quarter of 2007 increased to $3.9
million, from $3.1 million in the third quarter of 2006 and increased to $12.8
million for the nine months ended September 30, 2007, from $10.5 million for
same period in 2006. The increase was due to higher development costs associated
with the NIAID-funded
subcontract to develop AAV-based HIV/AIDS vaccines,
clinical costs to support increased enrollment in the Company's phase I/II
clinical study of tgAAC94 in inflammatory arthritis and increased research
development activities and costs to support the initiation of a Phase I clinical
trial under its congestive heart failure collaboration with
and administrative expenses were consistent at $1.7 million for both the third
quarter of 2007 and 2006 and $4.8 million and $4.7 million for the nine months
ended September 30, 2007 and 2006, respectively.
cash equivalents were $20.5 million at September 30, 2007, as compared to $6.2
million at December 31, 2006. The Company believes that these cash balances,
combined with anticipated funding from its product development collaborations
and contracts, will be sufficient to fund our currently forecast operations
Quarter 2007 Highlights
Call and Webcast Information
Company will host a conference call reviewing financial results and its product
development portfolio, including an update on the tgAAC94 inflammatory arthritis
program and other clinical and business developments, today beginning at 10:30
a.m. Eastern Time / 7:30 a.m. Pacific Time. You may access the live webcast
the "Events" section found on the homepage of the Company's website at
www.targetedgenetics.com or via telephone at 800-257-3401 (domestic) or
303-262-2143 (international).
replay will be available for approximately 30 days at www.targetedgenetics.com;
telephone replay will be available following today's call at approximately 12:30
p.m. ET through 11:59 p.m. ET, Friday, November 30, 2007, by calling
800-405-2236 (domestic) or 303-590-3000 (international); passcode
Genetics Corporation is a biotechnology company committed to the development
innovative targeted molecular therapies for the prevention and treatment of
acquired and inherited diseases with significant unmet medical need. Targeted
Genetics' proprietary Adeno-Associated Virus (AAV) technology platform allows it
to deliver genes that encode proteins to increase gene function or RNAi to
decrease or silence gene function. Targeted Genetics' product development
efforts target inflammatory arthritis, AIDS prophylaxis, congestive heart
failure and Huntington's disease. To learn more about Targeted Genetics, visit
Targeted Genetics' website at www.targetedgenetics.com.
Harbor Statement under the Private Securities Litigation Reform Act of
release contains forward-looking statements regarding the Company's
and financial resources, its ability to fund ongoing and future operations,
business strategy and product development, including statements regarding
data collected in the tgAAC94 program, the cause of the serious adverse event
and the impact, if any, on the timing, continuance or results of this trial,
establishment or determination of efficacy endpoints from the data collected
the trial, the timely and complete accrual of patients in the trial and our
ability to commercialize tgAAC94 and other statements
about the Company's plans, objectives, intentions and expectations. These
statements involve current expectations, forecasts of future events and other
statements that are not historical facts. Inaccurate assumptions and known
unknown risks and uncertainties can affect the accuracy of forward-looking
statements. Factors that could affect actual future events or results include,
but are not limited to, payments
anticipated by the Company under product development collaborations and
contracts, the Company's actual expenses, the
Company's ability to raise capital when needed, the timing, nature and results
of the Company's clinical trials, potential development
alternative technologies or more effective products by competitors, the
Company's ability to obtain and maintain regulatory or institutional approvals,
the Company's ability to maintain its listing on the NASDAQ Capital Market
the Company's ability to obtain, maintain and protect its intellectual property,
as well as other risk factors described in "Item 1A. Risk Factors" in the
Company's most recent annual report on Form 10-K for the year ended December 31,
2006 filed with the SEC. The Company anticipates updating the risk factors
its quarterly report on Form 10-Q for the quarter ended September 30, 2007,
be filed with the SEC. You should not rely unduly on these forward-looking
statements, which apply only as of the date of this release. The Company
undertakes no duty to publicly announce or report revisions to these statements
as new information becomes available that may change the Company's expectations.
GENETICS CORPORATION
thousands, except per share information)
| Quarter ended | Year-to-date ended | ||||||||||||
| September 30, | September 30, | ||||||||||||
| Statement of Operations Information: | 2007 | 2006 | 2007 | 2006 | |||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||
| Revenue: | |||||||||||||
| Collaborative agreements | $ | 1,943 | $ | 2,012 | $ | 6,612 | $ | 5,856 | |||||
| Licensing revenue | 500 | - | 500 | - | |||||||||
| Total revenue | 2,443 | 2,012 | 7,112 | 5,856 | |||||||||
| Operating expenses: | |||||||||||||
| Research & development | 3,874 | 3,123 | 12,840 | 10,483 | |||||||||
| General & administrative | 1,694 | 1,687 | 4,821 | 4,736 | |||||||||
| Restructure charges | 183 | 413 | 809 | 1,818 | |||||||||
| Goodwill impairment charge | - | 23,723 | |||||||||||
| Total expenses | 5,751 | 5,223 | 18,470 | 40,760 | |||||||||
| Loss from operations | (3,308 | ) | (3,211 | ) | (11,358 | ) | (34,904 | ) | |||||
| Investment income | 277 | 147 | 305 | 468 | |||||||||
| Interest expense | - | (126 | ) | (1 | ) | (362 | ) | ||||||
| Net loss | $ | (3,031 | ) | $ | (3,190 | ) | $ | (11,054 | ) | $ | (34,798 | ) | |
| Net loss per common share | $ | (0.15 | ) | $ | (0.32 | ) | $ | (0.72 | ) | $ | (3.64 | ) | |
| Shares used in computation of net loss per common share | 19,814 | 9,894 | 15,388 | 9,548 |
GENETICS CORPORATION
| September 30, | December 31, | ||||||
| Balance Sheet Information: | 2007 | 2006 | |||||
| (unaudited) | |||||||
| Cash and cash equivalents | $ | 20,531 | $ | 6,206 | |||
| Other current assets | 1,865 | 2,029 | |||||
| Property and equipment, net | 986 | 1,100 | |||||
| Other assets | 8,126 | 8,132 | |||||
| Total assets | $ | 31,508 | $ | 17,467 | |||
| Current liabilities | $ | 5,125 | $ | 5,188 | |||
| Long-term obligations and other liabilities | 5,515 | 6,912 | |||||
| Shareholders' equity | 20,868 | 5,367 | |||||
| Total liabilities and shareholders' equity | $ | 31,508 | $ | 17,467 |