Full Press Release Details
GENETICS REPORTS FOURTH QUARTER AND YEAR-END 2007 FINANCIAL
Conference Call Today at 10:30 a.m. ET --
5, 2008 - Targeted Genetics Corporation (NASDAQ: TGEN) today announced its
financial results for the fourth quarter and year ended December 31, 2007.
Company will hold a conference call with analysts and investors to discuss
financial and business results at 10:30 a.m. ET today.
fourth quarter of 2007, the Company reported a net loss of $5.1 million, or
$0.26 per common share, compared to net income of $808,000, or $0.08 per common
share for the fourth quarter of 2006. For the year ended December 31, 2007,
Company reported a net loss of $16.1 million, or $0.98 per common share,
compared to a net loss of $34.0 million, or $3.47 per common share for the
ended December 31, 2006. Per share results for 2007 reflect the issuance of
million shares in January 2007 and 6.7 million shares in June 2007.
for the fourth quarter of 2007 was $3.2 million, compared to $4.0 million for
the same quarter in the prior year and was $10.3 million for the year ended
December 31, 2007 compared to $9.9 million for the year ended December 31,
Revenue for both the fourth quarter and the full year consists primarily of
research and development revenue earned under the Company's NIAID-funded
subcontract to develop adeno-associated viral (AAV)-based HIV/AIDS vaccines.
Fiscal year 2007 revenue results also include revenue generated by the Company's
heart failure collaboration with Celladon Corporation and licensing revenue
primarily from a milestone payment.
in 2006 consisted primarily
of development revenue earned under the Company's heart failure collaboration,
HIV/AIDS vaccine collaboration activity and $1.8
million in licensing revenue in the fourth quarter from a license fee received
from Amsterdam Molecular Therapeutics for a non-exclusive license to certain
our AAV1 patent rights.
and development expenses for the fourth quarter of 2007 increased to $4.9
million from $4.0 million in the fourth quarter of 2006 and increased to $17.7
million for the year ended December 31, 2007 from $14.5 million for the prior
year. Increases for both periods were due to higher development and vaccine
candidate manufacturing costs associated with the Company's NIAID-funded
HIV/AIDS vaccine subcontract,
clinical costs to support more subjects in the Company's Phase I/II clinical
study of tgAAC94 to treat inflammatory arthritis and increased research and
development activities and costs to support the Company's heart failure
collaboration with Celladon, which entered Phase I clinical trials in the second
and administrative expenses for the fourth quarter of 2007 were $2.2 million
compared to $1.6 million for the fourth quarter of 2006 and were $7.0 million
and $6.4 million for the year ended December 31, 2007 and 2006, respectively.
The increases for both periods over the prior year results were primarily
related to higher compensation costs, patent prosecution and issuance activities
and non-cash stock-based compensation expense.
Company's cash balance was $16.4 million at December 31, 2007, as compared to
$6.2 million at December 31, 2006. This increase is primarily due to net
proceeds of $26.0 million resulting from two private equity financings completed
been a challenging, yet rewarding year. We are very pleased with the advancement
of our clinical development programs in arthritis, heart failure and HIV/AIDS
vaccines, and intend to move our lead candidate, tgAAC94 for inflammatory
arthritis, into Phase II clinical studies later this year," said H. Stewart
Parker, president and chief executive officer of Targeted Genetics. "During
2008, we will continue to leverage our emerging RNAi platform, data momentum
strong AAV manufacturing patent position to drive the business
we made progress in our development collaborations and our product development
programs and expanded and leveraged our patent portfolio. More specifically:
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 800.240.4186 (domestic) or
303.262.2139 (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, Saturday, April 26, 2008, by calling 800.405.2236
(domestic) or 303.590.3000 (international); passcode 11110469#.
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 the
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, the strength of our patent portfolio, 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 and 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 of alternative
technologies or more effective products by competitors, the Company's ability
obtain and maintain regulatory or institutional approvals, the Company's ability
to maintain its listing on the NASDAQ Capital Market and the Company's ability