Full Press Release Details
GENETICS REPORTS THIRD QUARTER 2008 FINANCIAL RESULTS
Call Today at 5:00 p.m. ET
Wash., November 5, 2008
Targeted Genetics Corporation (NASDAQ: TGEN) today announced its financial
results for the third quarter ended September 30, 2008. The Company will
conference call with analysts and investors to discuss its financial and
business results at 5:00 p.m. ET today.
quarter ended September 30, 2008, the Company reported a net loss of $2.7
million, or $0.13 per common share, compared to net loss of $3.0 million,
$0.15 per common share, for the third quarter of 2007.
for the third quarter of 2008 was $1.7 million, compared to $2.4 million
same quarter in 2007. Revenue for the nine months ended September 30, 2008
$6.5 million, compared to $7.1 million for the first nine months of 2007.
decreases in revenue for the third quarter and nine month periods reflect
decrease in research and development and manufacturing activities under the
NIAID-funded HIV/AIDS vaccine project in collaboration with Children's Hospital
Of Philadelphia and Nationwide Children's Hospital and decreased licensing
revenue. These decreases were partially offset by higher research and
development activities under the Company's collaboration with Celladon.
completion of planned development activities for funded projects and licensed
technology, the Company expects revenue from collaborative partners of
approximately $8.5 million to $9.0 million for the year ending December 31,
2008, compared to $10.3 million in 2007. The revenue plan for 2008 includes
expectation that Targeted Genetics, and its partners, achieve their respective
2008 product development work plans.
and development expenses for the third quarter of 2008 decreased to $3.2
million, compared to $3.9 million in the same quarter of 2007. Research and
development expenses decreased to $11.3 million for the nine months ended
September 30, 2008 compared to $12.8 million for the same period in 2007.
decrease reflects lower clinical trial costs for the inflammatory arthritis
program as it is reaching the end of a Phase I/II clinical trial. This decrease
was partially offset by increased activity on the Company's partnered heart
failure product candidate during 2008.
and administrative expenses for the three months ended September 30, 2008
$1.2 million, compared to $1.7 million for the same period in 2007. This
decrease reflects lower intellectual property charges for the quarter related
the timing of patent issuances in Europe, lower shareholder costs and decreased
use of external consultants. General and administrative expense increased
slightly to $4.9 million for the nine months ended September 30, 2008, compared
to $4.8 million for the same period in 2007. These increases reflect higher
intellectual property charges related to patent costs and higher legal fees
compared to the first nine months of 2007.
Company's cash balance was $9.2 million at September 30, 2008, compared to
million at December 31, 2007. The Company's guidance for its estimated burn rate
for 2008 is expected to range from $11.5 to $12.5 million, and, based on
current cash balances, the Company only expects its cash horizon to extend
the first quarter of 2009.
another solid quarter of progress for the Company and its collaborative
partners," said H. Stewart Parker, president and chief executive officer of
Targeted Genetics. "We have begun work with University of Iowa targeting
Amyotrophic Lateral Sclerosis, or ALS, more widely known as Lou Gehrig's
disease, under the $2.4 million grant awarded in September to fund the project's
preclinical development costs. Also, we dosed our final patient on our tgAAC94
Phase II inflammatory arthritis study and presented encouraging clinical
the American College of Rheumatology meeting in late October. And, our
collaborator, Celladon Corporation has begun the second stage of its Phase
MYDICAR trial to treat Class III/IV heart failure and will be presenting data
at the annual American Heart Association Scientific Sessions in early November."
Call and Webcast Information
Company will host a conference call reviewing financial results, its product
development portfolio and other business developments today beginning at
p.m. Eastern Time / 2:00 p.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 800.240.7305 (domestic) or
303.262.2143 (international).
replay will be available for approximately 30 days at www.targetedgenetics.com
telephone replay will be available following Wednesday's call at approximately
6:00 p.m. PT through 11:59 p.m. PT, Friday, December 5, 2008, by calling
800.405.2236 (domestic) or 303.590.3000 (international); pass code 11120908#.
Targeted Genetics Corporation
Genetics Corporation is a biotechnology company committed to the development
innovative targeted molecular therapies for the prevention and treatment
acquired and inherited diseases with significant unmet medical need. Targeted
Genetics' proprietary Adeno-Associated Virus (AAV) technology platform allows
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, Leber's congenital
amaurosis, 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 1995:
release contains forward-looking statements regarding the Company's liquidity
and financial resources, its ability to fund ongoing and future operations
its business strategy and product development, including statements regarding
the Company's ability to raise capital or secure other financial resources
the near term, the extent of the Company's cash horizon, the timing, nature and
results of the Company's research and development programs, and the potential
impact of the results of such programs on the Company's operations, the
Company's revenue plan, the Company's ability to obtain grant funding for the
ALS research program 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
the accuracy of forward-looking statements and cause actual results to differ
materially from those expected or implied by the forward-looking statements.
Factors that could affect actual future events or results include, but are
limited to, the risk that the Company will run out of cash earlier than
expected, the risk that the Company will not be able to raise capital or
other financial resources in the near term, the risk that the Company's research
and development programs are not successful or are delayed or terminated,
risk that payments anticipated by the Company under product development