Full Press Release Details
Genetics Corporation
GENETICS REPORTS SECOND QUARTER 2007 FINANCIAL RESULTS
7, 2007 - Targeted Genetics Corporation (NASDAQ: TGEN) today announced its
financial results for the second quarter of 2007. As previously announced,
Company will hold a conference call with analysts at 10:30 AM Eastern Time
today. The call will be broadcast live and can be accessed, along with replay
information, at www.targetedgenetics.com.
second quarter of 2007, the Company reported a net loss of $4.2 million, or
$0.31 per common share, compared to a net loss of $27.9 million, or $2.83 per
common share, for the second quarter of 2006. For the six months ended June
2007, the Company reported a net loss of $8.0 million, or $0.61 per common
share, compared to a net loss of $31.6 million, or $3.37 per common share for
same period in 2006.
second quarter, we completed a private equity financing netting $17.8 million.
When combined with the proceeds of a private equity financing in the first
quarter and the funding anticipated from product development collaborations
contracts, we believe our operations are sufficiently funded for at least a
year," said H. Stewart Parker, president and chief executive officer of Targeted
for the second quarter of 2007 was $3.0 million, compared to $1.4 million for
the same quarter in the prior year and was $4.7 million for the six months
June 30, 2007 compared to $3.8 million for the same period in 2006. The increase
was due to increased research and development activities under the Company's
congestive heart failure collaboration with Celladon Corporation (Celladon),
the Company's NIAID-funded
subcontract to develop AAV-based HIV/AIDS vaccines.
and development expenses for the second quarter of 2007 increased to $5.3
million, from $3.7 million in the second quarter of 2006 and increased to $9.0
million for the six months ended June 30, 2007, from $7.4 million for the same
period in 2006. The increase for both the three and six month periods was due
the enrollment of a greater number of subjects in the Company's phase I/II
clinical study in inflammatory arthritis and higher clinical costs to support
the increased enrollment and increased research and development activities
the Company's congestive heart failure collaboration with Celladon to support
the initiation of a Phase I clinical trial and the Company's NIAID-funded
subcontract to develop AAV-based HIV/AIDS vaccines. These
increases were partially offset by lower development costs related to the
Company's HIV/AIDS vaccine collaboration with IAVI due to the progression of
this project to clinical testing, which is not being conducted by the Company.
and administrative expenses were consistent at $1.6 million for both the second
quarter of 2007 and 2006 and $3.1 million for the six months ended June 30,
and 2006. Operating expenses for the second quarter of 2006 also included
a non-cash goodwill impairment charge of $23.7 million.
cash equivalents were $26.0 million at June 30, 2007, as compared to $6.2
million at December 31, 2006. Total cash requirements for 2007 are expected
be $13 to $16 million.
24, 2007, Targeted Genetics Corporation announced that the Company and the
United States Food and Drug Administration (FDA) placed on hold the development
program of tgAAC94, an investigational therapy for the treatment of inflammatory
arthritis, as a precautionary measure after the occurrence of a Serious Adverse
Event (SAE) in one subject. This Phase I/II study is designed to assess the
safety and potential efficacy of different doses of tgAAC94 administered
directly into affected joints of subjects with inflammatory arthritis. The
individual who experienced this SAE has subsequently died.
time, any causal relationship between this SAE and the administration of tgAAC94
is unknown, and we continue to work closely and diligently with the FDA and
study's independent Data Safety Monitoring Board to determine the cause of the
SAE as quickly as possible," said Parker.
Quarter 2007 Highlights
Call and Webcast Information
Company will host a conference call reviewing financial results and its product
portfolio, including an update on the development of its inflammatory arthritis
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 800.257.1927 (domestic) or
303.275.2170 (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, Thursday, September 6, 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 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
limited to, payments
anticipated by the Company under product development collaborations and
contracts, the Company's actual expenses,
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
to obtain, maintain and protect its intellectual property, as well as other
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.
Company anticipates updating the risk factors in its quarterly report on Form