Full Press Release Details
GENETICS REPORTS SECOND QUARTER 2008 FINANCIAL RESULTS
Call Today at 10:30 a.m. ET
Wash., August 6, 2008 -
Targeted Genetics Corporation (NASDAQ: TGEN) today announced its financial
results for the second quarter ended June 30, 2008. The Company will hold a
conference call with analysts and investors to discuss its financial and
business results at 10:30 a.m. ET today.
quarter ended June 30, 2008, the Company reported a net loss of $3.8 million,
$0.19 per common share, compared to net loss of $4.2 million, or $0.31 per
common share, for the second quarter of 2007.
for the second quarter of 2008 was $2.2 million, compared to $3.0 million for
the same quarter in 2007. The decrease in revenue for the second quarter of
primarily reflects a decrease in research and development and manufacturing
activities under the NIAID-funded HIV/AIDS vaccine program and partially offset
by higher research and development activities under the Company's collaboration
with Celladon. Revenue for the six months ended June 30, 2008 was $4.7 million,
even with revenue for the same period in 2007 as increases in 2008 Celladon
product development efforts were offset by lower 2008 HIV/AIDS vaccine program
completion of planned development activities for funded projects and licensed
technology, the Company expects revenue from collaborative partners of
approximately $8.0 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 second quarter of 2008 decreased to $4.2
million, compared to $5.3 million in the same quarter of 2007. Research and
development expenses decreased to $8.1 million for the six months ended June
2008 compared to $9.0 million for the same period in 2007. The decreases in
periods reflect lower clinical trial costs as the Company's Phase 1/2
inflammatory arthritis clinical trial reaches completion. The R&D expense
decreases in both periods were partially offset by increased activity related
the partnered heart failure product candidate.
and administrative expenses for the three months ended June 20, 2008 were $1.8
million, compared to $1.6 million for the same period in 2007. General and
administrative expense increased to $3.6 million for the six months ended June
30, 2008, compared to $3.1 million for the same period in 2007. The increases
both periods reflect higher intellectual property charges related to patent
costs and higher legal fees as compared to the first half of 2007.
Company's cash balance was $12.7 million at June 30, 2008, compared to $16.4
million at December 31, 2007. The Company's guidance for its estimated burn rate
for 2008 remains at a range of $12 to $14 million, and, based on its current
cash balances, the Company expects its cash horizon to extend into the first
a quarter of solid product development progress for the Company and its
collaborative partners," said H. Stewart Parker, president and chief executive
officer of Targeted Genetics. "We were excited to be recommended for government
funding for a project targeting Amyotrophic Lateral Sclerosis, or ALS, more
widely known as Lou Gehrig's disease, a devastating disease with significant
unmet need, potentially adding up to $2.4 million to fund the project's
preclinical development costs. Also, research from two of our partnered programs
was presented and published this quarter. Dr. Robin Ali's team at University
College of London reported promising results in an early stage AAV-based
clinical trial in Leber's Congenital Amaurosis (LCA), an inherited eye disease
that impairs vision and eventually causes blindness and was published in the
England Journal of Medicine. Dr. Beverly Davidson, at University of Iowa, was
recognized in PNAS for advances in delivery of small interfering RNA to the
brain, and represents a significant advance in addressing this treatment method
in Huntington's disease."
the Company reported data showing proof of principle and early clinical benefit
from its Phase 1/2 clinical study in LCA. The study treated three young adults
between the ages of 17 and 23 years of age with early-onset severe retinal
dystrophy utilizing an Adeno-Associated Virus (AAV) vector containing the RPE
coding sequence, resulting in consistent improvement in visual function as
measured by visual field tests and improvement in subjective tests of visual
mobility. There were no adverse events. Targeted Genetics, a leader in the
development and manufacture of AAV-based product candidates, manufactures the
vector that is being used in this trial.
studies are underway in order to assess this approach fully, but these initial
results suggest that AAV-based delivery of genes in the eye can be accomplished
safely and with promise," added Parker.
Company also announced during the quarter, the publication of preclinical data
characterizing the novel use of Adeno-Associated Viral (AAV) vectors to deliver
small interfering RNA (siRNA) for the treatment of Huntington's disease in the
Proceedings of the National Academy of Sciences (PNAS). The goal of this
research is to assess the use of interfering RNA to silence the mutant
huntingtin gene and thus, reduce the level of the defective protein.
reported on findings that AAV-RNAi vectors efficiently abrogate disease in
models of Huntington's disease and that they support a new approach to RNAi
delivery that has the potential to effectively overcome delivery limitations
RNAi related to off target effects and resulting non-specific toxicity. "These
new AAV-RNAi vectors, embedded in synthetic micro-RNA structures, retain the
efficiency of delivery and biologic efficacy, while having a greatly enhanced
safety profile," said Barrie J. Carter, Ph.D., Executive Vice President and
Chief Scientific Officer of the Company.
believe this new design concept is of great importance to the entire RNA
therapeutic field and that the use of AAV vectors for the delivery of expressed
RNAi has proven advantages over alternative RNAi delivery approaches due to
AAV's long-term expression capabilities, stability and safety profile," said
Parker. "These results in Huntington's and in LCA continue to support our
beliefs that AAV delivery holds great promise in the creation of a broad new
class of innovative medicines and that Targeted Genetics is well positioned
participate in this opportunity."
continue to work diligently with our product development partners to move our
programs forward and are keenly focused on initiatives to extend our cash
horizon. We anticipate reporting data from our Phase 1/2 trial of tgAAC94 for
the treatment of inflammatory arthritis at the American College of Rheumatology
conference in October and Phase 1 data from our partnered heart failure program
at the American Heart Association Scientific Sessions 2008 conference in
Call and Webcast Information
Company will host a conference call reviewing financial results, its product
development portfolio and other business developments today beginning at 10:30