Full Press Release Details
Reports Third Quarter 2015 Financial Results
MENLO PARK, Calif., November 5, 2015 --
(Nasdaq: GERN) today
reported financial results for the
third quarter ended September
For the third quarter of 2015,
the company reported net
income of $27.2 million, or
$0.17 per share, compared to a
net loss of $9.5 million, or
$(0.06) per share, for the comparable 2014
period. Net income for the
first nine months of 2015 was
$8.5 million, or $0.05
per share, compared to a net loss of
$26.7 million, or $(0.18)
the comparable 2014 period.
The company ended the
third quarter of 2015 with
$151.8 million in cash and investments.
the third quarter of 2015 were $35.4 million
compared to $160,000 for
the comparable 2014 period. Revenues for
the first nine months of 2015
were $36.2 million compared to $975,000
for the comparable 2014 period.
Revenues for the three
and nine month periods ending September
30, 2015 included the
full recognition of the
$35.0 million upfront payment
from Janssen Biotech, Inc.
(Janssen) as collaboration
revenue upon the company s transfer
of the imetelstat license rights
and completion of technology
activities outlined under the
imetelstat collaboration
agreement with Janssen. The upfront cash
payment was received in December
2014 and recorded as deferred revenue
Total operating expenses for
the third quarter of 2015
were $8.3 million compared
to $10.1 million for the comparable
2014 period. Research and development expenses
for the third quarter of 2015 were
compared to $6.0 million for
the comparable 2014 period. General
and administrative expenses for the
third quarter of 2015 were $4.3 million compared to $4.1 million
for the comparable 2014
Total operating expenses for
the first nine months of 2015
were $28.1 million compared
to $28.3 million for the
comparable 2014 period. Research
and development expenses
for the first nine months of 2015
were $13.8 million compared
to $16.4 million for the
comparable 2014 period.
General and administrative
expenses for the first nine months of
2015 were $12.9 million compared to
$11.9 million for the comparable 2014
period. Year-to-date operating expenses
for 2015 also included
restructuring charges of $1.3
million in connection with
the company s organizational
resizing announced in March
in research and development
expenses for the three and
nine month periods ending
September 30, 2015, compared to
the same periods in 2014, was
primarily the net result of
lower costs for the manufacturing
of imetelstat and reduced personnel-related
costs resulting from the organizational resizing,
partially offset by increased costs
for the development of imetelstat
for hematologic myeloid malignancies in collaboration with
Janssen. The company expects
research and development expenses to increase during
the remainder of the year as
the development of imetelstat
continues in collaboration
with Janssen. The increase
in general and administrative
expenses for the three and nine
month periods ending
September 30, 2015, compared
in 2014, was primarily
the result of higher non-cash
stock-based compensation expense and
increased legal costs
associated with the company s
other income for the third quarter