Genaera Corporation Announces Third Quarter Financial Results
Genaera's research and development expenses for the three- and nine-monthperiods ended September 30, 2008 were $2.1 million and $9.5 million,respectively, compared to $2.9 million and $9.5 million, respectively, for thesame periods in 2007.
The decrease in research and development expenses in the three-monthperiod ended September 30, 2008 was primarily due to decreases in third-partycontract research costs, clinical trial and manufacturing costs related to ourtrodusquemine (MSI-1436) program for the treatment of obesity and type 2diabetes due to the timing of the clinical and research studies, as well asdecreases in personnel expenses, third-party contract research costs andclinical trial costs related to the discontinuation of our squalamine programfor the treatment of wet age-related macular degeneration and our LOMUCIN(TM)program for the treatment of cystic fibrosis in 2007. The decreases werepartially offset by an increase in stock-based compensation expense.
While Genaera's research and development expenses for the nine-monthperiod ended September 30, 2008 were consistent with the same period in 2007,third-party contract research costs, clinical trial costs and consultingexpenses related to the trodusquemine program for the treatment of obesity andtype 2 diabetes increased as a result of the progression of the programthrough Phase 1 development. In addition, there was an in stock-basedcompensation expense. These increases were offset by decreases in third-partycontract research costs, clinical trial costs and personnel expenses elated tothe discontinuation of our squalamine program for the treatment of wetage-related macular degeneration and our LOMUCIN(TM) program for the treatmentof cystic fibrosis in 2007.
Genaera's general and administrative expenses for the three- andnine-month periods ended September 30, 2008 were $1.5 million and$5.0 million, respectively, compared to $1.2 million and $4.3 million,respectively, for the same periods in 2007. The increases were due principallyto increases in stock-based compensation expense, partially offset bydecreases in realignment costs, personnel costs, accounting fees, andintellectual property, public company and investor relations expenses as aresult of the cost-cutting initiatives implemented in May 2008.
The Company's cash, cash equivalents and short-term investment balance was$10.4 million at September 30, 2008.
Genaera Corporation is developing trodusquemine (MSI-1436) for type 2diabetes and obesity currently in phase 1 clinical testing and has a fullyout-licensed partnership with MedImmune, Inc. that is in phase 2 clinicaltesting in asthma. For further information, please see our website athttp://www.genaera.com.
This announcement contains forward-looking statements within the meaningof the Private Securities Litigation Reform Act of 1995 that are subject torisks and uncertainties, known and unknown. Forward-looking statements reflectmanagement's current views and are based on certain expectations andassumptions. You may identify some of these forward-looking statements by theuse of words in the statements such as "anticipate," "believe," "continue,""develop," "expect," "plan" and "potential" or other words of similar meaning.Genaera's actual results and performance could differ materially from thosecurrently anticipated and expressed in these and other forward-lookingstatements as a result of a number of risk factors, including, but not limitedto the risks and uncertainties discussed in Genaera's filings with the U.S.Securities and Exchange Commission, all of which are available from theCommission in its EDGAR database at www.sec.gov as well as other sources. Youare encouraged to read these reports. Given the uncertainties affectingdevelopment stage pharmaceutical companies, you are cautioned not to placeundue reliance on any such forward-looking statements, any of which may turnout to be wrong due to inaccurate assumptions, unknown risks, uncertainties orother factors. Genaera does not intend (and it is not obligated) to publiclyupdate, revise or correct these forward-looking statements or the risk factorsthat may relate thereto.-end of text- -tables to follow- GENAERA CORPORATION STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, 2008 2007 2008 2007 Revenues $92 $51 $1,446 $2,660 Costs and expenses: Research and development 2,090 2,898 9,477 9,457 General and administrative 1,464 1,187 5,027 4,258 3,554 4,085 14,504 13,715 Loss from operations (3,462) (4,034) (13,058) (11,055) Interest income 65 305 345 1,011 Loss before income taxes (3,397) (3,729) (12,713) (10,044) Income tax benefit -- -- 281 147 Net loss $(3,397) $(3,729) $(12,432) $(9,897) Net loss per share - basic and diluted $(0.19) $(0.21) $(0.71) $(0.57) Weighted average shares outstanding - basic and diluted 17,465 17,456 17,464 17,449 CONDENSED BALANCE SHEETS (Unaudited) (In thousands) September 30, 2008 December 31, 2007 Cash, cash equivalents and investments $10,426 $20,900 Prepaid expenses and other current assets 350 356 Fixed assets, net 251 374 Other assets 56 56 Total assets $11,083 $21,686 Current liabilities $1,319 $3,377 Long-term liabilities 49 70 Stockholders' equity 9,715 18,239 Total liabilities and stockholders' equity $11,083 $21,686
SOURCE Genaera Corporation
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