PLYMOUTH MEETING, Pa., April 7, 2008 GenaeraCorporation (Nasdaq: GENR) today announced, in compliance with NASDAQMarketplace Rule 4350(b)(1)(B), that the audit report included in theCompany's Annual Report on Form 10-K for the fiscal year ended December 31,2007 contained an unqualified audit opinion from its independent registeredpublic accounting firm, KPMG LLP, which included a "going concern" explanatoryparagraph. The Company discusses this matter, including its plans to addressfuture financing needs, in Note 1 to the financial statements included in itsForm 10-K.
This disclosure is required under NASDAQ rules and does not represent anychange or amendment to the Company's 2007 financial statements or to itsAnnual Report on Form 10-K which was filed on March 31, 2008 with theSecurities and Exchange Commission.
Genaera Corporation is focused on advancing the science and treatment ofmetabolic diseases. The Company has significant market opportunities with afirst-in-class molecule, trodusquemine (MSI-1436), that has the potential toredefine the treatment paradigm for obesity and type 2 diabetes and ispresently in a phase 1 trial in obesity. In addition, Genaera has avalue-driven, fully out-licensed partnership with MedImmune, Inc. for a secondcore program that is presently undergoing phase 2 clinical testing in asthma.Genaera is committed to directing resources to its core program and theaggressive clinical development of its key assets to build stockholder value.For further information, please see our website at http://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. Such statements include, among others, statements regarding thepreliminary results, clinical development plans and prospects for Genaera'sprograms including trodusquemine (MSI-1436) and the IL-9 antibody program. Youmay identify some of these forward-looking statements by the use of words inthe statements such as "anticipate," "believe," "continue," "develop,""expect," "plan" and "potential" or other words of similar meaning. Genaera'sactual results and performance could differ materially from those currentlyanticipated and expressed in these and other forward-looking statements as aresult of a number of risk factors, including, but not limited to: Genaera'shistory of operating losses since inception and its need for additional fundsto operate its business; the costs, delays and uncertainties inherent inscientific research, drug development, clinical trials and the regulatoryapproval process; the risk that clinical trials for Genaera's productcandidates including trodusquemine (MSI-1436) and the IL-9 antibody programmay be delayed or may not be successful; the risk that Genaera may not obtainregulatory approval for its products, whether due to adequacy of thedevelopment program, the conduct of the clinical trials, changing regulatoryrequirements, different methods of evaluating and interpreting data,regulatory interpretations of clinical risk and benefit, or otherwise;Genaera's reliance on its collaborators, in connection with the developmentand commercialization of Genaera's product candidates; market acceptance ofGenaera's products, if regulatory approval is achieved; competition; generalfinancial, economic, regulatory and political conditions affecting thebiotechnology and pharmaceutical industry; and the other risks anduncertainties discussed in this announcement and in Genaera's filings with theU.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. Giv