PLYMOUTH MEETING, Pa., Nov. 9 GenaeraCorporation (Nasdaq: GENR) today announced its financial results for thethree- and nine-month periods ended September 30, 2007. The net loss for thethree-month period ended September 30, 2007, was $3.7 million, or $(0.21) perbasic and diluted share, as compared to a net loss of $4.5 million, or $(0.26)per basic and diluted share, for the three-month period ended September 30,2006. The net loss for the nine-month period ended September 30, 2007, was$9.9 million, or $(0.57) per basic and diluted share, as compared to a netloss of $17.6 million, or $(1.30) per basic and diluted share, for the nine-month period ended September 30, 2006.
Genaera's research and development expenses for the three- and nine-monthperiods ended September 30, 2007, were $2.9 million and $9.5 million,respectively, compared to $3.9 million and $14.6 million, respectively, forthe same periods in 2006. The decrease was primarily due to a decrease inclinical and personnel costs as a result of the discontinuation of theEVIZON(TM) (squalamine lactate) program for the treatment of wet age-relatedmacular degeneration, partially offset by an increase in clinical andpersonnel costs related to the trodusquemine (MSI-1436) program for thetreatment of obesity.
Genaera's general and administrative expenses for the three- and nine-month periods ended September 30, 2007, were $1.2 million and $4.3 million,respectively, compared to $1.4 million and $4.5 million, respectively, for thesame periods in 2006. The decrease in the three-month period ended September30, 2007, was due principally to decreases in stock-based compensation expensefor stock options and restricted stock. The decrease in the nine-month periodended September 30, 2007, was due principally to decreases in stock-basedcompensation expense for stock options and restricted stock, partially offsetby increases in costs associated with the departure of an executive in thecurrent year.
The Company's cash, cash equivalents and short-term investment balance was$23.2 million at September 30, 2007.
"During the third quarter, both of our core assets, MEDI-528 for asthmaand trodusquemine, or MSI-1436, for type 2 diabetes and obesity, progressedand remain on track with plan. Positive interim Phase 1 trodusquemine dataannounced in the quarter is another example of hitting stated milestones,"said Jack Armstrong, President and Chief Executive Officer. "We continue tofocus internal resources on the MSI-1436 program while maintaining control ofour spending and remaining committed to meet our milestone targets to driveshareholder value."
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 a value-driven, fully out-licensed partnership with MedImmune, Inc. for a second coreprogram 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), the IL-9 antibody