Targeted Genetics Reports Second Quarter 1998 Financial Results
07:46 a.m. Jul 30, 1998 Eastern
SEATTLE, July 30 /PRNewswire/ -- Targeted Genetics Corporation today reported a net loss of $3.2 million, or $0.12 per share, for the quarter ended June 30, 1998. For the comparable quarter in 1997, the Company's net loss was $3.8 million, or $0.19 per share. For the six months ended June 30, the Company's net loss decreased to $6.9 million in 1998 from $7.3 million in 1997.
The decreased net loss was attributable to reduced operating expenses, which resulted from a restructuring plan implemented by the Company in February 1998. As part of that plan, the Company reduced its workforce by approximately 30 percent and recorded a restructuring charge of approximately $300,000. The Company expects to see expense declines in the next two quarters, versus the comparable prior year amounts, as a continuing effect of the restructuring. Because the reductions were primarily related to early stage research and development programs, they are not expected to impact the progress of the Company's lead product development programs in cystic fibrosis and cancer.
At June 30, 1998, the Company's cash, cash equivalents and securities available for sale totaled $11.2 million.
During the second quarter, the Company completed a private placement of common stock and warrants with a group of institutional investors, raising $12.7 million net of expenses. Additionally during the quarter, clinical collaborators from various institutions presented positive data from Phase I trials of tgDCC-E1A, the Company's proprietary gene therapy for the treatment of various cancers, at annual meetings of the American Society of Clinical Oncology and The American Society of Gene Therapy.
"The second quarter was marked by significant progress in all of our platform programs," said H. Stewart Parker, President and CEO of Targeted Genetics. "Our Phase I E1A data received a great deal of attention in both the scientific and lay press and we remain very optimistic about the prospects for this potentially powerful therapy in a wide range of cancers. We remain on track to initiate Phase II E1A studies in head and neck cancer prior to the end of the year. Furthermore, we continue to anticipate initiating Phase I studies of an aerosolized version of tgAAV-CFTR, our gene therapy for cystic fibrosis, prior to year end as well. Finally, we intend to present preclinical data from our Targeted CTL cell therapy program in Hepatitis B at a scientific meeting in late August."
Targeted Genetics Corporation develops gene and cell therapy products for the treatment of certain acquired and inherited diseases. The company has three lead product development programs targeting cystic fibrosis, cancer, and infectious diseases, as well as an extensive gene delivery and cellular therapy technology platform.
NOTE: This release contains forward-looking statements relating to the Company's products under development, technologies and future operating results that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words "believes", "expects", "intends", "anticipates", variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the need for additional capital, the early stage of product development, uncertainties related to clinical trials, and uncertainties related to patent position. Reference is made to the Company's latest Annual Report on Form 10-K filed with the SEC for a more detailed description of such factors. Readers are cautioned not to place an undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
TARGETED GENETICS CORPORATION
Selected Financial Information
Statements of Operations
(unaudited, in thousands except per share data)
Three months ended Six months ended
June 30, June 30,
1998 1997 1998 1997
Revenues:
Investment income $135 $181 $177 $411
Other 78 101 312 276
Total revenues 213 282 489 687
Expenses:
Research and
development 2,628 3,317 5,835 6,368
General and
administrative 664 645 1,440 1,387
Interest 72 95 145 182
Total expenses 3,364 4,057 7,420 7,937
Net loss $(3,151) $(3,775) $(6,931) $(7,250)
Net loss per share $(0.12) $(0.19) $(0.29) $(0.36)
Shares used in
computation of net
loss per share 27,303 20,206 23,778 20,184
CONDENSED BALANCE SHEETS June 30, December 31,
(in thousands) 1998 1997
(unaudited)
Cash, cash equivalents and
securities held for sale $11,237 $5,038
Other current assets 296 248
Property, plant
and equipment, net 3,825 3,928
Other assets 467 553
Total assets $15,825 $9,767
Current liabilities $2,947 $2,659
Long-term obligations 1,432 1,517
Shareholders' equity
(28,975 common shares outstanding
at June 30, 1998) 11,446 5,591
Total liabilities
and shareholders' equity $15,825 $9,767
SOURCE Targeted Genetics Corporation
Copyright 1998, PR Newswire
Volver a Medios de Comunicación
