Targeted Genetics Reports Second Quarter Financial Results
SEATTLE, July 28 /PRNewswire-FirstCall/ -- Targeted Genetics Corporation
(NASDAQ:TGEN) today announced its financial results for its second quarter
ended June 30, 2005. As previously announced, the Company will hold a
conference call with analysts at 10:30 a.m. EDT today. The call will be
broadcast live over the Internet and can be accessed, along with replay
information, at http://www.targetedgenetics.com/.
For the second quarter of 2005, the Company reported a net loss of $5.3
million, or $0.06 per share, compared to $4.5 million, or $0.05 per share for
the second quarter of 2004. For the six months ended June 30, 2005, the
Company reported a net loss of $10.0 million, or $0.12 per share, compared to
$9.3 million, or $0.12 per share for the same period in 2004.
Revenue for the three months ended June 30, 2005 was $1.5 million, compared to
$2.8 million for the second quarter of 2004, and was $3.5 million for the six
months ended June 30, 2005, compared to $4.1 million for the same period in
2004. Revenue in 2005 and 2004 consisted primarily of development revenue
earned under the HIV/AIDS vaccine collaboration with the International AIDS
Vaccine Initiative (IAVI) and reflect decreased activity levels as planned
compared to 2004.
"We've continued to make good progress during the first half of the year by
both advancing our clinical programs and leveraging value from our leadership
position in AAV development infrastructure and capabilities through new
collaborations. In our inflammatory arthritis program, we met our goal of
providing data mid-year, and based on having met the primary endpoints in the
study, we are now positioned to move the program forward and begin the next
clinical trial in the third quarter," said H. Stewart Parker, president and
chief executive officer of Targeted Genetics. "Our HIV/AIDS vaccine program is
the initial step in a comprehensive development strategy and we are moving the
program forward with the goal of presenting additional clinical trial data at
the end of the year. We also continue to make progress in our preclinical
programs and are excited about the breakthrough work of our collaborators in
congestive heart failure and Huntington's disease." Operating expenses were $6.6 million for the second quarter of 2005, down from
$7.1 million for the second quarter of 2004. This decrease reflects a decrease
in general and administrative expense from $2.1 million in 2004 to $1.7 million
in 2005, primarily as a result of the sale of the Company's cell therapy
subsidiary in July 2004. Operating expenses remained relatively flat at $13.2
million for the six months ended June 30, 2005, compared $13.3 million for the
same period in 2004. Year to date operating expenses reflect a decrease in
general and administrative expenses and an increase in research and development
expenses associated with the Company's arthritis and AIDS vaccine clinical
programs, and its preclinical programs in congestive heart failure and
Huntington's disease.
Second quarter highlights include: -- Reported preliminary results of the Phase I clinical trial of tgAAC94 in
patients with inflammatory arthritis; demonstrated safety and observed
improvements in arthritic signs and symptoms that support continued study of
tgAAC94; -- Highlighted Targeted Genetics' AAV technology assets in eight presentations
at the 8th Annual Meeting of the American Society of Gene Therapy; -- Announced issuance of three additional patents covering Targeted Genetics'
AAV vector patent portfolio and approach to increase carrying capacity of AAV
vectors, providing expanded potential for future product development and
partnering opportunities; -- Announced breakthrough research by collaborator Dr. Beverly Davidson of the
University of Iowa in Huntington's Disease.
About Targeted Genetics Targeted Genetics Corporation develops molecular medicines for the prevention
and treatment of acquired and inherited diseases. The Company has clinical
product development programs targeting inflammatory arthritis and AIDS
prophylaxis. The Company also has a promising pipeline of preclinical product
development programs focused on, congestive heart failure, Huntington's
disease, and hyperlipidemia. For more information about Targeted Genetics,
visit its website at http://www.targetedgenetics.com/.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995: This release contains forward-looking statements regarding our intellectual
property, research programs and clinical trials, our product development and
our potential development platforms including AAV vectors and other statements
about our plans, objectives, intentions and expectations. In particular, the
statements regarding the Company's pipeline and potential application of the
research to any future product candidates are forward- looking statements. These statements, involve current expectations, forecasts of future events and
other statements that are not historical facts. Inaccurate assumptions and
known and unknown risks and uncertainties can affect the accuracy of
forward-looking statements. Factors that could affect our actual results
include, but are not limited to, results of animal research are not necessarily
indicative of results in humans, the timing, nature and results of our research,
potential development of alternative technologies or more effective products by
competitors, our ability to obtain and maintain regulatory or institutional
approvals, our ability to obtain, maintain and protect our intellectual
property and our ability to raise capital when needed, as well as other risk
factors described in the section entitled "Factors Affecting Our Operating
Results, Our Business and Our Stock Price" in our Quarterly Report on Form 10-Q
for the period ended March 31, 2005. You should not rely unduly on these
forward-looking statements, which apply only as of the date of this release. We
undertake no duty to publicly announce or report revisions to these statements
as new information becomes available that may change our expectations.
Investor and Media Contact:
Stacie D. Byars
Director, Communications
Targeted Genetics Corporation
206-521-7392
TARGETED GENETICS CORPORATION
(unaudited, in thousands, except per share information) Quarter ended Year-to-date ended
June 30, June 30,
Statement of Operations Information: 2005 2004 2005 2004 Revenue under collaborative
agreements $1,462 $2,761 $3,462 $4,081 Operating expenses:
Research & development 4,808 4,828 9,347 9,065
General & administrative 1,660 2,066 3,545 3,816
Restructure charges 119 221 338 416
Total expenses 6,587 7,115 13,230 13,297
Loss from operations (5,125) (4,354) (9,768) (9,216) Investment income (loss) (33) 21 67 145
Interest expense (136) (117) (265) (237)
Net loss $(5,294) $(4,450) $(9,966) $(9,308) Net loss per common share $(0.06) $(0.05) $(0.12) $(0.12) Shares used in computation of net
loss
per common share 85,628 81,604 85,628 77,239
TARGETED GENETICS CORPORATION
(in thousands) June 30, December 31,
Balance Sheet Information: 2005 2004
(unaudited) Cash and cash equivalents $25,609 $34,096
Other current assets 761 1,057
Property and equipment, net 2,150 2,495
Other assets 31,850 32,317
Total assets $60,370 $69,965 Current liabilities $4,576 $3,995
Long-term obligations and other
liabilities 15,992 16,208
Shareholders' equity 39,802 49,762
Total liabilities and
shareholders' equity $60,370 $69,965
DATASOURCE: Targeted Genetics Corporation CONTACT: Stacie D. Byars, Director, Communications of Targeted Genetics Corporation, +1-206-521-7392 Web site: http://www.targetedgenetics.com/
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