PLYMOUTH MEETING, Pa., May 9 /PRNewswire-FirstCall/ -- Genaera Corporation (Nasdaq: GENR) today announced its financial results for the quarter ended March 31, 2008. The net loss for the quarter ended March 31, 2008 was $4.3 million, or $(0.24) per basic and diluted share, as compared to a net loss of $4.2 million, or $(0.24) per basic and diluted share, for the quarter ended March 31, 2007.
Genaera's research and development expenses for the quarter ended March 31, 2008 were $3.8 million compared to $3.5 million for the same period in 2007. The increase was due to increases in expenses related to the trodusquemine (MSI-1436) program for obesity and type 2 diabetes and a net increase in indirect expenses due to an increase in stock-based compensation related to stock options granted, partially offset by decreases in realignment costs and other indirect costs. These increases were partially offset by decreases in expenses related to the squalamine program for the treatment of wet age-related macular degeneration, the LOMUCIN(TM) program for the treatment of cystic fibrosis and the anti-IL9 antibody program.
Genaera's general and administrative expenses for the quarter ended March 31, 2008 were $2.2 million compared to $1.4 million for the same period in 2007. The increase was due to increases in stock-based compensation expense and an increase in legal fees.
The Company's cash, cash equivalents and short-term investments balance was $17.1 million at March 31, 2008.
Genaera Corporation is focused on advancing the science and treatment of metabolic diseases. The Company has significant market opportunities with a first-in-class molecule, trodusquemine (MSI-1436), that has the potential to redefine the treatment paradigm for obesity and type 2 diabetes and is presently in a phase 1 trial in obesity. In addition, Genaera has a value- driven, fully out-licensed partnership with MedImmune, Inc. for a second core program that is presently undergoing phase 2 clinical testing in asthma. Genaera is committed to directing resources to its core program and the aggressive 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
meaning of the Private Securities Litigation Reform Act of 1995 that are
subject to risks and uncertainties, known and unknown. Forward-looking
statements reflect management's current views and are based on certain
expectations and assumptions. Such statements include, among others,
statements regarding the preliminary results, clinical development plans
and prospects for Genaera's programs including trodusquemine (MSI-1436) and
the IL-9 antibody program. You may identify some of these forward-looking
statements by the use 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 those currently anticipated and expressed in these
and other forward-looking statements as a result of a number of risk
factors, including, but not limited to: Genaera's history of operating
losses since inception and its need for additional funds to operate its
business; the costs, delays and uncertainties inherent in scientific
research, drug development, clinical trials and the regulatory approval
process; the risk that clinical trials for Genaera's product candidates
including trodusquemine (MSI-1436) and the IL-9 antibody program may be
delayed or may not be successful; the risk that Genaera may not obtain
regulatory approval for its products, whether due to adequacy of the
development program, the conduct of the clinical trials, changing
regulatory requirements, 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
development and commercialization of Genaera's product candidates; market
acceptance of Genaera's products, if regulatory approval is achieved;
competition; general financial, economic, regulatory and political
conditions affecting the biotechnology and pharmaceutical industry; and the
other risks and uncertainties discussed in this announcement and in
Genaera's filings with the U.S. Securities and Exchange Commission, all of
which are available from the Commission in its EDGAR database at
http://www.sec.gov as well as other sources. You are encouraged to read these
reports. Given the uncertainties affecting development stage pharmaceutical
companies, you are cautioned not to place undue reliance on any such
forward-looking statements, any of which may turn out to be wrong due to
inaccurate assumptions, unknown risks, uncertainties or other factors.
Genaera does not intend (and it is not obligated) to publicly update,
revise or correct these forward-looking statements or the risk factors that
may relate thereto.
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended
Revenues $ 1,309 $ 207
Costs and expenses:
Research and development 3,838 3,470
General and administrative 2,185 1,432
Loss from operations (4,714) (4,695)
Interest income 176 367
Loss before income taxes (4,538) (4,328)
Income tax benefit 281 147
Net loss $(4,257) $(4,181)
Net loss per share --
basic and diluted $ (0.24) $(0.24)
Weighted average shares outstanding --
basic and diluted 17,463 17,443
CONDENSED BALANCE SHEETS
March 31, 2008 December 31, 2007
Cash, cash equivalents and short-term
investments $17,098 $20,900
Prepaid expenses and other current
assets 804 356
Fixed assets, net 344 374
Other assets 56 56
Total assets $18,302 $21,686
Current liabilities $2,499 $3,377
Other liabilities 63 70
Stockholders' equity 15,740 18,239
Total liabilities and stockholders'
equity $18,302 $21,686
|SOURCE Genaera Corporation|
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