GAITHERSBURG, Md., March 10, 2011 /PRNewswire/ -- Today GenVec, Inc. (Nasdaq: GNVC) announced financial results for the fourth quarter and year ended December 31, 2010. For the year ended December 31, 2010, the Company reported a net loss of $12.3 million, or $0.10 per share, compared with a net loss of $18.4 million, or $0.19 per share, for the year ended December 31, 2009. GenVec ended the year with $35.2 million in cash, cash equivalents, and short-term investments.
"In 2010 we made significant progress in our partnership with Novartis and our vaccine programs. We have significantly reduced our burn rate, and we are focused on executing a sustainable business strategy of using our differentiated, proprietary technology to create superior therapeutics and vaccines that are developed and commercialized through collaborations," stated Paul H. Fischer, Ph.D., GenVec's President and CEO.
2010 and Recent Corporate Highlights THERAPEUTIC PROGRAMS
ANIMAL HEALTH PROGRAMS
FINANCIAL & OTHER
2010 Financial ResultsRevenue increased 19% to $16.5 million in 2010 from $13.9 million in 2009. The increase in 2010 is primarily due to increased revenue of $7.5 million generated by our hearing loss and balance disorders program. We entered into a research collaboration and license agreement with Novartis in January 2010, which accounted for $3.4 million of revenue in 2010, and a development agreement related to the supply of clinical trial material related to activities under the collaboration agreement in August 2010, which accounted for $4.4 million in revenue in 2010. The two Novartis agreements resulted in increased revenue in 2010 as compared to 2009 when the only work performed for our hearing loss and balance disorders program was performed under a grant from the University of Kansas. Partially offsetting the increased revenue associated with our hearing loss and balance disorders program is decreased revenue of $3.0 million and $2.2 million associated with our HIV and FMD programs, respectively, as compared to the prior years due to reduced work scope under each program.
Operating expenses for 2010 decreased 9% to $29.1 million from $31.9 million in 2009. Research and development expenses decreased 15% to $20.9 million in 2010 from $24.7 million in 2009. The decrease is primarily due to lower costs related to the development of TNFerade including personnel, manufacturing costs, patient costs, and professional service costs related to our TNFerade pancreatic clinical trial, due to the termination of the clinical trial in the first quarter of 2010.
General and administrative expenses increased 14% to $8.2 million in 2010 from $7.2 million in 2009. General and administrative expenses were higher in 2010 primarily due to higher professional service costs and facility costs, partially offset by lower depreciation costs.
Fourth Quarter 2010 ResultsFor the fourth quarter ended December 31, 2010, GenVec reported a net loss of $1.0 million, or $0.01 per share, compared with a net loss of $4.3 million, or $0.04 per share, for the comparable prior year period. The Company reported revenues of $5.2 million in the fourth quarter of 2010 compared to $3.4 million for the same period in 2009. This increase was primarily due to our collaboration with Novartis that began in 2010, we reported revenues of $3.2 million in the fourth quarter of 2010 with no revenue reported for this collaboration in the comparable period in 2009. This increase was partially offset by a decrease in revenue associated with our HIV vaccine development program. Research and development expenses decreased 11% in 2010 from $5.5 million in the fourth quarter of 2009 to $4.9 million in the fourth quarter of 2010 due mainly to reduced personnel costs and costs related to the development of TNFerade, partially offset by increased manufacturing and development costs related to our hearing program. General and administrative expenses in the fourth quarter of 2010 decreased 26% to $1.5 million from $2.1 million in the comparable period in 2009 primarily due to reduced personnel costs and depreciation costs, partially offset by higher professional costs.
2011 GuidanceGenVec's Senior Vice President and Chief Financial Officer, Douglas J. Swirsky, commented, "For 2011, we anticipate our cash burn will be between $5.0 million and $7.0 million. In 2011, we foresee revenues from grants and collaborations totaling between $23.0 million and $25.0 million."
Conference Call Information GenVec will hold a conference call at 10:00 a.m. EST on Friday, March 11, 2011 to discuss the Company's financial results and 2011 business outlook. To listen to the live conference call, please dial 877-558-0567 (U.S. or Canada) or 706-643-4980 (international) and use the following Conference ID: 47418441. An audio replay of the conference call will be available starting at 1:00 p.m. EST on March 11, 2011 through March 17, 2011. To listen to the audio replay, dial 800-642-1687 or 706-645-9291 (international) and use access code 47418441.
A live webcast of the conference call will be available on the Company's website and will be archived for 30 days. To access the webcast or the replay, go to www.genvec.com, click on "Investor Relations," and click on "Webcasts and Data."
About GenVecGenVec, Inc. is a biopharmaceutical company using differentiated, proprietary technologies to create superior therapeutics and vaccines. A key component of our strategy is to develop and commercialize our product candidates through collaborations. GenVec is working with leading companies and organizations such as Novartis, Merial, and the U.S. Government to support a portfolio of product programs that address the prevention and treatment of a number of significant human and animal health concerns. GenVec's development programs address therapeutic areas such as hearing loss, balance disorders, and cancer; as well as vaccines against infectious diseases including respiratory syncytial virus (RSV), HSV-2, dengue fever, influenza, HIV, malaria, and foot-and-mouth disease. Additional information about GenVec is available at www.genvec.com and in the Company's various filings with the Securities and Exchange Commission.
Statements herein relating to future financial or business performance, conditions or strategies and other financial and business matters, including expectations regarding funding, manufacturing, the development of products and the success of the collaboration with Novartis, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. GenVec cautions that these forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Factors that may cause actual results to differ materially from the results discussed in the forward-looking statements or historical experience include risks and uncertainties, including the failure by GenVec to secure and maintain relationships with collaborators; risks relating to the early stage of GenVec's product candidates under development; uncertainties relating to research and development activities; risks relating to the commercialization, if any, of GenVec's proposed product candidates; dependence on the efforts of collaborators and third parties; dependence on intellectual property; and risks that we may lack the financial resources and access to capital to fund our operations. Further information on the factors and risks that could affect GenVec's business, financial conditions and results of operations, are contained in GenVec's filings with the U.S. Securities and Exchange Commission (SEC), which are available at www.sec.gov. These forward-looking statements speak only as of the date of this press release, and GenVec assumes no duty to update forward-looking statements.
(Tables to follow)GenVec, Inc.Condensed Statements of Operations(in thousands, except per share data)Quarter EndedYear Ended12/31/1012/31/0912/31/1012/31/09(unaudited)Revenues
$5,191$3,355$16,467$13,857Operating expenses:Research and development
4,9205,53020,93624,689General and administrative
1,5262,0708,1527,179Gain on disposal of assets
------(7)Total operating expenses
11438Interest expense, net
(1,004)(4,310)$(12,274)$(18,362)Basic and diluted net loss per share
$(0.01)$(0.04)$(0.10)$(0.19)Shares used in computation of basicand diluted net loss per share
129,077106,336126,70997,074GenVec, Inc.Selected Balance Sheet Information(in thousands)As of December 31,20102009Cash, cash equivalents and short-term investments
32,4207,636Investor and Media Contact: GenVec, Inc. Douglas J. Swirsky (240) 632-5510 firstname.lastname@example.org
|SOURCE GenVec, Inc.|
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