Conference Call Today at 5:00 p.m. ET
SEATTLE, WA, Nov 05, 2008 (MARKET WIRE via COMTEX News Network) -- Targeted Genetics Corporation (NASDAQ: TGEN) today announced its
financial results for the third quarter ended September 30, 2008. The
Company will hold a conference call with analysts and investors to
discuss its financial and business results at 5:00 p.m. ET today.
For the quarter ended September 30, 2008, the Company reported a net
loss of $2.7 million, or $0.13 per common share, compared to net loss
of $3.0 million, or $0.15 per common share, for the third quarter of
2007.
Revenue for the third quarter of 2008 was $1.7 million, compared to
$2.4 million for the same quarter in 2007. Revenue for the nine
months ended September 30, 2008 was $6.5 million, compared to $7.1
million for the first nine months of 2007. The decreases in revenue
for the third quarter and nine month periods reflect a decrease in
research and development and manufacturing activities under the
NIAID-funded HIV/AIDS vaccine project in collaboration with
Children's Hospital Of Philadelphia and Nationwide Children's
Hospital and decreased licensing revenue. These decreases were
partially offset by higher research and development activities under
the Company's collaboration with Celladon.
Based on completion of planned development activities for funded
projects and licensed technology, the Company expects revenue from
collaborative partners of approximately $8.5 million to $9.0 million
for the year ending December 31, 2008, compared to $10.3 million in
2007. The revenue plan for 2008 includes the expectation that
Targeted Genetics, and its partners, achieve their respective 2008
product development work plans.
Research and development expenses for the third quarter of 2008
decreased to $3.2 million, compared to $3.9 million in the same
quarter of 2007. Research and development expenses decreased to $11.3
million for the nine months ended September 30, 2008 compared to
$12.8 million for the same period in 2007. This decrease reflects
lower clinical trial costs for the inflammatory arthritis program as
it is reaching the end of a Phase I/II clinical trial. This decrease
was partially offset by increased activity on the Company's partnered
heart failure product candidate during 2008.
General and administrative expenses for the three months ended
September 30, 2008 were $1.2 million, compared to $1.7 million for the
same period in 2007. This decrease reflects lower intellectual
property charges for the quarter related to the timing of patent
issuances in Europe, lower shareholder costs and decreased use of
external consultants. General and administrative expense increased
slightly to $4.9 million for the nine months ended September 30,
2008, compared to $4.8 million for the same period in 2007. These
increases reflect higher intellectual property charges related to
patent costs and higher legal fees as compared to the first nine
months of 2007.
The Company's cash balance was $9.2 million at September 30, 2008,
compared to $16.4 million at December 31, 2007. The Company's
guidance for its estimated burn rate for 2008 is expected to range
from $11.5 to $12.5 million, and, based on its current cash balances,
the Company only expects its cash horizon to extend into the first
quarter of 2009.
"This was another solid quarter of progress for the Company and its
collaborative partners," said H. Stewart Parker, president and chief
executive officer of Targeted Genetics. "We have begun work with
University of Iowa targeting Amyotrophic Lateral Sclerosis, or ALS,
more widely known as Lou Gehrig's disease, under the $2.4 million
grant awarded in September to fund the project's preclinical
development costs. Also, we dosed our final patient on our tgAAC94
Phase II inflammatory arthritis study and presented encouraging
clinical data at the American College of Rheumatology meeting in late
October. And, our collaborator, Celladon Corporation has begun the
second stage of its Phase 1/2 MYDICAR(R) trial to treat Class III/IV
heart failure and will be presenting data at the annual American
Heart Association Scientific Sessions in early November."
Conference Call and Webcast Information
The Company will host a conference call reviewing financial results,
its product development portfolio and other business developments
today beginning at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time.
You may access the live webcast via the "Events" section found on the
homepage of the Company's website at www.targetedgenetics.com or via
telephone at 800.240.7305 (domestic) or 303.262.2143 (international).
Replay Access
Webcast replay will be available for approximately 30 days at
www.targetedgenetics.com; telephone replay will be available
following Wednesday's call at approximately 6:00 p.m. PT through 11:59
p.m. PT, Friday, December 5, 2008, by calling 800.405.2236 (domestic)
or 303.590.3000 (international); pass code 11120908#.
About Targeted Genetics Corporation
Targeted Genetics Corporation is a biotechnology company committed to
the development of innovative targeted molecular therapies for the
prevention and treatment of acquired and inherited diseases with
significant unmet medical need. Targeted Genetics' proprietary
Adeno-Associated Virus (AAV) technology platform allows it to deliver
genes that encode proteins to increase gene function or RNAi to
decrease or silence gene function. Targeted Genetics' product
development efforts target inflammatory arthritis, AIDS prophylaxis,
Leber's congenital amaurosis, heart failure and Huntington's disease.
To learn more about Targeted Genetics, visit Targeted Genetics'
website at www.targetedgenetics.com.
Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995:
This release contains forward-looking statements regarding the
Company's liquidity and financial resources, its ability to fund
ongoing and future operations and its business strategy and product
development, including statements regarding the Company's ability to
raise capital or secure other financial resources in the near term,
the extent of the Company's cash horizon, the timing, nature and
results of the Company's research and development programs, and the
potential impact of the results of such programs on the Company's
operations, the Company's revenue plan, the Company's ability to
obtain grant funding for the ALS research program and other
statements about the Company's plans, objectives, intentions and
expectations. 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 and cause actual results to differ materially from those
expected or implied by the forward-looking statements. Factors that
could affect actual future events or results include, but are not
limited to, the risk that the Company will run out of cash earlier
than expected, the risk that the Company will not be able to raise
capital or secure other financial resources in the near term, the
risk that the Company's research and development programs are not
successful or are delayed or terminated, the risk that payments
anticipated by the Company under product development collaborations
and contracts are not earned or received when expected or at all, the
risk that the Company will not obtain grant funding for the ALS
research program in the amount expected or at all or that, even if
obtained, such funding is delayed, and the risk that the Company
will not be able to maintain its listing on the NASDAQ Capital Market
as well as other risk factors described in "Item 1A. Risk Factors" in
the Company's most recent quarterly report on Form 10-Q for the
period ended September 30, 2008 to be filed with the SEC. You should
not rely unduly on these forward-looking statements, which apply only
as of the date of this release. The Company undertakes no duty to
publicly announce or report revisions to these statements as new
information becomes available that may change the Company's
expectations.
TARGETED GENETICS CORPORATION
(in thousands, except per share information)
Quarter ended Year-to-date ended
September 30, September 30,
----------------------- -----------------------
Statement of Operations 2008 2007 2008 2007
Information: ---------- ----------- ---------- -----------
(unaudited) (unaudited) (unaudited) (unaudited)
Revenue:
Collaborative
agreements $ 1,742 $ 1,943 $ 6,478 $ 6,612
Licensing revenue - 500 - 500
---------- ----------- ---------- -----------
Total revenue 1,742 2,443 6,478 7,112
Operating expenses:
Research & development 3,192 3,874 11,294 12,840
General &
administrative 1,224 1,694 4,865 4,821
Restructure charges 196 183 597 809
Goodwill impairment
charge - - - -
---------- ----------- ---------- -----------
Total expenses 4,612 5,751 16,756 18,470
---------- ----------- ---------- -----------
Loss from operations (2,870) (3,308) (10,278) (11,358)
Investment income (loss) 53 277 251 305
Other income 79 - 79 -
Gain on debt restructure 77 - 77 -
Interest expense - - - (1)
---------- ----------- ---------- -----------
Net loss $ (2,661) $ (3,031) $ (9,871) $ (11,054)
========== =========== ========== ===========
Net loss per common share $ (0.13) $ (0.15) $ (0.50) $ (0.72)
========== =========== ========== ===========
Shares used in computation
of net loss per common
share 20,002 19,814 19,906 15,388
========== =========== ========== ===========
TARGETED GENETICS CORPORATION
(in thousands)
September 30, December 31,
Balance Sheet Information: 2008 2007
------------- -------------
(unaudited)
Cash and cash equivalents $ 9,183 $ 16,442
Other current assets 583 2,854
Property and equipment, net 1,292 1,052
Other assets 8,126 8,126
------------- -------------
Total assets $ 19,184 $ 28,474
============= =============
Current liabilities $ 5,140 $ 4,657
Long-term obligations and other liabilities 7,103 7,577
Shareholders' equity 6,941 16,240
------------- -------------
Total liabilities and shareholders' equity $ 19,184 $ 28,474
============= =============
Investor and Media Contact:
Stacie D. Byars
WeissComm Partners
on behalf of
Targeted Genetics Corporation
Phone: 206.660.2588
Email Contact
SOURCE: Targeted Genetics
