GENEMEDICINE Announces Third Quarter 1998 Financial Results.THE WOODLANDS Woodlands refers to several places:
Antonym: dec. . (Nasdaq:GMED) today reported a net loss of $3,635,938, or $0.25 per share for the third quarter ended September September: see month. 30, 1998 as compared to a net loss of $2,979,792, or $0.22 per share, for the same quarter in 1997. For the nine months ended September 30, 1998, the Company recorded a net loss of $10,712,753 or $0.74 per share. The Company had revenues of $1,331,369 for the third quarter of 1998 compared to $1,526,143 for the third quarter of 1997. The Company had revenues of $4,253,969 for the nine months ended September 30, 1998. Total expenses for the third quarter of 1998 were $4,967,307 compared to $4,505,935 for the third quarter of 1997. The Company's total expenses were $14,966,722 for the nine months ended September 30, 1998. The increase for the quarter was primarily the result of an expansion of research and development activities driven by the progression of research in the field of genetic vaccines and clinical development efforts in the field of cancer. At September 30, 1998, the Company had cash, cash equivalents and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments of $18,419,279. Based on its current plans, the Company believes that its available cash, including committed funding from its corporate partner and proceeds from projected interest income will be sufficient to meet the Company's operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. into the first quarter of 2000. On October October: see month. 26, 1998, GENEMEDICINE, INC. announced an agreement to merge with Megabios Corp. in a transaction intended to qualify as a tax-free tax-free adj. Not subject to taxation; tax-exempt. tax-free Adjective not needing to have tax paid on it: a tax-free lump sum Adj. 1. reorganization. Under the terms of the agreement, which was unanimously approved by the boards of both companies, each outstanding share of GENEMEDICINE common stock will be exchanged, at a fixed exchange ratio of 0.571, for newly issued shares of common stock of Megabios Corp. This will result in the issuance of approximately 9.1 million additional Megabios Corp. shares, valued at about $38 million based on Megabios Corp.'s closing price of Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , October 23, 1998. In addition, all outstanding employee stock options of GENEMEDICINE will convert into Megabios Corp. options at the same exchange ratio. The proposed transaction will be accounted for as a purchase. GENEMEDICINE is a leader in the development of non-viral gene therapy products designed for the treatment or prevention of serious diseases. Gene medicines deliver genetic instructions to targeted cells in the body to produce therapeutic proteins or desired immune responses immune response n. An integrated bodily response to an antigen, especially one mediated by lymphocytes and involving recognition of antigens by specific antibodies or previously sensitized lymphocytes. . The Company's core technology includes lipid-, polymer-, and peptide-based gene delivery systems, each able to be applied to specific clinical targets, and gene expression systems to regulate reg·u·late v. 1. To control or direct according to rule, principle, or law. 2. To adjust to a particular specification or requirement. 3. To adjust a mechanism for accurate and proper functioning. 4. the production of multiple genes. GENEMEDICINE technology is potentially applicable to the treatment of a wide variety of diseases and disorders because of its capability to deliver therapeutic genes to several tissue and cell types and to control the expression of desired proteins. Except for the historical information contained herein, this press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Actual results may differ materially. Factors that could cause or contribute to differences include continued scientific progress in its research and development programs, the costs involved in the filing, prosecuting and enforcing of patent claims, the scope and results of preclinical testing Noun 1. preclinical test - a laboratory test of a new drug or a new invasive medical device on animal subjects; conducted to gather evidence justifying a clinical trial preclinical phase, preclinical trial and clinical trials, the time and costs involved in obtaining regulatory approvals, competing technological developments, the cost of manufacturing and scale-up and effective commercialization activities and arrangements. These factors and others are more fully discussed in periodic reports filed with the Securities and Exchange Commission including the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 1997. -0-
GENEMEDICINE, INC
(A Delaware Corporation in the Development Stage)
STATEMENTS OF OPERATIONS
(unaudited)
Three months ended Nine months ended
September 30, September 30,
1998 1997 1998 1997
Revenues:
Contract revenue $ 1,045,000 $ 1,000,000 $ 3,067,500 $ 3,500,000
Research and
development grant
revenue -- 120,000 219,181 509,000
Interest income 286,369 406,143 967,288 1,272,552
Total revenues 1,331,369 1,526,143 4,253,969 5,281,552
Expenses:
Research and
development 3,788,791 3,299,805 11,510,386 10,068,103
General and
administrative 1,172,758 1,192,736 3,435,071 3,384,489
Interest expense 5,758 13,394 21,265 50,186
Total expenses 4,967,307 4,505,935 14,966,722 13,502,778
Net loss $(3,635,938)$(2,979,792)$(10,712,753)$(8,221,226)
Loss per share $ (0.25)$ (0.22)$ (0.74)$ (0.60)
Shares used in
computing loss per
share 14,578,666 13,800,544 14,469,110 13,656,360
CONDENSED BALANCE SHEETS
September 30, December 31,
1998 1997
(unaudited)
Assets
Cash, cash equivalents and
short-term investments $ 18,419,279 $ 24,582,025
Prepaid expenses and other 242,307 175,128
Total current assets 18,661,586 24,757,153
Equipment, furniture and
leasehold improvements, net 2,777,353 3,220,987
Deposits and other assets 3,707 9,195
Total Assets $ 21,442,646 $ 27,987,335
Liabilities and Stockholders' Equity
Current liabilities $ 1,065,733 $ 1,814,889
Long-term liabilities 3,669,970 2,974,784
Stockholders' equity 16,706,943 23,197,662
Total Liabilities and
Stockholders' Equity $ 21,442,646 $ 27,987,335
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