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GENSIA REPORTS 1993 SECOND QUARTER RESULTS

 SAN DIEGO, Aug. 4 /PRNewswire/ -- Gensia Inc. (NASDAQ: GNSA) today reported a net loss of $14.9 million, or $0.59 per share (after preferred dividends of $1.5 million), in the second quarter ended June 30, 1993 compared to a net loss of $10.5 million, or $0.38 per share, in the 1992 second quarter. Total revenues, including revenues from contract research, product sales and interest income, were $8.0 million in the 1993 second quarter, compared to $7.9 million in the second quarter of 1992. Of this amount, product sales in the second quarter of 1993 amounted to $3.7 million vs. $2.2 million in the same 1992 period. The cost of goods sold associated with these products sales was $5.5 million for the second quarter of 1993 and $3.5 million for the second quarter of 1992. Contract revenue declined to $2.9 million during the second quarter of 1993 from $4.5 million in the second quarter of 1992 primarily as a result of the full utilization of funds available from Gensia Clinical Partners, L.P. to fund research on Gensia's GenESA(R) System product.
 Research and development expenses were $12.0 million in the 1993 second quarter and $11.1 million in the comparable 1992 period. Selling, general and administrative expenses were $5.1 million in the 1993 second quarter and were $3.6 million in the second quarter of 1992.
 For the six months ended June 30, 1993, the company reported a net loss of $26.2 million, or $0.99 per share (after preferred dividends of $1.5 million), compared to a net loss of $19.0 million, or $0.68 per share, for the same period last year. Total revenues, including revenue from contract research, product sales and interest income were $16.8 million for the six months ended June 30, 1993, compared to $14.5 million for the six months ended June 30, 1992. This revenue growth was primarily the result of significant increases in product sales at Gensia Laboratories and was offset to some extent by lower funding from Gensia Clinical Partners, L.P. as discussed above. Product sales for the six months of 1993 were $6.8 million compared to $3.6 million for the same 1992 period. The cost of goods sold was $9.7 million for the first six months of 1993 compared to $6.7 million for the first six months of 1992.
 Research and development expenses were $23.2 million for the six months ended June 30, 1993 and $19.9 million in the comparable 1992 period. Selling, general and administrative expenses were $9.5 million for the six months ended June 30, 1993, compared to $6.5 million for the same period in 1992.
 "The 1993 second quarter financial results reflect, in part, the cost of an additional clinical trial with Arasine(TM) for coronary artery bypass surgery, preparations for a Phase 3 clinical trial with Arasine in non-cardiac surgery, the costs of multicenter clinical trials with the GenESA System, increases in spending in Gensia's ongoing basic research programs, and costs related to Gensia's collaboration with a joint venture between Genta Inc. and Jagotec AG, an affiliate of Jago Pharma AG," according to David F. Hale, chairman, president and chief executive officer. The Genta-Jago joint venture was formed in January 1993 to develop, manufacture and commercialize oral products intended for the treatment of cardiovascular disease using Geomatrix(R) controlled-release drug delivery technology. "The increase in selling, general and administrative activities was primarily related to the expansion of sales and marketing activities for the Laryngeal Mask Airway (LMA) and for Gensia Laboratories' multisource injectible products as well as legal expense related to the defense of litigation brought against the company," Hale added.
 At June 30, 1993, Gensia had working capital of $109.7 million primarily consisting of cash, cash equivalents and short-term investments compared to $68.2 million at Dec. 31, 1992. The increase reflects the net proceeds from the company's private offering of 1.6 million shares of $3.75 Convertible Exchangeable Preferred Stock completed in February 1993 which was partially offset by operating losses and the March 1993 purchase of new facilities to replace the company's leased research, development and administrative offices. The company is currently in discussions with third parties related to the financing of this purchase as well as the funding of subsequent improvements. Gensia also had commitments from Aramed Inc. (NASDAQ: ARAMZ) to fund the research and development of certain pharmaceutical products. As of June 30, 1993, Aramed had working capital of $44.5 million substantially all of which is expected to be used to fund the research and development by Gensia of certain pharmaceutical products that Gensia will have the option to acquire.
 Gensia is a San Diego-based biopharmaceutical company formed to discover, develop, manufacture and market novel pharmaceutical products for the treatment and diagnosis of human diseases.
 GENSIA INC.
 Balance Sheet Data
 (1993 is without audit, in thousands)
 June 30, Dec. 31,
 1993 1992
 Assets:
 Current assets $121,096 $77,840
 Facilities and equipment, net 33,948 21,057
 Other assets 735 5,265
 Total assets $155,779 $104,162
 Liabilities and
 stockholders' equity:
 Current liabilities 11,426 9,633
 Other liabilities 4,055 5,380
 Stockholders' equity 140,298 89,149
 Total liabilities and
 stockholders' equity $155,779 $104,162
 Statement of Operations Data
 (Without audit, in thousands except per share data
 Three months ended Six months ended
 June 30, June 30,
 1993 1992 1993 1992
 Revenue:
 Contract revenue $2,924 $4,483 $7,587 $8,482
 Product sales 3,664 2,197 6,752 3,635
 Interest income 1,460 1,194 2,500 2,396
 Total 8,048 7,874 16,839 14,513
 Costs and expenses:
 Cost of sales 5,489 3,502 9,731 6,655
 Research and
 development costs 12,041 11,054 23,154 19,902
 Selling, general
 and administrative 5,136 3,601 9,544 6,451
 Interest expense
 and other 301 210 591 467
 Total costs and
 expenses 22,967 18,367 43,020 33,475
 Net loss ($14,919) ($10,493) ($26,181) ($18,962)
 Dividends on
 preferred stock ($1,536) --- ($1,536) ---
 Net loss applicable
 to common shares ($16,455) ($10,493) ($27,717) ($18,962)
 Net loss per common
 share(a) ($.59) ($.38) ($.99) ($.68)
 Weighted average number
 of common shares 28,080 27,940 28,051 27,923
 (a) Loss per share of common stock is computed by dividing net loss plus applicable preferred stock dividends by the weighted average of shares of common stock outstanding. A preferred dividend was paid in June 1993.
 -0- 8/4/93
 /CONTACT: Elizabeth A. Gard of Gensia, 619-546-8300/
 (GNSA)


CO: Gensia Inc. ST: California IN: MTC SU: ERN

JL-LM -- SD005 -- 9530 08/04/93 16:41 EDT
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Date:Aug 4, 1993
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