SOMATIX REPORTS THIRD QUARTER RESULTS
SOMATIX REPORTS THIRD QUARTER RESULTS ALAMEDA, Calif., May 4 /PRNewswire/ -- Somatix Therapy Corp.
(NASDAQ: SOMA) today reported that third quarter losses for the period ended March 31, 1992 were $35,824,000. This included a one-time write-off of $33,104,000 for in-process technology as a result of the Company's merger with GeneSys Therapeutics Corp., a privately held gene therapy company. As earlier projected, the company posted no revenues for the period, having discontinued its contract manufacturing operations in November 1991. In the same period last year, the company was still actively engaged in contract manufacturing activities and posted revenues of $800,000.
David Carter, chief executive officer, stated, "Without the one- time write-off for the GeneSys acquisition, the loss for the third quarter would have been $2,720,000. For the same period last year, eliminating a similar write-off of $19,381,000 for the merger between Hana Biologics, Inc. and Somatix Corp., the loss was $1,474,000." For the nine month period ended March 31, 1992, the Company posted a net loss of $40,553,000, including the $33,104,000 charge for the acquisition of GeneSys. The net loss for the comparable period the prior year was $23,974,000. If the numbers for both periods are adjusted to eliminate the technology write-offs, the losses for the first nine months of 1992 are $7,449,000 versus $4,593,000 for the same period in 1991. The major difference in these numbers is due to contract manufacturing revenues and fluctuations in interest income. Somatix completed a public equity offering during the third quarter of fiscal 1992, raising $36,065,000, after commissions and expenses, by issuing 3,450,000 shares of common stock at $11.50 per share. According to Carter, "This quarter included two major events for the company. The first was the completion of the GeneSys acquisition. This transaction brought significant research and proprietary assets to the company, including, what we believe to be, the most advanced gene therapy research for treating central nervous system diseases. It also strengthened Somatix's management team by adding Harry Hixson, Ph.D., formerly of Amgen, as the chairman of the board of directors. Finalizing the merger, coupled with the funds raised during our recent public offering gives Somatix the scientific and economic resources to pursue the commercialization of our programs. We anticipate development expenses to significantly increase in the future as we prepare to initiate clinical trials." Somatix Therapy Corp. is a leader in the development of gene therapy, a novel approach to the treatment of disease in which genes are inserted into a patient's cells to induce these cells to produce therapeutic proteins. Somatix is applying its gene therapy expertise to the research and development of new treatments for cancer, central nervous system diseases and hemophilia. SOMATIX THERAPY RESULTS Third Quarter Ended March 31 1992 1991 Contract Manufacturing Revenues $ 0 $ 800,000 Costs and Expenses 2,884,000 2,433,000 Write-Off of Acquired In-Process Technology 33,104,000 19,381,000 Operating Loss (35,988,000) (21,014,000) Other Income, Net 164,000 159,000 Net Loss $ (35,824,000) $(20,855,000) Net Loss Per Share $ (3.32) $ (8.54) Shares Used in Calculation of Net Loss Per Share 10,792,860 2,443,259 Nine Months Ended March 31 1992 1991 Contract Manufacturing Revenues $ 69,000 $ 2,462,000 Costs and Expenses 7,843,000 7,717,000 Write-Off of Acquired In-Process Technology 33,104,000 19,381,000 Operating Loss (40,878,000) (24,636,000) Other Income, Net 325,000 662,000 Net Loss $(40,553,000) $(23,974,000) Net Loss Per Share $ (4.55) $ (12.08) Shares Used in Calculation of Net Loss Per Share 8,904,306 1,984,991 -0- 5/4/92 /CONTACT: Julie Wood of Somatix Therapy Corp., 510-748-3082/ (SOMA) CO: Somatix Therapy Corp. ST: California IN: MTC SU: ERN
JL -- SF011 -- 6272 05/04/92 17:51 EDT
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|Date:||May 4, 1992|
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