Transgene Announces First Quarter 2004 Financial Results
May 05 2004 - 1:01AM
PR Newswire (US)
Transgene Announces First Quarter 2004 Financial Results
STRASBOURG, France, May 5 /PRNewswire-FirstCall/ -- Transgene
(Nasdaq: TRGNY; Nouveau Marche: FR0005175080) today announced
financial results for the first quarter ended March 31, 2004.
Transgene had total revenues of euro 0.7 million (US$ 0.9 million)
in the first quarter of 2004, compared to euro 0.9 million (US$ 1.1
million) for the same period in 2003. In the first quarter of 2003,
Transgene recorded the upfront payment related to the license
agreement signed with Merck & Co., Inc. Operating expenses
increased by euro 0.2 million (US$ 0.2 million) to euro 6.3 million
(US$ 7.7 million) for the first quarter of 2004 compared to euro
6.1 million (US$ 7.5 million) for the first quarter of 2003, due
primarily to an increase in clinical trial expenses. Interest and
other income was euro 0.2 million (US$ 0.2 million) in the first
quarter 2004 compared to euro 0.4 million (US$ 0.5 million) in the
same period of 2003, due to lower cash and cash equivalent held.
Transgene recorded a net loss of euro 5.4 million (US$ 6.6
million), or euro 0.54 (US$ 0.66) per share, for the first quarter
of 2004 compared to a net loss of euro 4.8 million (US$ 5.9
million), or euro 0.48 (US$ 0.59) per share for the same period in
2003. Net cash expenditures were euro 5.3 million (US$ 6.5 million)
for the first quarter of 2004, resulting in cash and cash
equivalents totaling euro 29.6 million (US$ 36.4 million) at March
31, 2004. Transgene believes that this amount will be sufficient to
meet its cash requirements for working capital and capital
expenditures through mid-2005. First Quarter Highlights * Transgene
released positive interim data in three phase II trials with the
MVA-MUC1-IL2 cancer vaccine candidate in patients with lung, kidney
and prostate cancer. * Transgene released positive data from the
phase II trial with the MVA-HPV-IL2 cancer vaccine candidate in
patients with human papilloma virus (HPV)-related disease,
demonstrating dose-related effect and safety at the highest dose
given. Transgene, based in Strasbourg, France, is a
biopharmaceutical company dedicated to the discovery and
development of therapeutic vaccines, immunotherapy products, and
delivery technologies for the treatment of diseases for which there
is no cure or adequate treatment at present, with a focus on the
treatment of cancer. Transgene has five products in clinical
development, two of which are in Phase II clinical trials, two in
Phase I/II and one that has completed Phase I clinical trial.
Transgene's proprietary vector technology platform consists of
adenovirus and poxvirus. This press release contains
forward-looking statements, including statements regarding
Transgene's revenues, capital requirements and prospects.
Statements that are not historical facts are based on Transgene's
current expectations, beliefs, estimates, forecasts and
assumptions. The statements contained in this release are not
guarantees of future performance and involve certain risks,
uncertainties and assumptions which are difficult to predict.
Accordingly, actual outcomes and results may differ materially from
what is expressed in those forward-looking statements. Important
factors which may affect Transgene's future operating results
include the following: Transgene has a history of operating losses;
it may not have sufficient resources or may fail to obtain the
capital necessary to complete the research and commercialization of
any of its product candidates; Transgene may be unable to conduct
its clinical trials as quickly as it has predicted; Transgene's
clinical trials may not produce results sufficient to justify
further product development; Transgene's product candidates may not
demonstrate therapeutic efficacy; Transgene may be unable to obtain
regulatory approval for its product candidates; Transgene's patent
and proprietary rights may not provide it with any benefit and the
patents of others may prevent it from commercializing its products;
proceedings to obtain patents and litigation of third party
infringement claims are expensive and could limit its patent and
proprietary rights; competitors may develop technologies or
products superior to Transgene's technologies or products; and
other important factors described in Transgene's Annual Report on
Form 20-F for the year ended December 31, 2002 filed with the U.S.
Securities and Exchange Commission, including those factors
described in the section entitled "Risk Factors." Note: The
official financial information of Transgene is stated in Euros. The
financial information expressed in US$ is translated solely for the
convenience of the reader at euro 1.00 = $ 1.2292, the noon buying
rate of the Federal Reserve Bank of New York on March 31, 2004.
Condensed Consolidated Balance Sheets (US GAAP) (Amounts in
thousands) March 31, December 31, 2004 2004 2003 US$ euro euro
(unaudited) (unaudited) ASSETS Cash and cash equivalents 36,404
29,616 34,940 Other current assets 3,059 2,489 2,522 Total current
assets 39,463 32,105 37,462 Property, plant and equipment, net
9,626 7,831 8,034 Other assets 256 208 322 Total assets 49,345
40,144 45,818 LIABILITIES AND SHAREHOLDERS' EQUITY Total current
liabilities 6,193 5,038 5,301 Total long-term liabilities 7,325
5,959 5,998 Total shareholders' equity 35,827 29,147 34,519 Total
liabilities and shareholders' equity 49,345 40,144 45,818 Condensed
Consolidated Statements of Operations US GAAP (Amounts in thousands
except share and per share data) Three months ended March 31, 2004
2004 2003 US$ euro euro (Unaudited) Revenues Revenues from
collaborative and licensing agreements 803 653 896 Grants received
for research and development 0 0 0 Total revenues 803 653 896
Operating expenses Research and development (6,657) (5,416) (5,174)
General & administrative (1,063) (865) (919) Restructuring 0 0
0 Total operating expenses (7,721) (6,281) (6,093) Loss from
operations (6,918) (5,628) (5,197) Interest and other income, net
252 205 357 Income tax benefit 0 0 0 Net loss (6,666) (5,423)
(4,840) Loss per ordinary share (0.66) (0.54) (0.48) Weighted
average number of shares outstanding 10,055,760 10,055,760
10,055,760 Loss per ADS (American Depositary Share) (0.22) (0.18)
(0.16) Weighted average number of ADSs outstanding 30,167,280
30,167,280 30,167,280 Notes: The official financial information of
Transgene is stated in Euros. The financial information expressed
in US$ is translated solely for the convenience of the reader at
euro 1.00 = $ 1.2292, the noon buying rate of the Federal Reserve
Bank of New York on March 31, 2004. The 2003 accounts have been
restated to SFAS 123 "Accounting for Stock based Compensation."
DATASOURCE: Transgene CONTACT: Philippe Poncet, Chief Financial
Officer of Transgene, +33-3-88-27-91-21; or Michael Long of Cohn
& Wolfe, +1-212-798-9775; or Estelle Guillot-Tantay,
+33-1-53-70-74-93, or Laurence Heilbronn, +33-1-53-70-74-64, both
of Image 7, all for Transgene Web site: http://www.transgene.fr/
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