News February 16, 07:31 Eastern Time
Cell Genesys Nets $168 Million From Sale of 25 Percent of Abgenix Equity Ownership Current Cash Position of Approximately $230
Million Will Drive Expansion Of Clinical Product Opportunities
FOSTER CITY, Calif., Feb 16, 2000 /PRNewswire via COMTEX/ -- Cell Genesys,
Inc. (Nasdaq: CEGE) announced that the company will receive today net proceeds
of approximately $168 million from the sale of 840,000 shares of common stock of
Abgenix, Inc. (Nasdaq: ABGX) which was priced at $210 per share. This sale was
part of a follow-on offering by Abgenix which had been increased to 3,000,000
shares due to demand which in turn allowed Cell Genesys to increase its
participation in the offering on a pro-rata basis. Additionally, the
underwriters have an option to purchase up to an additional 450,000 shares of
which 126,000 shares would be contributed by Cell Genesys. Excluding the
exercise of this over-allotment option, Cell Genesys' cash position will
increase to approximately $230 million, and the company will retain ownership of
2,552,034 shares of Abgenix representing approximately 12.5 percent ownership on
a primary basis. Cell Genesys expects that the majority of the capital gains
relating to this transaction will be sheltered by previous net operating loss
carryforwards.
"The overwhelming success of the Abgenix stock offering will strengthen our cash
position to an exceptional level for a company at our stage of development. At
the same time, by retaining 2.5 million shares of Abgenix, we continue to have
significant upside potential and believe that Abgenix has a very exciting
future," stated Stephen A. Sherwin, M.D., chairman and chief executive officer
of Cell Genesys. "With our new financial resources plus the value of our
retained ownership in Abgenix, Cell Genesys can more aggressively execute on our
ongoing programs in cancer and hemophilia as well as pursue new product
opportunities from within our current portfolio or obtained through acquisition.
We intend to do everything we can to maximize the opportunities ahead of us and
translate that into increased value for our shareholders."
Cell Genesys has a diverse product pipeline with ongoing programs in cancer,
hemophilia and other serious diseases. The company's lead clinical program is a
treatment vaccine for cancer called GVAX(R) cancer vaccine, which is currently
being tested in multicenter Phase II clinical trials for prostate cancer and
Phase I/II clinical trials for lung cancer. Preliminary encouraging results,
including objective measures of antitumor activity, have been observed in both
the prostate cancer and lung cancer GVAX(R) clinical trials leading the company
to initiate the multicenter trials which are currently under way. GVAX(R) cancer
vaccines for prostate and lung cancers are being developed through a worldwide
collaboration with the pharmaceutical division of Japan Tobacco. Cell Genesys
currently retains commercial rights to other potential cancer applications of
GVAX(R) cancer vaccine.
Cell Genesys also has a deep pipeline with respect to gene therapy programs in
hemophilia, cancer, cardiovascular disorders and Parkinson's disease. Proof of
principle has been demonstrated in preclinical studies for each of these four
programs, and Cell Genesys' strong financial position now enables the company to
pursue certain of these programs, most notably hemophilia, more aggressively.
With respect to hemophilia, Cell Genesys plans to take advantage of two
different gene delivery systems, more than 90 patent filings pertaining to these
two technologies, enhanced manufacturing capabilities as well as the substantial
increase in its financial resources to pursue this program. Cell Genesys
possesses the largest patent estate in gene therapy including more than 220
issued or granted patents and over 335 pending patent applications.
Cell Genesys is focused on the development and commercialization of gene
therapies to treat cancer and other major, life-threatening diseases. The
company is conducting two multicenter Phase II human clinical trials for its
GVAX(R) cancer vaccine in prostate cancer and plans to initiate a multicenter
Phase I/II trial of GVAX(R) vaccine in lung cancer. Preclinical stage programs
include gene therapy for hemophilia, cancer, cardiovascular disorders and
Parkinson's disease. Cell Genesys' assets outside gene therapy include its
minority ownership of Abgenix and the company's licensing program in gene
activation technology. For additional information, please visit the company's
web site at www.cellgenesys.com.
Abgenix, which was formed as a wholly-owned subsidiary of Cell Genesys in 1996,
is a biopharmaceutical company that develops and intends to commercialize
antibody therapeutic products for the treatment of a variety of disease
conditions, including transplantation-related diseases, inflammatory and
autoimmune disorders, cardiovascular disease, infectious disease and cancer.
Statements made herein, other than statements of historical fact, including
statements about the application of the company's financial assets, the value of
its equity interest in Abgenix, progress reports and plans for GVAX(R) clinical
trials, the future of the collaboration with Japan Tobacco, the company's
progress and results and timing of clinical trials and preclinical programs in
cancer and hemophilia gene therapy and others, marketability of potential
products and therapies and the nature of product pipelines are forward-looking
statements and are subject to a number of uncertainties that could cause actual
results to differ materially from the statements made, including risks
associated with the success of Cell Genesys' and Abgenix's research and
development programs, clinical trials, the regulatory approval process for
clinical trials, competitive technologies and products, patents, continuation of
corporate partnerships with JT and others and the need for additional
financings. For information about these and other risks which may affect Cell
Genesys, please see the company's Annual Report on Form 10-K dated March 31,
1999 as well as Cell Genesys' reports on Form 1O-Q and 8-K and other reports
filed from time to time with the Securities and Exchange Commission.
SOURCE Cell Genesys, Inc.
(schaut Euch mal den Chart an)
Gruß TGK
Cell Genesys Nets $168 Million From Sale of 25 Percent of Abgenix Equity Ownership Current Cash Position of Approximately $230
Million Will Drive Expansion Of Clinical Product Opportunities
FOSTER CITY, Calif., Feb 16, 2000 /PRNewswire via COMTEX/ -- Cell Genesys,
Inc. (Nasdaq: CEGE) announced that the company will receive today net proceeds
of approximately $168 million from the sale of 840,000 shares of common stock of
Abgenix, Inc. (Nasdaq: ABGX) which was priced at $210 per share. This sale was
part of a follow-on offering by Abgenix which had been increased to 3,000,000
shares due to demand which in turn allowed Cell Genesys to increase its
participation in the offering on a pro-rata basis. Additionally, the
underwriters have an option to purchase up to an additional 450,000 shares of
which 126,000 shares would be contributed by Cell Genesys. Excluding the
exercise of this over-allotment option, Cell Genesys' cash position will
increase to approximately $230 million, and the company will retain ownership of
2,552,034 shares of Abgenix representing approximately 12.5 percent ownership on
a primary basis. Cell Genesys expects that the majority of the capital gains
relating to this transaction will be sheltered by previous net operating loss
carryforwards.
"The overwhelming success of the Abgenix stock offering will strengthen our cash
position to an exceptional level for a company at our stage of development. At
the same time, by retaining 2.5 million shares of Abgenix, we continue to have
significant upside potential and believe that Abgenix has a very exciting
future," stated Stephen A. Sherwin, M.D., chairman and chief executive officer
of Cell Genesys. "With our new financial resources plus the value of our
retained ownership in Abgenix, Cell Genesys can more aggressively execute on our
ongoing programs in cancer and hemophilia as well as pursue new product
opportunities from within our current portfolio or obtained through acquisition.
We intend to do everything we can to maximize the opportunities ahead of us and
translate that into increased value for our shareholders."
Cell Genesys has a diverse product pipeline with ongoing programs in cancer,
hemophilia and other serious diseases. The company's lead clinical program is a
treatment vaccine for cancer called GVAX(R) cancer vaccine, which is currently
being tested in multicenter Phase II clinical trials for prostate cancer and
Phase I/II clinical trials for lung cancer. Preliminary encouraging results,
including objective measures of antitumor activity, have been observed in both
the prostate cancer and lung cancer GVAX(R) clinical trials leading the company
to initiate the multicenter trials which are currently under way. GVAX(R) cancer
vaccines for prostate and lung cancers are being developed through a worldwide
collaboration with the pharmaceutical division of Japan Tobacco. Cell Genesys
currently retains commercial rights to other potential cancer applications of
GVAX(R) cancer vaccine.
Cell Genesys also has a deep pipeline with respect to gene therapy programs in
hemophilia, cancer, cardiovascular disorders and Parkinson's disease. Proof of
principle has been demonstrated in preclinical studies for each of these four
programs, and Cell Genesys' strong financial position now enables the company to
pursue certain of these programs, most notably hemophilia, more aggressively.
With respect to hemophilia, Cell Genesys plans to take advantage of two
different gene delivery systems, more than 90 patent filings pertaining to these
two technologies, enhanced manufacturing capabilities as well as the substantial
increase in its financial resources to pursue this program. Cell Genesys
possesses the largest patent estate in gene therapy including more than 220
issued or granted patents and over 335 pending patent applications.
Cell Genesys is focused on the development and commercialization of gene
therapies to treat cancer and other major, life-threatening diseases. The
company is conducting two multicenter Phase II human clinical trials for its
GVAX(R) cancer vaccine in prostate cancer and plans to initiate a multicenter
Phase I/II trial of GVAX(R) vaccine in lung cancer. Preclinical stage programs
include gene therapy for hemophilia, cancer, cardiovascular disorders and
Parkinson's disease. Cell Genesys' assets outside gene therapy include its
minority ownership of Abgenix and the company's licensing program in gene
activation technology. For additional information, please visit the company's
web site at www.cellgenesys.com.
Abgenix, which was formed as a wholly-owned subsidiary of Cell Genesys in 1996,
is a biopharmaceutical company that develops and intends to commercialize
antibody therapeutic products for the treatment of a variety of disease
conditions, including transplantation-related diseases, inflammatory and
autoimmune disorders, cardiovascular disease, infectious disease and cancer.
Statements made herein, other than statements of historical fact, including
statements about the application of the company's financial assets, the value of
its equity interest in Abgenix, progress reports and plans for GVAX(R) clinical
trials, the future of the collaboration with Japan Tobacco, the company's
progress and results and timing of clinical trials and preclinical programs in
cancer and hemophilia gene therapy and others, marketability of potential
products and therapies and the nature of product pipelines are forward-looking
statements and are subject to a number of uncertainties that could cause actual
results to differ materially from the statements made, including risks
associated with the success of Cell Genesys' and Abgenix's research and
development programs, clinical trials, the regulatory approval process for
clinical trials, competitive technologies and products, patents, continuation of
corporate partnerships with JT and others and the need for additional
financings. For information about these and other risks which may affect Cell
Genesys, please see the company's Annual Report on Form 10-K dated March 31,
1999 as well as Cell Genesys' reports on Form 1O-Q and 8-K and other reports
filed from time to time with the Securities and Exchange Commission.
SOURCE Cell Genesys, Inc.
(schaut Euch mal den Chart an)
Gruß TGK
