News for 'GETA'(Genta Reports 1Q Financial Results)
May 17, 2010 (Close-Up Media via COMTEX) -- Genta announced financial results
for the quarter ended March 31.
In a release dated May 13, the Company said highlights for the quarter included:
-Closed financing of convertible debt and warrants
-Initiated confirmatory Phase 2b trial of tesetaxel in 2nd-line gastric cancer
-Initiated new clinical trial of tesetaxel using weekly dosing schedule
-Survival followup continued in AGENDA Phase 3 trial of Genasense in advanced
melanoma; completion expected Q1 2011
-Multiple abstracts accepted for ASCO presentations June 2010
Financial Results
The net loss for the quarter ended March 31, was $(16.6) million, or $(0.76)
per share, compared with a net loss of $(11.1) million, or $(0.64) per share,
for the first quarter of 2009. At March 31, Genta had cash and cash equivalents
totaling $19.6 million compared with $1.2 million at December 31, 2009. Net cash
used in operating activities through March 31, was $2.3 million.
As previously reported, in March 2010, the Company closed on a financing,
whereby it issued $25 million of units consisting of $20 million of various
senior unsecured convertible notes, $5 million of senior secured convertible
notes and warrants to purchase additional senior unsecured convertible notes of
$10.0 million. The Company had direct access to $20 million of the proceeds, and
the remaining $5 million of the proceeds were placed in a blocked account as
collateral security for the $5 million of secured notes. Also in March 2010,
three investors who had participated in our April 2009 financing, exercised
their rights to acquire convertible notes of $0.9 million. There was an
insufficient number of authorized shares of common stock in order to permit
conversion of all of the notes and warrants associated with these transactions.
Accordingly, the conversion obligation for the notes and warrants were
classified as liabilities and measured at fair value on the balance sheet,
resulting in a total non-cash expense of $153.8 million for the first quarter of
2010. The conversion feature liabilities and the warrant liabilities will be
accounted for using mark-to-market accounting at each future reporting date
until all the criteria for permanent equity have been met. The Company has filed
a proxy with the Securities and Exchange Commission that seeks authorization
from Genta's stockholders to authorize the Board of Directors to effect a
reverse stock split that would among other effects provide sufficient equity to
meet the permanent equity criteria.
Genta is a biopharmaceutical company with a diversified product portfolio that
is focused on delivering innovative products for the treatment of patients with
cancer. Two major programs anchor the Company's research platform: DNA/RNA-based
Medicines and Small Molecules. Genasense (oblimersen sodium) Injection is the
Company's lead compound from its DNA/RNA Medicines program. Genasense is being
developed as an agent that may enhance the effectiveness of anticancer therapy.
The Company is currently collecting long-term followup data on durable response
and overall survival from the recently completed randomized Phase 3 study of
Genasense in patients with advanced melanoma (the AGENDA trial). The Company is
also developing tesetaxel, a novel, orally absorbed, semi-synthetic taxane that
is in the same class of drugs as paclitaxel and docetaxel. Genta has initiated a
broad clinical program to evaluate the safety and efficacy of tesetaxel in
patients with solid tumors. In the U.S., Genta is exclusively marketing Ganite
(gallium nitrate injection), which is indicated for treatment of symptomatic
patients with cancer-related hypercalcemia that is resistant to hydration. The
Company has developed proprietary oral formulations of the active ingredient in
Ganite that are being evaluated as potential treatments for diseases associated
with accelerated bone loss. Ganite and Genasense are available on a
"named-patient" basis in countries outside the United States.
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