GPC Biotech Reports Financial Results for Second Quarter and First
Six Months of 2009
(Thomson Reuters ONE) - Corporate news announcement processed and transmitted by Hugin AS.The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------------ * Second quarter highlighted by shareholder approval of merger agreement under which GPC Biotech will combine its business with Agennix Incorporated* GPC Biotech announces receipt of ? 3 million bridge loan from merger partnerMartinsried/Munich (Germany) and Princeton, N.J., August 18, 2009 -GPC Biotech AG (Frankfurt Stock Exchange: GPC) today reportedfinancial results for the second quarter and first six months endedJune 30, 2009.First six months of 2009 compared to first six months of 2008Revenues decreased 97% to ? 0.1 million for the six months ended June30, 2009, compared to ? 3.0 million for the same period in 2008. Thedecrease in revenues is due to the termination of the co-developmentand license agreement for satraplatin with Celgene Corporationeffective September 2008. Research and development (R&D) expensesdecreased 76% to ? 2.5 million for the first six months of 2009compared to ? 10.3 million for the same period in 2008. The decreasein R&D expenses is primarily due to staff reductions as a result ofthe restructuring plans implemented in the first quarter of 2008 and2009, a decrease in clinical trial costs due to reduced clinicaltrial volumes and a credit to compensation cost totalling ? (1.5)million as a result of the forfeiture of convertible bonds and stockoptions. In the first half of 2009, administrative expenses decreased14% to ? 6.4 million compared to ? 7.4 million for the same period in2008. The decrease in administrative expenses is primarily due tostaff reductions and other associated activities as a result ofrestructuring plans. The total decrease of ? (1) million is net of acredit to compensation cost totaling ? (1.8) million as a result ofthe forfeiture of convertible bonds and stock options, as well as anincrease of approximately ? 3 million in one-time costs relating tobanking fees, legal services, severance and other restructuring costsdue to the planned merger. Net loss for the first six months of 2009improved 46% to ? (8.5) million compared to ? (15.8) million for thefirst six months of 2008. Basic and diluted loss per share was ?(0.23) for the first six months of 2009 compared to ? (0.43) for thesame period in 2008.Second quarter of 2009 compared to second quarter of 2008Revenues for the three months ended June 30, 2009 decreased 93% to ?0.1 million compared to ? 1.5 million for the same period in2008. R&D expenses decreased 69% to ? 1.4 million for the secondquarter of 2009 compared to ? 4.5 million for the same period in2008. Administrative expenses for the second quarter of 2009decreased 38% to ? 2.4 million compared to ? 3.9 million for thesecond quarter of 2008. The Company's net loss was ? (4.2) millionin the second quarter of 2009 compared to ? (8.7) million for thesame period in 2008. Basic and diluted loss per share was ? (0.11)for the second quarter of 2009 compared to ? (0.24) for the sameperiod in 2008.Quarter over quarter results: second quarter 2009 compared to firstquarter 2009Revenues for the second quarter of 2009 were ? 0.1 million comparedto no revenues for the previous quarter. R&D expenses increased 27%to ? 1.4 million for the second quarter of 2009, compared to ? 1.1million in the first quarter of 2009. Administrative expenses forthe second quarter of 2009 decreased 38% to ? 2.4 million compared to? 3.9 million for the previous quarter. The Company's net loss was ?(4.2) million in the second quarter of 2009, compared to ? (4.3)million for the previous quarter. Basic and diluted loss per sharewas ? (0.11) for the second quarter of 2009 compared to ? (0.12) theprevious quarter.Cash position and net cash burnAs of June 30, 2009, cash, cash equivalents, and available-for-saleinvestments totaled ? 5.6 million (December 31, 2008: ? 32.0million), including ? 0.2 million in restricted cash. As previouslyreported, in connection with the planned merger, GPC Biotech made aloan to Agennix in the first quarter of 2009 in the amount of $20million in the form of a senior secured convertible promissory note.Net cash burn for the first six months of 2009 was ? 11.4 million,with net cash burn of ? 4.9 million in the first quarter and ? 6.5 inthe second quarter of 2009. The increase in net cash burn for thesecond quarter compared to the previous quarter was due to paymentsof merger-related expenses of approximately ? 2.7 million which hadbeen accounted for but not paid out in the first quarter of 2009.Net cash burn is derived by adding net cash used in operatingactivities and purchases of property, equipment and intangibleassets. The figures used to calculate net cash burn are contained inthe Company's interim consolidated cash flow statement for therespective periods.Financing updateThe Company also announced that it has received a loan in the amountof ? 3 million from diagennix GmbH, which is the new company ontowhich GPC Biotech will be merged after diagennix has been changed toa stock corporation and renamed "Agennix AG." The loan, which bears12% interest per annum and has a term of one year, is secured by anassignment of a portion of the $20 million note in Agennix in theamount of $4.8 million. This loan is between the two merger partnersand so will not impact the overall cash position of the futurecombined company. The new company resulting from the merger isexpected to have sufficient cash, as previously announced, into thesecond quarter of 2010.Dr. Torsten Hombeck, Chief Financial Officer, said: "With theapproval of the proposed merger by our shareholders in June, we areworking to finalize the transaction, the closing of which we continueto expect to occur by the end of this year. We are cooperatingclosely with our colleagues at Agennix on drug development activitiesfor talactoferrin and the other programs in our pipeline, as well asto move forward with the integration of our two businesses."Financial guidanceGPC Biotech updated its guidance as a stand-alone entity for the fullyear 2009. The Company continues to expect no substantial revenuesin 2009 since Celgene, the main source of revenues in recent years,terminated its collaboration and license agreement for satraplatin in2008. The Company expects R&D expenses to further decrease for 2009compared to 2008 due to an expected steady decrease in clinicaltrial-related costs. In addition, the majority of the cost savingsfrom restructurings over the past few years will be fully recognizedin 2009. The Company also expects that, excluding one-time expensesassociated with the proposed merger, administrative expenses in 2009will decrease compared to 2008, primarily due to staff reductions andother associated activities as a result of earlier restructurings.Regarding cash, GPC Biotech believes that its existing cash, togetherwith the loan it has received from diagennix, should be sufficient tofund operations as a stand-alone entity through the closing of theplanned merger. However, if the merger is not completed by the end of2009 or at all, the ability of the Company to continue as a goingconcern on a stand-alone basis will be immediately threatened.Conference call scheduledThe Company has scheduled a conference call to which participants maylisten via live webcast, accessible through the GPC Biotech Web siteat www.gpc-biotech.com, or via telephone. A replay will be availableon the Web site following the live event. The call, which will beconducted in English, will be held on Tuesday, August 18th at 15:00CET/9:00 AM ET. The dial-in numbers for the call are as follows:Participants from Europe:0049 (0) 69 6677757560044 (0)20 3003 2666Participants from the U.S.:1-646-843-4608Please dial in 10 minutes before the beginning of the meeting.About GPC BiotechGPC Biotech AG is a publicly traded biopharmaceutical company focusedon developing anti-cancer drugs. The Company currently has twoprograms in clinical development: satraplatin, an oral platinumcompound, and RGB-286638, a multi-targeted protein kinase inhibitor.The Company's shareholders have approved a merger agreement pursuantto which the Company will combine its business with Agennix,Incorporated, a privately held biotechnology company located inHouston, Texas. Agennix is developing oral talactoferrin, a productcandidate that is currently in Phase 3 trials for non-small cell lungcancer. GPC Biotech AG is headquartered in Martinsried/Munich(Germany) and has a wholly owned U.S. subsidiary in Princeton, NewJersey. For additional information, please visit GPC Biotech's Website at www.gpc-biotech.com.This press release contains forward-looking statements, which expressthe current beliefs and expectations of the management of GPCBiotech, in particular about the planned merger and the likelihoodand timing of its completion, as well as the future cash position ofGPC Biotech and the future combined entity. Such statements arebased on current expectations and are subject to risks anduncertainties, many of which are beyond our control, that could causefuture results, performance or achievements to differ significantlyfrom the results, performance or achievements expressed or implied bysuch forward-looking statements. Actual results could differmaterially depending on a number of factors, and we caution investorsnot to place undue reliance on the forward-looking statementscontained in this press release. There can be no guarantee that themerger between the Company and diagennix GmbH will be completed in atimely manner, if at all. Forward-looking statements speak only as ofthe date on which they are made and GPC Biotech undertakes noobligation to update these forward-looking statements, even if newinformation becomes available in the future.For the full interim management report and interim condensedconsolidated financial statements and accompanying notes for thesecond quarter and first half of 2009, please visit the InvestorRelations section of the GPC Biotech website athttp://www.gpc-biotech.com/en/investor_relations/financial_reports/index.html.For further information, please contact:GPC Biotech AGInvestor Relations & Corporate CommunicationsPhone: +49 (0)89 8565-2693ir(at)gpc-biotech.comIn the U.S.: Laurie DoyleDirector, Investor Relations & Corporate CommunicationsPhone: +1 609-524-5884usinvestors(at)gpc-biotech.comAdditional media contacts for Europe:MC Services AGPhone: +49 (0) 89 210 228 0Raimund Gabrielraimund.gabriel(at)mc-services.euHilda Juhaszhilda.juhasz(at)mc-services.euAdditional investor contact for Europe:Trout International LLCLauren (Rigg) Williams, Vice PresidentPhone: +44 207 936 9325lrigg(at)troutgroup.comhttp://hugin.info/131943/R/1335432/317367.pdf --- End of Message ---GPC Biotech AGFraunhoferstr. 20 Martinsried GermanyWKN: 585150; ISIN: DE0005851505; Index: CDAX, Prime All Share, TECH All Share, DAX;Listed: Prime Standard in Frankfurter Wertpapierbörse, Freiverkehr in Börse Berlin, Freiverkehr in Bayerische Börse München, Freiverkehr in Börse Düsseldorf, Freiverkehr in Börse Stuttgart, Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr in Niedersächsische Börse zu Hannover, Regulierter Markt in Frankfurter Wertpapierbörse;
Datum: 18.08.2009 - 07:30 Uhr
Sprache: Deutsch
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