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Galectin Therapeutics Reports Full Year and Fourth Quarter 2012 Financial Results

  Galectin Therapeutics Reports Full Year and Fourth Quarter 2012 Financial
                                   Results

PR Newswire

NORCROSS, Ga., March 29, 2013

NORCROSS, Ga., March 29, 2013 /PRNewswire/ --Galectin Therapeutics Inc.
(NASDAQ: GALT), the leading developer of therapeutics that target galectin
proteins to treat fibrosis and cancer, today reported its financial results
for the full year and fourth quarter, ended December 31, 2012. These results
are included in the Company's Quarterly Report on Form 10-K, which has been
filed with the SEC.

"It was a year of great progress for our Company," said Peter G. Traber, M.D.,
Chief Executive Officer, President and Chief Medical Officer, Galectin
Therapeutics. "We completed a significant fundraising and our stock was listed
on the NASDAQ Capital Market earlier in the year, we relocated our
headquarters to Norcross, Georgia during the fourth quarter, and we made
significant advances developing our fibrosis program. We have continued this
progress into 2013, having submitted an IND for GR-MD-02 in January and
received the FDA's ok that we could proceed with a Phase 1 clinical trial. We
expect to initiate a Phase 1 clinical trial of GR-MD-02 during the second
quarter of 2013 in patients with nonalcoholic steatohepatitis (NASH) and liver
fibrosis and have engaged CTI Clinical Trial Services to provide services
related to this trial. The novel mechanism of action of GR-MD-02, in
combination with compelling preclinical data, gives us great hope that this
compound may ultimately meet the needs of patients with this deadly disease
that currently has no approved therapeutic options."

At December 31, 2012, the Company had $9.4 million of non-restricted cash and
cash equivalents available to fund future operations. The Company believes
that with the funds on hand at December 31, 2012, there is sufficient cash to
fund core operations and planned research and development through the first
quarter of 2014.

For the fourth quarter of 2012, the Company reported a net loss applicable to
common stock of $2.7 million, or ($0.17) per share, basic and diluted,
compared with a net loss of $3.7 million or ($0.29) per share for the same
period in 2011. For the full year 2012, the Company reported a net loss
applicable to common stock of $10.9 million, or ($0.72) per share, basic and
diluted, compared with a net loss of $12.7 million, or $(1.06) per share in
2011. The full year 2012 results include $0.2 million of other income as well
as $1.2 million of non-cash expense related to dividends and accretion on the
preferred stock compared with $1.8 million in 2011. The weighted average
number of shares used to calculate loss per share increased for the 2012
periods compared to the 2011 periods due primarily to the March 2012 offering
of 2.7 million common shares as well as the payment of dividends in common
stock.

Research and development expense for the fourth quarter of 2012 was $1.0
million, compared with $0.9 million for the same period in 2011. Research and
development expense for the full year 2012, was $4.5 million, compared with
$3.6 million in 2011. The increase for the fourth quarter and the
year-over-year expenses is due primarily to increased pre-clinical activity in
our fibrosis program as we prepared to file an IND in January 2013 and begin a
Phase I clinical trial, offset by decreased expenses related to stock-based
compensation.

General and administrative expense for the fourth quarter of 2012 was $1.4
million, compared with $2.5 million for the same period in 2011. General and
administrative expense for the full year 2012 was $5.4 million as compared to
$6.9 million for 2011. The decrease for the fourth quarter and full year 2012
is due primarily to the recognition of a $1.0 million payment related to a
separation agreement during the fourth quarter of 2011. Additionally, the
decrease in expense for the fourth quarter and full year 2012 is due primarily
to overall decreased business development costs as we decreased work related
to the PROCAPS agreement which we terminated in 2012 and decreased litigation
costs related to a settlement in 2011.

About Galectin Therapeutics

Galectin Therapeutics (NASDAQ: GALT) is developing promising
carbohydrate-based therapies for the treatment of fibrotic liver disease and
cancer based on the Company's unique understanding of galectin proteins, key
mediators of biologic function. We are leveraging extensive scientific and
development expertise as well as established relationships with external
sources to achieve cost effective and efficient development. We are pursuing
a clear development pathway to clinical enhancement and commercialization for
our lead compounds in liver fibrosis and cancer. Additional information is
available at www.galectintherapeutics.com.

Forward Looking Statements

This press release contains, in addition to historical information,
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements relate to future events or
future financial performance, and use words such as "may," "estimate,"
"could," "expect" and others. They are based on our current expectations and
are subject to factors and uncertainties which could cause actual results to
differ materially from those described in the statements. Factors that could
cause our actual performance to differ materially from those discussed in the
forward-looking statements include, among others: incurrence of operating
losses since our inception, uncertainty as to adequate financing of our
operations, extensive and costly regulatory oversight that could restrict or
prevent product commercialization, inability to achieve commercial product
acceptance, inability to protect our intellectual property, dependence on
strategic partnerships, product competition, and others stated in risk factors
contained in our SEC filings. We cannot assure that we have identified all
risks or that others may emerge which we do not anticipate. You should not
place undue reliance on forward-looking statements. Although subsequent
events may cause our views to change, we disclaim any obligation to update
forward-looking statements.

Galectin Therapeutics and its associated logo is a trademark of Galectin
Therapeutics Inc.



Condensed Consolidated Statements of Operations
                                       Three Months        Twelve Months
                                       Ended
                                                           Ended
                                       December 31,
                                                           December 31,
                                       2012      2011      2012      2011
                                       (in thousands, except per share data)

                                       (unaudited)
Operating expenses:
 Research and development             $1,002    $862      $4,527    $3,552
 General and administrative           1,380     2,510     5,372     6,857
 Total operating expenses             2,382     3,372     9,899     10,409
 Total operating loss              (2,382)   (3,372)   (9,899)   (10,409)
Other income and (expense):
 Interest income                      6         4         24        18
 Change in fair value of warrant      -         -         -         (524)
liabilities
 Other income                         -         -         200       -
 Total other income (expense)      6         4         224       (506)
Net loss                               $(2,376)  $(3,368)  $(9,675)  $(10,915)
Preferred stock dividends and          (332)     (350)     (1,206)   (1,798)
accretion costs
 Net loss applicable to common     $(2,708)  $(3,718)  $(10,881) $(12,713)
stock
Basic and diluted net loss per share   $ (0.17) $ (0.29) $ (0.72) $ (1.06)
Shares used in computing basic and     15,966    12,846    15,131    11,986
diluted net loss per share



Condensed Consolidated Balance Sheet Data
                                        December 31,
                                        2012         2011
                                        (in thousands, unaudited)
Cash and cash equivalents             $ 9,364    $   6,397
Total assets                            9,561        6,612
Accounts payable and accrued expenses   1,638        2,015
Deferred income                         -            200
Total liabilities.                      1,644        2,215
Total stockholders' equity (deficit)  $ 1,165    $   (2,125)

SOURCE Galectin Therapeutics Inc.

Website: http://www.galectintherapeutics.com
Contact: Tom McGauley, Chief Financial Officer, 678-620-3186,
ir@galectintherapeutics.com.
 
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