GenVec Reports Third Quarter 2013 Financial Results
GAITHERSBURG, Md., Nov. 12, 2013
GAITHERSBURG, Md., Nov. 12, 2013 /PRNewswire/ --GenVec, Inc. (NASDAQ: GNVC)
today announced financial results for the third quarter and nine months ended
September 30, 2013.
Third Quarter and Recent Corporate Highlights
oFollowing an extensive review of the company's options and prospects, the
board of directors withdrew the Plan of Complete Liquidation and
Dissolution and approved a new operating strategy focused on maximizing
the value of GenVec's technology and assets, including its collaboration
with Novartis to develop novel treatments for hearing loss and balance
oDouglas J. Swirsky was named president and chief executive officer and
appointed to the board of directors following the departure of Cynthia
oThe company regained compliance with NASDAQ minimum bid requirements.
oThe putative class action lawsuit filed against the company and certain of
its current and former officers was dismissed with prejudice.
"The third quarter was transformative for GenVec as we emerged from our
strategic review process with the focus and direction to realize the value of
our proprietary technologies," commented Douglas Swirsky, GenVec's President
and CEO. "We have made significant progress on our transition from a
capital-intensive, product development company to a cost-efficient
organization focused on creating value by licensing rights to our proprietary
vector and cell line technologies. Additionally, in the first half of 2014 we
believe our lead program will enter human clinical testing, which will trigger
milestone payments to us."
GenVec reported a net loss of $3.0 million, or $0.23 per share for the third
quarter of 2013, compared with a net loss of $4.0 million, or $0.31 per share,
in the comparable quarter of 2012. For the nine months ended September 30,
2013, GenVec's net loss was $9.1 million, or $0.71 per share, compared to a
net loss of $10.9 million, or $0.84 per share, for the nine months ended
September 30, 2012.
Revenues for the three-month and nine-month periods ended September 30, 2013,
were $1.6 million and $3.5 million, respectively, as compared to $2.1 million
and $7.8 million in the comparable prior year periods.
The decrease in revenue for the three-month and nine-month periods ended
September 30, 2013 is primarily attributable to revenue associated with our
hearing loss and balance disorders program as we near completion of our
development work under our agreements with Novartis. Additionally, there
were reductions in revenue with respect to our agreement with the Department
of Homeland Security due to reduced work scope. These revenue decreases were
partially offset by an increase in revenue associated with our dengue fever
and malaria program with the Naval Medical Research Center (NMRC) in both the
three-month and nine-month periods ended September 30, 2013 as compared to the
comparable prior year period. On July 29, 2013, we entered into a
modification to terminate contractual obligations under the NMRC agreement.
Operating expenses were $4.5 million and $12.7 million for the three-month and
nine-month periods ended September 30, 2013, respectively, as compared to $6.2
million and $18.8 million in the comparable prior year periods.
The decrease in both the three-month and nine-month periods ended September
30, 2013, as compared to the comparable prior year period was primarily a
result of lower personnel costs associated with our position eliminations,
reduced manufacturing costs associated with our foot-and-mouth disease
program, reduced material costs for our hearing program and internal programs
and reduced equipment purchases for our hearing program. Partially offsetting
these reduced costs were higher professional costs, including expenses
incurred in connection with our consideration of the Plan of Dissolution and
related transactions, in both the three-month and nine-month periods ended
September 30, 2013 and the impairment of certain of our long-lived assets in
the nine-month period ended September 30, 2013 as compared to the comparable
prior year period.
GenVec ended the third quarter of 2013 with $7.1 million in cash, cash
equivalents, and short-term investments. "We believe that we have sufficient
capital to fund our operations through at least the end of 2014," commented
Mr. Swirsky. "Given the potential milestone payments that could be generated
under our hearing loss and balance disorders program, we have the potential to
significantly extend our operating runway."
GenVec is a biopharmaceutical company working with leading companies and
organizations such as Novartis and the U.S. Government to leverage GenVec's
proprietary gene-delivery technologies to address the prevention and treatment
of significant health concerns. GenVec's lead program, in the field of
regenerative medicine, is licensed to Novartis for the development of novel
treatments for hearing loss and balance disorders. Additional information
about GenVec is available at www.genvec.com and in the company's various
filings with the Securities and Exchange Commission.
Statements herein relating to future financial or business performance,
conditions or strategies and other financial and business matters, including
with respect to the transition of GenVec's business focus are forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act. GenVec cautions that these forward-looking statements are subject to
numerous assumptions, risks and uncertainties, which change over time. Factors
that may cause actual results to differ materially from the results discussed
in the forward-looking statements or historical experience include risks and
uncertainties, such as the failure of Novartis to advance GenVec's hearing
loss and balance disorders program, including into human clinical trials.
Further information on the factors and risks that could affect GenVec's
business, financial conditions and results of operations, are contained in
GenVec's filings with the U.S. Securities and Exchange Commission (SEC), which
are available at www.sec.gov. These forward-looking statements speak only as
of the date of this press release, and GenVec assumes no duty to update
(Tables to follow)
Condensed Statements of Operations
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2013 2012 2013 2012
Revenues $1,582 $2,128 $3,537 $7,832
Research and development 1,619 3,380 5,350 11,284
General and administrative 2,926 2,799 7,335 7,475
Total operating expenses 4,545 6,179 12,685 18,759
Loss from Operations (2,963) (4,051) (9,148) (10,927)
Other income: 2 12 16 31
Net loss $(2,961) $(4,039) $(9,132) $(10,896)
Basic and diluted net loss
$(0.23) $(0.31) $(0.71) $(0.84)
Shares used in computation of basic 12,948 12,938 12,948 12,938
and diluted net loss per share
Selected Balance Sheet Information
September 30, 2013 December 31, 2012
Cash, cash equivalents and
Working capital 4,452 12,741
Total assets 8,657 17,430
Stockholders' equity 5,533 13,743
SOURCE GenVec, Inc.
Press spacebar to pause and continue. Press esc to stop.