-
Cash, cash equivalents, marketable securities and short-term
investments of € 44.6 million (approx. $67
million) as of June 30, 2008
-
Company confirms that existing cash position expected to support
currently planned business operations until approximately the end of
2010
GPC Biotech AG (Frankfurt Stock Exchange: GPC; NASDAQ: GPCB) today
reported financial results for the second quarter and first six months
ended June 30, 2008.
First six months of 2008 compared to first six months of 2007
Revenues decreased 57% to € 3.1 million for
the six months ended June 30, 2008, compared to €
7.2 million for the same period in 2007. The decrease in revenues is due
to decreased payments from Celgene Corporation relating to the
co-development and license agreement for satraplatin. Research and
development (R&D) expenses decreased 62% to €
10.3 million for the first six months of 2008 compared to €
27.2 million for the same period in 2007. The decrease in R&D expenses
is primarily due to staff reductions as a result of the restructuring
plans implemented in 2007 and the first quarter of 2008, as well as a
decrease in clinical trial costs due to reduced clinical trial volumes.
In the first half of 2008, general and administrative (G&A) expenses
decreased 64% to € 7.6 million compared to €
21.2 million for the same period in 2007. The decrease in G&A expenses
is primarily due to staff reductions and other associated activities as
a result of the restructuring plans implemented in 2007 and the first
quarter of 2008. In addition, in the first half of 2007, the Company
incurred costs in connection with the building of a commercial
infrastructure and legal fees due to the arbitration proceedings. The
Company did not incur such costs in the first half of 2008. Net loss for
the first six months of 2008 improved 66% to €
(13.4) million compared to € (39.3) million
for the first six months of 2007. Basic and diluted loss per share was €
(0.36) for the first six months of 2008 compared to €
(1.10) for the same period in 2007.
Cash position
As of June 30, 2008, cash, cash equivalents, marketable securities and
short-term investments totaled € 44.6 million
(December 31, 2007: € 65.2 million),
including € 1.4 million in restricted cash.
Net cash burn for the first six months of 2008 was €
18.7 million with net cash burn of € 10.6
million in the first quarter and € 8.1
million in the second quarter of 2008. Net cash burn, a non-GAAP
measure, is derived by adding net cash used in operating activities and
purchases of property, equipment and licenses. Net cash burn provides
insight regarding the actual cash a company spent in a given period. The
figures used to calculate net cash burn are contained in the Company’s
unaudited consolidated statements of cash flows for the first six months
ended June 30, 2008.
Second quarter of 2008 compared to second quarter of 2007
Revenues for the three months ended June 30, 2008 decreased 56% to €
1.5 million compared to € 3.4 million for the
same period in 2007. R&D expenses decreased 70% to €
4.5 million for the second quarter of 2008 compared to €
15.0 million for the same period in 2007. G&A expenses for the second
quarter of 2008 decreased 65% to € 4.0
million compared to € 11.4 million for the
second quarter of 2007. The Company’s net loss
was € (6.4) million in the second quarter of
2008 compared to € (22.1) million for the
same period in 2007. Basic and diluted loss per share was €
(0.17) for the second quarter of 2008 compared to €
(0.61) for the same period in 2007.
Quarter over quarter results: second quarter 2008 compared to
first quarter 2008
Revenues for the second quarter of 2008 were €
1.5 million compared to € 1.6 million for the
previous quarter. R&D expenses decreased 21% to €
4.5 million for the second quarter of 2008, compared to €
5.7 million in the first quarter of 2008. G&A expenses for the second
quarter of 2008 increased 11% to € 4.0
million compared to € 3.6 million for the
previous quarter. The Company’s net loss
decreased 9% to € (6.4) million in the second
quarter of 2008, compared to € (7.0) million
for the previous quarter. Basic and diluted loss per share was €
(0.17) for the second quarter of 2008 compared to €
(0.19) for the previous quarter.
“We are highly focused on rebuilding the
Company and are working with great intensity on moving forward promising
M&A opportunities,” said Bernd R.
Seizinger, M.D., Ph.D., Chief Executive Officer. “It
is critical that we broaden our oncology pipeline through such
transactional activities while we continue to advance our existing drug
development programs, including our two novel kinase inhibitors.”
2008 financial guidance
The Company confirmed its guidance provided in May 2008 as follows:
Revenues: Revenues for 2008 are
expected to be between € 5 million and €
7 million.
Once the termination of the co-development and license agreement between
GPC Biotech and Celgene Corporation for satraplatin for Europe and
certain other territories is effective, GPC Biotech expects to recognize
all or the majority of remaining deferred revenue related to the
agreement. This deferred revenue is related to cash already received by
GPC Biotech under this agreement. The Company will update revenue
guidance as appropriate.
Expenses: Total expenses for 2008
are expected to be below € 35 million.
Cash Burn: Current cash reserves
are expected to be sufficient to fund currently planned business
operations until approximately the end of 2010. The cash burn for 2008
will include several one-time costs, including severance and other
payments related to the corporate restructurings in 2007 and early 2008.
The majority of these one–time costs were
incurred in the first half of 2008.
This guidance does not include any potential M&A or other major
transactions, and, should such an event or events occur this year, the
Company’s financial expectations would likely
change significantly.
Conference call scheduled
The Company has scheduled a conference call to which participants may
listen via live webcast, accessible through the GPC Biotech Web site at www.gpc-biotech.com
or via telephone. A replay will be available on the Web site following
the live event. The call, which will be conducted in English, will be
held on August 13th at 14:00 CET/8:00 AM ET.
The dial-in numbers for the call are as follows:
|
Participants from Europe:
|
|
0049 (0)89 9982 99911
|
|
|
|
0044 (0)20 7806 1955
|
|
Participants from the U.S.:
|
|
1-718-354-1388
|
|
|
|
Please dial in 10 minutes before the beginning of the meeting.
|
About GPC Biotech
GPC Biotech AG is a publicly traded biopharmaceutical company focused on
anticancer drugs. GPC Biotech's lead product candidate is satraplatin,
an oral platinum compound. The Company has various anti-cancer programs
in research and development that leverage its expertise in kinase
inhibitors. GPC Biotech AG is headquartered in Martinsried/Munich
(Germany) and has a wholly owned U.S. subsidiary in Princeton, New
Jersey. For additional information, please visit GPC Biotech's Web site
at www.gpc-biotech.com.
This press release contains forward-looking statements, which express
the current beliefs and expectations of the management of GPC Biotech,
including statements about the Company’s
future cash position. Such statements are based on current
expectations and are subject to risks and uncertainties, many of which
are beyond our control, that could cause future results, performance or
achievements to differ significantly from the results, performance or
achievements expressed or implied by such forward-looking statements.
Actual results could differ materially depending on a number of factors,
and we caution investors not to place undue reliance on the
forward-looking statements contained in this press release. We
direct you to GPC Biotech’s Annual Report on
Form 20-F for the fiscal year ended December 31, 2007 and other reports
filed with the U.S. Securities and Exchange Commission for additional
details on the important factors that may affect the future results,
performance and achievements of GPC Biotech. Forward-looking statements
speak only as of the date on which they are made and GPC Biotech
undertakes no obligation to update these forward-looking statements,
even if new information becomes available in the future.
– Financials follow –
|
GPC Biotech AG
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Operations (U.S. GAAP)
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
|
in thousand €, except share and per
share data
|
|
2008 (unaudited)
|
|
2007 (unaudited)
|
|
2008 (unaudited)
|
|
2007 (unaudited)
|
|
Collaborative revenues
|
|
1,491
|
|
|
3,320
|
|
|
3,005
|
|
|
7,082
|
|
|
Grant revenues
|
|
42
|
|
|
67
|
|
|
97
|
|
|
144
|
|
|
Total revenues
|
|
1,533
|
|
|
3,387
|
|
|
3,102
|
|
|
7,226
|
|
|
Research and development expenses
|
|
4,533
|
|
|
14,976
|
|
|
10,282
|
|
|
27,214
|
|
|
General and administrative expenses
|
|
3,968
|
|
|
11,389
|
|
|
7,567
|
|
|
21,196
|
|
|
Amortization of intangible assets
|
|
17
|
|
|
90
|
|
|
35
|
|
|
181
|
|
|
Total operating expenses
|
|
8,518
|
|
|
26,455
|
|
|
17,884
|
|
|
48,591
|
|
|
Operating loss
|
|
(6,985
|
)
|
|
(23,068
|
)
|
|
(14,782
|
)
|
|
(41,365
|
)
|
|
Other income (expense), net
|
|
83
|
|
|
(68
|
)
|
|
359
|
|
|
89
|
|
|
Interest income
|
|
474
|
|
|
1,049
|
|
|
1,079
|
|
|
2,077
|
|
|
Interest expense
|
|
(14
|
)
|
|
(40
|
)
|
|
(44
|
)
|
|
(67
|
)
|
|
Net Loss
|
|
(6,442
|
)
|
|
(22,127
|
)
|
|
(13,388
|
)
|
|
(39,266
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss per share
|
|
(0.17
|
)
|
|
(0.61
|
)
|
|
(0.36
|
)
|
|
(1.10
|
)
|
|
Shares used in computing basic and diluted loss per share
|
|
36,836,853
|
|
|
36,106,533
|
|
|
36,836,853
|
|
|
35,776,752
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to unaudited condensed consolidated
financial statements.
|
|
GPC Biotech AG
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets
|
|
in thousand €, except share data and per
share data
|
|
|
|
June 30,
|
|
December 31,
|
|
Assets
|
|
2008 (unaudited)
|
|
2007
|
|
|
Current assets
|
|
|
|
|
|
Cash and cash equivalents
|
|
43,117
|
|
|
49,681
|
|
|
Marketable securities and short-term investments
|
|
113
|
|
|
14,077
|
|
|
Accounts receivable
|
|
348
|
|
|
984
|
|
|
Prepaid expenses
|
|
899
|
|
|
874
|
|
|
Other current assets
|
|
1,805
|
|
|
2,229
|
|
|
Restricted Cash
|
|
1,205
|
|
|
1,269
|
|
|
Total current assets
|
|
47,487
|
|
|
69,114
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
2,272
|
|
|
3,070
|
|
|
Intangible assets, net
|
|
119
|
|
|
164
|
|
|
Other assets, non-current
|
|
753
|
|
|
851
|
|
|
Restricted cash
|
|
187
|
|
|
187
|
|
|
Total assets
|
|
50,818
|
|
|
73,386
|
|
|
Liabilities and shareholders' equity
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Accounts payable
|
|
2,368
|
|
|
2,826
|
|
|
Accrued expenses and other current liabilities
|
|
6,307
|
|
|
10,445
|
|
|
Current portion of deferred revenue
|
|
3,810
|
|
|
4,332
|
|
|
Total current liabilities
|
|
12,485
|
|
|
17,603
|
|
|
|
|
|
|
|
|
Deferred revenue, net of current portion
|
|
12,004
|
|
|
13,989
|
|
|
Convertible bonds
|
|
2,181
|
|
|
3,191
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
Ordinary shares, € 1 non-par, notional
value:
|
|
|
|
|
|
Shares authorized: 70,383,150 at June 30, 2008 and December 31, 2007
|
|
|
|
|
|
Shares issued and outstanding: 36,836,853 at June 30, 2008 and
December 31, 2007
|
|
36,837
|
|
|
36,837
|
|
|
Additional paid-in capital
|
|
369,048
|
|
|
369,521
|
|
|
Accumulated other comprehensive loss
|
|
(5,634
|
)
|
|
(5,040
|
)
|
|
Accumulated deficit
|
|
(376,103
|
)
|
|
(362,715
|
)
|
|
Total shareholders' equity
|
|
24,148
|
|
|
38,603
|
|
|
Total liabilities and shareholders' equity
|
|
50,818
|
|
|
73,386
|
|
|
|
|
|
|
|
|
See accompanying notes to unaudited condensed consolidated
financial statements.
|
|
GPC Biotech AG
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Cash Flows
|
|
|
|
Six months ended June 30,
|
|
in thousand €
|
|
2008 (unaudited)
|
|
2007 (unaudited)
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net loss
|
|
(13,388
|
)
|
|
(39,266
|
)
|
|
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
Depreciation
|
|
521
|
|
|
862
|
|
|
Amortization
|
|
35
|
|
|
180
|
|
|
Compensation (reversal)/cost for stock option plans, convertible
bonds and SAR's
|
|
(463
|
)
|
|
2,267
|
|
|
Loss accrual on sublease contract and contract termination fee
|
|
110
|
|
|
(100
|
)
|
|
Change in accrued interest income on marketable securities
|
|
|
|
|
|
and short-term investments
|
|
-
|
|
|
(351
|
)
|
|
Other than temporary impairment on marketable securities
|
|
277
|
|
|
-
|
|
|
Bond premium amortization
|
|
19
|
|
|
105
|
|
|
Gain on disposal of property and equipment
|
|
(281
|
)
|
|
(43
|
)
|
|
Impairment of property and equipment
|
|
16
|
|
|
-
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
636
|
|
|
(10,655
|
)
|
|
Other assets, current and non-current
|
|
412
|
|
|
117
|
|
|
Accounts payable
|
|
(373
|
)
|
|
1,473
|
|
|
Deferred revenue
|
|
(2,507
|
)
|
|
4,574
|
|
|
Other liabilities and accrued expenses, current and non-current
|
|
(3,744
|
)
|
|
144
|
|
|
Net cash used in operating activities
|
|
(18,730
|
)
|
|
(40,693
|
)
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Purchases of property, equipment and licenses
|
|
(15
|
)
|
|
(1,269
|
)
|
|
Proceeds from the sale of property and equipment
|
|
509
|
|
|
45
|
|
|
Proceeds from the sale or maturity of marketable securities and
short-term investments
|
|
13,830
|
|
|
11,000
|
|
|
Net cash provided by investing activities
|
|
14,324
|
|
|
9,776
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Proceeds from issuance of shares, net of payments for cost of
transaction
|
|
-
|
|
|
32,633
|
|
|
Proceeds from issuance of convertible bonds
|
|
-
|
|
|
345
|
|
|
Repayment of convertible bonds
|
|
(1,250
|
)
|
|
(24
|
)
|
|
Proceeds from exercise of stock options and convertible bonds
|
|
-
|
|
|
5,384
|
|
|
Net cash (used in) provided by financing activities
|
|
(1,250
|
)
|
|
38,338
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
(885
|
)
|
|
(784
|
)
|
|
Changes in restricted cash
|
|
(23
|
)
|
|
(35
|
)
|
|
Net (decrease) increase in cash and cash equivalents
|
|
(6,564
|
)
|
|
6,602
|
|
|
Cash and cash equivalents at the beginning of the period
|
|
49,681
|
|
|
38,337
|
|
|
Cash and cash equivalents at the end of the period
|
|
43,117
|
|
|
44,939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to unaudited condensed consolidated
financial statements.
|
|
GPC Biotech AG
|
|
Consolidated Statements of Changes in Shareholders' Equity
|
|
(in thousand €, except share data)
|
|
|
|
Ordinary shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
|
|
Accumulated Other
|
|
|
|
Total
|
|
|
|
|
|
|
|
Subscribed
|
|
Paid-in
|
|
Comprehensive
|
|
Accumulated
|
|
Shareholders'
|
|
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Capital
|
|
Loss
|
|
Deficit
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2006
|
|
33,895,444
|
|
33,895
|
|
334
|
|
328,171
|
|
|
(1,755
|
)
|
|
(293,470
|
)
|
|
67,175
|
|
|
Components of comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
|
|
|
|
|
|
|
|
(39,266
|
)
|
|
(39,266
|
)
|
|
Change in unrealized gain/(loss) on available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
146
|
|
|
|
|
146
|
|
|
Accumulated translation adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(641
|
)
|
|
|
|
(641
|
)
|
|
Total comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(39,761
|
)
|
|
Issuance of shares
|
|
1,564,587
|
|
1,565
|
|
|
|
31,068
|
|
|
|
|
|
|
32,633
|
|
|
Exercise of stock options and conversion of convertible bonds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
793,022
|
|
793
|
|
1,195
|
|
3,725
|
|
|
|
|
|
|
5,713
|
|
|
Compensation cost for stock options and convertible bonds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,850
|
|
|
|
|
|
|
1,850
|
|
|
Balance at June 30, 2007 (unaudited)
|
|
36,253,053
|
|
36,253
|
|
1,529
|
|
364,814
|
|
|
(2,250
|
)
|
|
(332,736
|
)
|
|
67,610
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2007
|
|
36,836,853
|
|
36,837
|
|
-
|
|
369,521
|
|
|
(5,040
|
)
|
|
(362,715
|
)
|
|
38,603
|
|
|
Components of comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
|
|
|
|
|
|
|
|
(13,388
|
)
|
|
(13,388
|