Faced with cash shortage, Genta considers options

New Jersey-based Genta had to go into survival mode in early 2008 after the FDA rejected its lead therapy Genasense. The company laid off half its staff and went on the hunt for funds, eventually issuing $20 million of senior secured convertible notes in June. But now Genta has found itself back in a similar position. As of March 31, Genta had cash and cash equivalents totaling just $600,000.

The drug developer reported a net loss of $11.1 million, or $0.01 per share, for the first quarter of 2009, compared with a net loss of $9.7 million, or $0.29 per share, for the first quarter of 2008. 

Genta says that unless it finds additional funding, it will run out of cash this June. "If the company is unable to raise additional funds, it could be required to reduce its spending plans, reduce its workforce, license or sell assets or products it would otherwise seek to commercialize on its own, or file for bankruptcy." Added Genta, "there can be no assurance that the company can obtain financing, if at all, on acceptable terms."

- here's Genta's financial results
- check out the Reuters article