SOUTH SAN FRANCISCO, Calif., Feb. 28 /PRNewswire-FirstCall/ -- Cell Genesys, Inc. (Nasdaq: CEGE) today reported financial results for the fourth quarter and full year ended December 31, 2007. The company reported a net loss of $33.4 million ($0.43 per fully diluted share), for the fourth quarter of 2007, compared to a net loss of $30.3 million ($0.54 per fully diluted share) for the corresponding period in 2006. The net loss for the year ended December 31, 2007 was $99.3 million ($1.39 per fully diluted share), compared to a net loss of $82.9 million ($1.67 per fully diluted share) for the year ended December 31, 2006.
The increase in net loss in the fourth quarter of 2007 is attributed primarily to an increase in research and development costs. The increase in net loss for the 12 months ending December 31, 2007 is primarily due to a $9.8 million increase in research and development expenses as well as the net gain of $35.9 million realized in 2006 from the sale of the company's remaining shares of stock in its former subsidiary, Abgenix, Inc., which was partly offset in 2007 by $26.4 million from a favorable settlement with the Internal Revenue Service relating to the company's 2000 tax return.
The company's research and development costs were $28.5 million and $106.1 million in the fourth quarter and year ended December 31, 2007, respectively, compared to $24.6 million and $96.3 million for the comparable periods of 2006. The increase in research and development spending in the fourth quarter and the year ended December 31, 2007 is primarily due to expenses related to the ongoing Phase 3 clinical trials of GVAX immunotherapy for prostate cancer, the company's lead product development program.
As of December 31, 2007, Cell Genesys had $147.3 million in cash, cash equivalents and short-term investments. Total 2007 spending was $105 million, which includes net cash used in operating activities of $89.7 million and net capital expenditures of $2.3 million offset by cash received in December of $12.0 million from the sale of the company's lentiviral gene delivery technology and $1.0 million from an agreement related to the company's gene activation technology. During 2007, Cell Genesys raised approximately $90 million in gross proceeds from equity financing.
"We believe we made substantial progress across our entire business during 2007 particularly with respect to our lead product program, GVAX immunotherapy for prostate cancer, which is now in advanced Phase 3 development," stated Stephen A. Sherwin, M.D., chairman and chief executive officer of Cell Genesys. "In the years ahead, we remain committed to doing everything we can to achieve our key product development goals and build shareholder value."
Presentations at Upcoming Investor Conferences
Members of the Cell Genesys management team plan to present at the following upcoming investor conferences:
Interested parties may access a live audio webcast of the presentation via the investor section of the Cell Genesys website, http://www.cellgenesys.com. A replay of the presentation will be archived on the site for at least 72 hours following the presentation.
Conference Call and Webcast
Members of the Cell Genesys management team will host a conference call today, Thursday, February 28 at 5:00 p.m. ET to discuss today's announcement. Investors may listen to the webcast of the conference call live on the investor section of the Cell Genesys website, http://www.cellgenesys.com. Alternatively, investors may listen to a replay of the call by dialing (800) 475-6701 from locations in the United States and (320) 365-3844 from outside of the United States. The call-in replay and webcast will be available for at least 72 hours following the call. Please refer to reservation number 910549.
About Cell Genesys
Cell Genesys is focused on the development and commercialization of novel biological therapies for patients with cancer. The company is currently pursuing two clinical stage product platforms -- GVAX(TM) cancer immunotherapies and oncolytic virus therapies. Ongoing clinical trials include Phase 3 trials of GVAX immunotherapy for prostate cancer, Phase 2 trials of GVAX immunotherapies for pancreatic cancer and for leukemia, and a Phase 1 trial of CG0070 oncolytic virus therapy for bladder cancer. Cell Genesys continues to hold an equity interest in its former subsidiary, Ceregene, Inc., which is developing gene therapies for neurodegenerative disorders. Cell Genesys is headquartered in South San Francisco, CA and has its principal manufacturing operation in Hayward, CA. For additional information, please visit the company's website at http://www.cellgenesys.com.
Statements made in this press release about the company, other than statements of historical fact, including statements about the company's progress, results, analysis, and timing of our GVAX immunotherapy and oncolytic virus therapy clinical trials and preclinical programs and the nature of product pipelines are forward-looking statements and are subject to a number of uncertainties that could cause actual results to differ from the statements made, including but not limited to risks associated with the success of clinical trials and research and development programs, regulatory requirements and the regulatory approval process for clinical trials, manufacture and commercialization of the company's products, competing technologies and products, our ability to protect our intellectual property, litigation or other claims, the need for and reliance on collaborative business relationships and strategic partnerships with third parties, and the need for additional financings. For information about these and other risks which may affect Cell Genesys, please see the company's reports on Form 10-Q, 10-K, and 8-K and other reports filed from time to time with the Securities and Exchange Commission. The company assumes no obligation to update the forward-looking information in this press release.
SOURCE Cell Genesys, Inc.