Transgene Announces Third Quarter 2003 Financial Results - Company
also admitted to the NextEconomy Market Segment of EuroNext -
STRASBOURG, France, Nov. 5 /PRNewswire-FirstCall/ -- Transgene
(Nasdaq: TRGNY; Nouveau Marche: FR0005175080) today announced
financial results for the third quarter ended September 30, 2003
and its admission to the NextEconomy segment of EuroNext. Third
quarter financial results Transgene had total revenues of euro 0.6
million (US$ 0.6 million) in the third quarter of 2003, compared to
euro 0.4 million (US$ 0.5 million) for the same period in 2002.
Operating expenses decreased slightly by euro 0.2 million (US$ 0.2
million) to euro 5.1 million (US$ 6 million) for the third quarter
of 2003 compared to euro 5.3 million (US$ 6.1 million) for the
third quarter of 2002. Higher manufacturing costs were offset by a
decrease in general and administrative expenses and a reversal of
an unused portion of the restructuring provision. Transgene
recorded a net loss of euro 4.4 million (US$ 5.1 million), or euro
0.43 (US$ 0.51) per share, for the third quarter of 2003 compared
to a net loss of euro 4.2 million (US$ 4.9 million), or euro 0.42
(US$ 0.49) per share for the same period in 2002. The net loss for
the nine months ended September 30, 2003 was euro 14.3 million (US$
16.6 million), or euro 1.42 (US$ 1.65) per share, compared to euro
13.8 million (US$ 16.1 million), or euro 1.37 (US$ 1.60) per share
for the same period in 2002. Cash expenditures were euro 13.8
million (US$ 16.0 million) for the first nine months of 2003,
resulting in cash and cash equivalents totaling euro 40.7 million
(US$ 47.4 million) at September 30, 2003. NextEconomy market
segment of EuroNext Transgene was admitted by EuroNext to the
NextEconomy market segment on October 10, 2003. The NextEconomy
segment, which consists of companies whose core business focuses on
new technologies, was launched by EuroNext in January 2002 along
with the NextPrime segment, which is reserved for companies from
traditional sectors of the economy. The NextEconomy segment gives
listed companies the opportunity to improve their visibility and
investor relations by committing to standards that exceed routine
regulatory requirements. Companies admitted to the segment have
voluntarily agreed to adhere to heightened liquidity and
transparency standards such as publishing quarterly financial
reports, publishing financial documents in English, announcing a
schedule for publications and meetings, holding at least two
analysts' meetings per year and publishing key financial
information on their website. "We are very pleased to join the
NextEconomy segment. It shows our commitment to adhere to high
quality standards in term of financial communication, ensuring
investors of a high and sustained level of transparency on
Transgene's activities and financial position," stated Philippe
Poncet, Chief Financial Officer of Transgene. Transgene, based in
Strasbourg, France, is a biopharmaceutical company dedicated to the
discovery and development of therapeutic vaccines, immunotherapy
products, and delivery technologies for the treatment of diseases
for which there is no cure or adequate treatment at present, with a
focus on the treatment of cancer. Transgene has five products in
clinical development, two of which are in Phase II clinical trials
and three of which have completed Phase I clinical trials.
Transgene's proprietary vector technology platform consists of
adenovirus, poxvirus and non-viral vectors. This press release
contains forward-looking statements, including statements regarding
the efficiency and safety of and potential market for Transgene's
product candidates and prospects. Statements that are not
historical facts are based on Transgene's current expectations,
beliefs, estimates, forecasts and assumptions. The statements
contained in this release are not guarantees of future performance
and involve certain risks, uncertainties and assumptions which are
difficult to predict. Accordingly, actual outcomes and results may
differ materially from what is expressed in those forward-looking
statements. Important factors which may affect Transgene's future
operating results include the following: Transgene's product
candidates may not demonstrate therapeutic efficacy after initial
promising results, Transgene may be unable to obtain regulatory
approval for its product candidates, Transgene may be unable to
conduct its clinical trials as quickly as it has predicted,
Transgene may not have sufficient resources to complete the
research and commercialization of any of its product candidates,
competitors may develop technologies or products superior to
Transgene's technologies or products, and other important factors
described in Transgene's Annual Report on Form 20-F for the year
ended December 31, 2002 filed with the U.S. Securities and Exchange
Commission, including those factors described in the section
entitled "Risk Factors." Note: The official financial information
of Transgene is stated in Euros. The financial information
expressed in US$ is translated solely for the convenience of the
reader at euro 1.00 = $ 1.165, the noon buying rate of the Federal
Reserve Bank of New York on September 30, 2003. Condensed
Consolidated Balance Sheets (US GAAP) (Amounts in thousands)
September 30, December 31, 2003 2003 2002 US$ euro euro Unaudited
Audited ASSETS Cash and cash equivalents 47,438 40,719 54,491 Other
current assets 2,512 2,156 3,207 Total current assets 49,949 42,875
57,698 Property, plant and equipment, net 9,487 8,143 8,666 Other
assets 384 330 516 Total assets 59,820 51,348 66,880 LIABILITIES
AND SHAREHOLDERS' EQUITY Total current liabilities 4,993 4,286
5,277 Total long-term liabilities 7,145 6,133 6,396 Total
shareholders' equity 47,682 40,929 55,207 Total liabilities and
shareholders' equity 59,820 51,348 66,880 Condensed Consolidated
Statements of Operations US GAAP - Unaudited (Amounts in thousands
except share and per share data) Three months ended September 30,
2003 2003 2002 US$ euro euro Revenues Revenues from collaborative
and licensing agreements 648 556 241 Grants received for research
and development 0 0 177 Total revenues 648 556 418 Operating
expenses Research and development (5,213) (4,475) (4,331) General
& administrative (890) (764) (939) Restructuring 106 91 0 Total
operating expenses (5,997) (5,148) (5,270) Loss from operations
(5,350) (4,592) (4,852) Interest and other income, net 257 221 642
Income tax benefit 0 0 0 Net loss (5,092) (4,371) (4,210) Loss per
ordinary share (0.51) (0.43) (0.42) Weighted average number of
shares outstanding 10,055,760 10,055,760 10,055,760 Loss per ADS
(American Depositary Share) (0.17) (0.14) (0.14) Weighted average
number of ADSs outstanding 30,167,280 30,167,280 30,167,280 US GAAP
- Unaudited (Amounts in thousands except share and per share data)
Nine month ended September 30, 2003 2003 2002 US$ euro euro
Revenues Revenues from collaborative and licensing agreements 2,184
1,875 434 Grants received for research and development 0 0 177
Total revenues 2,184 1,875 611 Operating expenses Research and
development (16,691) (14,327) (13,386) General & administrative
(3,238) (2,779) (2,709) Restructuring 106 91 0 Total operating
expenses (19,822) (17,015) (16,095) Loss from operations (17,638)
(15,140) (15,484) Interest and other income, net 1,010 867 1,695
Income tax benefit 0 0 0 Net loss (16,628) (14,273) (13,789) Loss
per ordinary share (1.65) (1.42) (1.37) Weighted average number of
shares outstanding 10,055,760 10,055,760 10,055,760 Loss per ADS
(American Depositary Share) (0.55) (0.47) (0.46) Weighted average
number of ADSs outstanding 30,167,280 30,167,280 30,167,280 Note:
The official financial information of Transgene is stated in Euros.
The financial information expressed in US$ is translated solely for
the convenience of the reader at euro 1.00 = $ 1.165, the noon
buying rate of the Federal Reserve Bank of New York on September
30, 2003. DATASOURCE: Transgene CONTACT: Philippe Poncet, Chief
Financial Officer of Transgene, +33-3-88-27-91-21; or Julie Huang,
+1-212-798-9814, or Julio Cantre, +1-212-798-9779, both of Cohn
& Wolfe; or Marie-Carole de Groc, +33-1-58-47-95-07, or Odile
Rebattet, +33-1-58-47-95-06, both of Euro RSCG C&O
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