GAITHERSBURG, Md., May 12, 2016 /PRNewswire/ -- GenVec, Inc.
(NASDAQ: GNVC) today reported financial results for the first
quarter ended March 31, 2016. For the
three months ended March 31, 2016,
the company reported a net loss of $1.9
million, or $0.11 per share,
compared with a net loss of $1.5
million, or $0.09 per share,
for the three months ended March 31,
2015. The company ended the first quarter with $6.9 million in cash, cash equivalents, and
liquid investments.
"The recommendation to continue the Phase 1/2 study of CGF166 by
the trial's Data Safety Monitoring Board (DSMB) was an essential
hurdle to pass," said Douglas J.
Swirsky, president and CEO of GenVec. "The decision was
based on a thorough and objective review of the available safety
and efficacy data from all patients enrolled in the study. As a
result, we believe the trial is on track to be completed in 2017 as
previously expected."
"Our partnered pipeline continues to advance, and we expect our
partner TheraBiologics to advance a second-generation neural stem
cell-based cancer treatment utilizing our technology into the
clinic later this year," Mr. Swirsky continued. "Our recent
financing further enables GenVec to remain focused on finding new
collaborations to maximize the value of our AdenoVerse™ gene
delivery platform and we are excited by the response from potential
partners."
Cash Position
As of May 10, 2016, the company
had $10.6 million in cash, cash
equivalents, and liquid investments (unaudited), which includes the
proceeds of the company's May 2016
financing.
Updated 2016 Guidance
For 2016, GenVec anticipates a cash burn between $6.0 million and $6.5 million and believes its
existing resources are sufficient to fund operations into 2018.
Financial Results for the Three Months Ended March 31, 2016
Revenues for the three-month period ended March 31, 2016 were $0.3
million, which represents a decrease of 28% as compared to
revenues of $0.4 million in the
comparable prior year period.
The decrease in revenue for the three-month period ended
March 31, 2016 is primarily
attributable to the completion of our contract with the DHS related
to our animal health program in February 2015. In connection
with this contract we recognized $0.2
million in revenue in 2015 with no corresponding revenue in
2016. Also contributing to the decrease was a reduced work
scope under our hearing loss and balance disorders program, which
resulted in a $0.1 million reduction
in revenue in the current period as compared to the same period in
2015. Partially offsetting these decreases was an increase in
revenue from our malaria program of $0.2
million primarily attributable to our grant with the
NIH. Work under this grant was completed in March
2016.
Operating expenses were $2.1
million for the three-month period ended March 31, 2016, which represents an increase of
11% as compared to $1.9 million in
the comparable prior year period.
General and administrative expenses for the three-month period
ended March 31, 2016 increased 9%
with expense of approximately $1.4
million in 2016 as compared to $1.3
million in 2015. The increase is primarily attributable to
higher personnel costs due to the expansion of our workforce by
three full-time employees as compared to the same period in
2015.
Research and development expenses for the three-month period
ended March 31, 2016 increased 14%
with expense of approximately $0.7
million in 2016 as compared to $0.6
million in 2015. The increase is primarily attributable to
higher professional, material, and facility costs.
About GenVec
GenVec is a clinical-stage gene delivery company focused on
developing a pipeline of cutting-edge therapeutics and vaccines
using its proprietary AdenoVerse™ gene delivery platform. The
company is a pioneer in the design, testing and manufacture of
adenoviral-based product candidates that can deliver on the promise
of gene-based medicine. GenVec's lead product candidate, CGF166, is
licensed to Novartis and is currently in a Phase 1/2 clinical study
for the treatment of hearing loss and balance disorders. In
addition to its internal and partnered pipeline, the company is
also focused on opportunities to license its proprietary technology
platform, including vectors and production cell lines, for the
development and manufacture of therapeutics and vaccines to the
biopharmaceutical industry. 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 GenVec's hearing loss
and balance disorders program, business strategy, expansion of the
reach of GenVec's technology platform, and expectations regarding
cash burn, 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 or of the interest or success of other potential or
existing third-party collaborators, as well as unexpected business
expenses or opportunities. Further information on the factors
and risks that could affect GenVec's business, financial condition
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 forward-looking statements.
Contact:
Rena Cohen
(240) 632-5501
ir@genvec.com
(Tables to follow)
GenVec,
Inc.
|
Condensed
Statements of Operations
|
|
(in thousands,
except per share data)
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
(unaudited)
|
|
|
Revenues
|
$290
|
|
$405
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
General and
administrative
|
1,412
|
|
1,293
|
|
|
|
|
Research and
development
|
737
|
|
648
|
|
|
|
|
Total operating expenses
|
2,149
|
|
1,941
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
(1,859)
|
|
(1,536)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income:
|
|
|
|
|
|
|
|
Interest and other
income/(expenses),
net
|
(1)
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$(1,860)
|
|
$(1,529)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
$(0.11)
|
|
$(0.09)
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computation of basic
and
diluted net loss per share
|
17,264
|
|
16,540
|
|
|
|
|
GenVec,
Inc.
Selected Balance
Sheet Information
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2016
|
|
December
31,
2015
|
|
|
|
|
|
(unaudited)
|
|
|
Cash, cash
equivalents and
investments
|
|
|
|
|
$6,908
|
|
$8,676
|
Working
capital
|
|
|
|
|
5,763
|
|
7,393
|
Total
assets
|
|
|
|
|
7,647
|
|
9,463
|
Stockholders'
equity
|
|
|
|
|
6,027
|
|
7,680
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/genvec-reports-first-quarter-2016-financial-results-300267278.html
SOURCE GenVec, Inc.