EXHIBIT 99.1 - PRESS RELEASE
GENELABS TECHNOLOGIES, INC. REPORTS THIRD QUARTER
AND NINE MONTH 2003 FINANCIAL RESULTS
REDWOOD CITY, Calif. - November 14, 2003 - Genelabs Technologies, Inc.
(Nasdaq:GNLB) today reported revenues of $0.7 million and a net loss of $4.8
million, or $0.08 per share, for the quarter ended September 30, 2003. This
compares to revenues of $0.8 million and a net loss of $4.3 million, or $0.08
per share, for the third quarter 2002. Revenues for the nine-month period ended
September 30, 2003 were $2.2 million and the net loss was $13.3 million, or
$0.23 per share, compared to revenues of $2.8 million and a net loss of $12.1
million, or $0.24 per share, for the nine-month period ended September 30, 2002.
At September 30, 2003, Genelabs had $2.7 million in cash and short-term
investments. After the end of the third quarter, on October 22, 2003, Genelabs
completed the sale of 23 million shares of its common stock in a public offering
at a price of $1.37 per share for gross proceeds of approximately $31.5 million.
Net proceeds from the offering are estimated to be approximately $29.3 million.
"We sincerely appreciate the support of our long-term shareholders and welcome
the new investors who participated in our recent financing. The Genelabs team is
committed to delivering on our business goals of building long-term value from
our core programs. In this regard, we continue to make progress enrolling
patients into our confirmatory phase III clinical trial measuring the effect of
Prestara on the bone mineral density of women with lupus who are taking
glucocorticoids. We have also made excellent progress in the synthesis and
optimization of novel compounds targeted against the hepatitis C virus," stated
Irene A. Chow, Ph.D., chairman and chief executive officer. "I look forward to
providing updates as we reach key milestones in these areas."
About Genelabs
Genelabs Technologies, Inc. is a biopharmaceutical company pioneering the
discovery and development of novel pharmaceutical products to improve human
health. We have built drug discovery and clinical development capabilities that
can support various research and development projects. We are concentrating our
capabilities on developing a late-stage product for lupus and discovering novel
lead compounds that selectively inhibit replication of the hepatitis C virus
(HCV). Through our drug discovery efforts we have synthesized numerous
antimicrobial lead compounds, one of which has been selected for preclinical
development, and are using high-throughput methods for the discovery of novel
lead compounds for HCV. Our clinical development efforts are concentrated on
Prestara(TM) (prasterone; Anastar(TM) in Europe) for systemic lupus
erythematosus, for which we have received an approvable letter from the U.S.
Food and Drug Administration and for which we have submitted a Marketing
Authorization Application in Europe. For more information about Genelabs, please
visit www.genelabs.com.
NOTE: This press release contains forward-looking statements including
statements regarding the progress of enrolling patients into our clinical trial
of Prestara(TM) for systemic lupus erythematosus and the progress of our
hepatitis C drug discovery program. These forward-looking statements are based
on Genelabs' current expectations and are subject to uncertainties and risks
that could cause actual results to differ materially from the statements made.
Uncertainties and risks include, without limitation, the company's capital
requirements and history of operating losses; whether the results of the
company's clinical trials of Prestara(TM) and other supporting information will
be sufficient to support the approval of Prestara(TM) by the FDA, the European
Agency for Evaluation of Medicinal Products and other regulatory authorities;
delays regarding the regulatory approval process including the timing and scope
of approval received, if any; uncertainties and risks regarding market
acceptance of Prestara(TM) as a treatment for systemic lupus erythematosus (SLE
or lupus); uncertainties and risks regarding the company's ability to consummate
strategic or corporate partner transactions on favorable terms or at all; the
early stage of Genelabs' research programs and uncertainties associated with the
preclinical development of compounds, including whether a compound will advance
to preclinical testing, clinical trials, or ultimately become a product, and the
uncertainty of the timing of any of these; and the validity, scope and
enforceability of patents related to the company's technologies. The active
ingredient in Prestara(TM) is prasterone, the synthetic equivalent of the
androgenic hormone dehydroepiandrosterone (DHEA). Products containing DHEA are
currently being marketed by others as dietary supplements. The company has not
submitted applications for regulatory review of Prestara(TM) outside the U.S.
and Europe. In addition, neither U.S. nor other regulatory authorities have made
a determination as to the safety or efficacy of Prestara(TM) for SLE. Please see
the information appearing in the company's filings with the Securities and
Exchange Commission, including the most recent Quarterly Report on Form 10-Q and
Annual Report on Form 10-K, under the captions "Risk Factors," "Business Risks"
and "Forward-Looking Statements" for more discussion regarding these
uncertainties and risks and others associated with the company's research
programs, early stage of development and other risks which may affect the
company or cause actual results to differ from those included in the
forward-looking statements. Genelabs does not undertake any obligation to update
these forward-looking statements or risks to reflect events or circumstances
after the date of this release.
GENELABS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
September 30, December 31,
2003 2002
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(Unaudited)
ASSETS
Cash, cash equivalents and short-term investments: $ 2,692 $ 6,570
Other current assets 1,055 929
Property and equipment, net 984 1,306
Long-term investments 960 960
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$ 5,691 $ 9,765
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LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)
Total liabilities $ 6,402 $ 7,051
Shareholders' equity/(deficit) (711) 2,714
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$ 5,691 $ 9,765
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GENELABS TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
For the three months For the nine months
ended ended
September 30, September 30,
----------------------- -----------------------
2003 2002 2003 2002
---- ---- ---- ----
Contract revenue $ 698 $ 774 $ 2,201 $ 2,796
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Operating expenses:
Research and development 4,581 3,749 11,909 11,087
General and administrative 1,091 1,301 3,971 4,235
-------- -------- -------- --------
Total operating expenses 5,672 5,050 15,880 15,322
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Operating loss (4,974) (4,276) (13,679) (12,526)
Interest income, net 4 116 35 308
-------- -------- -------- --------
Loss from continuing operations (4,970) (4,160) (13,644) (12,218)
Income from discontinued
operations of diagnostic
subsidiary 133 (131) 327 128
-------- -------- -------- --------
Net loss $ (4,837) $ (4,291) $(13,317) $(12,090)
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Loss per share from continuing
operations $ (0.08) $ (0.08) $ (0.23) $ (0.24)
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Net loss per share $ (0.08) $ (0.08) $ (0.23) $ (0.24)
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Weighted average shares
outstanding 62,745 52,865 58,252 50,854
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