Exhibit 99.1
GENELABS TECHNOLOGIES, INC. REPORTS
FIRST QUARTER 2005 FINANCIAL RESULTS
REDWOOD CITY, Calif. - May 10, 2005 - Genelabs Technologies, Inc.
(Nasdaq:GNLB) today reported revenues of $1.7 million and a net loss of $2.8
million, or $0.03 per share for the first quarter of 2005. This compares to
revenues of $0.7 million and a net loss of $4.8 million, or $0.05 per share
for the first quarter of 2004.
At March 31, 2005, Genelabs had $21.6 million in cash, cash equivalents and
restricted cash.
"Financial results for the first quarter of 2005 were in-line with our
expectations, and we closed the quarter with cash sufficient to fund our
operations approximately into the third quarter of 2006 at our current rate of
spending," stated James A. D. Smith, President and Chief Executive Officer.
"Our drug discovery teams continue to make significant progress as we seek to
discover new treatments for infection with the hepatitis C virus. We are
particularly excited about a chemical class recently discovered by Genelabs
scientists working on our non-nucleoside HCV polymerase program which has
shown exceptional potency. Compounds from this series show potency in our
cell-based assays at concentrations at or below 50 nanomolars and have also
demonstrated favorable drug metabolism and pharmacokinetic properties.
Regarding Prestara(TM), our investigational new drug for lupus, our drug
development team is preparing reports on the results of the recent clinical
trials for a possible meeting with the FDA to discuss the future course of
this project."
About Genelabs Technologies
Genelabs Technologies, Inc. is a biopharmaceutical company focused on the
discovery and development of pharmaceutical products to improve human health.
We have built drug discovery and clinical development capabilities that can
support various research and development projects. Genelabs is currently
concentrating its capabilities on developing a late-stage product for lupus,
discovering novel compounds that selectively inhibit replication of the
hepatitis C virus and advancing preclinical development of compounds from this
hepatitis C virus drug discovery program. We believe that these high-risk,
potentially high reward programs focus our research and development expertise
in areas where we have the opportunity to generate either first-in-class or
best-in-class products that will address diseases for which current therapies
are inadequate. For more information, please visit www.genelabs.com.
Note: Genelabs(R) and the Genelabs logo are registered trademarks and
Prestara(TM) is a trademark of Genelabs Technologies, Inc.
NOTE ON FORWARD LOOKING STATEMENTS AND RISKS: This press release contains
forward-looking statements including statements regarding the progress of
Genelabs' hepatitis C virus research programs, future actions regarding
Prestara, and how long our cash will fund operations. 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,
failures or setbacks in our collaboration with Gilead or in our HCV research
programs; progress and announcements by competitors regarding their HCV
programs; fluctuations in Genelabs' stock price; regulatory problems or delays
regarding Prestara; failure of shareholders to approve the proposed reverse
stock split; events which reduce Genelabs' future prospects, thus negating any
advantage that may be anticipated from a reverse stock split; de-listing from
the Nasdaq national market, increases in expenses and Genelabs' capital
requirements and history of operating losses. Please see the information
appearing in the Genelabs' filings with the Securities and Exchange
Commission, including our most recent Annual Report on Form 10-K, under the
captions "Risk Factors" 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)
March 31, December 31,
2005 2004
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(Unaudited) Note 1
ASSETS
Cash, cash equivalents and restricted cash $ 21,599 $ 26,508
Other current assets 506 824
Property and equipment, net 997 1,091
Long-term investment 960 960
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$ 24,062 $ 29,383
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LIABILITIES AND SHAREHOLDERS' EQUITY
Total liabilities $13,947 $ 16,436
Shareholders' equity 10,115 12,947
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$ 24,062 $ 29,383
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Note 1: Derived from audited financial statements
GENELABS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
For the three months ended
March 31,
---------------------------------------------
2005 2004
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Revenue $ 1,722 $ 689
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Operating expenses
Research and development 3,262 4,204
General and administrative 1,421 1,583
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Total operating expenses 4,683 5,787
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Operating loss (2,961) (5,098)
Interest income 120 53
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Loss from continuing operations (2,841) (5,045)
Income from discontinued operations
of diagnostics subsidiary - 262
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Net loss $ (2,841) $ (4,783)
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Loss per common share from continuing operations $ (0.03) $ (0.06)
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Net loss per common share, basic and diluted $ (0.03) $ (0.05)
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Weighted average shares outstanding 88,502 87,690
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