Exhibit 99.1
GENELABS REPORTS FINANCIAL RESULTS FOR THE
SECOND QUARTER AND FIRST HALF OF 2005
REDWOOD CITY, Calif. - August 10, 2005 - Genelabs Technologies, Inc.
(Nasdaq:GNLB) today reported revenues of $1.7 million and a net loss of $2.9
million, or $0.03 per share, for the second quarter of 2005. This compares to
revenues of $0.7 million and a net loss of $2.9 million, or $0.03 per share,
for the second quarter of 2004, which included a $2.0 million gain on the sale
of a discontinued operation. Revenues for the first half of 2005 were $3.4
million, and the net loss was $5.7 million, or $0.06 per share, compared to
revenues of $1.4 million and a net loss of $7.6 million, or $0.09 per share,
for the same period in 2004.
At June 30, 2005, Genelabs had $18.2 million in cash, cash equivalents and
restricted cash.
"The lower net loss through the second quarter of 2005 reflects lower research
and development costs following the completion of our Prestara Phase III
clinical trial in late 2004 and the higher contract revenue resulting from our
HCV drug discovery collaboration with Gilead Sciences, Inc." stated James A. D.
Smith, President and Chief Executive Officer. "In drug discovery, we recently
advanced a second non-nucleoside compound into preclinical development after it
satisfied all of our qualification criteria. This compound is a member of a new
chemical class our scientists discovered earlier this year, and we have begun
synthesizing and testing various compounds in this class. Results to date from
these tests show a number of these compounds to be very potent inhibitors of
the HCV repilcon with favorable metabolic and pharmacokinetic profiles. We are
quite excited about the prospects for our HCV programs and believe we have
developed world-class capabilities in this field."
"Turning to Prestara(TM), our investigational drug for lupus, all patient
visits are now complete in study GL03-01, which is a 12-month open-label study
following the 6-month double-blind trial for which top-line results were
announced in October 2004," continued Mr. Smith. "Data from the bone scans of
patients who participated in study GL03-01 were collected at an independent
central reading site, and we plan to commence our analysis of the results later
this month. We are also preparing for a meeting with the FDA to determine our
future development options for Prestara."
About Genelabs
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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; de-listing from the Nasdaq national market; events which reduce
Genelabs' future prospects, thus negating any advantage that may be anticipated
from a reverse stock split; fluctuations in Genelabs' stock price; regulatory
problems or delays regarding Prestara; 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)
June 30, December 31,
2005 2004
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(Unaudited) Note 1
ASSETS
Cash, cash equivalents and restricted cash $ 18,222 $ 26,508
Other current assets 361 824
Property and equipment, net 1,068 1,091
Long-term investment 960 960
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$ 20,611 $ 29,383
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LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable, accrued compensation and other
accrued liabilities $ 3,042 $ 4,958
Unearned contract revenue 10,168 11,478
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Total liabilities 13,210 16,436
Shareholders' equity 7,401 12,947
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$ 20,611 $ 29,383
================== ===================
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 For the six months ended
June 30, June 30,
------------------------------- --------------------------------
2005 2004 2005 2004
-------------- -------------- --------------- ----------------
Revenue:
Contract $ 1,553 $ 555 $ 3,108 $ 1,059
Royalty 157 112 324 297
-------------- -------------- --------------- ----------------
Total revenue 1,710 667 3,432 1,356
-------------- -------------- --------------- ----------------
Operating expenses:
Research and development 3,219 3,923 6,481 8,127
General and administrative 1,499 1,669 2,920 3,252
-------------- -------------- --------------- ----------------
Total operating expenses 4,718 5,592 9,401 11,379
-------------- -------------- --------------- ----------------
Operating loss (3,008) (4,925) (5,969) (10,023)
Interest income, net 123 51 243 104
-------------- -------------- --------------- ----------------
Loss from continuing operations (2,885) (4,874) (5,726) (9,919)
Discontinued operations:
Income from diagnostics business - - - 262
Gain on sale of diagnostics business - 2,020 - 2,020
-------------- -------------- --------------- ----------------
Net loss $ (2,885) $ (2,854) $ (5,726) $ (7,637)
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Loss per common share from continuing operations
- basic and diluted $ (0.03) $ (0.06) $ (0.06) $ (0.11)
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Net loss per common share -
basic and diluted $ (0.03) $ (0.03) $ (0.06) $ (0.09)
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Weighted average shares outstanding to calculate
basic and diluted net loss per common share
88,508 88,018 88,505 87,854
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