Exhibit 99.1
Contact: Matthew M. Loar
Chief Financial Officer
650-562-1424
GENELABS TECHNOLOGIES, INC. REPORTS
FIRST QUARTER 2006 FINANCIAL RESULTS
REDWOOD CITY, Calif. - May 15, 2006 - Genelabs Technologies, Inc.
(Nasdaq:GNLB) today reported revenues of $1.7 million and a net loss of $3.4
million, or $0.19 per share, for the first quarter of 2006. This compares to
revenues of $1.7 million and a net loss of $2.8 million, or $0.16 per share,
for the first quarter of 2005.
At March 31, 2006, Genelabs had $7.6 million in cash, cash equivalents and
restricted cash.
"Our hepatitis C virus drug discovery research programs continued to progress
during the first quarter of 2006. Scale-up activities are well underway for
GMP (Good Manufacturing Practices) production of our lead non-nucleoside HCV
polymerase inhibitor, known as compound GL60667. Delivery of this material
would enable us to conduct studies that are necessary for filing a U.S. IND
(Investigational New Drug Application), which we are targeting for next year.
Our NS5a program also continues to progress, and our compounds with potency in
the low-nanomolar range (under 100 nanomolar) are being optimized for better
DMPK (drug metabolism and pharmacokinetic) properties" stated James A.D.
Smith, President and Chief Executive Officer.
"Our Prestara development team has been working with outside lupus experts and
with the FDA and is in the final stages of designing a phase III clinical
trial to support an indication for the treatment of lupus," continued Mr.
Smith. "We plan to conduct this study only if we secure a source of funding
for the trial, which we are currently pursing. I look forward to providing our
shareholders additional updates in the near future."
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 capabilities that can support various research
and development projects. Genelabs is currently concentrating these
capabilities on 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, while also
developing a late-stage product for lupus. 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 future updates we
may provide, the Company's business strategy, progress of the Company's HCV
drug discovery programs and the filing of a future IND on an HCV compound, the
Company's development of Prestara for lupus, the completion of a clinical
trial design, the review by the FDA and the possible future funding of a
clinical trial. 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, that Genelabs may not be
able to raise sufficient funds to continue operations; delisting of Genelabs
common stock from the Nasdaq Capital Market; fluctuations in Genelabs' stock
price; failures or setbacks in our HCV research and development programs or in
our collaboration with Gilead; progress and announcements by competitors
regarding their HCV programs; regulatory problems or delays regarding
Prestara(TM), including an adverse response from the FDA or a determination to
discontinue development of Prestara; increases in expenses and Genelabs'
capital requirements and history of operating losses. Please see the
information appearing in 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.
-Financials to Follow-
GENELABS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
2006 2005
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(Unaudited) Note 1
ASSETS
Cash, cash equivalents and restricted cash $ 7,565 $ 10,211
Other current assets 414 539
Property and equipment, net 888 951
Long-term investment 960 960
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$ 9,827 $ 12,661
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LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)
Total liabilities $10,610 $ 10,314
Shareholders' equity/(deficit) (783) 2,347
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$ 9,827 $ 12,661
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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,
---------------------------
2006 2005
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Total revenue $ 1,705 $ 1,722
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Operating expenses
Research and development 3,589 3,262
General and administrative 1,597 1,421
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Total operating expenses 5,186 4,683
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Operating loss (3,481) (2,961)
Interest income 91 120
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Net loss $ (3,390) $ (2,841)
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Net loss per common share, basic and diluted $ (0.19) $ (0.16)
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Weighted average shares outstanding 17,818 17,700
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