-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, ID7v91DDqSkt2Z8+Z1xZa3tZHqwzzADgpoYSS63fFxCpt+KJr64F99TlaavmuiKs jwojIDiOcFP+jdxEkSjSwg== 0000891618-98-004695.txt : 19981109 0000891618-98-004695.hdr.sgml : 19981109 ACCESSION NUMBER: 0000891618-98-004695 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981106 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENELABS TECHNOLOGIES INC /CA CENTRAL INDEX KEY: 0000874443 STANDARD INDUSTRIAL CLASSIFICATION: IN VITRO & IN VIVO DIAGNOSTIC SUBSTANCES [2835] IRS NUMBER: 943010150 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-19222 FILM NUMBER: 98739725 BUSINESS ADDRESS: STREET 1: 505 PENOBSCOT DR CITY: REDWOOD CITY STATE: CA ZIP: 94063 BUSINESS PHONE: 6503969500 MAIL ADDRESS: STREET 1: 505 PENOBSCOT DR CITY: REDWOOD CITY STATE: CA ZIP: 94063 10-Q 1 FORM 10-Q 1 ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 --------------- FORM 10-Q /X/ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended September 30, 1998. or / / Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from _______________ to _______________. COMMISSION FILE NO. 0-19222 GENELABS TECHNOLOGIES, INC. (Exact name of Registrant as specified in its charter) CALIFORNIA 94-3010150 (State or other jurisdiction of (I.R.S. employer identification number) incorporation or organization)
505 PENOBSCOT DRIVE, REDWOOD CITY, CALIFORNIA 94063 (Address of principal executive offices) (Zip code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (650) 369-9500 Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No . --- --- There were 39,668,803 shares of the Registrant's Common Stock issued and outstanding on October 30, 1998. ================================================================================ 1 2 PART I -- FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS GENELABS TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)
September 30, December 31, 1998 1997 ------------------ ------------------ (Unaudited) (Note) ASSETS Current assets: Cash and cash equivalents $ 2,528 $ 4,230 Short-term investments 16,825 16,869 ------------------ ------------------ Cash, cash equivalents and short-term investments 19,353 21,099 Accounts receivable 1,864 2,014 Inventories 2,141 2,281 Other current assets 364 554 ------------------ ------------------ Total current assets 23,722 25,948 Property and equipment, net 2,098 1,239 Investment in affiliate 1,174 3,658 Other assets 264 294 ================== ================== $ 27,258 $ 31,139 ================== ================== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and other accrued liabilities $ 4,860 $ 4,458 Accrued compensation and related expenses 1,820 1,932 Unearned contract revenue 650 843 ------------------ ------------------ Total current liabilities 7,330 7,233 Long-term obligations 647 696 ------------------ ------------------ Total liabilities 7,977 7,929 ------------------ ------------------ Shareholders' equity: Preferred stock 9,682 9,682 Common stock 138,174 137,604 Accumulated deficit (128,784) (123,892) Cumulative foreign currency translation adjustment 209 (184) ------------------ ------------------ Total shareholders' equity 19,281 23,210 ================== ================== $ 27,258 $ 31,139 ================== ==================
See notes to condensed consolidated financial statements. Note: The condensed consolidated balance sheet at December 31, 1997 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. 2 3 GENELABS TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED)
For the three months ended For the nine months ended September 30, September 30, ------------------------------- -------------------------------- 1998 1997 1998 1997 -------------- --------------- --------------- --------------- Revenues: Product sales $ 1,959 $ 2,463 $ 6,055 $ 7,482 Contract 2,478 786 5,915 2,342 -------------- --------------- --------------- --------------- Total revenues 4,437 3,249 11,970 9,824 -------------- --------------- --------------- --------------- Operating costs and expenses: Cost of product sales 1,101 1,427 3,266 4,489 Research and development 3,395 3,326 9,833 8,966 Selling, general and administrative 1,921 2,073 5,945 6,397 -------------- --------------- --------------- --------------- Total operating costs and expenses 6,417 6,826 19,044 19,852 -------------- --------------- --------------- --------------- Operating loss (1,980) (3,577) (7,074) (10,028) -------------- --------------- --------------- --------------- Interest income 268 354 760 1,048 Equity in loss of affiliate - (114) (223) (343) Gain on sale of investment - - 1,645 - -------------- --------------- --------------- --------------- Net loss $ (1,712) $ (3,337) $ (4,892) $ (9,323) ============== =============== =============== =============== Net loss per share $ (0.04) $ (0.08) $ (0.12) $ (0.24) ============== =============== =============== =============== Weighted average shares outstanding 39,668 39,329 39,581 38,841 ============== =============== =============== ===============
See notes to condensed consolidated financial statements. 3 4 GENELABS TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS) (IN THOUSANDS) (UNAUDITED)
For the nine months ended September 30, -------------------------------------- 1998 1997 ----------------- ------------------ Cash flows from operating activities: Net loss $ (4,892) $ (9,323) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization expense 522 434 Equity in loss of affiliate 223 343 Gain on sale of investment (1,645) - Changes in assets and liabilities: Receivables 150 1,007 Inventories 140 815 Accounts payable, accrued liabilities, accrued compensation and long-term obligations 341 (634) Unearned contract revenue (193) (281) Other 163 6 ----------------- ------------------ Net cash used in operating activities (5,191) (7,633) ----------------- ------------------ Cash flows from investing activities: Purchases of securities available-for-sale (16,435) (12,507) Proceeds from sales and maturities of securities available-for-sale 16,479 9,860 Capital expenditures (1,424) (323) Proceeds from sale of investment 4,300 - ----------------- ------------------ Net cash provided by/(used in) investing activities 2,920 (2,970) ----------------- ------------------ Cash flows from financing activities - proceeds from issuance of common stock, net 570 7,939 Effect of exchange rate change on cash (1) (40) ----------------- ------------------ Net decrease in cash and cash equivalents (1,702) (2,704) Cash and cash equivalents, beginning of the period 4,230 4,377 ----------------- ------------------ Cash and cash equivalents, end of the period 2,528 1,673 Short-term investments, end of the period 16,825 21,782 ----------------- ------------------ Cash, cash equivalents and short-term investments, end of the period $ 19,353 $ 23,455 ================= ==================
See notes to condensed consolidated financial statements. 4 5 GENELABS TECHNOLOGIES, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 1998 1. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements include the accounts of Genelabs Technologies, Inc. and its wholly-owned subsidiaries (collectively, "Genelabs" or the "Company") after elimination of all significant intercompany accounts and transactions. These financial statements have been prepared in accordance with generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Certain prior year amounts have been reclassified to conform to the current year presentation. Operating results for the three and nine month periods ended September 30, 1998 are not necessarily indicative of the results that may be expected for the year ending December 31, 1998. These unaudited condensed consolidated financial statements are meant to be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 1997. 2. INVENTORIES The components of inventory are as follows:
(in thousands) September 30, 1998 December 31, 1997 ------------------ ----------------- Raw materials $ 1,193 $ 1,113 Work-in-process 254 542 Finished goods 694 626 ----------- ----------- $ 2,141 $ 2,281 =========== ===========
3. BUSINESS SEGMENTS The Company operates in two business segments, biopharmaceuticals and diagnostics. The biopharmaceutical business is engaged in research and development directed towards drugs that treat human disease. Headquarters for the biopharmaceutical business is integrated with the corporate headquarters in Redwood City, California. The diagnostics business primarily sells tests for detection of infectious diseases. The diagnostics' manufacturing headquarters are located in Singapore and the principal sales office is based in Switzerland. Revenues from external customers for the biopharmaceutical segment are reported as contract revenues on the Condensed Consolidated Statement of Operations and revenues from external customers for the diagnostics segment are reported as product sales. For the three months ended September 30, 1998 and 1997, the biopharmaceutical operating loss was $1,951,000 and $3,537,000, respectively, and the diagnostics operating loss was $29,000 and $40,000, respectively. For the nine months ended September 30, 1998 and 1997, the biopharmaceutical operating loss was $7,100,000 and $9,787,000, respectively, and the diagnostics operating income/(loss) was $26,000 and $(241,000), respectively. 5 6 4. CHANGES IN ACCOUNTING STANDARDS As of January 1, 1998, the Company adopted Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income" ("SFAS No. 130"). SFAS No. 130 establishes new rules for the reporting and display of comprehensive income and its components; however, the adoption of this Statement has no impact on the Company's net income or shareholders' equity. SFAS No. 130 requires, among other things, unrealized gains or losses on the Company's foreign currency translation adjustments to be included in comprehensive income or loss. For the three months ended September 30, 1998 and 1997, the Company's comprehensive loss amounted to $1,745,000 and $3,510,000, respectively, and for the nine months ended September 30, 1998 and 1997, the Company's comprehensive loss amounted to $4,499,000 and $9,551,000, respectively. 5. INVESTMENT IN AFFILIATE During the second quarter of 1998, through two separate events the Company reduced its ownership interest in its Taiwan-based affiliate, Genelabs Biotechnology Co., Ltd. ("GBL"). The first reduction occurred when GBL closed an equity financing in which the Company chose not to invest additional cash, reducing the Company's holdings in GBL from 40% to 30%. The second reduction occurred when Genelabs sold a portion of its shares in GBL to a third party, further reducing the Company's holdings in GBL to 16%. Prior to the sale of a portion of this investment, the Company recorded its relative share of GBL's operating results as equity income or loss in the Consolidated Statement of Operations. With its ownership reduced to less than 20%, Genelabs now accounts for this investment at the lower of cost or market instead of using the equity method. 6 7 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS All statements in Management's Discussion and Analysis of Financial Condition and Results of Operations that are not historical are forward-looking statements which involve a number of risks and uncertainties, including, but not limited to, those statements concerning the commencement and completion of clinical trials and the announcement of trial data results, the Company's strategic plans, anticipated expenditures and the timing and need for additional funds. Among the factors that could cause actual results of the Company's activities to differ materially are product non-approval or delays in approval by the U.S. Food and Drug Administration and foreign regulatory authorities, product development, manufacturing and market acceptance risks, the impact of competitive products, pricing and intellectual property rights, the results of current and future licensing and other collaborative relationships and other factors and risks detailed under the caption "Risk Factors" in the Company's 1997 Annual Report on Form 10-K and other filings with the U.S. Securities and Exchange Commission. The Company disclaims any obligation to update these statements for subsequent events. OVERVIEW Genelabs Technologies, Inc. (together with its subsidiaries, "Genelabs" or the "Company") is a biopharmaceutical company engaged in the discovery of small molecule drugs that bind to DNA or RNA to regulate gene expression or inactivate pathogens. The Company's drug discovery program is based on an integrated platform of technologies that encompass genomics, transcription biology, structure-biased combinatorial chemistry, high-throughput screening with proprietary assays, and several proprietary validation and characterization assays. The Company's clinical development efforts are focused on its drug candidate, GL701, which is in Phase III clinical trials as a new therapy for systemic lupus erythematosus ("SLE"). The Company also conducts a diagnostic business through its wholly-owned subsidiary, Genelabs Diagnostics (Pte.) Ltd. ("GLD"), located in Singapore, which sells diagnostic tests for infectious diseases primarily in Europe and Asia. In addition, Genelabs has an investment in a Taiwan-based pharmaceutical company, Genelabs Biotechnology Co., Ltd. ("GBL"). The Company expects to continue to invest in biopharmaceutical product research and development. Revenue from the sale of therapeutic products is not expected until the launch of its first product, which is not expected to occur for several years, if at all. The Company has several collaborations and is seeking additional collaborations with other pharmaceutical companies for some of its technologies to maximize its profitability for products that may result from those technologies and to obtain funding for a portion of its research and development expenses. However, Genelabs expects to continue to incur operating losses for at least the next several years. RESULTS OF OPERATIONS Revenues Total revenues for the quarter ended September 30, 1998 were $4.4 million, compared to $3.2 million for the same period in 1997. For the nine months ended September 30, 1998, total revenues were $12.0 million compared to $9.8 million for the same period in 1997. Total revenues include both diagnostic product sales and contract revenue. Diagnostic product sales were $2.0 million for the quarter ended September 30, 1998, compared to $2.5 million for the same period in 1997. For the nine months ended September 30, 1998, diagnostic product sales were $6.1 million compared to $7.5 million for the same period in 1997. For the three months ended September 30, 1998 7 8 compared to the same period in 1997, sales of substantially all diagnostic products declined. For the nine months ended September 30, 1998 compared to the same period in 1997, the decrease in diagnostic product sales for the Company's western blot products and rapid tests was partially offset by increases in reagent sales. Contract revenues were $2.5 million for the quarter ended September 30, 1998, compared to $0.8 million for the same period in 1997. For the nine months ended September 30, 1998, contract revenues were $5.9 million compared to $2.3 million for the same period in 1997. Contract revenues include licensing, milestone, research and development payments and government grants. The increase in contract revenues for both the three and nine month periods of 1998, compared to the same periods in 1997, was primarily due to revenue from a Defense Advanced Research Projects Agency ("DARPA") grant and a payment received for the expansion of marketing rights granted to a corporate partner for a hepatitis E virus ("HEV") vaccine. Contract revenues recognized in the future will be dependent in part upon the continuation of existing corporate collaborations and the DARPA grant, achievement of milestones under existing corporate collaborations and establishment of new research, development and/or licensing agreements. Cost of Product Sales Cost of product sales were $1.1 million for the quarter ended September 30, 1998, compared to $1.4 million for the same period in 1997. Gross margins increased to 44% for the third quarter of 1998 from 42% for the same period a year ago. For the nine months ended September 30, 1998, cost of product sales were $3.3 million compared to $4.5 million for the same period in 1997. Gross margins increased to 46% for the first nine months of 1998 from 40% for the same period a year ago. The increase in gross margins was primarily due to an increase in the proportion of higher margin product sales and higher production yields to those of the previous year. Research and Development Expenses The Company's research and development expenses were $3.4 million for the quarter ended September 30, 1998, compared to $3.3 million for the same period in 1997. For the first nine months of 1998, research and development expenses were $9.8 million compared to $9.0 million for the same period in 1997. The increases were primarily due to expansion of the drug discovery research programs, partially offset by lower expenditures on GL701 as patients complete their portion of the clinical trial. Selling, General and Administrative Expenses Selling, general and administrative expenses were $1.9 million for the quarter ended September 30, 1998, compared to $2.1 million for the same period in 1997. For the first nine months of 1998, selling, general and administrative expenses were $5.9 million compared to $6.4 million for the same period in 1997. The decreases were primarily due to lower sales and marketing costs of the Company's diagnostics subsidiary. Gain on Sale of Investment During the second quarter of 1998, Genelabs sold a portion of its investment in GBL for net proceeds of $4.3 million, resulting in a gain of $1.6 million for the nine months ended September 30, 1998. Net Loss The Company has operated at a loss since its inception and had an accumulated deficit of $128.8 million as of September 30, 1998. The net loss was $1.7 million for the three months ended September 30, 1998, compared to $3.3 million for the same period in 1997. For the first nine months of 1998, the net loss was $4.9 million compared to $9.3 million for the same period in 1997. Revenue from the DARPA grant and the HEV vaccine marketing rights contributed to the reduction in Genelabs' net loss for the three months ended September 30, 1998, compared to the same period in 1997. In addition to the above noted items, the gain on the sale of shares in GBL contributed to the reduced net loss for the nine months ending September 30, 1998, compared to the same period in 1997, partially offset by increased spending on drug discovery research. 8 9 LIQUIDITY AND CAPITAL RESOURCES The Company had cash, cash equivalents and short-term investment balances totaling $19.4 million at September 30, 1998, compared to $21.1 million at December 31, 1997. During the nine months ended September 30, 1998, Genelabs used $5.2 million to fund operations as the Company expanded its drug discovery research and continued development of GL701 for SLE. This use of cash was partially offset by receipt of $4.3 million from the sale of shares in GBL. Purchases of capital equipment for drug discovery research also contributed to the use of cash during the period ended September 30, 1998. The Company has funded its operations since inception primarily through public and private offerings of its common stock, private offerings of its preferred stock, contract revenues and product sales. The Company has no bank debt or open credit lines. Genelabs expects to incur substantial additional costs, including costs for clinical trials for products currently under development and costs for further research on drug discovery. The amount of the additional costs, as well as increased expenditures necessary for working capital and capital requirements, will depend on numerous factors including the timing and outcome of any regulatory actions related to the Company's products. In addition, funding requirements will depend on the progress of the Company's research and development programs as well as its ability to establish and maintain collaborations with other pharmaceutical companies to fund these programs. The Company anticipates that its current resources and expected revenues from existing collaborative agreements will enable it to maintain its current and planned operations at least through 1999. The Company anticipates realizing a net loss at least until 2000, and profitability thereafter is subject to significant uncertainty. There can be no assurance that revenues from product sales or royalties or from other sources will be sufficient to fund operations or that the Company will achieve profitability or positive cash flow. Additional financing may be required to fund the Company's continuing operations and research and development activities in the form of debt or equity securities or bank financing. There can be no assurance that such financing will be available on acceptable terms, if at all. The unavailability of such financing could delay or prevent the development, testing, regulatory approval, manufacturing or marketing of some or all of the Company's products and technologies and could have a material adverse effect on the Company's business, financial condition and results of operations. CERTAIN BUSINESS RISKS Genelabs' technology is at an early stage of development and its product candidates are at varying stages of development, all subject to various risks. The Company has experienced significant operating losses since its inception and expects to incur significant losses over the next several years. The Company's technologies, including the DNA and RNA-binding technologies, are in many cases new and still under development. These approaches have not yet been proven to have a therapeutic effect. There can be no assurance that these technologies or any of the Company's product candidates resulting therefrom will be successfully developed. All of Genelabs' proposed therapeutic products, including GL701 for the treatment of SLE, are in research or development and will require substantial additional research and development efforts prior to any commercial use, including extensive clinical testing as well as potentially lengthy regulatory approval. The Company is currently conducting Phase III clinical trials on GL701 for the treatment of SLE, and the Company expects to unblind and announce the results from these trials during 1999. Clinical trials are subject to significant risk and uncertainty, and no assurance can be given as to the results of these trials. In the event that these trials do not demonstrate the efficacy of GL701, the Company would be required to commence additional clinical trials or may elect to terminate development of this compound, which, in either case, could have a material adverse effect on the Company's business and prospects. There can be no assurance that any of these therapeutic products or others resulting from 9 10 Genelabs' research programs will be successfully developed, prove to be safe and efficacious at each stage of clinical trials, meet applicable regulatory standards, be capable of being produced in commercial quantities at reasonable costs or be successfully marketed. The active ingredient in GL701 for the treatment of SLE is dehydroepiandrosterone ("DHEA"). DHEA is currently being marketed by others as a dietary supplement. The Company believes that DHEA is a drug that should be subject to regulation and approval by the FDA. The Company further believes that in a few instances these supplements do not contain true DHEA, but instead contain related substances that are not biologically equivalent. The Company has submitted documentation to the FDA requesting clarification of DHEA's status as a drug and removal from the market as a dietary supplement. However, to date the FDA has taken no action to limit or regulate the sale of these dietary supplements, and no assurance can be given as to the willingness or ability of the FDA to do so in the future. In the event that clinical trials for GL701 are promising and the drug candidate receives FDA marketing approval, the concurrent sale of these dietary supplements could adversely affect the market for or the selling price of GL701. While the Company has obtained U.S. patents relating to the use of GL701 to treat SLE and reduce steroid dosage in SLE patients, Genelabs is unable to obtain patent protection for the compound itself. The Company has no internal manufacturing capabilities for pharmaceutical products and is entirely dependent on contract manufacturers to manufacture clinical and, if successfully developed, commercial-scale quantities of GL701 pursuant to supply agreements. While the Company believes its suppliers currently meet FDA standards for manufacturing, there can be no assurance that these third party manufacturers will continue to meet FDA or product specification standards or that the Company's manufacturing requirements can be met in a consistent and timely manner. In addition, the Company has only limited sales, marketing and distribution capabilities. If the Company successfully develops any new products, Genelabs must either rely on large pharmaceutical companies to market such products or must develop a marketing and sales force with technical expertise and supporting distribution capability in order to market such products directly. Also inherent in the Company's stage of development is a range of additional risks, including competition, uncertainties regarding protection of patents and proprietary rights and the possibility of infringement of the proprietary rights of others, government regulation, and uncertainties regarding health care reform. IMPACT OF YEAR 2000 The Company has assessed its computer systems and believes that such systems will function properly with respect to dates in the year 2000 and thereafter. The Company is assessing the possible effects on the Company's operations of the year 2000 readiness of key suppliers, contractors and collaborators; however, the potential impact and related costs are not known at this time. 10 11 PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS GENELABS DIAGNOSTICS (PTE.) LTD. On October 5, 1998, Institut Pasteur and Pasteur Sanofi Diagnostics (collectively, the "Plaintiffs") filed a Writ of Summons in the High Court of the Republic of Singapore against Genelabs Diagnostics (Pte.) Ltd. ("GLD"), the wholly-owned diagnostics subsidiary of Genelabs Technologies, Inc., and Nagase Singapore Pte. Ltd., GLD's distributor of products in Malaysia. In the Writ, the Plaintiffs allege that GLD has, by making, using and selling HIV-2 Western Blot diagnostic products, infringed a Singaporean patent owned by Institut Pasteur and exclusively licensed to Pasteur Sanofi. The Plaintiffs are seeking injunctive relief and damages in an unspecified amount. GLD believes that it has substantial defenses and is defending the suit vigorously. ITEM 5. OTHER INFORMATION Pursuant to the Company's by-laws, stockholders who wish to bring matters or propose nominees for director at the Company's 1999 annual meeting of stockholders must provide specified information to the Company between February 20, 1999 and March 22, 1999 (unless such matters are included in the Company's proxy statement pursuant to Rule 14a-8 under the Securities Exchange Act of 1934, as amended). ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) EXHIBITS 27 Financial Data Schedule. (b) REPORTS ON FORM 8-K There were no reports on Form 8-K filed during the quarter ended September 30, 1998. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. GENELABS TECHNOLOGIES, INC. (Registrant) Chief Executive Officer: /s/ IRENE A. CHOW ----------------------------------------- Date: November 6, 1998 IRENE A. CHOW President and Chief Executive Officer Principal Accounting Officer: /s/ MATTHEW M. LOAR Date: November 6, 1998 ----------------------------------------- MATTHEW M. LOAR Director of Finance and Controller
11 12 INDEX TO EXHIBITS
Exhibit Number Description - ------- ----------- 27 Financial Data Schedule
EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED FINANCIAL STATEMENTS OF GENELABS TECHNOLOGIES, INC. FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 9-MOS DEC-31-1998 JAN-01-1998 SEP-30-1998 2,528 16,825 1,864 0 2,141 23,722 12,393 10,295 27,258 7,330 0 0 9,682 138,174 (128,574) 27,258 6,055 11,970 3,266 3,266 15,778 0 (760) (4,892) 0 (4,892) 0 0 0 (4,892) (0.12) (0.12)
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