8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) May 14, 2008

GENELABS TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

California	0-19222	94-3010150
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
505 Penobscot Drive, Redwood City, California		94063
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (650) 369-9500

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

EXHIBIT 99.1

Item 2.02 Results of Operations and Financial Condition.

     On May 14, 2008, Genelabs Technologies, Inc. announced its financial results for the first quarter of fiscal year 2008 and progress on operational priorities. A copy of the related press release is furnished as Exhibit 99.1 hereto.

The information in this Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit
Number	Description
99.1	Press Release, dated May 14, 2008, entitled “Genelabs Reports Results for the First Quarter of 2008 and Progress on Operational Priorities.”

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, thereto duly authorized.

GENELABS TECHNOLOGIES, INC.
By: Name:	/s/ Frederick W. Driscoll Frederick W. Driscoll
Title:	Chief Financial Officer

Date: May 14, 2008

EXHIBIT INDEX

Exhibit
Number	Description
99.01	Press Release of Genelabs Technologies, Inc., dated May 14, 2008

EX-99.1

Exhibit 99.01

Contact:	Frederick Driscoll
	Chief Financial Officer
	650-562-1477

GENELABS REPORTS RESULTS FOR THE FIRST QUARTER OF 2008 AND
PROGRESS ON OPERATIONAL PRIORITIES

REDWOOD CITY, Calif. — May 14, 2008 — Genelabs Technologies, Inc. (Nasdaq:GNLB), a biopharmaceutical company focused on discovering novel compounds for hepatitis, reported first quarter financial results for 2008. The Company also provided an update on its 2008 operational priorities.

Genelabs reported 2008 first quarter revenue of $4.2 million, compared to $3.6 million for the first quarter of 2007. Operating expenses were $6.3 million in the first quarter of 2008 compared to $5.6 million in the first quarter of 2007. For 2008, the company reported a first quarter net loss of $1.8 million, or $0.04 per share, compared to a first quarter net loss of $0.5 million, or $0.02 per share, in 2007.

The increase in revenue for the first quarter of 2008 compared to 2007 resulted primarily from higher revenue recognized under our collaboration with Novartis Institutes for BioMedical Research, Inc. (Novartis) which was partially offset by a decrease in revenue associated with our collaboration with Gilead Sciences, Inc. (Gilead). The increase in operating expenses in the comparable periods resulted primarily from higher personnel costs. During the first quarter of 2007 we also recorded a gain of $1.2 million on the disposition of our investment in Genovate Biotechnology Co., Ltd. There was no similar transaction in the first quarter of 2008.

Genelabs had $31.8 million in cash and cash equivalents at March 31, 2008 as compared to $37.6 million at December 31, 2007. The Company estimates that its current cash resources will be adequate to provide liquidity for operations into fiscal year 2010.

“Earlier this year, we outlined the following key operational priorities for 2008 which we believe should provide enhanced value for our shareholders:

• Select a candidate from among our three internal HCV drug discovery programs and advance it into preclinical development, with the future goal of progressing into clinical development;

• Achieve a milestone event from one of our ongoing HCV collaborations; and

• Leverage the value of our internal proprietary HCV discovery program to form a new partnership.

“I am pleased to report that we have made progress on all three of these key priorities during the first quarter of 2008. Our internal HCV discovery programs continue to demonstrate advances while our research collaborations with Novartis and Gilead move forward in preclinical development. We have also seen increased momentum in discussions around the formation of a new partnership for certain of our internal proprietary HCV programs,” said Fred Driscoll, Chief Financial Officer.

About Genelabs Technologies

Genelabs is a biopharmaceutical company focused on the discovery and development of novel compounds for infectious diseases. In addition to a late-stage investigational vaccine for Hepatitis E partnered with GlaxoSmithKline, the company is advancing multiple partnered and proprietary compounds designed to selectively inhibit replication of the hepatitis C virus. For more information, please visit www.genelabs.com.

NOTE ON FORWARD LOOKING STATEMENTS AND RISKS:

This press release contains forward-looking statements regarding Genelabs’ business strategy, our ability to continue funding our operations and our ability to successfully advance our infectious disease pipeline and our 2008 operational priorities. These statements are based on Genelabs’ current expectations and are subject to uncertainties and risks that could cause actual results to differ materially. Uncertainties and risks include, without limitation, that Genelabs may not be able to raise sufficient funds to continue operations; failures or setbacks in our HCV research programs, in our collaborations with Gilead, Novartis and GlaxoSmithKline, or in our efforts to secure new research collaborations; competition; increases in expenses and Genelabs’ capital requirements. Please also refer to the Company’s periodic reports filed with the Securities and Exchange Commission. Genelabs does not undertake any obligation to update or revise forward-looking statements in this press release.

-Financials to Follow-

GENELABS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

	March 31,		December 31,
	2008		2007
	(Unaudited)		(Note 1)
Assets
Cash and cash equivalents	$	31,804	$	37,575
Accounts receivable and other current assets		2,248		2,353
Property and equipment, net		3,537		2,854
Long-term deposit		112		112
	$	37,701	$	42,894
Liabilities and Shareholders’ Equity
Liabilities, including deferred revenue		6,455		10,190
Shareholders’ equity		31,246		32,704
	$	37,701	$	42,894

Note 1: Derived from audited financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission

GENELABS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)

	For the three months ended
	March 31,
	2008			2007
Revenue:
Contract	$	3,980		$	3,404
Royalty		234			181
Total Revenue		4,214			3,585
Operating expenses:
Research and development		4,194			3,896
General and administrative		2,123			1,678
Total operating expenses		6,317			5,574
Operating loss		(2,103	)		(1,989	)
Gain on sale of long-term investment		—			1,189
Interest and other income		287			285
Net loss	$	(1,816	)	$	(515	)
Net loss per common share – basic and diluted	$	(0.04	)	$	(0.02	)
Weighted average shares outstanding to calculate basic and diluted net loss per common share		43,256			27,138