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) August 12, 2008

GENELABS TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

California	0-19222	94-3010150
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	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 99.01

Item 2.02 Results of Operations and Financial Condition.

     On August 12, 2008, Genelabs Technologies, Inc. announced its financial results for the second quarter and first six months of 2008. A copy of the related press release is furnished as Exhibit 99.01 hereto.

The information in this Form 8-K (including Exhibit 99.01) 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
99.01	Press Release, dated August 12, 2008, entitled “Genelabs Reports Results for the Second Quarter and First Six Months of 2008.”

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:	/s/ Frederick W. Driscoll
Name: Frederick W. Driscoll
Title: Chief Financial Officer

Date: August 12, 2008

EXHIBIT INDEX

Exhibit
Number	Description
99.01	Press Release of Genelabs Technologies, Inc., dated August 12, 2008

EX-99.01

Exhibit 99.1

GENELABS REPORTS RESULTS FOR THE SECOND QUARTER AND FIRST SIX
MONTHS OF 2008

REDWOOD CITY, Calif. — August 12, 2008 — Genelabs Technologies, Inc. (Nasdaq:GNLB), a biopharmaceutical company focused on the discovery and development of novel compounds for infectious diseases, reported financial results for the second quarter and six months ended June 30, 2008.

Genelabs reported revenues of $2.9 million and a net loss of $3.2 million, or $0.07 per share, for the second quarter of 2008. This compares to revenues of $4.7 million and a net loss of $0.4 million, or $0.01 per share, for the second quarter of 2007. Revenues for the first six months of 2008 were $7.1 million, and the net loss was $5.0 million, or $0.12 per share, compared to revenues of $8.3 million and a net loss of $0.9 million, or $0.03 per share, for the first six months of 2007.

Genelabs had $28.8 million in cash and cash equivalents at June 30, 2008 as compared to $37.6 million at December 31, 2007 and $31.8 million at March 31, 2008. The Company estimates that its current cash resources will be adequate to provide liquidity for operations into fiscal year 2010.

“During the second quarter we were pleased that Novartis determined that it would continue to internally advance the development of compounds identified in the research phase of our collaboration and we look forward to potential future milestone achievements from this program,” said Fred Driscoll, Chief Financial Officer. “We have also made progress with our four internal hepatitis C virus (HCV) discovery programs. From a strategic perspective, we continue to explore partnership opportunities leveraging the value of our internal HCV platform.”

Revenue decreased in 2008 compared to the 2007 periods primarily because of a decrease in overall contract revenue following the conclusion of the research phase of our collaboration with Gilead Sciences, Inc. (Gilead) on September 30, 2007. This decrease was partially offset by higher contract revenue recognized under our collaboration with Novartis. Operating expenses increased in the 2008 periods due primarily to higher personnel, legal and financial advisory costs. Additionally, during the first quarter of 2007, a gain of $1.2 million was recorded on the disposition of our investment in Genovate Biotechnology Co., Ltd. with no similar transaction in 2008.

-more-

Page 2
Genelabs Reports Results for the Second Quarter of 2008

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 drug candidate 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 secure new research collaborations. 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, failures or setbacks in our HCV research programs, in our collaboration with Novartis 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.

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

-Financials to Follow-

Page 3
Genelabs Reports Results for the Second Quarter of 2008

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

	June 30,		December 31,
	2008		2007
	(Unaudited)		(Note 1)
Assets
Cash and cash equivalents	$	28,759	$	37,575
Other current assets		624		2,353
Property and equipment, net		3,416		2,854
Long-term deposit		112		112
	$	32,911	$	42,894
Liabilities and Shareholders’ Equity
Liabilities, including unearned contract revenue	$	4,315	$	10,190
Shareholders’ equity		28,596		32,704
	$	32,911	$	42,894

Note 1: Derived from audited financial statements

Page 4
Genelabs Reports Results for the Second Quarter of 2008

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

	For the three months						For the six months
	ended June 30,						ended June 30,
	2008			2007			2008			2007
Revenue:
Contract	$	2,717		$	4,404		$	6,697		$	7,808
Royalty		207			301			441			482
Total Revenue		2,924			4,705			7,138			8,290
Operating expenses:
Research and development		4,067			3,785			8,261			7,681
General and administrative		2,201			1,640			4,324			3,318
Total operating expenses		6,268			5,425			12,585			10,999
Operating loss		(3,344	)		(720	)		(5,447	)		(2,709	)
Gain on sale of long-term investment		—			—			—			1,189
Interest income		159			312			446			597
Net loss	$	(3,185	)	$	(408	)	$	(5,001	)	$	(923	)
Net loss per common share — basic and diluted	$	(0.07	)	$	(0.01	)	$	(0.12	)	$	(0.03	)
Weighted average shares outstanding to calculate basic and diluted net loss per common share		43,260			29,986			43,258			28,562