-----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, DrzdLiJarPm1tfUbP6Q4KRR2TXdkTGccLu0goTLT6zaxhO9ihFYR+tI1OryAYeTt buwaeSHtdsr3vgCgRWbXpg== 0001341004-07-001012.txt : 20070327 0001341004-07-001012.hdr.sgml : 20070327 20070327171844 ACCESSION NUMBER: 0001341004-07-001012 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070327 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070327 DATE AS OF CHANGE: 20070327 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENELABS TECHNOLOGIES INC /CA CENTRAL INDEX KEY: 0000874443 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 943010150 STATE OF INCORPORATION: CA FISCAL YEAR END: 0107 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-19222 FILM NUMBER: 07722086 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 8-K 1 form8k.htm FORM 8K

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)

March 22, 2007

 

GENELABS TECHNOLOGIES, INC.

 

(Exact Name of Registrant as Specified in 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))

 

 

 

Item 2.02 Results of Operations and Financial Condition.

 

On March 22, 2007, Genelabs Technologies, Inc. announced its financial results for the fourth quarter and year ended December 31, 2006. 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.

 

(c) Exhibits

 

Exhibit
Number

Description

99.1

Press Release, dated March 22, 2007, entitled “Genelabs Technologies Reports 2006 Year-End and Fourth Quarter Financial Results”

 

 

 

SIGNATURE

 

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 hereunto duly authorized.

 

GENELABS TECHNOLOGIES, INC.

 

 

By: /s/ James A.D. Smith

Name: James A.D. Smith

Title: President and Chief Executive Officer

Date: March 27, 2007

 

 

EXHIBIT INDEX

 

Exhibit
Number

Description

99.1

Press Release, dated March 22, 2007, entitled “Genelabs Technologies Reports 2006 Year-End and Fourth Quarter Financial Results”

 

 

 

 EX-99 2 exhibit99.htm EXHIBIT 99.1

EXHIBIT 99.1

Contact:

James A. D. Smith

 

President and Chief Executive Officer

 

650-562-1424

 

GENELABS TECHNOLOGIES REPORTS 2006 YEAR-END

AND FOURTH QUARTER FINANCIAL RESULTS

 

REDWOOD CITY, Calif., March 22, 2007 -- Genelabs Technologies, Inc. (Nasdaq:GNLB) today reported financial results for the year ended December 31, 2006. Genelabs reported 2006 revenues of $11.2 million, compared to $6.8 million for 2005. Operating expenses were $20.6 million in 2006 compared to $18.2 million in 2005. For 2006, the company reported a net loss of $8.7 million, or $0.41 per share, compared to a net loss of $10.8 million, or $0.61 per share, in 2005.

 

The company also reported financial results for the fourth quarter of 2006. Revenues for the three months ended December 31, 2006 were $3.6 million, compared to revenues of $1.7 million for the three months ended December 31, 2005. Operating expenses for the fourth quarter of 2006 were $4.2 million, compared to $4.1 million for the fourth quarter of 2005. The net loss for the three months ended December 31, 2006 was $0.4 million, or $0.02 per share, compared to a net loss of $2.3 million, or $0.13 per share, for the three months ended December 31, 2005.

 

Genelabs had $18.6 million in cash, cash equivalents and restricted cash at December 31, 2006.

 

The increase in revenue for both the fourth quarter and full year 2006 compared to the same periods in 2005 resulted primarily from our non-nucleoside collaboration with Novartis Institutes for BioMedical Research, Inc. targeted at hepatitis C virus, or HCV, which commenced in June 2006. Revenue from this collaboration includes on-going research funding as well as a portion of the $12.5 million up-front license fee received from Novartis in 2006, which is being recognized on a straight line basis over the three-year term of our potential obligations under the collaboration. In addition, during 2006 we continued to recognize revenue from our HCV research collaboration with Gilead Sciences, Inc., and from our collaborations for the development and commercialization of PrestaraTM, with Watson Pharmaceuticals and Tanabe Seiyaku Co., Ltd.

 

“2006 was a pivotal year for Genelabs, in which we further demonstrated that our HCV drug discovery capabilities are world-class by entering into a new license and research collaboration with Novartis covering our non-nucleoside HCV polymerase inhibitor program,” said James A. D. Smith, President and Chief Executive Officer. “This is the second major HCV collaboration Genelabs has formed, complementing our ongoing HCV collaboration with Gilead Sciences covering nucleoside compounds. During 2006 we also expanded our internal HCV drug discovery efforts, adding several feasibility programs and further expanding our NS5a directed effort. In addition, we submitted a protocol to the FDA for a new phase III clinical trial of Prestara which is designed to assess the impact of this investigational drug on severe lupus flare. This submission was made with a request for a special protocol assessment, and our development

 

-more-

 

 

Genelabs Technologies Reports 2006 Year-End and Fourth Quarter Financial Results

Page 2

 

team is working closely with the FDA to complete this process. We reduced our cash burn in 2006 relative to prior years and improved our cash balance, both through the impact of our HCV collaborations as well as through financing activities completed in 2006 and February 2007. Our current cash balance is expected to fund operations into 2009. Taken collectively, Genelabs is well positioned to move forward on multiple fronts in our efforts to continue to create value for shareholders.”

 

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.

 

Genelabs® and the Genelabs logo are registered trademarks and Prestara™ 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 the Company’s HCV drug discovery programs, the design of a phase III clinical trial for Prestara and the future of the company’s research and development programs. 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 programs or in our collaboration with Gilead; progress and announcements by competitors regarding their HCV programs; regulatory problems or delays regarding Prestara™, 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

December 31,

 

 

 

 

 

2006

 

2005

ASSETS

Cash and cash equivalents

$18,560

 

$10,061

Other current assets

 

1,279

 

689

Property and equipment, net

 

1,011

 

951

Other long-term assets

1,222

 

960

 

 

 

 

 

$22,072

 

$12,661

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

Liabilities, including deferred revenue

$19,066

 

$10,314

Shareholders’ equity

 

3,006

 

2,347

 

 

 

 

 

$22,072

 

$12,661

 

 

 

 

 

 

 

 

 

 

 

 

Note: Balances are derived from the audited financial statements.

 

 

GENELABS TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

For the year ended

 

 

 

 

 

December 31,

 

December 31,

 

 

 

 

 

2006

 

2005

 

2006

 

2005

 

 

 

 

 

(Unaudited)

 

Note 1

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$3,583

 

$1,719

 

$11,209

 

$6,849

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development

2,742

 

2,780

 

13,620

 

12,205

 

General and administrative

1,456

 

1,318

 

7,008

 

5,958

 

 

Total operating expenses

4,198

 

4,098

 

20,628

 

18,163

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

 

(615)

 

(2,379)

 

(9,419)

 

(11,314)

 

 

 

 

 

 

 

 

 

Interest income, net

 

250

 

108

 

734

 

472

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

$(365)

 

$(2,271)

 

$(8,685)

 

$(10,842)

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share, basic and

diluted

$(0.02)

 

$(0.13)

 

$(0.41)

 

$(0.61)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding to

calculate basic and diluted net loss per

common share

20,952

 

17,775

 

20,952

 

17,738

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note 1: Derived from audited financial statements.

 

 

 

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