GPC Biotech Reports Financial Results for Third Quarter and First
Nine Months of 2007
* Year-end 2007 cash, cash equivalents and
available-for-sale securities position expected to be approximately
¤ 60 million
* Year-end cash position planned to support business
operations for approximately two years
Martinsried/Munich (Germany) and Princeton, N.J., November 8, 2007 -
GPC Biotech AG (Frankfurt Stock Exchange: GPC; TecDAX 30; NASDAQ:
GPCB) today reported financial results for the third quarter and
first nine months ended September 30, 2007.
First nine months of 2007 compared to first nine months of 2006
Revenues decreased 9% to ¤ 16.1 million for the nine months ended
September 30, 2007, compared to ¤ 17.6 million for the same period
in 2006. Revenues were affected by lower development funding
received under the co-development and license agreement with Pharmion
for satraplatin in Europe and certain other territories, as well as
the expiration of various research collaboration arrangements with
ALTANA Pharma. The Company booked as revenue a ¤ 5.9 million
milestone payment from Pharmion in the third quarter of 2007 as a
result of the acceptance of the Marketing Authorization Application
(MAA) for satraplatin by the European Medicines Agency (EMEA).
Research and development (R&D) expenses decreased 11% to ¤ 43.7
million for the first nine months of 2007 compared to ¤ 49.1 million
for the same period in 2006. R&D expenses for the third quarter 2007
include Spectrum's portion of the ¤ 5.9 million milestone payment
from Pharmion. In the first nine months of 2007, general and
administrative (G&A) expenses increased 130% to ¤ 37.2 million
compared to ¤ 16.2 million for the first nine months of 2006. The
increase in G&A expenses is primarily due to the formation of a sales
and marketing organization in the first half of 2007 in preparation
for the potential launch of satraplatin that was originally planned
to occur in late 2007, as well as legal expenses. For the first nine
months of 2007, The Company reported restructuring charges of ¤ 1.7
million. These charges are related to employee severance and
termination costs related to the closing of the Company's
Massachusetts facility, announced in May 2007, and additional
restructuring activities in August 2007 that included a staff
reduction in the U.S. The restructuring charges are included in R&D
and G&A expenses. Net loss for the first nine months of 2007
increased 34% to ¤ (62.8) million compared to ¤ (46.8) million for
the first nine months of 2006. Basic and diluted loss per share was
¤ (1.75) for the first nine months of 2007 compared to ¤ (1.44) for
the same period in 2006.
Quarter over quarter results: third quarter 2007 compared to second
Revenues increased 162% to ¤ 8.9 million for the third quarter of
2007 compared to ¤ 3.4 million for the previous quarter. R&D
expenses decreased 3% to ¤ 15.1 million for the third quarter of
2007, compared to ¤ 15.5 million in the second quarter of 2007. G&A
expenses for the third quarter of 2007 increased 11% to ¤ 13.8
million compared to ¤ 12.4 million for the previous quarter. The
Company's net loss decreased 16% to ¤ (20.0) million in the third
quarter of 2007, compared to ¤ (23.7) million for the previous
quarter. Basic and diluted loss per share was ¤ (0.55) for the third
quarter of 2007 compared to ¤ (0.66) for the previous quarter.
Comparison to previous year: third quarter 2007 compared to third
Revenues for the three months ended September 30, 2007 increased 35%
to ¤ 8.9 million compared to ¤ 6.6 million for the same period in
2006. R&D expenses decreased 25% for the third quarter of 2007 to ¤
15.1 million compared to ¤ 20.1 million for the same period in 2006.
G&A expenses for the third quarter of 2007 increased 126% to ¤ 13.8
million compared to ¤ 6.1 million for the same quarter in 2006. Net
loss for the third quarter of 2007 increased 7% to ¤ (20.0) million
compared to ¤ (18.7) million for the third quarter of 2006. Basic
and diluted loss per share was ¤ (0.55) for the third quarter of 2007
compared to ¤ (0.56) for the same period in 2006.
As of September 30, 2007, cash, cash equivalents, marketable
securities and short-term investments totaled ¤ 77.1 million
(December 31, 2006: ¤ 97.1 million), including ¤ 1.5 million in
restricted cash. Net cash burn for the first nine months of 2007 was
¤ 58.6 million with net cash burn of ¤ 19.4 million in the first
quarter, ¤ 22.6 million in the second quarter and ¤ 16.6 million in
the third quarter of 2007. Net cash burn is derived by adding net
cash used in operating activities and purchases of property,
equipment and licenses. The figures used to calculate net cash burn
are contained in the Company's unaudited consolidated statements of
cash flows for the nine-month period ended September 30, 2007.
"This is the most challenging time that our Company has faced in its
ten-year history," said Bernd R. Seizinger, M.D., Ph.D., Chief
Executive Officer. "We are finalizing a strategic plan for moving the
Company forward, and we will implement that plan in the weeks ahead.
Part of that process will involve a substantial restructuring to
position the Company for future success."
Mirko Scherer, Ph.D., Senior Vice President and Chief Financial
Officer said, "We continue to expect to have around ¤ 60 million in
cash and equivalents at the end of 2007. We anticipate that this
amount will be sufficient to support our business operations for
approximately two years."
Updated financial guidance
GPC Biotech provided the following financial guidance.
* Revenues for the full year 2007 expected to be in the range of ¤
17 to 19 million. This is consistent with previous guidance
provided in August.
* Year-end 2007 cash, cash equivalents and available-for-sale
securities position expected to be approximately ¤ 60 million.
This is consistent with previous guidance provided in August.
* Numerous cost-cutting measures to be implemented shortly,
including a significant workforce reduction.
Conference call scheduled
As previously announced, the Company has scheduled a conference call
to which participants may listen via live webcast, accessible through
the GPC Biotech Web site at www.gpc-biotech.com or via telephone. A
replay will be available via the Web site following the live event.
The call, which will be conducted in English, will be held on
November 8th at 15:00 CET/9:00 AM ET. The dial-in numbers for the
call are as follows:
Participants from Europe: 0049-(0)89-9982-99913 or
Participants from the U.S.: 1-718-354-1391
Please dial in 10 minutes before the beginning of the meeting.
About GPC Biotech
GPC Biotech AG is a publicly traded biopharmaceutical company focused
on discovering, developing and commercializing new anticancer drugs.
GPC Biotech's lead product candidate is satraplatin, an oral platinum
compound. The Company has various anti-cancer programs in research
and development that leverage its expertise in kinase inhibitors. GPC
Biotech AG is headquartered in Martinsried/Munich (Germany) and has a
wholly owned U.S. subsidiary headquartered in Princeton, New Jersey.
For additional information, please visit GPC Biotech's Web site at
This press release contains forward-looking statements, which express
the current beliefs and expectations of the management of GPC
Biotech, including financial projections and forecasts relating to
our operations and financial situation. Such statements are based on
current expectations and are subject to risks and uncertainties, many
of which are beyond our control, that could cause future results,
performance or achievements to differ significantly from the results,
performance or achievements expressed or implied by such
forward-looking statements. Actual results could differ materially
depending on a number of factors, and we caution investors not to
place undue reliance on the forward-looking statements contained in
this press release We direct you to GPC Biotech's Annual Report on
Form 20-F for the fiscal year ended December 31, 2006 and other
reports filed with the U.S. Securities and Exchange Commission for
additional details on the important factors that may affect the
future results, performance and achievements of GPC Biotech.
Forward-looking statements speak only as of the date on which they
are made and GPC Biotech undertakes no obligation to update these
forward-looking statements, even if new information becomes available
in the future.
For further information, please contact:
GPC Biotech AG
Director, Investor Relations & Corporate Communications
Phone: +49 (0)89 8565 2693
In the U.S.: Laurie Doyle
Director, Investor Relations & Corporate Communications
Phone: +1 609 524 5884
Additional Media Contacts:
In Europe: Maitland
Phone: +44 (0)20 7379 5151
In the U.S.: Russo Partners, LLC
Phone: +1 212 845 4271
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GPC Biotech AG
Fraunhoferstr. 20 Martinsried
WKN: 585150; ISIN:
DE0005851505; Index: CDAX, MIDCAP, Prime All Share, TecDAX, HDAX,
TECH All Share;
Listed: Prime Standard in Frankfurter Wertpapierbörse, Freiverkehr in
Freiverkehr in Bayerische Börse München, Freiverkehr in Börse
Freiverkehr in Börse Stuttgart, Freiverkehr in Hanseatische
Wertpapierbörse zu Hamburg,
Geregelter Markt in Frankfurter Wertpapierbörse;