Genta: Genasense launch prep boosts operating expenses, cash outflow averaging $3.7 million

By Lisa Kerner

Charlotte, N.C., Nov. 6 - Genta Inc. said higher research and manufacturing expenses, coupled with preparation for the possible launch of Genasense, increased its third-quarter 2006 operating expenses to $15.5 million from $8.1 million in the prior-year period.

Net cash used in operating activities through Sept. 30 was $33.5 million, or an average monthly outflow of $3.7 million.

The company reported a net loss of $14.9 million, or $0.11 per share, for the quarter compared with a net loss of $7.9 million, or $0.07 per share, for the third quarter of 2005.

As of Sept. 30, Genta had no long-term debt, $0.1 million of short-term debt, and cash, cash equivalents and marketable securities of $40.1 million, compared with $21.3 million as of Dec. 31, 2005. Genta's sale of common stock on Sept. 25, at $0.79 per share, resulted in gross proceeds of $15.8 million.

For the first nine months of 2006, Genta reported total operating expenses of approximately $40 million, double the $20 million reported in the prior-year period.

The company had a net loss of $39 million, or $0.31 per share, for the nine-month period, compared with net income of $8 million, or $0.08 per share, for the first nine months of 2005.

Company highlights included designation of Genasense as an Orphan Drug for treatment of patients with stage 4 melanoma by the Therapeutic Goods Administration in Australia and the start of a phase 1 trial of a new anti-cancer drug, G4460, from the company's DNA/RNA medicines program.

Genta is a biopharmaceutical company based in Berkeley Heights, N.J.

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