Scimitar Equity Blog

     Q1/12 net loss was $18.7M, or $0.15 per share

Net loss for Q1/12 was $18.7M, or $0.15 per share, compared to $24.4M, or $0.20 per share, for Q1/11.

Q1/12 operating revenues were $1.3M with operating expenses of $20.2M, compared to Q1/11 of $1.5M with $25.9M. Q1/12 revenues included funding from collaborative agreements and royalty and license fee revenues under various agreements. Interest and other income was $176K, compared to $296K for the comparable 2011 period.   R&D expenses were $15.1M, compared to $16.8M for Q1/11. The decrease in R&D expenses reflected reduced personnel-related costs and lower scientific supplies expenses resulting from the discontinuation of the stem cell programs, partially offset by increased clinical trial expenses for the enrollment of 4 P2 clinical trials of imetelstat and 2 P2 clinical trials of GRN1005 and increased drug product purchases and manufacturing costs related to imetelstat and GRN1005. G&A expenses were $5.1M, compared to $9.1M for Q1/11. Reduced G&A expenses primarily reflected a decline in personnel-related expenses associated with management transition, including non-cash stock-based compensation expense. Non-cash operating expenses were approximately $2.3M for Q1/12 and $9.8M for Q1/11 primarily included stock-based compensation and expenses for stock issued for services.

• GERN ended Q1/12 with $136.9M in cash and investments.

Q1/12 Highlights:

• The randomized P2 clinical trial of imetelstat, in combination with paclitaxel, in patients with locally recurrent or metastatic breast cancer completed enrollment. The 166-patient P2 study enrolled in slightly over 1 year, ahead of expectations. The primary endpoint of the trial is progression-free survival. The trial requires that a sufficient number of progression events occur in order to perform the planned data analyses. GERN anticipates an accrual of events that will allow reporting top-line data from this study by the end of 2012. 

• Graham Cooper joined as EVP and CFO. Stephen N. Rosenfield joined the company as EVP, General Counsel and Corporate Secretary. V. Bryan Lawlis, PhD, joined the board of directors and as a member of the compensation committee.