Shares of Cell Genesys (Nasdaq: CEGE) are on the rise today, climbing 27 cents, nearly 9 percent, to $3.55 in Wednesday morning trading. The activity follows on the heels of the company’s financial results for the second quarter ended June 30, 2007, released yesterday afternoon.
Second-quarter revenue was reported at less than $0.1 million, as compared to $1 million for the same period in 2006; in the press release the company said the decrease in revenue is due to the timing of revenue from current licensing arrangements.
Cell Genesys reported a net loss of $1.9 million, or 3 cents per share, as compared to a net loss of $27.9 million, or 6 cents per share, for the second quarter of last year. In the press release, the company attributed the decrease in net loss for the quarter to a “favorable” settlement with the Internal Revenue Service (IRS) pertaining to the company’s 2000 tax return. Due to the settlement, Cell Genesys saw a decrease of about $26.8 million in accrued income tax liabilities after a payment of $3.3 million in federal tax and interest, payable to the IRS.
“We are very pleased with our recent business progress, most notably the completion of patient recruitment in the first of two ongoing Phase 3 trials of our lead product, GVAX immunotherapy for prostate cancer. This is a major milestone for this program and our business in general,” Stephen A. Sherwin, M.D., chairman and CEO of Cell Genesys, said in a statement. “We are equally pleased that we have been able to maintain our financial strength as we advance this key development program with a successful equity financing during the quarter.”
Recruiting patients can be taxing for any company conducting clinical trials; as Sherwin commented, the company announced it has enrolled more than 600 patients into the first of two ongoing Phase 3 clinical trials for its immunotherapy applicable to prostate cancer. The company expects the timing of the interim analysis for the trials to be complete in the first half of 2008, with a final analysis available in 2009.
Among other highlights for the quarter, Cell Genesys also reported three new clinical trials for its leukemia immunotherapy that are currently underway in collaboration with the Johns Hopkins Sidney Kimmel Cancer Center.
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