SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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): August 13, 1997
GENTA INCORPORATED
(Exact name of registrant as specified in its charter)
Commission file number 0-19635
Delaware 33-0326866
(State or other jurisdiction of (IRS Employer Identification Number)
incorporation or organization)
3550 General Atomics Court, San Diego, CA 92121
(Address of principal executive offices)
(Zip Code)
(619) 455-2700
(Registrant's telephone number, including area code)
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GENTA INCORPORATED
FORM 8-K
CURRENT REPORT
TABLE OF CONTENTS
Item 5. Other Event
Item 7. Exhibit
Signature
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ITEM 5. OTHER EVENT
On August 13, 1997, the Company issued the press release attached
hereto as Exhibit 99.1.
ITEM 7. EXHIBIT
99.1 Press Release dated August 13, 1997.
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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.
GENTA INCORPORATED
Date: August 14, 1997 /s/Robert E. Klem, Ph.D.
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Robert E. Klem, Ph.D.
Vice President and
Member of the Board
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Exhibit 99.1
FOR IMMEDIATE RELEASE Contact: Robert E. Klem, Ph.D.
JBL Scientific, Inc.
Phone: 805-544-8524
GENTA INCORPORATED ANNOUNCES SECOND QUARTER 1997 RESULTS
SAN DIEGO, CA, August 13, 1997 -- Genta Incorporated (Nasdaq:
GNTA) announced today its operating results for the second quarter and
six months ended June 30, 1997. The Company reported a net loss
totaling $4.0 million, or $0.94 per common share for the second
quarter of 1997, compared to a net loss of $3.6 million, or $1.35 per
common share, for the second quarter of 1996.
For the six months ended June 30, 1997, Genta reported a net loss
totaling $6.9 million, or $1.67 per common share, compared to $7.5
million, or $2.92 per common share, for the same period ended June 30,
1996. This reduction in net loss is attributable to the decrease in
equity of net loss of joint venture, which was due to the fact that a
greater portion of the joint venture's development activities were
funded by third parties.
The reduction was partially offset by an aggregate of
approximately $600,000 in non-recurring charges recorded during the
second quarter of 1997 which related to the Company's restructuring
and workforce reductions, as well as increased selling, general and
administrative expenses due to legal expenses incurred in defending a
lawsuit in which the Company prevailed, and increased legal and
accounting expenses related to the equity offerings consummated in
1997 and the Company's successful efforts to avoid the potential
Nasdaq delisting.
In recent months the Company has reached a number of milestones,
including:
o focusing its product and technology development efforts on a few core
areas such as Anticode(TM) (antisense) products intended to treat
cancer at its genetic source and the development of oral
controlled-release drugs
o reducing head count by almost 50 percent
o appointing a transitional management team
o completing a successful private placement.
The Company reported cash and cash equivalents of $10 million at
June 30, 1997. The Company also reported a subscription receivable
(which amount was
(more)
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received in cash, on July 1) of an additional $4.2 million related to
the private placement of equity securities that closed on June 30,
1997.
The Company has reduced the burn rate associated with its joint
venture, however it believes that it will need substantial additional
capital to complete its drug development programs. Currently, it is
negotiating with biotechnology and pharmaceutical companies regarding
collaborative agreements and other financing arrangements which, if
successfully completed, would provide additional financial support for
its drug development programs. There can be no assurance, however,
that any such collaborative agreements or other sources of funding
will be available on favorable terms, if at all.
The statements contained in this press release that are not
historical are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities and Exchange Act of 1934, as amended including
statements regarding the expectations, beliefs, intentions or
strategies regarding the future. The Company intends that all
forward-looking statements be subject to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements reflect the Company's views as of the date
they are made with respect to future events, but are subject to many
risks and uncertainties, which could cause the actual results of the
Company to differ materially from any future results expressed or
implied by such forward-looking statements. Examples of such risks and
uncertainties include, but are not limited to: the obtaining of
sufficient financing to maintain the Company's planned operations; the
timely development, receipt of necessary regulatory approvals and
acceptance of new products; the successful application of the
Company's technology to produce new products; the obtaining of
proprietary protection for any such technology and products; the
impact of competitive products and pricing and reimbursement policies;
and the changing of market conditions. The Company does not undertake
to update any forward-looking statements.
Genta Incorporated (Nasdaq: GNTA) is a biopharmaceutical company
whose strategy consists of building a product and technology portfolio
that represents varying degrees of development risk and market
potential, including Anticode(TM) (antisense) products intended to
treat cancer at its genetic source, oral controlled-release drugs and
other genomics opportunities.
(Financial Information Follows)
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GENTA INCORPORATED
SELECTED CONSOLIDATED FINANCIAL DATA
(UNAUDITED)
(In thousands, except per share data)
<TABLE>
<CAPTION>
QUARTERS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
--------------------------- ---------------------------
1997 1996 1997 1996
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CONSOLIDATED STATEMENTS OF OPERATIONS DATA:
Revenues:
<S> <C> <C> <C> <C>
Product sales $1,093 $1,365 $2,252 $2,611
Collaborative research and development -- -- 50 --
---------- ----------- ----------- -----------
1,093 1,365 2,302 2,611
---------- ----------- ----------- -----------
Costs and expenses:
Cost of products sold 793 709 1,505 1,264
Research and development 1,142 1,453 2,249 3,030
Selling, general and administrative 2,115 1,226 3,574 2,335
---------- ----------- ----------- -----------
4,050 3,388 7,328 6,629
---------- ----------- ----------- -----------
Loss from operations (2,957) (2,023) (5,026) (4,018)
Equity in net loss of joint venture (477) (942) (781) (2,150)
Interest income (expenses), net (26) 50 26 32
Accrued dividends on preferred stock (573) (677) (1,148) (1,354)
---------- ----------- ----------- -----------
Net loss applicable to common shares ($4,033) ($3,592) ($6,929) ($7,490)
========== =========== =========== ===========
Net loss per common share* ($.94) ($1.35) ($1.67) ($2.92)
========== =========== =========== ===========
Shares used in computing net loss
per common share* 4,293,722 2,654,225 4,147,358 2,566,944
========== =========== =========== ===========
</TABLE>
*Per share data have been adjusted to reflect the one-for-ten reverse split of
the Company's outstanding common stock which was effected on April 4, 1997.
JUNE 30, JUNE 30,
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1997 1996
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CONSOLIDATED BALANCE SHEETS DATA:
Cash, cash equivalents and
short-term investments $9,970 $2,321
Working capital (deficit) 8,179 (3,596)
Total assets 23,788 14,581
Notes payable and capital lease
obligations, less current portion 917 1,852
Total stockholders' equity 13,339 4,713
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