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): May 19, 1998
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 May 19, 1998 the Company issued the press release attached hereto
as Exhibit 99.1.
ITEM 7. EXHIBIT
99.1 Press Release dated May 19, 1998.
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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: May 20, 1998 /s/ Kenneth G. Kasses, Ph.D.
----------------------------
Kenneth G. Kasses, Ph.D.
President and Chief
Executive Officer
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Exhibit 99.1
FOR IMMEDIATE RELEASE Contact: Mary Ann Dunnell
#98F004 Robinson Lerer & Montgomery
(212) 484-7797
GENTA INCORPORATED ANNOUNCES FIRST QUARTER 1998 RESULTS
SAN DIEGO, CA, MAY 19, 1998 -- Genta Incorporated (Nasdaq: GNTA)
announced today its operating results for the first quarter ended March 31,
1998. The Company reported a reduction in its net loss for the first quarter of
1998, relative to the comparable quarter of 1997. The Company's net loss totaled
$1.9 million, or $0.33 per common share, for the first quarter of 1998 compared
to a net loss of $3.4 million, or $.86 per common share, for the first quarter
of 1997. The number of outstanding common shares (basic and diluted) used in
calculating the net loss per share increased over the period from 4.0 million to
5.7 million.
The Company's net loss for the first quarter of 1998 was lower than
that reported for the comparable quarter of 1997 as a result of increased sales
and gross margins of products sold by its subsidiary, JBL Scientific, Inc., and
lower costs. The operating cost reductions reflected lower net losses in Genta
Jago resulting largely from a greater portion of the joint venture's activities
being funded pursuant to Genta Jago's collaborative agreements and from lower
interest expenses. During the quarter, the Company also purchased a supply of
G3139 bulk active pharmaceutical ingredient for additional clinical trials of
this agent, which is in early clinical development in the treatment of a variety
of cancers.
"The Company continues to make progress in managing its costs while we
focus and expand our clinical development efforts on G3139, our lead antisense
development compound," said Kenneth Kasses, Ph.D., President and CEO. "With the
recently procured G3139 material, we are in an excellent position to go forward
with our plan to initiate several more trials, which are currently in protocol
development, this year."
The Company reported cash, cash equivalents and short-term investments
of $6.8 million at March 31, 1998, an amount which should be sufficient to
support its currently anticipated activities into the start of 1999. Should the
Company be successful in accelerating its development efforts or in its
(more)
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licensing or in recruiting key employees, the current cash resources may be
consumed at greater rates. In addition, there are certain claims by other
parties of the Company's default and legal proceedings that could also adversely
affect the Company's ability to conserve its cash for its future development
activities. The Company is anticipating looking for additional financing in the
immediate future and is currently planning for such efforts. There can be no
assurance that the Company will be successful in finding such funding on
acceptable 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 focusing on its
Anticode(TM) (antisense) products intended to treat cancer at its genetic
source.
(Financial Information Follows)
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Genta Incorporated May 19, 1998
Page 3 #98F004
GENTA INCORPORATED
SELECTED CONSOLIDATED FINANCIAL DATA
(UNAUDITED AND IN THOUSANDS, EXCEPT PER SHARE DATA)
CONSOLIDATED STATEMENTS OF OPERATIONS: QUARTERS ENDED MARCH 31,
------------------------
1998 1997
------------------------
Revenues:
Product sales $1,602 $1,159
Contract Revenue for Genta Jago 17 87
Collaborative research and development 50
$1,619 $1,296
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Cost and expenses:
Cost of products sold $871 $712
Research and development 932 1,194
Selling, general and administrative 1,506 1,460
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Total Cost and Expenses $3,309 3,366
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Loss from operations ($1,690) $(2,070)
Equity in net loss of joint venture (287) (303)
Other income (expense) net 83 (493)
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Net loss $(1,894) $(2,866)
Dividends on preferred stock 0 (575)
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Net loss applicable to common shares $(1,894) $(3,441)
============================
Net loss per common share $(.33) $(.86)
============================
Shares used in computing net
loss per common share 5,738 3,999
============================
MARCH 31, MARCH 31,
CONSOLIDATED BALANCE SHEETS DATA: 1998 1997
---------------------
Cash, Cash Equivalents and Short Term Investments 6,834 1,289
Working Capital (Deficit) 4,485 (3,930)
Total Assets 14,274 12,104
Notes Payable and Capital Lease Obligations,
less Current Portion 906 980
Total Stockholders' Equity 7,532 1,753
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