August 16, 2011
GenVec posts US$1.2 million net loss
GenVec reported a net loss of US$1.2 million (US$0.10 per share) for the three months ended June 30, 2011 compared with a net loss of US$4.2 million (US$0.33 per share) in the same quarter of 2010.
"During the second quarter we made significant progress in key programmes including our collaboration with Novartis to develop treatments for hearing loss and balance disorders," said Dr. Paul Fischer, president and chief executive officer. "We enter the second half of 2011 with strong momentum and look ahead to achieving key objectives in this collaboration as well as in our vaccine programmes including foot-and-mouth disease and respiratory syncytial virus."
For the six months ended June 30, 2011, GenVec''s net loss was US$3.5 million (US$0.27 per share) compared to a net loss of US$8.9 million (US$0.72 per share) for the six months ended June 30, 2010.
Revenues for the three-month and six-month periods ended June 30, 2011 were US$4.7 million and US$10 million, respectively, compared to revenues of US$3.2 million and US$6.1 million in the comparable prior year periods. The increase for the three-month and six-month periods ended June 30, 2011 is primarily due to revenue increases associated with our hearing programme with Novartis of US$1.4 million and US$4 million, respectively. The higher revenue under the Novartis agreement is a result of the increased work scope and effort in 2011 as compared to the 2010 period.
In addition, revenue associated with our animal health programme has increased US$0.6 million and US$0.8 million, respectively, during the three and six month periods ended June 30, 2011 as compared to the comparable prior year periods due to increased work scope with DHS and licensing revenue and work performed under the Merial agreements. Partially offsetting these increases is decreased revenue associated with our HIV programme of US$0.4 million and US$1 million during the three and six month periods ended June 30, 2011 as compared to the comparable prior year periods due to decreased work scope.
Operating expenses were US$6 million and US$13.5 million for the three-month and six-month periods ended June 30, 2011, respectively, representing decreases of 19% and 11% as compared to US$7.4 million and US$15.1 million in the comparable prior year periods. The decrease in both periods is primarily due to lower clinical costs as a result of the termination of the PACT trial and to a lesser extent lower professional costs. In the six-month period ended June 30, 2011, these decreases are partially offset by increased manufacturing costs for our hearing loss programme as compared to the comparable period in 2010.
GenVecended the second quarter of 2011 with US$30.6 million in cash, cash equivalents, and short-term investments.
"We anticipate revenues for 2011 will be between US$20 million and US$22 million. We currently project our cash burn to be between US$6 million and US$8 million for the 12 months ending June 30, 2012," commented GenVec''s senior vice president and chief financial officer, Douglas J. Swirsky.