Genta Inc. is a biopharmaceutical company with a diversified product portfolio that is focused on delivering innovative products for the treatment of patients with cancer. The company announced today financial results for its 2010 second quarter as well as corporate highlights.
For the second quarter of 2010, Genta reported net income of $25.4 million compared with a reported net loss of $43.1 million in the second quarter of 2009. For the six months ended June 30, 2010, the company reported a net loss of $141.2 million versus a net loss of $54.1 in the same period last year. As of June 30, 2010, Genta had cash and cash equivalents totaling $15.6 million, compared with $1.2 million on hand at the end of 2009.
These results include the net impact of the mark-to-market accounting for the liabilities of the conversion features of its notes, warrants and debt warrants that were issued in the company’s financings, including the financing that was closed in March 2010. These liabilities fluctuate according to the price of Genta’s common stock. It was these fluctuations that caused the company to report positive net income for the second quarter of 2010.
In June 2010, Genta received stockholder approval to authorize a reverse stock split of its common stock. Subsequently, a 1-for-100 reverse stock split was approved by the company’s board of directors and became effective on August 2, 2010.
Corporate highlights for the second quarter of 2010 included:
• Survival results from AGENDA Phase 3 trial of Genasense in advanced melanoma on track for expected followup completion in the first quarter of 2011.
• Pooled results from two Phase 3 trials of Genasense confirm significance of secondary endpoints.
• New Ganite clinical trial initiated for treatment of serious infections in cystic fibrosis.
• Tesetaxel dose-ranging studies show potential activity in taxane-resistant breast cancer.
For more information on Genta, please visit its website at www.genta.com.