Genta Q1 results

Genta, from Berkeley Heights, NJ, US, has reported first quarter revenues of $1.7m, a net loss of $12.5m and cash, cash equivalents and marketable securities totaling $67.5m.

During the quarter, the FDA accepted the Genasense (oblimersen sodium) injection NDA for use in combination with dacarbazine (DTIC) for the treatment of patients with advanced melanoma who have not received prior chemotherapy.

The Company also commented upon the introduction of its first marketed product, Ganite (gallium nitrate injection). 'Genta initiated its coordinated sales and marketing campaign during the first quarter in support of Ganite. We are pleased to report that the sales of Ganite are on target, and we are encouraged by the positive reception the product is receiving from the oncology community,' said Bruce Williams, Genta's senior vice president of sales and marketing. 'We remain focused on developing the potential of Ganite as an anticancer agent.'

The 29% incresae in revenues for the first quarter compared with the first quarter of 2003 was driven by the launch of Ganite, with Ganite net sales for the quarter totalling $0.4m. These sales were in line with company expectations and reflect an increasing month-on-month trend after the initial stock-in by wholesalers in the fourth quarter of 2003.

First quarter gross expenses were $21.6m before Aventis expense reimbursements, an increase of $1.2m over the comparable period in 2003. Lower research and development spending was offset by increased selling, general and administrative spending, as Ganite was launched and the sales force was expanded from 18 to 35 oncology specialists in anticipation of the launch of Genasense during 2004. Net expenses after the Aventis expense reimbursement of $7.4m in 2004, increased from $11.2m in the first quarter of 2003 to $14.1m in 2004, reflecting the same trends. As a result, the Company reported a net loss for the first quarter of 2004 of $12.5m compared with a net loss of $9.6m for the first quarter of 2003.

Genta had cash, cash equivalents and marketable securities of $67.5m as of March 31,2004. This compares to $82.9m as of December 31, 2003 and $103.3m as of March 31, 2003. A key factor in the cash used during the first quarter was a $6.2m increase in inventory, driven mainly by the build-up of drug inventories in anticipation of the launch of Genasense.