GLGS Glycogenesys Inc. (MM)

GlycoGenesys, Inc. (NASDAQ:GLGS), a biotechnology company focused on drug development, today commented on results from its Form 10-Q for the quarter ended September 30, 2005. Select Financial Highlights: The net loss applicable to common stock for the three months ended September 30, 2005 and 2004 was $(2,347,129), or $(0.18) per share, and $(2,799,576), or $(0.28) per share, respectively. For the nine months ended September 30, 2005 and 2004 the net loss applicable to common stock was $(7,268,970), or $(0.64) per share, and $(8,288,125), or $(0.93) per share, respectively. The net loss applicable to common stock for the three months ended September 30, 2005 and 2004 included a $187,678 and $115,021 charge for the accretion or accrual of preferred stock dividends, respectively. The net loss applicable to common stock for the nine months ended September 30, 2005 and 2004 included a $517,037 and $342,564 charge for the accretion or accrual of preferred stock dividends, respectively. "The Company's net loss applicable to common stock was approximately $450,000 less during the third quarter compared to the same period last year mainly due to lower legal expenses, reduced drug production costs, as well as lower clinical trial expenses and reduced consulting expense offset by smaller increases in several types of administrative expenses, higher preferred stock dividends and increased GCS-100 development expenses," stated John W. Burns, SVP and CFO of GlycoGenesys, Inc. "For the first nine months of the year, the net loss applicable to common stock was approximately $1,020,000 less than the same period last year mainly due to lower drug production and legal expenses, as well as smaller decreases in several types of administrative expenses and lower payroll expense, partially offset by increases in consulting expense, preferred stock dividends, the cost associated with the special stockholders meeting in May, higher GCS-100 development costs and increased clinical trial expense," added Mr. Burns. Nasdaq Listing Status: On November 18, 2005 the Company received a letter from the Nasdaq Stock Market indicating that the Company does not comply with the minimum bid price requirement for continued listing set forth in Nasdaq Marketplace Rule 4310(c)(4) (the "Bid Price Requirement"). The Company has a 180 day period ending on May 17, 2006 to regain compliance with the Bid Price Requirement. In addition, on November 18, 2005 the Company received a second letter from the Nasdaq Stock Market indicating that based on its Quarterly Report on Form 10-Q for the quarter ended September 30, 2005, the Company does not comply with Nasdaq Marketplace Rule 4310(c)(2)(B), which requires listed companies to have (i) a minimum of $2,500,000 in stockholders' equity, (ii) $35,000,000 or more market value of listed securities or (iii) $500,000 of net income from continuing operations for the most recently completed fiscal year or two of the three most recently completed fiscal years. The staff of the Nasdaq Stock Market is reviewing the Company's eligibility for continued listing on the Nasdaq Capital Market and has requested that the Company provide its specific plan to achieve and sustain compliance with Nasdaq Capital Market listing requirements. For additional details on these letters please refer to the Company's Form 8-K filed on November 23, 2005. A copy of the 2005 Third Quarter Form 10-Q and other SEC filings are available on the Company website, www.glycogenesys.com and is also available on the SEC's website, www.sec.gov. -0- *T CONFERENCE CALL ALERT GlycoGenesys, Inc. Reports Financial Results and Events of Quarter-Ended September 30, 2005 Date: December 12, 2005 Time: 1:00 p.m. E.S.T. Please call: 1-800-346-7359 domestic callers OR 1-973-528-0008 international callers Conference Entry Code: 22476 to be connected between 12:50 p.m. and 1:00 p.m. E.S.T. Call Leaders: Bradley J Carver, President and CEO and John W. Burns, SVP and CFO The call will be archived on the Company's website. GlycoGenesys, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2005 2004 2005 2004 Expenses: Research and development $1,167,963 $1,360,047 $3,561,713 $3,956,740 General and administrative 982,709 1,337,566 3,200,894 4,073,008 Total operating expenses 2,150,672 2,697,613 6,762,607 8,029,748 Operating loss (2,150,672) (2,697,613) (6,762,607) (8,029,748) Other (expense) income (8,779) 13,058 10,674 84,187 Net loss (2,159,451) (2,684,555) (6,751,933) (7,945,561) Preferred stock dividends accreted or accrued (187,678) (115,021) (517,037) (342,564) Net loss applicable to common stock $(2,347,129) $(2,799,576) $(7,268,970) $(8,288,125) Basic and diluted net loss per common share $(0.18) $(0.28) $(0.64) $(0.93) Weighted average number of common shares outstanding, basic and diluted 13,165,422 10,084,096 11,292,215 8,934,032 GlycoGenesys, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS September 30, 2005 December 31, 2004 Cash and cash equivalents $ 1,999,374 $ 2,245,790 Working capital 74,001 828,605 Total assets 3,007,283 3,105,176 Total stockholders' equity $ 526,959 $ 1,346,010 *T About GlycoGenesys, Inc. GlycoGenesys, Inc. is a biotechnology company focused on carbohydrate drug development. The Company's drug candidate GCS-100, a unique compound to treat cancer, has been evaluated in previous clinical trials at low dose levels in patients with colorectal, pancreatic and other solid tumors with stable disease and partial response documented. The Company currently is completing a Phase I dose escalation trial to evaluate higher dose levels of GCS-100LE, a low ethanol formulation of GCS-100, at Sharp Memorial Hospital, Clinical Oncology Research in San Diego, California and the Arizona Cancer Center in both Tucson and Scottsdale, Arizona. In addition, GCS-100LE is being evaluated in a Phase I/II trial for multiple myeloma at the Dana-Farber Cancer Institute in Boston, Massachusetts and Roswell Park Cancer Institute in Buffalo, New York. Further clinical trials are planned for 2005 and 2006. Further information is available on GlycoGenesys' web site: www.glycogenesys.com. Safe Harbor Statement Any statements contained in this release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties, including, but not limited to, risks of product development (such as failure to demonstrate efficacy or safety), risk related to FDA and other regulatory procedures, market acceptance risks, the impact of competitive products and pricing, the results of current and future licensing, joint ventures and other collaborative relationships, risks relating to raising sufficient capital to fund the Company's operations, developments regarding intellectual property rights and litigation, and other risks identified in the Company's Securities and Exchange Commission filings. Actual results, events or performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as the date hereof. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.