GPC Biotech AG (Frankfurt Stock Exchange: GPC; NASDAQ: GPCB) today
reported financial results for the first quarter and three months
ended March 31, 2008. First quarter 2008 compared to first quarter
2007 as adjusted* Revenues decreased 58% to � 1.6 million for the
first quarter of 2008, compared to � 3.8 million for the first
quarter of 2007. The decrease in revenues is primarily due to a
decline in payments received under the co-development and license
agreement for satraplatin with Celgene Corporation (formerly
Pharmion Corporation), as the SPARC Phase 3 trial has been mostly
completed. R&D expenses decreased 53% to � 5.7 million for the
first three months of 2008 compared to � 12.2 million for the same
period in 2007. In the first quarter of 2008, general and
administrative (G&A) expenses decreased 63% to � 3.6 million
compared to � 9.8 million for the first quarter of 2007.�The
decrease in R&D and G&A expenses is primarily due to staff
reductions and other associated activities as a result of the
restructuring plans announced in the second half of 2007 and in the
first quarter of 2008 to sharpen the Company�s focus on oncology
clinical development efforts and to further reduce costs. Net loss
for the first quarter of 2008 improved 60% to � (6.9) million
compared to � (17.1) million for the first quarter of 2007. Basic
and diluted loss per share was � (0.19) for the first quarter of
2008 compared to � (0.48) for the same quarter in 2007. As of March
31, 2008, cash, cash equivalents, marketable securities and
short-term investments totaled � 53.5 million (December 31, 2007: �
65.2 million), including � 1.4 million in restricted cash. Net cash
burn for the first quarter of 2008 was � 10.6 million. Net cash
burn is derived by adding net cash used in operating activities and
purchases of property, equipment and licenses. The figures used to
calculate net cash burn are contained in the Company�s unaudited
consolidated statements of cash flows for the first quarter ended
March 31, 2008. Quarter over quarter results: first quarter 2008
compared to fourth quarter 2007 Revenues for the first quarter of
2008 decreased 27% to � 1.6 million compared to � 2.2 million for
the previous quarter.�R&D expenses decreased 41% to � 5.7
million for the first quarter of 2008 compared to � 9.7 million for
the fourth quarter of 2007. G&A expenses for the first quarter
of 2008 decreased 36% to � 3.6 million compared to � 5.6 million
for the previous quarter. The Company�s net loss was � (6.9)
million in the first quarter of 2008 compared to � (11.9) million
for the previous quarter. Basic and diluted loss per share was �
(0.19) for the first quarter of 2008 compared to � (0.32) for the
previous quarter. �We are focused on re-energizing our employees
and rebuilding GPC Biotech,� said Bernd R. Seizinger, M.D., Ph.D.,
Chief Executive Officer. �Our two key areas of activities are
advancing our current drug development programs � satraplatin and
two pre-clinical kinase inhibitors, RGB-286638 and RGB-344064 - and
exploring various merger and acquisition opportunities.� Torsten
Hombeck, Ph.D., Chief Financial Officer, said: �We are confirming
our previous financial guidance for 2008. We believe that we have
sufficient cash reserves to fund our currently planned business
operations until approximately the end of 2010. We believe that our
solid cash position gives us important flexibility as we seek to
expand our pipeline.� 2008 financial guidance confirmed The Company
confirmed its previous financial guidance for 2008 as follows:
Revenues: Expected to be between � 5 million and � 7 million.
Expenses: Total expenses for 2008 expected to be below � 35
million. Cash Burn: Current cash reserves expected to be sufficient
to fund currently planned business operations until approximately
the end of 2010. The cash burn for 2008 will include several
one-time costs, including severance and other payments related to
the corporate restructurings in 2007 and early 2008. This guidance
does not include any potential M&A or other major transactions,
and, should such an event or events occur this year, the Company�s
financial expectations could change significantly. Conference call
scheduled As previously announced, the Company has scheduled a
conference call to which participants may listen via live webcast,
accessible through the GPC Biotech Web site at www.gpc-biotech.com
or via telephone. A replay will be available via the Web site
following the live event. The call, which will be conducted in
English, will be held on May 15th at 14:00 CET/8:00 AM ET. The
dial-in numbers for the call are as follows: Participants from
Europe: 0049 (0)69 5007 1308 or 0044 (0)20 7806 1956 Participants
from the U.S.: 1-718-354-1388 Please dial in 10 minutes before the
beginning of the meeting. About GPC Biotech GPC Biotech AG is a
publicly traded biopharmaceutical company focused on anticancer
drugs. GPC Biotech's lead product candidate is satraplatin, an oral
platinum compound. The Company has various anti-cancer programs in
research and development that leverage its expertise in kinase
inhibitors. GPC Biotech AG is headquartered in Martinsried/Munich
(Germany) and has a wholly owned U.S. subsidiary in Princeton, New
Jersey. For additional information, please visit GPC Biotech's Web
site at www.gpc-biotech.com. * First quarter 2007 stock-based
compensation expenses and additional paid-in capital as of March
31, 2007 have been adjusted based on determination of the requisite
service period in accordance with Statement of Financial Accounting
Standards No.123(R), Share-Based Payment, (SFAS 123(R)) to
recognize the fair value of the Company�s equity-based compensation
arrangements over the period. Please see Note 2, Adjustment of
Quarterly Financial Statements in the Notes to the Consolidated
Financial Statements for the Fiscal Year Ended December 31, 2007
for more information. This press release contains forward-looking
statements, which express the current beliefs and expectations of
the management of GPC Biotech, including statements about the
Company�s future cash position. Such statements are based on
current expectations and are subject to risks and uncertainties,
many of which are beyond our control, that could cause future
results, performance or achievements to differ significantly from
the results, performance or achievements expressed or implied by
such forward-looking statements. Actual results could differ
materially depending on a number of factors, and we caution
investors not to place undue reliance on the forward-looking
statements contained in this press release. We direct you to GPC
Biotech�s Annual Report on Form 20-F for the fiscal year ended
December 31, 2006 and other reports filed with the U.S. Securities
and Exchange Commission for additional details on the important
factors that may affect the future results, performance and
achievements of GPC Biotech. Forward-looking statements speak only
as of the date on which they are made and GPC Biotech undertakes no
obligation to update these forward-looking statements, even if new
information becomes available in the future. GPC Biotech AG �
Condensed Consolidated Statements of Operations � Three months
ended March 31, in thousand �, except share and per share data �
2008 (unaudited) � 2007 (unaudited, as revised, Note 2)
Collaborative revenues 1,514 � 3,762 Grant revenues � 55 � 77 Total
revenues 1,569 3,839 Research and development expenses 5,749 12,238
General and administrative expenses 3,599 9,807 Amortization of
intangible assets 18 91 Total operating expenses � 9,366 � 22,136
Operating loss (7,797) (18,297) Other income, net 276 157 Interest
income 605 1,028 Interest expense � (30) � (27) Net loss (6,946)
(17,139) � Basic and diluted loss per share, in euro (0.19) (0.48)
� Shares used in computing basic and diluted loss per share
36,836,853 35,441,336 � � See accompanying notes to unaudited
condensed consolidated financial statements. GPC Biotech AG �
Condensed Consolidated Balance Sheets in thousand �, except share
data and per share data � March 31, � December 31, Assets � 2008
(unaudited) � 2007 Current assets Cash and cash equivalents 48,083
49,681 Marketable securities and short-term investments 4,038
14,077 Accounts receivable 458 984 Prepaid expenses 649 874 Other
current assets 2,049 2,229 Restricted Cash � 1,196 � 1,269 Total
current assets 56,473 69,114 � Property and equipment, net 2,715
3,070 Intangible assets, net 136 164 Other assets, non-current 726
851 Restricted cash � 187 � 187 Total assets 60,237 73,386 �
Liabilities and shareholders' equity � � � � Current liabilities
Accounts payable 1,694 2,826 Accrued expenses and other current
liabilities 9,218 10,445 Current portion of deferred revenue �
3,994 � 4,332 Total current liabilities 14,906 17,603 � Deferred
revenue, net of current portion 13,089 13,989 Convertible bonds
2,181 3,191 � Shareholders' equity Ordinary shares, � 1 non-par,
notional value: Shares authorized: 70,383,150 at March 31, 2008 and
December 31, 2007 Shares issued and outstanding: 36,836,853 at
March 31, 2008 and December 31, 2007 36,837 36,837 Additional
paid-in capital 368,600 369,521 Accumulated other comprehensive
loss (5,715) (5,040) Accumulated deficit � (369,661) � (362,715)
Total shareholders' equity � 30,061 � 38,603 Total liabilities and
shareholders' equity 60,237 73,386 � See accompanying notes to
unaudited condensed consolidated financial statements. GPC Biotech
AG � � Condensed Consolidated Statements of Cash Flows Three months
ended March 31, � in thousand � � 2008 (unaudited) � 2007
(unaudited, as revised, Note 2) Cash flows from operating
activities: Net loss (6,946) (17,139) � Adjustments to reconcile
net loss to net cash provided by (used in) operating activities:
Depreciation 274 423 Amortization 18 90 Compensation
cost/(reversal) for stock option plans, convertible bonds and SAR's
(921) 548 Change in accrued interest income on marketable
securities and short-term investments - (157) Bond premium
amortization 17 52 Gain on disposal of property and equipment (305)
(43) Impairment of property and equipment 17 - Changes in operating
assets and liabilities: Accounts receivable 642 (1,925) Other
assets, current and non-current 441 (86) Accounts payable (1,055)
(92) Deferred revenue (1,238) (1,143) Other liabilities and accrued
expenses, current and non-current � (1,503) � 772 Net cash used in
operating activities (10,559) (18,700) � Cash flows from investing
activities: Purchases of property, equipment and licenses (1) (657)
Proceeds from the sale of property and equipment 207 45 Proceeds
from the sale or maturity of marketable securities and short-term
investments � 10,000 � 11,000 Net cash provided by investing
activities 10,206 10,388 � Cash flows from financing activities:
Proceeds from issuance of shares, net of payments for cost of
transaction - 32,632 Proceeds from issuance of convertible bonds -
262 Repayments of convertible bonds (445) (4) Proceeds from
exercise of stock options and convertible bonds - 2,143 Cash
received for subscribed shares � - � 330 Net cash (used in)
provided by financing activities (445) 35,363 � Effect of exchange
rate changes on cash (786) (467) Changes in restricted cash � (14)
� (17) Net (decrease) increase in cash and cash equivalents (1,598)
26,567 Cash and cash equivalents at the beginning of the period �
49,681 � 38,336 Cash and cash equivalents at the end of the period
48,083 64,903 � � See accompanying notes to unaudited condensed
consolidated financial statements. GPC Biotech AG Consolidated
Statements of Changes in Shareholders' Equity (in thousand �,
except share data) � � Ordinary shares � � � � � Shares � Amount
Subscribed Shares Additional Paid-in Capital Accumulated Other
Comprehensive Loss Accumulated Deficit Total Shareholders' Equity �
Balance at December 31, 2006 33,895,444 � 33,895 � 334 � 328,171 �
(1,755) � (293,470) � 67,175 Components of comprehensive loss: Net
loss (17,139) (17,139) Change in unrealized gain/(loss) on
available-for-sale securities 72 72 Accumulated translation
adjustments (429) (429) Total comprehensive loss (17,496) Issuance
of shares 1,564,587 1,565 31,068 32,633 Exercise of stock options
and conversion of convertible bonds 488,417 488 330 1,842 2,660
Compensation cost for stock options and convertible bonds � � � � �
� 328 � � � � � 328 Balance at March 31, 2007 (unaudited, as
revised, Note 2) 35,948,448 � 35,948 � 664 � 361,409 � (2,112) �
(310,609) � 85,300 � � � � � � � � � � � � � � Balance at December
31, 2007 36,836,853 � 36,837 � - � 369,521 � (5,040) � (362,715) �
38,603 Components of comprehensive loss: Net loss (6,946) (6,946)
Change in unrealized gain/(loss) on available-for-sale securities
(22) (22) Accumulated translation adjustments (653) (653) Total
comprehensive loss (7,621) Compensation cost for stock options and
convertible bonds � � � � � � (921) � � � � � (921) Balance at
March 31, 2008 (unaudited) 36,836,853 � 36,837 � - � 368,600 �
(5,715) � (369,661) � 30,061 � See accompanying notes to unaudited
condensed consolidated financial statements. GPC Biotech AG Notes
to the Unaudited Condensed Consolidated Financial Statements 1.
Basis of Presentation The accompanying unaudited condensed
consolidated financial statements of GPC Biotech AG (the �Company�)
have been prepared in accordance with accounting principles
generally accepted in the United States (�U.S. GAAP�), applicable
to interim financial reporting, specifically Accounting Principles
Board Opinion No. 28 "Interim Financial Reporting". These unaudited
condensed consolidated financial statements do not include all
information and disclosures required for a complete set of
financial statements. However, in the opinion of management, all
adjustments (consisting of normal recurring adjustments) considered
necessary for a fair presentation have been included. Operating
results for the three month period ended March 31, 2008, are not
necessarily indicative of results to be expected for the full year
ending December 31, 2008. The balance sheet at December 31, 2007,
has been derived from the audited consolidated financial statements
at that date, but does not include all of the information required
by U.S. GAAP for complete financial statements. For further
information, please refer to the consolidated financial statements
and footnotes thereto for the year ended December 31, 2007. 2.
Adjustment of First Quarter 2007 As discussed in detail in Note 2
to the consolidated financial statements as of December 31, 2007
and for the year then ended, in the fourth quarter of 2007, the
Company determined that based on Statement of Financial Accounting
Standards No.123(R), Share-Based Payment, (�SFAS 123(R)�), it was
not able to use the explicit service period but that it had to use
the longer derived service period. Based on this determination, the
Company was required to adjust previously reported share-based
compensation expense to reduce the amount previously charged to
expense and to recognize the related fair value of the awards over
the derived service period. Below is a summary of the adjustments
and their impact on the relevant line items (in thousand �, except
for per share data) for the quarter ended March 31, 2007: As
previously reported � 2007 � Q1 R&D expense 13,040 G&A
expense 11,023 Total operating expense 24,154 Operating loss
(20,315) Net loss (19,157) Loss per share (0.54) Compensation cost
for stock option plans and convertible bonds as included in the
statement of cash flows 2,566 Compensation cost for stock options
and convertible bonds as included in the statement of changes in
shareholders� equity 2,346 � As revised 2007 Q1 R&D expense
12,238 G&A expense 9,807 Total operating expense 22,136
Operating loss (18,297) Net loss (17,139) Loss per share (0.48)
Compensation cost for stock option plans and convertible bonds as
included in the statement of cash flows 548 Compensation cost for
stock options and convertible bonds as included in the statement of
changes in shareholders� equity 328 Q1 2007 �As revised� numbers in
the table above include a reduction of share-based compensation
expense applicable to the 2006 financial statements, which
management determined to not be material to both the 2006 annual
and 2007 interim periods. In addition to the above, the
presentation of cash flows from operating activities in the
consolidated statement of cash flows for the quarter ended March
31, 2007, was reclassified to conform with current period
presentation as it relates to changes in accounts receivable and
deferred revenue. This reclassification had no effect on the
Company�s net cash used in operating activities. 3. New Accounting
Pronouncements Accounting Pronouncements Adopted in First Quarter
2008 In September 2006, the Financial Accounting Standards Board
(�FASB�) issued Statement of Financial Accounting Standards No.
157, Fair Value Measurements, (�SFAS 157�). SFAS 157 defines fair
value, establishes a framework for measuring fair value in GAAP and
expands disclosures about fair value measurements. In February
2007, the FASB issued Statement of Financial Accounting Standards
No. 159, The Fair Value Option for Financial Assets and Financial
Liabilities, (�SFAS 159�). SFAS 159 permits entities to choose to
measure many financial instruments and certain items at fair value
that are not currently required to be measured at fair value. The
Company adopted these two standards as of January 1, 2008. SFAS 157
affected the Company only to the extent of its marketable
securities and short-term investments carried at fair value, as
detailed below. The Company did not elect to measure other
financial instruments and certain items at fair value that were not
currently required to be measured at fair value, therefore, the
adoption of SFAS 159 did not have a material impact on its
consolidated financial statements. The Company�s marketable
securities and short-term investments are measured at fair value on
a recurring basis using quoted prices in active markets for
identical assets, which is the Level 1 input in the SFAS 157
hierarchy. As of March 31, 2008, the fair value of the marketable
securities and short-term investments amounted to � 4.0 million as
included in the consolidated balance sheet. On June 14, 2007, the
FASB ratified Emerging Issues Task Force 07-3, Accounting for
Non-Refundable Advance Payments for Goods or Services to Be Used in
Future Research and Development Activities, (�EITF 07-3�). EITF
07-3 requires that all non-refundable advance payments for research
and development activities that will be used in future periods be
capitalized until used. In addition, the deferred research and
development costs need to be assessed for recoverability. EITF 07-3
is applicable for fiscal years beginning after December 15, 2007
and is to be applied prospectively for new contracts entered into
on or after the effective date of this Issue. The Company adopted
this issue as of January 1, 2008 and it did not have a material
impact on its consolidated financial statements. Accounting
Pronouncements Not Yet Adopted On December 12, 2007, the FASB
ratified Emerging Issues Task Force 07-1, Accounting for
Collaborative Arrangements, (�EITF 07-1�). EITF 07-1 requires
participants in a collaborative arrangement to present the results
of activities for which they act as the principal on a gross basis
and to report any payments received from (made to) other
collaborators based on other applicable GAAP or, in the absence of
other applicable GAAP, based on analogy to authoritative or a
reasonable, rational, and consistently applied accounting policy
election. Significant disclosures of the collaborative agreements
are also required. EITF 07-1 will be effective for annual periods
beginning after December 15, 2008 and is to be applied
retrospectively for collaborative arrangements existing at December
15, 2008 as a change of accounting principle. The Company does not
expect this issue to have a material effect on its consolidated
financial statements. 4. Contingencies From time to time, the
Company may be party to certain legal proceedings and claims which
arise during the ordinary course of business. Legal proceedings are
subject to various uncertainties and the outcomes are difficult to
predict. GPC Biotech may incur significant expense in defending
these or future lawsuits. However, in the opinion of management,
the ultimate outcome of these matters will not have material
adverse effects on the Company�s financial position, results of
operations or cash flows. In accordance with Statement of Financial
Accounting Standards No. 5, Accounting for Contingencies, (�SFAS
5�), the Company makes a provision for a liability when it is both
probable that a liability has been incurred and when the amount of
the loss is reasonably estimable. Shareholder Litigation In July
2007, the Company and certain of its current and former officers
were sued in the United States District Court for the Southern
District of New York in three separate securities fraud class
action lawsuits on behalf of all persons who purchased the
securities of GPC Biotech between December 5, 2005 and July 24,
2007, inclusive. The suits have since been consolidated and a lead
plaintiff has been appointed. The lead plaintiff's consolidated
complaint was filed on March 12, 2008. The consolidated complaint
alleges that GPC Biotech violated U.S. federal securities laws by
making misleading public statements relating to the prospects of
its most advanced product candidate, satraplatin, and thereby
artificially inflating the price of GPC Biotech securities. The
consolidated complaint also names Bernd R. Seizinger (CEO) and
three former members of the Company's Management Board, Mirko
Scherer, Elmar Maier, and Sebastian Meier-Ewert, as defendants. The
Company filed a motion to dismiss the consolidated complaint on May
14, 2008. The plaintiff has the opportunity to file an opposition
to the motion to dismiss on or before June 30, 2008. If the
plaintiff files such an opposition, the Company will then have the
opportunity to reply thereto on or before August 8, 2008. The
plaintiffs seek monetary damages in an unspecified amount. GPC
Biotech believes the allegations to be without merit and intends to
vigorously defend the Company. GPC Biotech cannot predict the
outcome of the suit and is not currently able to estimate the
possible cost to the Company from this suit. Contingencies related
to the approval of the Marketing Authorization Application (�MAA�)
for satraplatin in second-line HRPC by the European Medicines
Agency (�EMEA�) The Company has contingent commitments related to
payments pending on the marketing approval of satraplatin by the
EMEA. As of March 31, 2008, for accounting purposes, the Company
assessed the probability of these contingent liabilities relating
to the approval of satraplatin in second-line HRPC in Europe. Due
to uncertainties in the regulatory approval process of satraplatin,
the Company assessed the probability of these contingent
liabilities as less than probable. Under the Company�s agreement
with Spectrum Pharmaceuticals, Inc. (�Spectrum�), GPC Biotech is
obligated to make a milestone payment in the amount of $3.0 million
or approximately � 1.9 million to Spectrum, which is contingent
upon the approval of the MAA by the EMEA. In addition, the Company
has a cash bonus plan to retain the Company�s employees and if EMEA
approval is obtained, the total payout under this plan may lead to
an increase in personnel expense of up to � 235,000. The Company
also issued stock appreciation rights (SARs) to senior management,
the members of the Supervisory Board, and certain employees. These
SARs would entitle the holder to cash payments if the performance
condition were to be met. Please refer to Note 15 to the
consolidated financial statements as of December 31, 2007 and the
year then ended, for a description of SARs� performance conditions.
No new SARs were issued during the first quarter of 2008. Due to
uncertainties in the approval process of satraplatin, there were no
liabilities and expenses recognized as of March 31, 2008, with
respect to such contingent payments triggered by the approval of
satraplatin by the EMEA. Contingent Gain The Company is entitled to
receive a milestone payment from Celgene Corporation (net of
licensing fee paid to Spectrum) of approximately � 10.5 million
upon the approval of the MAA for satraplatin with the EMEA. Gross
receipt will be recognized as revenue upon milestone achievement.
5. Loss per Share Basic loss per ordinary share is computed using
the weighted average number of ordinary shares outstanding during
the period. Diluted net loss per ordinary share is computed using
the weighted average number of ordinary and dilutive ordinary
equivalent shares from stock options and convertible debt where the
dilutive effect of options and warrants was calculated using the
treasury stock method. For all periods presented, diluted net loss
per share is the same as basic net loss per share, as the inclusion
of weighted average shares of ordinary stock issuable upon the
exercise of stock options and convertible debt would be
antidilutive. 6. Comprehensive Loss Comprehensive loss was ��7.6
million and ��17.5 million for the three months ended March 31,
2008 and 2007, respectively. Comprehensive loss is composed of net
loss, unrealized gains and losses on available-for-sale securities
and cumulative foreign currency translation adjustments.
Accumulated other comprehensive loss on March 31, 2008 and 2007
reflected ��0.2 million of unrealized losses and � 0.5 million of
unrealized gains on marketable securities and short-term
investments and ��5.5 million and ��2.6 million of cumulative
foreign currency translation loss adjustments, respectively. 7.
Additional Disclosures Convertible Bonds Convertible bonds for the
three months ended March 31, 2008, decreased 29.4% to � 2.4 million
compared to � 3.4 million as of December 31, 2007. The decrease in
convertible bonds is primarily due to the Company�s cancellation of
convertible bonds as a result of the restructuring plans
implemented in 2007 and the first quarter of 2008; as described in
detail in Note 10 of the consolidated financial statements as of
December 31, 2007 and for the year then ended, and below. As of
March 31, 2008 and December 31, 2007, approximately � 0.2 million
of convertible bonds are in other current liabilities due to the
cancellation of these bonds. Revenue Revenues for the three months
ended March 31, 2008, decreased 59.1% to � 1.6 million compared to
� 3.8 million for the same period in 2007. The decrease in revenues
is due to decreased payments from Celgene relating to the
co-development and license agreement for satraplatin as the SPARC
Phase 3 trial was mostly completed in 2007. Research and
Development Expense Research and development (R&D) expenses for
the three months ended March 31, 2008, decreased 53.0% to � 5.7
million compared to � 12.2 million for the same period in 2007. The
decrease in R&D expenses is primarily due to staff reductions
as a result of the restructuring plans implemented in 2007 and the
first quarter of 2008; as described in detail in Note 10 of the
consolidated financial statements as of December 31, 2007 and for
the year then ended, and below. General and Administrative Expenses
General and administrative (G&A) expenses for the three months
ended March 31, 2008, decreased 63.3% to � 3.6 million compared to
� 9.8 million for the same period in 2007. The decrease in G&A
expenses is primarily due to staff reductions and other associated
activities as a result of the restructuring plans implemented in
2007 and the first quarter of 2008; as described in detail in Note
10 to the consolidated financial statements as of December 31, 2007
and for the year then ended, and below. Share-Based Compensation
For the three months March 31, 2008 and 2007, the Company recorded
a credit to share-based compensation cost of ��(0.9) million and
incurred � 0.5 million in costs, respectively. This decrease is the
result of the termination of stock options and convertible bonds
relating to the restructuring plans implemented during 2007 and the
first quarter of 2008. Upon termination, compensation expense for
awards in which the requisite service period has not been rendered
is reversed. Product Candidate Licensing Activities As it is
disclosed in Note 4 to the consolidated financial statements as of
December 31, 2007 and for the year then ended, in June 2007, the
Company entered into a license agreement with Yakult Honsha Co.
Ltd. for development and commercialization of satraplatin in Japan.
The upfront license payment of � 7.4 million was included in
deferred revenue, non-current, as of March 31, 2008 and December
31, 2007, as the Company was not able to estimate the period of
substantial involvement as of these balance sheet dates. The
Company will continue to defer the revenue until the timing of the
satraplatin development plan, which approximates the period of
substantial involvement, can be reliably determined. Restructuring
Activities In February 2008, the Company announced a corporate
restructuring to sharpen its focus on oncology clinical development
and to further reduce costs. The restructuring was mainly focused
on the Company�s early-stage research activities in Munich and
resulted in a reduction in the total workforce of approximately 38%
or 38 employees. The Company recognized a restructuring charge of �
1.7 million during the first quarter of 2008. These charges
primarily consisted of employee severance and termination benefits
and were included in both research and development and general and
administrative expenses. The Company expects to incur an additional
charge of � 0.3 million in 2008 relating to the February 2008
restructuring plan. In addition, the Company announced that, by
mutual consent, Elmar Maier, Ph.D., Chief Operating
Officer/Martinsried and Senior Vice President, Business
Development, and Sebastian Meier-Ewert, Ph.D., Senior Vice
President and Chief Scientific Officer retired from their positions
on the Management Board of the Company to allow for an appropriate
resizing of the Board, given the reduced size of the Company. Both
Dr. Maier and Dr. Meier-Ewert remain dedicated to the Company as
advisors. Included in the restructuring charge of � 1.7 million
during the first quarter of 2008, as mentioned above, is the
accrual relating to severance for these former Board members which
was paid in April 2008. A summary of the significant components of
the restructuring liability at March 31, 2008, is as follows (in
thousand �): � Employee � Lease � � Termination Termination
Benefits Costs Total � � � January 1, 2008 Balance 2,327 2,214
4,541 � Amortization of Lease Loss - (71) (71) � Restructuring
Charges 1,673 - 1,673 � Restructuring Payments (1,762) (682)
(2,444) � Exchange Differences (96) (121) (217) � � � March 31,
2008 Balance 2,142 1,340 3,482 A restructuring liability of � 3.5
million and � 4.5 million as of March 31, 2008 and December 31,
2007, respectively, is included in accrued expenses and other
current liabilities in the accompanying condensed consolidated
balance sheets. For further information, please refer to Note 10 to
the consolidated financial statements and footnotes thereto for the
year ended December 31, 2007. Gain on Disposal of Property and
Equipment During the first quarter of 2008, the Company sold some
of its assets (mainly laboratory equipment and office furniture) at
both the Princeton and Munich facilities. These assets had a
historical cost of approximately � 0.4 million and a net book value
of approximately less than � 0.1 million. The Company recorded a
gain of approximately � 0.3 million relating to the sale of these
assets. 8. Disclosures Required by the Frankfurt Stock Exchange
Number of Employees As of March 31, 2008 and 2007, the number of
employees totaled 106 and 261, respectively. Shareholdings of
Management As of March 31, 2008, the members of the Management
Board and Supervisory Board held shares, stock options, convertible
bonds and stock appreciation rights in the amounts set forth in the
table below: � � Number of Shares � Number of Stock Options �
Number of Convertible Bonds � Number of Stock Appreciation Rights
Management Board � � � � � � � � Bernd R. Seizinger, M.D., Ph.D.
(Chairman) � 111,499 � 789,000 � 1,413,501 � - Torsten Hombeck, Ph.
D. - 172,700 45,000 - � Supervisory Board � � � � � � � � J�rgen
Drews, M.D. (Chairman) 26,900 10,000 12,500 80,000 Michael Lytton
(Vice Chairman) 7,500 10,000 31,500 60,000 Metin Colpan, Ph.D.
19,400 10,000 10,000 45,000 Donald Soltysiak - - - 10,000 James
Frates 1,000 - - 60,000 Peter Preuss 87,500 - 22,500 50,000
Gpc Biotech AG ADS (MM) (NASDAQ:GPCB)
Historical Stock Chart
From Aug 2024 to Sep 2024
Gpc Biotech AG ADS (MM) (NASDAQ:GPCB)
Historical Stock Chart
From Sep 2023 to Sep 2024