Targanta Reports Second Quarter and Six-Month 2008 Financial Results
August 07 2008 - 6:58AM
Business Wire
Targanta Therapeutics Corporation (Nasdaq: TARG) today reported
financial results for the second quarter and six months ended June
30, 2008. Targanta reported a net loss of $17.1 million for the
three months ended June 30, 2008, compared to a net loss of $12.1
million for the same period in 2007. This increase is primarily due
to increases in research and development (R&D) expense
including pre-clinical, clinical and manufacturing expenses in
preparation for the potential commercial launch of the Company�s
lead antibiotic candidate, oritavancin. The increase in R&D
expense also includes regulatory filing fees associated with the
submission of Targanta�s Marketing Authorization Application (MAA),
which seeks approval to commercialize oritavancin in the European
Union. The net loss is also attributable to an increase in general
and administrative expenses, primarily as a result of developing
the infrastructure to support the potential commercial launch of
oritavancin. For the six months ended June 30, 2008, the Company
reported a net loss of $34.7 million compared to a net loss of
$30.8 million for the same period in 2007. The calculation of net
loss for the second quarter and six months ended June 30, 2008
includes stock-based compensation expense of $0.9 million and $1.3
million, respectively. The Company had cash, cash equivalents and
short-term investments totaling $58.7 million as of June 30, 2008
and approximately 21.0 million shares outstanding. About Targanta
Therapeutics Targanta Therapeutics Corporation (Nasdaq: TARG) is a
biopharmaceutical company focused on developing and commercializing
innovative antibiotics to treat serious infections in the hospital
and other institutional settings. The Company�s pipeline includes
an intravenous version of oritavancin, a semi-synthetic
lipoglycopeptide antibiotic currently awaiting U.S. and EU
regulatory approval; a program to develop an oral version of
oritavancin; and, a number of antibacterial agents in pre-clinical
development. The Company has operations in Cambridge, MA,
Indianapolis, IN, and Montreal, Qu�bec, Canada. For more
information on Targanta, visit www.targanta.com. Safe Harbor
Statement This press release contains �forward-looking statements�
that are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These are statements that
are predictive in nature, that depend upon or refer to future
events or conditions or that include words such as �potential,�
�may,� "will," "expects," "projects," "anticipates," "estimates,"
"believes," "intends," "plans," "should," "seeks," �hope� and
similar expressions. Such statements include, but are not limited
to, the potential commercial launch of oritavancin and approval to
commercialize oritavancin in the European Union. Forward-looking
statements involve known and unknown risks and uncertainties that
may cause actual future results to differ materially from those
projected or contemplated in the forward-looking statements.
Forward-looking statements may be significantly impacted by certain
risks and uncertainties described in Targanta�s filings with the
Securities and Exchange Commission. The risks and uncertainties
referred to above include, but are not limited to, delays in
obtaining or a failure to obtain regulatory approval for Targanta�s
product candidates; unfavorable clinical trial results; Targanta�s
potential inability to initiate and complete pre-clinical studies
and clinical trials for its product candidates; the possibility
that results of pre-clinical studies are not necessarily predictive
of clinical trial results; and those other risk factors that are
described more fully in the Company�s filings with the Securities
and Exchange Commission. Targanta does not undertake any obligation
to update any of these forward-looking statements to reflect a
change in its views or events or circumstances that occur after the
date of this release. CONSOLIDATED STATEMENTS OF OPERATIONS (in
thousands, except share and per share amounts) (unaudited) � �
Three Months Ended June 30, Six Months Ended June 30, 2008 � � 2007
� 2008 � � 2007 � � Operating expenses Research and development (1)
$ 12,859 $ 9,405 $ 27,138 $ 14,844 Acquired in-process research and
development � � � 9,500 General and administrative (1) 4,189 2,847
7,807 4,782 � � � � � � � � Total operating expenses � 17,048 � �
12,252 � � 34,945 � � 29,126 � � Other income (expense) Interest
income 466 556 1,334 1,014 Interest expense (602 ) 273 (1,245 )
(1,937 ) Foreign exchange gain (loss) 5 (789 ) (14 ) (853 ) � � � �
� � � � Other income (expense), net � (131 ) � 40 � � 75 � � (1,776
) � Loss before income tax benefit (17,179 ) (12,212 ) (34,870 )
(30,902 ) Income tax benefit 74 83 140 54 � � � � � � � � Net loss
$ (17,105 ) $ (12,129 ) $ (34,730 ) $ (30,848 ) � Net loss per
share�basic and diluted $ (0.82 ) $ (479.78 ) $ (1.66 ) $ (1,229.07
) � Weighted average number of common shares used in net loss per
share�basic and diluted 20,970,490 25,282 20,969,873 25,282 � � (1)
Amounts include stock-based compensation expense, as follows: �
Research and development $ 312 $ 739 $ 569 $ 747 General and
administrative $ 546 $ 592 $ 761 $ 603 CONDENSED CONSOLIDATED
BALANCE SHEETS (in thousands) (unaudited) � � June 30, 2008
December 31, 2007 � Assets Current assets: Cash, cash equivalents
and short-term investments $ 58,682 $ 89,753 Restricted cash 491
506 Investment tax credits recoverable 516 757 Prepaid expenses and
other current assets � 1,372 � 1,630 Total current assets 61,061
92,646 Property and equipment, net 1,276 1,350 Deferred financing
costs 86 103 Deposits � 72 � 50 Total assets $ 62,495 $ 94,149 �
Liabilities and Stockholders� Equity Current liabilities: Accounts
payable and accrued expenses $ 12,578 $ 6,591 Income tax payable
674 2,731 Current portion of deferred rent 34 24 Current portion of
long-term debt � 6,591 � 5,480 Total current liabilities 19,877
14,826 Other long-term liabilities 259 163 Long-term debt 10,991
14,287 Stockholders� equity � 31,368 � 64,873 Total liabilities and
stockholders� equity $ 62,495 $ 94,149
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