GPC Biotech announces successful course of business for the first three months 2001
GPC Biotech (Frankfurt Stock Exchange: GPC), a leading genomics- and proteomics-driven drug discovery company, today announced a successful course of the business for the first quarter 2001.
The Company reported that revenues increased from EUR 1.0 million to EUR 2.8 million, an increase of 178% compared to the first quarter of 2000. This strong increase in revenues resulted primarily from two major new pharmaceutical alliances with Boehringer Ingelheim and the Altana pharmaceuticals group, Byk Gulden, both announced in January 2001.
As of March 31, 2001 GPC Biotech's cash, cash equivalents and available-for-sale securities amounted to EUR 111.7 million. This represents an increase of EUR 3.0 million compared to the previous quarter ended December 31, 2000. GPC Biotech reports a positive cash flow from operating activities of EUR 3.0 million, which was partially generated by the significant upfront payments received from the new alliance partners. Since the Company applies revenue recognition practice SAB 101, GPC Biotech defers these upfront payments over the terms of the agreements. The Company incurred losses of EUR 6.9 million in the first quarter of 2001 compared to EUR 17.2 million in the first quarter of 2000.
The net loss includes the amortization of goodwill and other intangible assets resulting from the last year's acquisition of GPC Biotech Inc. (formerly Mitotix, Inc.) of EUR 1.2 million and expenses for stock options of EUR 0.8 million. Both line items are not cash relevant. EBITDA & SOP (EBIDTA before stock option expenses) was a loss of EUR 5.7 million for the first quarter of 2001 compared to a loss of EUR 0.7 million for the same period one year ago. EBIT was a loss of EUR 8.1 million compared to a loss of EUR 17.0 million for the same period in 2000.
The loss per share before amortization of goodwill and other intangible assets for the first quarter of 2001 amounted to (EUR 0.32). Basic and diluted loss per share was (EUR 0.39) compared to (EUR 2.04) for the same period in 2000.
Bernd R. Seizinger, M.D., Ph.D., President and CEO of GPC Biotech commented, "The first three months of 2001 were very successful for GPC Biotech. The formation of two significant pharmaceutical alliances with the repeat customers Boehringer Ingelheim and Altana and the achievement of two milestones in our anti-microbials alliance with Altana demonstrate the power of our integrated technology platform and its commercial applicability to multiple therapeutic fields. In addition, the expansion of our pre-clinical and clinical development infrastructure with world-renowned experts in the field is a clear sign that we are continuing our forward integration toward product development. We are in a strong position to successfully advance our dual business model: generating solid revenues through pharmaceutical partners, in combination with providing aggressive upside potential through GPC Biotech's innovative internal product development pipeline."
GPC Biotech successfully started the year 2001 with the announcement of two new large pharmaceutical alliances in January. Under the up to US$ 30 million plus royalties alliance with Boehringer Ingelheim, GPC Biotech will use its integrated technology platform to identify novel targets and their molecular pathways associated with high- and low-risk human papilloma virus infection for Boehringer Ingelheim's research center in Laval, Canada (Quebec). In addition, GPC signed a five-year alliance with the Altana subsidiary Byk Gulden, which represents one of the largest Biotech alliances in Germany to date, worth up to US$ 100 million plus royalties. Under this agreement, GPC Biotech will utilize its functional genomics and proteomics technology platform to identify tumor-specific targets which, when inhibited, selectively drive cancer cells, but not normal cells, into programmed cell death, called apoptosis.
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