Targeted Genetics Corporation Reports First Quarter 1998 Results

Targeted Genetics Corporation, a leader in the development of gene and cell therapy products, has reported its first quarter 1998 results, marking a significant milestone in the company's journey towards advancing innovative treatments for life-threatening diseases. Although the company incurred a net loss of $3.8 million, attributed to higher operating expenses and a reduction in investment income, the progress made in the quarter is a testament to the company's determination and expertise in the field. With a cash injection of $13 million from a private placement of common stock and warrants, Targeted Genetics is well-positioned to fund the continued development of its promising products and technologies.

Key Takeaways:

• The company reported a net loss of $3.8 million in the first quarter of 1998, compared to a net loss of $3.5 million in the comparable quarter of 1997.
• The increase in net loss was partially attributable to higher operating expenses, resulting from a restructuring plan implemented in mid-February, which included a workforce reduction of approximately 30 percent and a restructuring charge of approximately $300,000.
• The company's cash, cash equivalents, and securities available for sale totaled $1.8 million at March 31, 1998.
• Targeted Genetics raised $13 million through a private placement of common stock and warrants, with net proceeds of approximately $12.7 million.
• The company presented encouraging data from two Phase I studies for tgDCC-E1A, a non-viral gene therapy for cancer, and announced collaborations with several prominent organizations to advance its research and development programs.
• The company's lead product development programs target cystic fibrosis, cancer, and infectious diseases, with three Phase II studies expected to begin in the second half of 1998.
• Targeted Genetics is committed to developing innovative gene and cell therapy products to address significant gaps in treatment options for acquired and inherited diseases.

Statistics:

• Net loss: $3.8 million (1998) vs. $3.5 million (1997)
• Operating expenses: Higher in the first quarter of 1998 compared to the first quarter of 1997
• Workforce reduction: Approximately 30 percent
• Restructuring charge: Approximately $300,000
• Cash, cash equivalents, and securities available for sale: $1.8 million at March 31, 1998
• Private placement funds raised: $13 million
• Net proceeds: Approximately $12.7 million

Sources:

• Targeted Genetics Corporation (PRNewswire, May 7, 1998)
• Securities and Exchange Commission (Form 10-K for the year ended December 31, 1997)