Genta Incorporated (OTCBB: GETAD.OB) today announced financial results for the quarter ending June 30, 2010. Corporate highlights for the quarter included:
- Tesetaxel dose-ranging studies show potential activity in taxane-resistant breast cancer
- Survival results from AGENDA Phase 3 trial of Genasense® in advanced melanoma on track for expected followup completion in Q1 2011
- Pooled results from two Phase 3 trials of Genasense® confirm significance of secondary endpoints
- New Ganite® clinical trial initiated for treatment of serious infections in cystic fibrosis
- Reverse stock split implemented as approved by stockholders
In June 2010, the Company received stockholder approval to authorize a reverse stock split of its common stock. Subsequently, a 1-for-100 reverse stock split was approved by the Company’s Board of Directors and became effective on August 2, 2010. All share and per share data included in this press release have been retroactively adjusted to account for the effect of the aforementioned reverse stock split for all periods presented.
The results for the second-quarter and six months ended June 30, 2010 and 2009, respectively, include the impact of the mark-to-market accounting for the liabilities for the conversion features of its notes, debt warrants and warrants that were issued in its financings, including the financing that was closed in March 2010. These liabilities fluctuate according to the price of Genta’s common stock, and as a consequence, these fluctuations have caused the Company to report positive net income for the second quarter of 2010.
For the second quarter of 2010, the Company reported net income of $25.4 million, or net income per basic share of $3.66 per share and net income per fully diluted share of $0.42 per share, compared with a reported net loss of $(43.1) million or $(62.56) per basic and diluted share, for the second quarter of 2009. For the six months ended June 30, 2010, the Company reported a net loss of $(141.2) million, or $(30.84) per basic and diluted share, compared with a net loss of $(54.1) million, or $(124.27) per basic and diluted share, for the six months ended June 30, 2009. Presently, the Company has approximately 8.4 million outstanding shares of Common Stock.
At June 30, 2010, Genta had cash and cash equivalents totaling $15.6 million, compared with $1.2 million at December 31, 2009. Net cash used in operating activities for the 6 month period ending June 30, 2010 was $6.3 million. We project that our average net monthly cash outflow will be approximately $1.2 million for the balance of 2010.