Print
Email
GenVec Inc. (GNVC) filed Quarterly Report for the period ended 2011-09-30.
Genvec Inc. has a market cap of $37.5 million; its shares were traded at around $2.9 with and P/S ratio of 2.3.
This is the annual revenues and earnings per share of GNVC over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of GNVC.
Highlight of Business Operations:
GenVec s net loss was $1.5 million (or $0.11 per share) on revenues of $4.3 million for the three months ended September 30, 2011. This compares to a net loss of $2.4 million (or $0.18 per share) on revenues of $5.2 million in the same period in the prior year. GenVec s net loss was $4.9 million (or $0.38 per share) on revenues of $14.4 million for the nine months ended September 30, 2011. This compares to a net loss of $11.3 million (or $0.90 per share) on revenues of $11.3 million for the nine months ended September 30, 2010. Included in our net loss for the first nine months of 2011 was stock-based compensation expense of $1.2 million as compared to $1.4 million for the same period in the prior year. GenVec ended the third quarter of 2011 with $28.5 million in cash, cash equivalents, and short-term investments. All per share information presented gives effect to the Reverse Stock Split, described below.In January 2010, we signed a research collaboration and license agreement (the Agreement) with Novartis to discover and develop novel treatments for hearing loss and balance disorders. Under terms of the Agreement, we licensed the world-wide rights to our preclinical hearing loss and balance disorders program to Novartis. At the time of entering into the Agreement, we received a $5 million non-refundable upfront license fee and Novartis purchased $2.0 million of our common stock. The common stock was recorded at fair value of $3.3 million on the date of issuance. The upfront non-refundable fee will be recognized ratably over the term of the two-year research and collaboration term of the Agreement. We will recognize revenue of $3.7 million from the non-refundable upfront license fee over the term of the Agreement, which reflects a discount of $1.3 million as a result of the difference between the issuance price and the fair value of the common stock issued to Novartis. In addition, we will receive funding from Novartis for a research program focused on developing additional adenovectors for hearing loss. If certain clinical, regulatory, and sales milestones are met, we were eligible, at the inception of the Agreement, to receive up to $206.6 million in milestone payments in addition to royalties on future sales, if any. In September 2010, we achieved the first milestone and received payment of $300,000, which was triggered by the successful completion of certain preclinical development activities. During the three-month and nine-month periods ended September 30, 2011 we recognized $466,000 and $1,398,000, respectively, of the upfront payment and $610,000 and $1,389,000 for research performed under this Agreement. During the three and nine month periods ended September 30, 2010 we recognized $466,000 and $1,321,000, respectively of the upfront payment and $386,000 and $973,000, respectively, for research performed under the Agreement.
In February 2010, we signed a new contract with the DHS to continue the development of adenovector-based vaccines against foot-and-mouth disease (FMD). Under this new contract, GenVec is eligible to receive up to $3.8 million in program funding the first year and up to an additional $0.7 million if DHS exercises its renewal option under the contract. Under this contract, we will use our adenovector technology to develop additional FMD-serotype candidate vaccines and also explore methods to increase the potency and simplify the production process of adenovector-based FMD vaccines. In June 2010 the DHS exercised its renewal option for 2011 funding under this agreement for an additional $0.7 million. During the three and nine month periods ended September 30, 2011 we recognized $441,000 and $1.5 million, respectively, for services performed under this agreement. There was $292,000 and $327,000 of revenue recognized respectively, under this contract during the three and nine month periods ended September 30, 2010.
The decrease for the three-month period ended September 30, 2011 as compared to the comparable period in 2010 is primarily due to a $0.8 million decrease in revenue from our collaboration with Novartis related to the timing of manufacturing activities and efforts in 2011; and a $0.4 million decrease in revenue due to decreased work scope in our HIV program. Partially offsetting these decreases are increased revenue associated with our animal health program of $0.3 million due to increased work scope with DHS. The increase for the nine-month period ended September 30, 2011 is primarily due to higher revenue under the Novartis agreements of $3.2 million. The variance is due to increased work scope related to the timing of manufacturing activities and efforts in 2011 as compared to the 2010 period. In addition, revenue associated with our animal health program has increased $1.2 million due to increased work scope with DHS and licensing revenue and work performed under the Merial agreements. Partially offsetting these increases is decreased revenue associated with our HIV program of $1.4 million as compared to the comparable prior year period due to decreased work scope.
For the nine months ended September 30, 2011, we used $6.5 million of cash for operating activities principally to fund our operating loss of $4.9 million. This net loss included approximately $175,000 of non-cash depreciation and amortization and $1.2 million of non-cash stock compensation expense. In addition, there was a net decrease in unearned revenue of $1.6 million, due mainly to the Novartis agreement, and a decrease in accounts payable and accrued expenses of $1.8 million. Net cash was used primarily for the advancement of our internally funded research programs, the termination activities associated with our PACT trial, and general and administrative activities.
Subscribe RSS
