For Q2/11, GERN reported a net loss of $21.1M, or $0.17 per share, compared to $17M or $0.18 per share for Q2/10.
Q2/11 revenues were $462K ($150K from collaborative agreements and $312K from license fees and royalties) compared to $1M for Q2/10. R&D expenses for Q2/11 were $16.5M compared to $13.4M in Q2/10. R&D expenses were higher as a result of higher clinical drug product purchases and increased clinical trial expenses related to initiation and enrollment of 4 oncology P2 clinical trials of imetelstat and the P1 clinical trial for GRNOPC1 in patients with spinal cord injury. G&A costs were $5.33M compared to $4.5M in Q2/10. G&A expenses increased primarily due to higher non-cash stock-based compensation expense. Interest and other income for Q2/11 amounted to $287K compared to $194K for Q2/10. Unrealized gain on derivatives was $240K; losses recognized from equity method investment was $168K and other expenses logged in at $31K. Total operating expenses were $21.87M compared to $17.9M to Q2/10. Basic and diluted shares used in computing the net loss were 124.57M.
For the 1st 6 months of FY11, revenues were $2M compared to $1.9M for the comparable 2010 period. Total operating expenses were $47.7M, compared to $35.3M for the comparable 2010 period. R&D expenses were $33.3M, compared to $26.9M for the comparable 2010 period. G&A expenses were $14.4M, compared to $8.3M for the comparable 2010 period. Net loss was $45.5M, or $0.37 per share, compared to $33.7M, or $0.35 per share, for the comparable 2010 period. Interest and other income was $583K, compared to $396K for the comparable 2010 period which reflects the increase in cash and investment balances. GERN has not incurred any impairment charges on its marketable debt securities portfolio.
Guidance: GERN expects R&D expenses to increase in the future with the continued enrollment in the imetelstat P2 trials and GRNOPC1 P1 trial and the initiation of the GRN1005 P2 clinical trials in patients with brain metastases.
- GERN ended Q2/11with $192.2M in cash and investments.