OTCPicks.com Stocks to Watch for Wednesday, April 1st
SPSN, ENA,
AMNE,
DCPI,
MBRX,
TGEN Our Stocks to Watch tomorrow include Spansion Inc. (Nasdaq:
SPSN), Enova Systems Inc. (Amex: ENA), American Green Group Inc. (OTC:
AMNE), Deer Consumer Products Inc. (OTCBB:
DCPI), Metabasis Therapeutics Inc.
(Nasdaq:
MBRX) and Targeted Genetics Corp. (Nasdaq:
TGEN).
Visit http://www.otcpicknews.com/otpmail/link.phpM191&N8&L9 to register for our Daily Market Mover`s Digest Newsletter, and Email Stock Watch Alerts.
SPANSION INCORPORATED (NASDAQ:
SPSN) "Up 159.40% on Tuesday" Detailed Quote: http://www.otcpicknews.com/otpmail/link.phpM191&N8&L7 Spansion is a leading Flash memory solutions provider, dedicated to enabling, storing and protecting digital content in wireless, automotive, networking and consumer electronics applications. Spansion, previously a joint venture of AMD and Fujitsu, is the largest company in the world dedicated exclusively to designing, developing, manufacturing, marketing and selling Flash memory solutions. Spansion, the Spansion logo, MirrorBit, MirrorBit Eclipse, ORNAND, ORNAND2, HD-SIM, Spansion EcoRAM and combinations thereof, are trademarks of Spansion LLC in the U.S. and other countries. Other names used are for informational purposes only and may be trademarks of their respective owners.
SPSN News:
March 23 - Spansion Provides Business Update Spansion Inc. (Nasdaq:
SPSN) the world`s largest pure-play provider of Flash memory solutions, released its fourth quarter net sales results and issued its net sales outlook for the current fiscal quarter.
In the fiscal fourth-quarter ended December 31, 2008, net sales were $468 million. During the fiscal first quarter 2009, ending March 29, Spansion anticipates net sales of approximately $400 million, driven by sales in certain telecommunications and gaming segments as well as advance purchases from certain customers, offset by continued weakness in the overall economy during a quarter that is seasonally down compared to the fourth quarter.
"Despite a troubled economy, Spansion gained segment share in the fourth quarter while keeping average selling prices relatively stable," said John Kispert, Spansion president and CEO. "In addition, net sales in the first quarter are an indication of the continued customer demand for Spansion solutions." The company also said it believes its chapter 11 cases are progressing well. The company also noted that it is looking forward to working closely with its creditors in the weeks and months ahead on a plan of reorganization for the company.
"The decisions we made to reduce costs were difficult, but necessary," Kispert said. "As a result of those actions, Spansion expects to meet its post-petition obligations, and is leveraging its global manufacturing facilities to meet customer demand. Spansion is experiencing relatively typical seasonal patterns during the first quarter and is conducting business as usual. We plan to continue to take the necessary actions to strengthen our cash position, to help enable Spansion to emerge from the Chapter 11 process as a stronger and more focused company." As part of the restructuring process, Spansion also continues to pursue strategic alternatives and is in discussions with multiple companies regarding the potential sale of some or all of the company`s assets.
The unaudited results for the fourth quarter 2008 and the outlook for the first quarter 2009 are preliminary and subject to change. For example, the company is currently conducting an impairment assessment of its fixed assets, goodwill and long-lived intangible assets. This ongoing assessment will result in material non-cash charges to the income statement and an associated reduction in the carrying values of the assets disclosed on the balance sheet. Final fourth quarter 2008 results will be provided in the company`s Annual Report on Form 10-K to be filed with the U.S. Securities and Exchange Commission (SEC).
ENOVA SYSTEMS INCORPORATED (AMEX: ENA) "Up 94.00% on Tuesday" Detailed Quote: http://www.otcpicknews.com/otpmail/link.phpM191&N8&L63 Enova Systems is a leading supplier of efficient, environmentally friendly digital power components and systems products. The Companys core competencies are focused on the development and commercialization of power management and conversion systems for mobile applications.
Enova applies unique enabling technologies in the areas of alternative energy propulsion systems for light and heavy-duty vehicles as well as power conditioning and management systems for distributed generation systems. The Company develops, designs and produces non-invasive drive systems and related components for electric, hybrid-electric, and fuel cell powered vehicles in both the new and retrofit vehicle sales market.
ENA News:
March 31 - Enova Reports 2008 Results, Issues Update for 2009 Comments on 2009 Order Book; Strengthens Market Position with Borg Warner Relationship; Achieves Dual ISO Certifications; Applies for Funding from the Department of Energy Enova Systems, Inc. (Amex: ENA) (AIM: ENV/
ENVS), a production company in the emerging alternative energy industry and a leading developer of proprietary electric, hybrid and fuel cell digital power management systems, announced that it has filed its 2008 Annual Report on Form 10-K, as well as offering a detailed update.
Enova President and CEO Mike Staran commented, Economic turmoil in the second half of 2008 negatively affected our results for the period. In spite of the resulting economic recession that has impacted global trade, revenue, and earnings across our key target markets, the market potential remains strong. Enova has recently won some impressive volume orders, and we continue to mature our new customer and product development pipeline. Our industry is poised for rapid growth, and we are working diligently to assure that Enova is positioned to capitalize on this growth.
Some examples of our developing 2009/10 order book:
1) In the first quarter of 2009, Enova received a purchase commitment for one hundred and seventy (170) P90 pre-transmission hybrid systems from First Auto Works of China (FAW), to be delivered in 2009. Enova has delivered twenty (20) of these systems at the time of this release, and is continuing production to fulfill this order. FAW forecasts that they will order three hundred (300) systems to be delivered in 2010.
2) Enova has begun to realize orders from Navistar, as Navistar has finalized several recent sales incentive programs. The school bus project has gained recent traction by confirmed actions of 1) providing a universal extended warranty of up to 12 years in certain target markets; 2) a significant funding opportunity through the
USEPA Diesel Emissions Reduction Act, resulting in a vastly improved value proposition to the end user; and 3) dedicated funding specialists to pursue product funding for dealers and end users.
3) In the first quarter of 2009, Enova received an order from Smith Electric Vehicles U.S. Corporation (
SEVUS Corp.) to deliver at least forty-five (45) P120 systems per quarter, starting in the second quarter of 2009. Enova and Smith have worked closely over the past year to re-align our sell through expectations, both in the UK with Smith Electric Vehicles, and here in the U.S. with
SEVUS Corp. We are excited to see the results of these efforts have resulted in additional traction for both Enova and Smith.
4) REV Technologies Inc. of Vancouver B.C. has selected the Enova Systems P90 all-electric drive system package for its REV Direct Drive electric vehicle conversion program. REV is now offering all-electric versions of the Ford Ranger pickup and Escape SUV to provincial government and utility fleet operators throughout Canada.
We also are taking steps to expand our product offerings for new markets:
A) Enova Systems and Borg Warner Automotive have confirmed the execution of a memorandum of understanding which outlines the terms of a sales and marketing alliance that involves the commercialization of a combined drivetrain module. BorgWarner Inc. (NYSE: BWA - News) is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide. The FORTUNE 500 Company operates manufacturing and technical facilities in 60 locations in 18 countries.
Customers include VW/Audi, Ford, Toyota, Renault/Nissan, General Motors, Hyundai/Kia, Daimler, Chrysler, Fiat, BMW, Honda, John Deere, PSA, and MAN.
B) Enova will seek to further commercialize our drive systems by offering direct to market retrofit post transmission hybrid and all electric vehicle solutions. The non-invasive and versatile nature of Enovas designs lends ourselves as a highly viable production alternative in the market today. Economic factors, including lengthened vehicle service lives, government funding opportunities, and more affordable energy storage, indicate that a positive vehicle payback point is achievable in a retrofit application. Enova has begun a targeted marketing campaign and currently has several vehicles in fleet retrofit trials. Our standing relationships with bus districts, fleet operators, transit authorities, and the US Military allow us an attractive market base for our drive systems.
C) In March 2009, Enova was officially certified to both the International Standards Organization (ISO) 9001:2000 Quality Management System and ISO 14001:2004 Environmental Management System standards. These certifications are the culmination of focussed effort over the past 12 months to develop and document business processes which are worthy of our cutting edge technology.
Enova is actively evaluating all public funding opportunities, including:
1) Enova has filed a loan application to the U.S. Department of Energy through the
ATVM Loan Program. This provides loans to automobile and automobile part manufacturers for the cost of re-equipping, expanding, or establishing manufacturing facilities in the United States to produce advanced technology vehicles and components for such vehicles.
Enova is applying for the funding of a light duty drive system with the goal of commercialization of the associated components.
2) As part of the American Recovery and Reinvestment Act of 2009, the U.S. Department of Energy also announced funding opportunities in the form of cost share grants for supporting the construction of U.S. based manufacturing plants to produce batteries, electric drive components, and to establish development, demonstration, evaluation, and education projects to accelerate the market introduction and penetration of advanced electric drive vehicles. These grants carry potential award floors ranging from $20 million through $100 million for each winning grant. Enova is currently exploring opportunities opened up by the issuance of these grants with vehicle OEMs.
3) The California Air Resources Board (
CARB) through AB 118, recently highlighted in a meeting notice that a $25 million voucher incentive program would be implemented to accelerate the deployment of about 1,000 hybrid trucks and buses in California.
CARB also announced an advanced technology demonstration project of $3 million for transit and school buses. Enova believes these programs will lower the acquisition cost of a hybrid school bus for our California customers and create another funding opportunity for our current initiatives in the hybrid school bus market.
Finally, the highlights of the 2008 Annual Report 10-K are as follows:
* Total 2008 net loss was $12,894,000 on $6,443,000 in revenue for the year. Total fourth quarter 2008 net loss was $3,683,000 on $632,000 in revenue.
* Gross margin for the year ended 2008 was a negative 27.6% on revenue of $6,443,000, compared to a gross margin of negative 12.4% on revenue of $9,175,000 for the year ended 2007.
* Gross margin for the quarter ended December 31, 2008 was a negative 183.2% on $632,000 in revenue, compared to a gross margin of negative of 1.4% on $4,032,000 in revenue for the same period in 2007. The primary reason for this decrease was an inventory charge of $646,000, taken in the fourth quarter of 2008.
* In 2008, Enova delivered 224 systems, representing a 42% decrease in unit delivery volume in contrast to 2007, when we shipped 384 systems.
Enova evaluates all of our current endeavors with an eye towards the balance of value versus vision. This balance changed quite significantly with the financial crisis in late 2008. Consequently, Enova completed a series of reorganization efforts aimed at adapting to revised customer demand forecasts. We re-aligned our engineering and program management functions, as well as concentrated our R&D resources in support of a focused, yet flexible, customer development and marketing strategy. Enova continues to support all of our critical customers, development, and production requirements.
AMERICAN GREEN GROUP INCORPORATED (OTC:
AMNE) "Up 88.24% on Tuesday" Detailed Quote: http://www.otcpicknews.com/otpmail/link.phpM191&N8&L6
AMNE is moving into the six billion building insulation business by becoming a cutting edge chemical sales company. The company is creating a new, wholly owned subsidiary to operate this business which will be headed by Terry Mixon, who plans on implementing this business strategy by using the web, mailing, telephone marketing, and television advertising campaign to grow our associate applicator membership to at least 5 distributor companies in each state.
AMNE will begin by recruiting known successful application companies in each state then begin a web-based associate membership drive. The corporation will offer equipment, training and great pricing plus marketing support through the web program to all new associates.
AMNE News:
March 30 -
AMNE Changes Transfer Agents American Green Group, Inc. (OTC:
AMNE) announced that as of March 25, 2009 the Company switched its transfer agent services from Executive Registrar to Ole Monmouth Stock Transfer Co, Inc.
AMNE mentioned in December of last year that it had intended on switching transfer agents because of the issues surrounding its previous transfer agent.
DEER CONSUMER PRODUCTS INCORPORATED (OTCBB:
DCPI) "Up 100.00% on Tuesday" Detailed Quote: http://www.otcpicknews.com/otpmail/link.phpM191&N8&L64 Deer Consumer Products, Inc. is a U.S. public company headquartered in China. Supported by more than 103 patents, Deer is a market leader in the design, manufacture and sale of home and kitchen electric appliances targeting the vast Chinese domestic consumer markets as well as customers in more than 40 countries worldwide. Deer`s product lines include blenders, juicers, pressure cookers and other home appliances designed to improve home lifestyles in today`s fast paced society. With more than 100 global and domestic clients/branded products including Black & Decker, Ariete-Disney, Toastmaster, Magic Bullet, Back to Basics, and Wal-Mart, Deer has enjoyed rapid sales and earnings growth in recent years.
DCPI News:
March 31 - Deer Consumer Products, Inc. Announces Record 2008 Financial Results * Revenues of $43.8 million, EPS of $0.17, Anticipates Significant Earnings Growth in 2009 from Expanding Sales in the Chinese Domestic Markets * Revenue increased 31% to $43.8 million, strong sales growth in core products * Net income of $3.4 million * Anticipates significant earnings growth from domestic sales in 2009 Deer Consumer Products, Inc. (OTCBB:
DCPI), a market leader in the design, manufacture and sale of home and kitchen electronic appliances targeting both international and Chinese domestic markets announced audited 2008 financial results for the fiscal year ended December 31, 2008.
2008 Revenue:
1) Revenue of $43.8 million, an increase of 30.8% compared to 2007.
2) Sales of company`s proprietary "Deer" branded products reached record levels due to the company`s marketing efforts in its domestic market.
3) Overall sales growth was attributed to strong sales in core products, introduction of new products, and market share growth of its brand name products in the Chinese domestic markets.
2008 Earnings:
1) Net income of $3.4 million.
2) Earnings per Share of $0.17 on a fully diluted basis.
Management Comments on 2008 Financial Performance and 2009 Outlook In 2008, Deer achieved a 30.8% growth in revenues due to increased international and domestic orders. Increased sales attest to the high quality of our products, our marketing strength and highly cooperative relationships that we have maintained with our new and returning customers. In addition to expanding our international sales under various global brands as a key supplier to global chain stores, we have started marketing household kitchen appliances domestically under our own registered "Deer" brand. Sales growth from our own brand has been promising.
Bill He, Deer`s Chief Executive Officer commented: "We are pleased with Deer`s 2008 financial performance. In 2008, in addition to expanding international sales, we continued to execute on our strategy of broadening distribution channels targeting the Chinese domestic consumer markets. In 2009, we anticipate significant growth from domestic product sales. The Chinese consumers` appetite towards home appliances has been increasing steadily despite the challenging global economy." He also said: "On the capital market front, Deer plans to apply for listing on the NASDAQ stock market in the near future as we believe an Exchange listing would broaden our investor base and better reflect our position as a global market leader in the manufacturing and marketing of home and kitchen electronics." METABASIS THERAPEUTICS INCORPORATED (NASDAQ:
MBRX) "Up 65.12% on Tuesday" Detailed Quote: http://www.otcpicknews.com/otpmail/link.phpM191&N8&L62 Metabasis Therapeutics is a biopharmaceutical company committed to the discovery, development and commercialization of novel drugs for metabolic diseases using its proprietary technology and its knowledge of processes and pathways within the liver that are useful for liver-selective drug targeting and treatment of metabolic diseases. The Company has established a broad pipeline of product candidates and advanced discovery programs targeting large markets with significant unmet needs. The Companys product pipeline includes clinical-stage product candidates and advanced discovery programs for the treatment of metabolic diseases such as diabetes and hyperlipidemia, as well as product candidates and advanced discovery programs for the treatment of liver diseases such as hepatitis and primary liver cancer. All of the Companys product candidates were developed internally using its proprietary technology and know-how.
MBRX News:
March 30 - Metabasis Therapeutics Reports 2008 Fourth Quarter and Year End Financial Results Metabasis Therapeutics, Inc. (Nasdaq:
MBRX), a biopharmaceutical company focused on innovative therapies for metabolic diseases including hyperlipidemia and diabetes, announced financial results for the fourth quarter and year ended December 31, 2008.
The net loss for the fourth quarter ended December 31, 2008 was $9.8 million, or $0.28 per share, compared to a net loss of $10.9 million, or $0.35 per share, for the fourth quarter ended December 31, 2007. The net loss for the year ended December 31, 2008 was $42.3 million, or $1.25 per share, compared to a net loss of $41.8 million, or $1.37 per share, for the year ended December 31, 2007.
The net cash usage for the year ended December 31, 2008 was $20.8 million and the Company ended the year with cash, cash equivalents and securities available-for-sale totaling $21.6 million.
Strategic Objectives In the first quarter of 2009, Metabasis restructured the Company and established a new strategic plan where Metabasis intends to add capital through the establishment of one or more new strategic collaborations, the achievement of milestones on its existing strategic collaborations, and/or through potential equity financings or other funding sources. As a result, the Company has focused its resources and efforts towards the following strategic objectives:
* Complete a 12-week Phase 2a proof-of-concept clinical trial on MB07811 and announce top-line results by year end; * Establish a strategic partnership for MB07803; * Establish a strategic partnership for the glucagon antagonist program; and * Achieve at least one research milestone from existing strategic partnerships with Merck & Co. and Roche.
Furthermore, as part of Metabasis near-term focus, the Company has not committed resources to its other clinical and discovery programs and instead will seek to secure additional financial resources through the establishment of new strategic collaborations or through a sale of one or more of the following programs:
* Pradefovir, a product candidate that has completed a 48-week Phase 2b clinical trial in patients with hepatitis B and is ready for Phase 3 clinical trials; * MB07133, a product candidate that has completed a Phase 1/2 clinical trial in patients with hepatocellular carcinoma; and * Discovery-stage programs, which have completed proof-of-concept pre-clinical studies.
Metabasis underwent significant restructuring at the end of 2008 and early 2009 in an effort to extend the Companys operating runway and consequently enhance its ability to achieve several near-term value-driving milestones, said Dr. Mark Erion, president, chief executive officer and chief scientific officer. As part of the restructuring we developed a strategic plan that focuses our resources primarily on MB07811, our liver-targeted thyroid receptor-beta selective agonist for the treatment of hyperlipidemia, and expect to deliver top-line results for a 12-week Phase 2a proof-of-concept clinical trial of MB07811 in approximately 80 patients with elevated LDL-cholesterol by year end. This Phase 2a proof-of-concept trial is expected to build on the results obtained in 2008 from our 14-day Phase 1b trial that showed that MB07811 significantly reduced LDL-cholesterol, triglycerides and the atherogenic lipoprotein, Lp(a), in subjects with mildly elevated LDL-cholesterol without affecting cardiac parameters.
The Phase 2a proof-of-concept trial is also expected to assess whether the mild, dose-related effects on liver enzymes and the dose-related mean shifts in thyroid hormones observed in the Phase 1b trial are reduced with longer treatment duration. Our commitment to this Phase 2a proof-of-concept trial and to on-going efforts focused on the identification of a second generation compound is based on our belief that this class of drugs is capable of producing a unique lipid-lowering profile that could benefit patients that fail to meet target lipid levels on statin therapies, or have elevations in both LDL-cholesterol and triglycerides, or cannot take statins.
Dr. Mark Erion further stated, Another important element of our strategic plan is the decision to establish a strategic partnership on MB07803 and have that partner fund further development of this product candidate. Key to initiating these discussions was the completion of a 14-day clinical trial in patients with poorly controlled type 2 diabetes and numerous pre-clinical studies designed to assess potential differences between MB07803 and the first generation FBPase inhibitor, CS-917, on lactate metabolism. Both were completed in March of 2009 and both provided data that we believe will help us to secure a strategic partnership for MB07803.
In addition to our work on MB07811 and MB07803, we are excited by the considerable progress we have made on our discovery programs. We believe we are well positioned to receive one or more milestone payments in 2009 from our partnered programs with Merck and/or Roche, as well as to enter into new partnerships. Our glucagon antagonist program has received considerable interest from large-cap pharmaceutical companies, and based on these discussions and the advancements we have made toward a glucagon antagonist development compound, we are optimistic about the potential to complete a partnership on this program.
We believe that completion of the Phase 2a proof-of-concept trial for MB07811, achievement of near-term research milestones with our strategic partners and establishment of one or more new strategic partnerships have the potential to produce value-driving milestones and to create significant shareholder value.
2008 and 2009 Year to Date Highlights:
MB07811 (hyperlipidemia) The Company successfully completed a 14-day, Phase 1b multiple-dose clinical trial in 56 subjects with mild hypercholesterolemia for MB07811, its liver-targeted thyroid receptor-beta agonist product candidate. The results of the trial showed that MB07811 was safe and well tolerated over the range of doses studied (0.25 to 40 mg).
Furthermore, MB07811 treatment led to statistically significant and dose-related reductions in the levels of low-density lipoprotein cholesterol (LDL-C), fasting triglycerides as well as Lp(a). No apparent cardiac effects were observed, including no differences in heart rate, heart rhythm or blood pressure between subjects treated with MB07811 and placebo. Mild increases in liver enzymes and dose-related mean shifts in thyroid hormone levels were observed at the higher doses of MB07811.
Four articles on MB07811 were published in peer-reviewed journals covering the design of MB07811 and pre-clinical findings demonstrating liver targeting, cholesterol lowering in combination with statins, and reduction of liver fat in obese mice.
MB07803 (type 2 diabetes) The Company successfully completed a 28-day Phase 2a initial proof-of-concept clinical trial in 105 patients with type 2 diabetes for MB07803, its second generation fructose-1,6-bisphosphatase (FBPase) inhibitor product candidate for the treatment of type 2 diabetes. The results showed that in this clinical trial, MB07803 was safe and well tolerated. Furthermore, MB07803 treatment led to a clinically and statistically significant reduction in fasting plasma glucose at Day 28 versus placebo.
The results of the Phase 2a initial proof-of-concept clinical trial were presented by Dr. Alan Garber at The World Congress on Controversies to Consensus in Diabetes, Obesity and Hypertension held in Barcelona in November 2008.
Based on the favorable safety profile observed in the Phase 2a initial proof-of-concept clinical trial and the Companys experience with this drug class, the Company initiated a clinical trial in which MB07803 was administered using a new tablet formulation twice-daily for 14 days to patients with poorly controlled type 2 diabetes. In the trial, MB07803 treatment resulted in dose-related, clinically meaningful and statistically significant reductions in day long glycemia at all doses evaluated (50 mg, 200 mg and 400 mg, twice-daily). In addition, clinically and statistically significant reductions in fasting plasma glucose (FPG) were observed at the two highest doses. MB07803 was considered safe at all doses tested and well tolerated up to 200 mg twice-daily. Five patients had glucose levels that gradually decreased to less than 60 mg/dL predominantly during the latter stages of an 18-hour fast with one patient showing symptoms consistent with hypoglycemia. This patient also had 3 nonconsecutive, asymptomatic elevations of lactate when glucose levels were less than 60 mg/dL. No patient in the trial experienced lactic acidosis.
Pre-clinical studies identified a difference between MB07803 and the first generation FBPase inhibitor, CS-917, that might translate to an improved safety profile for MB07803. The difference is related to a metabolite found in humans at high levels following treatment with CS-917. The metabolite was shown to inhibit mitochondrial function and alter lactate metabolism at concentrations within the range of those observed in humans. The metabolite may be a significant contributing factor in the two cases of lactic acidosis observed during co-administration of CS-917 and metformin. MB07803 generates a similar metabolite in humans but at 100-fold lower levels than CS-917, and at concentrations not expected to affect mitochondrial function.
Pradefovir (hepatitis B) Pradefovir is a HepDirect prodrug of a potent anti-viral agent that completed a 48-week Phase 2b trial in patients with chronic hepatitis B with promising results. In 2007, development of pradefovir was stopped and the rights for pradefovir returned to Metabasis from its partners, Schering Corporation and Valeant, following treatment-related tumor findings in the two-year carcinogenicity studies in rats and mice. In 2008, Metabasis convened a scientific advisory panel to provide an independent review of these findings. The scientific advisory panel concluded that there was an acceptable margin of safety for the pradefovir dose projected for a Phase 3 clinical trial. The results from the carcinogenicity studies were submitted to the FDA and were analyzed by the Executive Carcinogenicity Assessment Committee (CAC).
Based on advice from the CAC and after reviewing the animal data, the FDA concurred with the high multiple of human exposure at which any effects or potential effects occurred, and requested that Metabasis submit protocols for the FDA to review in order to resume clinical trials. Accordingly, given these results and the significant antiviral activity demonstrated in the Phase 2b trial, Metabasis plans to seek a partner to advance pradefovir into Phase 3.
Discovery Programs The Company established a two-year collaboration with Roche in which Metabasis HepDirect liver-targeting technology is being applied to Roches proprietary lead nucleosides for the treatment of hepatitis C.
Under the terms of the agreement, Metabasis received an upfront payment of $10 million and is eligible for up to $193 million in additional payments as well as royalties on net sales of any marketed product resulting from the collaboration.
The Companys three-year collaboration with Merck was extended to a fourth year in mid-2008. The collaboration is focused on the discovery of AMP-activated protein kinase activators for the treatment of type 2 diabetes.
Metabasis has made good progress on several of its discovery programs, including programs with its strategic partners. These advances are expected to result in the identification of at least two new product candidates in 2009.
2008 Fourth Quarter and Year End Results Revenues for the fourth quarter and year ended December 31, 2008 were $1.8 million and $4.8 million, respectively, compared to $1.3 million and $9.0 million, respectively, for the same periods in 2007. The $0.5 million increase in revenues for the fourth quarter ended December 31, 2008 as compared to the same period in 2007 was mainly due to the increase in revenue recognized from the Roche collaboration established in August 2008. The $4.2 million decrease in revenues for the year ended December 31, 2008 as compared to the same period in 2007 was mainly due to lower license fees and sponsored research revenues as a result of the completion of the sponsored research term of the Companys collaboration with Idenix in October 2007, the termination of its collaboration with Schering Corporation for hepatitis B and a decrease in the Merck
AMPK license fee revenue recognized as a result of the extension of the research term through June 2009. These reductions were partially offset by revenue recognized in connection with the Roche collaboration established in August 2008.
Research and development expenses for the fourth quarter and year ended December 31, 2008 were $8.5 million and $36.4 million, respectively, compared to $9.5 million and $40.9 million, respectively, for the same periods in 2007. The $1.0 million and $4.5 million decreases in research and development expenses for the fourth quarter and year ended December 31, 2008 as compared to the same periods in 2007 was mainly due to decreases in clinical and development expenses related to the MB07803, MB07811 and MB07133 programs.
General and administrative expenses for the fourth quarter and year ended December 31, 2008 were $3.0 million and $10.8 million, respectively, compared to $3.2 million and $12.4 million, respectively, for the same periods in 2007. The $0.2 million decrease in general and administrative expenses for the fourth quarter ended December 31, 2008 as compared to the same period in 2007 was mainly due to the reversal of the annual management cash bonuses which was partially offset by increased severance and other termination benefits associated with the Companys November 2008 restructuring. The $1.6 million decrease in general and administrative expenses for the year ended December 31, 2008 as compared to the same period in 2007 was mainly due to decreases in occupancy and non-cash depreciation expenses due to a change in the allocation rate of these costs and the reversal of the annual management cash bonuses which was partially offset by increased severance and other termination benefits associated with the Companys November 2008 restructuring.
Metabasis had cash, cash equivalents and securities available-for-sale as of December 31, 2008 of $21.6 million, compared to $42.4 million as of December 31, 2007. The decrease of $20.8 million was primarily due to the use of cash for operations, net of proceeds received from financing activities and the upfront license fee received from Roche.
Metabasis intends to add capital in 2009 through the achievement of milestones on its existing strategic collaborations, the establishment of one or more new strategic collaborations, and/or through potential equity financings, or other funding sources. However, excluding all future cash inflows except contractually obligated proceeds from existing strategic collaborations, the Company`s cash, cash equivalents and securities available-for-sale are estimated to support on-going operations into July 2009.
TARGETED GENETICS CORPORATION (NASDAQ:
TGEN) "Up 78.26% on Tuesday" Detailed Quote: http://www.otcpicknews.com/otpmail/link.phpM191&N8&L60 Targeted Genetics Corporation is a biotechnology company committed to the development of innovative therapies for the prevention and treatment of diseases with significant unmet medical need. A key area of focus for Targeted Genetics is applying its proprietary Adeno-Associated Virus (AAV) technology platform to deliver genetic constructs to increase gene function or silence gene function. Targeted Genetics` lead product development efforts target ocular and neurological indications, two therapeutic areas where AAV delivery may have competitive advantages over other therapeutic modalities.
TGEN News:
March 26 - Targeted Genetics to Host Conference Call and Webcast Discussion of Fourth Quarter and Year-End 2008 Financial Results on March 31, 2009 Targeted Genetics Corporation (Nasdaq:
TGEN) will report its fourth quarter and year-end 2008 results after the close of the financial markets on Tuesday, March 31, 2009. Following the announcement, management will host a conference call and webcast discussion of the financial results and provide a general corporate update beginning at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time. You may access the live webcast via the "Events" section found on the homepage of the Company`s website at www.targetedgenetics.com or via telephone at 800.866.5341 (domestic) or 303.262.2143 (international).
Replay Access Webcast replay will be available for approximately 30 days at www.targetedgenetics.com; telephone replay will be available following Wednesday`s call at approximately 5:00 p.m. PT through 11:59 p.m. PT, Friday, May 1, 2009, by calling 800.405.2236 (domestic) or 303.590.3000 (international); pass code 11128979#.
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Information contained in our report will contain "forward looking statements" as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Subscribers are cautioned not to place undue reliance upon these forward-looking statements. These forward-looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company`s most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating the forward-looking statements included in the report and not place undue reliance upon such statements. We are committed to providing factual information on the companies that are profiled. However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company`s plans or ability to effect any planned or proposed actions. We have no first-hand knowledge of any profiled company`s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related public information sources which we believe to be reliable but we cannot guarantee the accuracy of the information. To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information). We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.otcpicknews.com/otpmail/link.phpM191&N8&L4 and FINRA at http://www.otcpicknews.com/otpmail/link.phpM191&N8&L7.
Disclosure: OTCPicks.com has not been compensated by any of the companies covered in this release.
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