GTX: license fee from Ipsen boosts cash to $70.9 million, will fund operations to 2008

By Angela McDaniels

Seattle, Nov. 2 - GTx, Inc.'s cash and cash equivalents fell by 40% to $44.6 million at Sept. 30 from $74.0 million at Dec. 31, 2005, according to a company news release.

With the addition of an upfront license fee on Oct. 7 and expense reimbursement from the company's collaboration with Ipsen Group, however, GTx's cash and cash equivalents total $70.9 million.

Total revenues increased by 72% to $1.1 million for the third quarter ended Sept. 30 from $622,000 for the same quarter of 2005. The $1.1 million figure included collaboration revenue from Ipsen, which acquired from GTx the exclusive rights to develop and market Acapodene (toremifene citrate) in the European Union, Commonwealth of Independent States and certain other European countries.

GTx is developing Acapodene in two indications in men: Acapodene 80 mg for the treatment of multiple side effects of androgen deprivation therapy for advanced prostate cancer, and Acapodene 20 mg for the prevention of prostate cancer in men with the precancerous lesion of the prostate, high grade prostatic intraepithelial neoplasia.

"Financially, the partnership's upfront payment yielded GTx sufficient cash to meet our projected operating requirements through the first quarter of 2008, by which time we expect to have received data from our two pivotal phase 3 clinical trials," chief executive officer Mitchell S. Steiner said in the release.

The net loss for the third quarter was $10.9 million, or $0.35 per share, compared with $9.9 million, or $0.40 for the third quarter of 2005. The company said this is consistent with its previously stated financial guidance.

Revenues for the nine months ended Sept. 30 fell by 6% to $2.9 million from $3.1 million for the first nine months of 2005.

The net loss for the first nine months was $30.8 million, or $0.99 per share, compared with $29.0 million, or $1.18 per share, for the same period of 2005.

GTx is a biopharmaceutical company based in Memphis, Tenn., that develops therapeutics for cancer and serious conditions related to men's health.

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