GenVec, Inc. announced its financial results for the three months and six months ended June 30, 2011.
"During the second quarter we made significant progress in key programs including our collaboration with Novartis to develop treatments for hearing loss and balance disorders," said Dr. Paul Fischer, president and chief executive officer. "We enter the second half of 2011 with strong momentum and look ahead to achieving key objectives in this collaboration as well as in our vaccine programs including foot-and-mouth disease and respiratory syncytial virus."
• In April, research was published describing how GenVec technology, utilising a vector targeted to supporting cells and limited in expression to those cells, can be used to restore balance function in an animal model.
• In May, we expanded our relationship with Merial, the animal health division of sanofi-aventis, to include the evaluation of our technology for use against swine diseases.
• In May, we regained compliance with NASDAQ listing requirements.
• At the company's annual meeting in June, Adel A.F. Mahmoud, M.D., Ph.D. and Edward M. Connor, Jr., M.D. were elected to the company's board of directors adding to the board's expertise in the areas of infectious disease and vaccine development.
Financial results for the three and six months ended June 30, 2011
GenVec reported a net loss of $1.2 million ($0.10 per share) for the three months ended June 30, 2011 compared to a net loss of $4.2 million ($0.33 per share) in the comparable quarter of 2010. For the six months ended June 30, 2011, GenVec's net loss was $3.5 million ($0.27 per share) compared to a net loss of $8.9 million ($0.72 per share) for the six months ended June 30, 2010.
Revenues for the three-month and six-month periods ended June 30, 2011 were $4.7 million and $10.0 million, respectively, compared to revenues of $3.2 million and $6.1 million in the comparable prior year periods. The increase for the three-month and six-month periods ended June 30, 2011 is primarily due to revenue increases associated with our hearing program with Novartis of $1.4 million and $4.0 million, respectively. The higher revenue under the Novartis agreement is a result of the increased work scope and effort in 2011 as compared to the 2010 period.
In addition, revenue associated with our animal health program has increased $0.6 million and $0.8 million, respectively, during the three and six month periods ended June 30, 2011 as compared to the comparable prior year periods 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 $0.4 million and $1.0 million during the three and six month periods ended June 30, 2011 as compared to the comparable prior year periods due to decreased work scope.
Operating expenses were $6.0 million and $13.5 million for the three-month and six-month periods ended June 30, 2011, respectively, representing decreases of 19 percent and 11 percent as compared to $7.4 million and $15.1 million in the comparable prior year periods. The decrease in both periods is primarily due to lower clinical costs as a result of the termination of the PACT trial and to a lesser extent lower professional costs. In the six-month period ended June 30, 2011, these decreases are partially offset by increased manufacturing costs for our hearing loss program as compared to the comparable period in 2010.
GenVec ended the second quarter of 2011 with $30.6 million in cash, cash equivalents, and short-term investments.
"We anticipate revenues for 2011 will be between $20.0 million and $22.0 million. We currently project our cash burn to be between $6.0 million and $8.0 million for the 12 months ending June 30, 2012," commented GenVec's senior vice president and chief financial officer, Douglas J. Swirsky.