GPC Biotech 4Q net loss widens; company predicts doubling of revenue in 2006

By Angela McDaniels

Seattle, March 15 - GPC Biotech AG's net loss for the fourth quarter ended Dec. 31 increased by 25% to €17.2 million, or €0.57 per share, from €13.8 million, or €0.50 per share, for the fourth quarter of 2004, according to a company news release.

Net loss increased by 56% to €62.2 million, or €2.08 per share, for the year ended Dec. 31 from €39.9 million, or €1.60, for 2004.

Revenue decreased by 20% to €2.8 million for the fourth quarter of 2005 from €3.5 million for the same quarter of 2004, according to the release.

Revenue for the 2005 decreased by 26% to €9.3 million from €12.6 million for 2004. The company attributed the decrease to an expected reduction in revenue from its ongoing collaboration with Altana Pharma AG. Additionally, no revenue from the co-development and license agreement with Pharmion Corp. was recognized in 2005.

"We expect revenues to approximately double in 2006 compared to 2005. For 2006 we expect research and development expenses to increase moderately compared to 2005 as regulatory-related expenses increase and we initiate new and expand existing clinical trials," senior vice president and chief financial officer Mirko Scherer said in the release.

"Fortunately, our agreement with Pharmion provides us substantial development-related funding as we move satraplatin forward. This important collaboration, in addition to our recent private placement, puts us in a strong financial position at such an important time for our company."

In the first quarter of 2006, the company received an additional €67.5 million from an upfront development-related payment of €31.3 million from Pharmion in connection with the co-development and license agreement signed in December 2005 and €36.2 million through a private placement with two investment companies owned by SAP co-founder Dietmar Hopp and his son, respectively.

GPC Biotech is a biopharmaceutical company with headquarters in Martinsried and Munich, Germany, that develops treatments for cancer.

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